Many Australians with older home loans continue to pay significantly higher interest rates than borrowers with newer home loans, potentially costing them many thousands of dollars over time, the ACCC has found in a report published in December 2020.

As the vaccine is rolled out and Australia recovers from the recession, 2021 has started out as the year of the home buyer. Have you re-assessed your position?

Ironically the Covid-19 lock down has increased savings levels across Australia. That has for many potential home buyers increased their available deposit.

Some media outlets screamed ‘it will cause another financial meltdown akin to the GFC’ following recent Federal Government announcements to curb responsible lending laws.

I have been asked by many clients for my thoughts on this, from my position as a professional accredited credit advisor acting in-between the bank and customer in support of the customer.

The truth is we need responsible lending rules and legislation. There are many vulnerable members of society who will take credit offered to them with insufficient consideration of the consequences, or of their ability to repay the debt.

But is the existing legislation pushing too far?

As the ‘year that was’ draws to a close we have pulled together some insights and some light moments for you in the December newsletter.

We wish you a safe and happy Christmas and look forward to working with you in 2021!

Strong demand for property pushes prices up, 6 benefits to downsizing your home, and Important information regarding pre-Christmas lending.

Read our latest newsletter!

As the Victorian economy struggles through the Coronavirus shutdown, one question keeps coming up: Are property prices about to crash?

Of course there are always the doomsday headline seekers. Professor Steve Keen has been predicting a 40% fall in Australian house prices “within 5 years” since the GFC in 2008. He is infamous for having bet on it happening. Which he lost, subsequently walking from Canberra to the top of Mt Kosciuszko as his ‘punishment’.

In Victoria, these crazy times make us all feel like we are in a movie, perhaps a futurist dystopian drama, or perhaps a little like JAWS 2, with COVID-19 replacing the shark?

‘It seemed we had everything under control. For a time. But nature cannot so easily be controlled: Not only did the danger return, it is worse.’

As in that movie we see our leaders needing to walk the tightrope, in a balancing act between safety and the economy. Each decision made is critical.

It is not that long ago homeowners were paying 17% on a home loan. It was a very different time to what we face now.

The RBA cash rate is at record lows, and the Reserve Bank has stated it cannot and will not drop it below the current 0.25%. We have now also seen the introduction of Quantitative Easing (QE) in Australia, sending Fixed Rate loans down below 2.20%

Small wonder refinancing has surged to over 70% of loan applications!

Using dual income purchasing power to borrow more money is standard practice, and is part of the reason for the dramatic increase in house prices over the past 30 years. Most young couples purchase a home together, with joint incomes taken into account to be able to afford ongoing home loan repayments.

All fishermen have a story about “The one that got away ..”

I think all property owners are the same!

Property never seems affordable, or inexpensive, at that time. It is only in retrospect the lost opportunity is truly realised. “If only .. “

Amid the spread of coronavirus, the past few weeks have seen increased expectations of an Australian recession, a slowdown in business activity and trillions of dollars wiped off global share markets.

It has many asking what the impact of the coronavirus would be on Australian residential property.

This note explores fundamentals of housing to better understand outcomes in the current climate.

What is the 2020s looking like for property markets? The last decade saw Australia’s property market experience price booms and busts.

According to Domain Research economist Trent Wiltshire, Australia’s housing market is unlikely to experience the same levels of price growth in the 2020s relative to the previous decade.

So, you’re thinking about getting a deposit bond?

Whether you’re a first home buyer, seasoned property investor, downsizing or buying off the plan, chances are you have a few questions.

Here are the 10 most common deposit bond questions answered:

The Federal Government has moved to help first home buyers (and their parents!).

Housing affordability, particularly for first home buyers, is always an issue. A major part of that problem is saving deposit of 20% of the purchase price plus purchase costs. Not that you HAVE to have that large a deposit, but it means you avoid paying the extra cost of loan mortgage insurance (LMI).

Help is at hand!

A place to call home – very much an attainable proposition according to young Australians

Young Australians still dream of owning their own home and are actively taking steps towards achieving that goal in 2020, according to new consumer research commissioned by global developer, Lendlease.