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How did your suburb fare during the COVID-19 crisis?

How did your suburb fare during the COVID-19 crisis?

When coronavirus broke out across Australia, doomsday reports tipped the property market could fall as far as 30% across the country. Fortunately, that wasn’t the case. Here’s how to find out how your suburb actually fared.

A realestate.com.au analysis shows that property prices actually grew in most Australian suburbs throughout 2020.

Yep, that’s right.

Despite prolonged lockdowns in some parts of the country (especially Melbourne), most suburbs experienced year-on-year growth in 2020.

Go and have a look for yourself using this realestate.com.au interactive tool to see how your suburb did.

So which suburbs did best?

It should come as no surprise that lifestyle suburbs and coastal areas (such as Pearl Beach in NSW, pictured) ranked consistently high, given that many people had a taste of working from home and might not ever have to return to their inner-city offices.

But houses in plenty of trendy inner-city suburbs did well too, such as St Lucia in Brisbane (up 35%) and Brunswick East in Melbourne (up 20%).

Below are the suburbs that experienced the largest percentage increase in house prices in each state and territory:

NSW: Pearl Beach (46%), North Avoca (44%), Glenorie (38%), Woollahra (35%), Clovelly (34%).

VIC: Portsea (34%), Tyabb (28%), South Melbourne (23%), Collingwood (22%), Brunswick East (20%).

QLD: St Lucia (35%), Virginia (24%), Yeronga (20%), Woodford (19%), Kilcoy (19%).

WA: Kelmscott (39%), Coodanup (30%), Medina (22%), Madora Bay (20%), Mosman Park (20%).

SA: Hove (36%), Port Noarlunga South (27%), Glenelg East (22%), Blackwood (22%), Craigburn Farm (22%).

TAS: Dodges Ferry (26%), New Norfolk (25%), Berriedale (18%), Bridgewater (17%), Rokeby (17%).

ACT: Ainslie (34%), Lyneham (23%), O’Connor (21%), Palmerston (20%), Garran (20%).

NT: Berriham (12%), Zuccoli (8%), Durack (8%), Muirhead (6%), Leanyer (2%).

So why didn’t property prices take a dive?

Director of economic research at realestate.com.au Cameron Kusher says there are several reasons why property prices didn’t fall dramatically, but the key reason is the unprecedented amount of stimulus that was pumped into the economy.

“HomeBuilder has stimulated new housing, JobKeeper has kept many Australians employed and the relaxation of bankruptcy laws along with lenders offering mortgage holidays ensured we didn’t see a rise in forced sales,” Mr Kusher says.

Another key reason is record-low borrowing costs.

Indeed, the RBA cut the official cash rate three times to 0.1% in 2020, and as such interest rates are now at record low levels.

“Historic low borrowing costs at a time when people are spending less has seen more demand flow into the housing market, driving up sales and supporting price levels,” adds Mr Kusher.

How to make property more affordable

As mentioned above, interest rates are at record low levels and there are still a number of government stimulus packages available to help make your next property purchase more affordable.

If you’d like us to run you through some of the support and interest rate offers in more detail, give us a call today – we’d love to help you explore your options.

House prices projected to jump 30% in three years: RBA

House prices projected to jump 30% in three years: RBA

It’s the document that was never meant to see the light of day. But a Freedom of Information request reveals the Reserve Bank of Australia projects a 30% increase in house prices if interest rates remain low for the next few years.

The internal, not-meant-for-public-viewing analysis by the RBA looks at the impact of low interest rates on asset prices, including property.

The November 2020 document projects that housing prices could increase by 30% after about three years, so long as the official cash rate remains near record low levels (at or below 0.5%).

And that part of the equation looks promising, as the RBA board said they “weren’t expecting to increase the cash rate for at least three years” when they cut it to 0.1% in November.

What does this mean for property owners?

A lot more than just a potential 30% increase in the value of their property.

The RBA says both households and businesses can expect their borrowing capacity to increase, too.

That’s because low interest rates will lift asset prices (including property), which in turn will boost wealth, household spending and the value of collateral.

And as the value of collateral increases, so too will the borrowing capacity of households and businesses, the RBA document states.

What about prospective property owners?

With house prices projected by the RBA to rise 30% over the coming three years, it begs the question: is now a good time to jump into the property market?

Well, like most things in life, it will depend on your earnings, savings, borrowing capacity, goals, and where you’re at in life right now.

But it’s worth noting that there are a wide variety of generous federal and state government initiatives currently on offer, including the First Home Loan Deposit Scheme, HomeBuilderand stamp duty exemptions/concessions.

The quickest way to find out whether you can finance that home you have your eye on is to get in touch with us today – we’d love to explore your financing options with you.

What are Australia’s most popular vehicles? The 2020 results are in

What are Australia’s most popular vehicles? The 2020 results are in

Long gone are the days of Holden vs Ford. These days it’s all about the SUV vs the great Australian ute. So which vehicle type topped the list in 2020?

Let’s wind back the clock a bit.

It’s the year 2000: we’ve dodged Y2K (phew!), you can still photograph your kids sitting next to the pilot, and you’re either a fan of Peter Brock (Holden) or Dick Johnson (Ford) – never both.

Back then the Holden Commodore and Ford Falcon were our two top-selling vehicles, both of which have been discontinued in recent years.

How times change, huh?

So what’s the most popular kind of vehicle in 2020?

These days it’s all about the SUV, which is getting more and more popular.

In fact, SUVs claimed 49.6% of the market during 2020, an increase from 45.5% market share in 2019, according to the Federal Chamber of Automotive Industries (FCAI).

Light commercial vehicles (LCVs) – mainly utes and vans – were also popular in 2020, with 22.4% market share.

Sales for this vehicle type were no doubt boosted by the federal government’s instant asset write off scheme – now expanded to ‘temporary full expensing’ – which allows businesses to immediately deduct the business portion of the cost of eligible new depreciating assets.

What are the most popular brands and models in 2020?

The highest-selling brand for the year was Toyota, with an impressive 204,801 vehicles sold for a whopping 22.3% market share in Australia, says the FCAI.

In second place was Mazda (85,640 sales for 9.3% market share), followed by Hyundai (64,807 sales for 7.1% market share).

In fourth place was Ford (59,601 sales for 6.5% market share), narrowly beating out Mitsubishi (58,335 sales for 6.4% market share).

It’s interesting to note that out of the top ten vehicles for the year, seven of them were either SUVs or LCVs.

So without further ado, the top-selling vehicles for the year 2020 were:

1. Toyota HiLux (45,176 sales)
2. Ford Ranger (40,973)
3. Toyota RAV4 (38,537)
4. Toyota Corolla (25,882)
5. Toyota Landcruiser (25,142)
6. Mazda CX-5 (21,979)
7. Hyundai i30 (20,734)
8. Mitsubishi Triton (18,136)
9. Toyota Prado (18,034)
10. Kia Cerato (17,559).

Got your eye on a vehicle? Get in touch

If you’re thinking of purchasing a new vehicle and want to explore your finance options for it, then please get in touch.

As mentioned above, if you’re a business owner and need to use the vehicle for your business, you might be able to take advantage of the federal government’s ‘temporary full expensing’ scheme, which is designed to help boost your business’s cash flow.

To find out more, please get in touch with us today – we’d love to help you hit the road in a new set of wheels.

Still haven’t found what you’re looking for? Listings to pick up soon

Still haven’t found what you’re looking for? Listings to pick up soon

While you were kicking your feet up over the festive season, did you flick open your phone and scroll through real estate listings in your dream location? If so, you might’ve noticed there were fewer properties listed for sale than usual. Here’s why.

If you couldn’t find exactly what you were looking for, don’t stress – it’s actually much harder to find ‘the one’ at this time of year.

That’s because property listings traditionally drop in December, with 2020 no exception.

In fact, according to SQM Research, national residential property listings decreased by 7.9% in December 2020, falling from 296,267 in November 2020 to 272,999.

If you compare that figure to 12 months prior, it was a 5.8% drop (that’s 2020 for you!).

What was really interesting, however, was that new listings (those less than 30 days old) dropped a whopping 17.0% in December, with 13,680 fewer new properties listed for sale than in November.

So why did the overall number of listings drop?

Well for starters, you can’t blame people for not wanting to spend their summer holidays selling their property, particularly after enduring the 2020 COVID-19 lockdown/s.

“The month of December traditionally records falls in properties listed for sale as it is the start of the festive and summer holiday period,” explains Louis Christopher, Managing Director of SQM Research.

Another factor at play could also be that two-thirds of Australians believe it’s a good time to buy property, and thus, demand is outstripping supply.

Indeed, you may have even caught one or two news reports of regional and coastal house prices soaring as city slickers decide to finally make their big escape.

This home buyer activity has been further aided by a number of federal and state government initiatives, including the First Home Loan Deposit Scheme, HomeBuilder and stamp duty exemptions/concessions.

So when can I hope to find ‘the one’?

The good news is that listings are expected to increase again shortly, according to SQM Research.

“Going forward I believe listings activity is going to remain strong in early 2021,” Mr Christopher says.

Furthermore, recent NHFIC research indicates new residential construction supply is expected to exceed demand by 127,000 dwellings in 2021 across Australia, and 68,000 dwellings in 2022 (this is due to the dramatic impact of COVID-19 on net overseas migration).

Got your eye on something?

So, how’d you go with your most recent property search? Anything catch your eye?

If so, don’t let it be “the one that got away”.

Get in touch with us today and we’d be happy to go through your financing options with you.

New year, new you: 3 quick and easy finance resolutions

New year, new you: 3 quick and easy finance resolutions

Whenever we think of New Year’s resolutions, the first thing that comes to mind is a health kick. But here are three (easy) New Year’s resolutions that’ll help improve your financial wellbeing in 2021.

Below we’ll run you through three straightforward, and most importantly, achievable New Year’s resolutions to set yourself this year.

1. Get a home loan health check

Quick question (no judgement): do you know the interest rate on your home loan?

Don’t stress if you don’t, studies show that about half of mortgage holders can’t recall their home loan interest rate.

But it does beg the question: if you don’t know your rate, how do you know whether or not you’re getting a good deal on your loan? You could very well be paying too much.

This is why making a home loan health check your New Year’s resolution is so important, particularly with interest rates at record low levels after a series of RBA cash rate cuts.

Indeed, a recent RBA study found that for loans written four years ago, borrowers are charged an average of 40 basis points higher interest than new loans.

So if it’s been a while since you’ve refinanced – so long that you can’t recall your rate – then it’s probably time to get in touch for a home loan health check to see if you can get a better deal.

Rest assured we’ll make it quick and painless. Simply get the ball rolling by giving us a call today.

2. Set yourself a financial or lifestyle goal

If you’re not back at work yet, use this precious time to carefully consider what financial goals you want to achieve in 2021.

With renewed post-COVID optimism on the horizon, now might be time to launch that business idea you’ve been thinking about.

Perhaps it’s time to upgrade from an apartment to your first house. Or with international travel on hold for a while, maybe now’s a good opportunity to explore Australia with a new set of wheels.

Whatever your flavour, consider taking stock of what you want to achieve in 2021 so that you can work out a plan to achieve it.

And if you’re unsure about how you’ll finance that goal, we’re here to discuss your funding options. We can help you work out whether you might be able to make them a reality in 2021, or if it’s more realistic to work towards 2022 instead.

3. Cut back on your microtransactions

Once you’ve identified a big financial goal to hit in 2021, you’ll want to start saving towards it.

But micro-transactions – purchases that are low in cost and trivial in nature – can be a real obstacle.

For example, did you know that buying a $4 takeaway coffee each day costs you a whopping $1460 per year, whereas making it yourself using a french press or aeropress costs just $260.

That’s a saving of $1200.

Other micro-transactions that most families can cut back on include alcohol, take-away food such as Uber Eats, gym memberships, and multiple entertainment subscriptions such as Spotify, Netflix and Foxtel.

With a little bit of budget tinkering, you can save yourself hundreds – even thousands – of dollars each month.

So what’s your first step?

That’s easy – get in touch today for resolution #1: a home loan health check.

There’s a reason tens of thousands of families are currently refinancing their home loans: competition among lenders is fierce.

And by getting the ball rolling on resolution #1, you’ll also be contributing towards resolutions #2 and #3 by saving money that you can put towards your 2021 financial goal.