Market Essentials - July 2019

Market Essentials - July 2019

According to a just released report from ANZ and Core Logic, Australia’s housing affordability is the best it’s been since 2016, helped by recent falls in property values in the Sydney and Melbourne markets. Sydney property prices have recorded the most significant decrease, dropping by 14.5% since their 2017 peaks.

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Market Essentials - June 2019

Market Essentials - June 2019

In news this month, we begin to see the property market through a post-election lens. SQM Research chief executive Louis Christopher says there has been a confidence boost to forecasts thanks to three factors: the Coalition’s election victory, a Reserve Bank interest rate cut for June to 1.25%, and the APRA proposing a relaxation of lending restrictions.

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Market Essentials - May 2019

Market Essentials - May 2019

In news this month, discussion continues to circulate about the upcoming election and the effect that policy changes could have on the property market. According to Nerida Conisbee, chief economist of REA Group, modelling by independent consultants and both sides of government predict negative gearing restrictions will cause continued falling prices while rents will rise.

It hasn’t been a good month for Sydney and Melbourne housing values, with CoreLogic data revealing median housing prices have dropped around $50K in each of the two capitals. However, Melbourne’s market overall does continue to hold up better than Sydney’s.

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Market Essentials - April 2019

Market Essentials - April 2019

In news this month, tighter credit conditions are still having a broad dampening effect on buyer activity. This isn’t just with investors, there has also been a considerable decline nationally in owner-occupier lending, according to CoreLogic.

consumers are displaying cautious attitudes towards the property market thanks to the upcoming federal election and potential changes to taxation policy.

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Understanding fixed and variable interest rates

Understanding fixed and variable interest rates

Choosing which loan structure is best for you depends on your personal situation, possible changes in income or expenses, and your short term expectations with your property. Your overriding approach should be to understand that fixed interest rates are a risk management tool; they are not necessarily a way to save money. Do not try to second guess the interest rate market. My rule of thumb is that 80% of the time lenders will end up ahead on any fixed rate loan contract, simply because they understand money markets much better than their customers.

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