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Address: PO Box 1065, Ashwood 3147 VIC Phone: 1800 317 017 Email: [email protected]
Popularity of Brokers on the Rise New data shows that Aussie home buyers are increasingly looking towards mortgage brokers to help them borrow. Mortgage Choice and CoreData’s Evolving Great Australian Dream 2018 whitepaper shows that 28% of home buyers consulted a broker first when they purchased property – an increase of over 10% from last year. The data also reflected a decline in people seeing their current financial institution, from 60% to 44%. Mortgage Choice spokesperson Jacqueline Dearle says that trends showed the continuing rise of mortgage brokers. “We have seen a 12% jump in the proportion of property buyers seeking the services of a mortgage broker for their home loan needs, which is an encouraging indication that consumers are seeing great value in what brokers have to offer,” she says. Dearle says that in an increasingly competitive market, brokers can save many borrowers time and money by doing the hard yards for them.
Home Owners Turn to Renovation Home-buyers who can’t find their dream property have taken matters into their own hands, with new figures revealing a surge in renovations. A survey by Westpac reveals a 21% increase in past, current or future renovations since 2015. It also shows that 76% of Queensland home-owners have renovated or are planning to renovate – an increase of 6% since 2015. Westpac home ownership spokesman Andy Wright says it’s one of the real trends which stood out in the latest Westpac Home Ownership Report. The cost of buying a new home, in particular stamp duty, is having an impact on home buyers deciding to renovate instead. “It’s the millennial homeowners who are most likely to be on this renovating journey,” he says. “They’re in a really busy stage of their lives, and (renovating) is taking away the stress of having to move and allowing them to nest in a place of their own.” A third of homeowners approaching retirement are prioritising renovating ahead of 13% opting to sell, Wright adds.
Address: PO Box 1065, Ashwood 3147 VIC Phone: 1800 317 017 Email: [email protected]
Confidence Levels Reach New High A survey by the Property Council of Australia reveals that industry professionals have high hopes for 2018. The ANZ/ Property Council Survey, which consults property professionals worldwide, registered a confidence index of 143, the highest ever. “Given the economic significance of the Australian property industry, the results from this survey are cause for optimism,” says Ken Morrison, the council’s CEO. “Getting the policy settings right for the property industry – such as better planning, cutting red tape and providing policy certainty – doesn’t cost the budget bottom line but does deliver a real boost to confidence which in turn drives investment, expenditure and employment.” He says industry confidence is elevated in all states and territories, with South Australia, Queensland and ACT improving the most. Expectations for economic growth in South Australia and Queensland have especially strengthened this quarter.
Rates Tipped to Stay Down The Reserve Bank has kept the official interest rate at a record low of 1.5% for the 22nd straight month and observers are questioning whether the RBA will move at all this year. Mortgage broker network 1300HomeLoan managing direction John Kolenda says the RBA is now in uncharted territory. “With the vast amount of pressure being applied to the banks as a consequence of the Hayne Royal Commission, we are more than likely to see rates on hold for a considerable time,” he says. Kolenda says borrowers should take advantage of heavy discounting on owner-occupied and principal and interest loans from the majors trying to secure lending volumes. “This translates into thousands of dollars in savings.”
Address: PO Box 1065, Ashwood 3147 VIC Phone: 1800 317 017 Email: [email protected]
Home Sites Shrink – But Prices Expand The residential allotments are getting smaller, but prices in most cities are continuing to rise. Melbourne residents fared the worst in the last decade, with prices of a vacant lot increased 128%, compared with 67% in Sydney, according to a report by the Housing Industry Association. This was further compounded by the fact that capital city lots decreased in size up to 27%. Brisbane experiences the most significant lot size decrease, with lot sizes shrinking from an average 601m2 in 2007, to 434m2 last year. Adelaide, however, has the smallest lot sizes in the country at 371m2, down from 450m2 10 years ago. Perth was only marginally better at 375m2. Hobart has the largest typical lots size of the capitals, at 662m2. Melbourne’s average lot size was 482m2, down from 534m2 10 years ago, but the prices have more than doubled. Land prices in Sydney fell for the first time in 2 years, sliding 6.3% to $450,000 – but still the highest in the country ahead of Melbourne at $330,000. Hobart has the cheapest median price, at $165,000, despite having the largest lot sizes.
Quote of the Month “With the vast amount of pressure being applied to the banks as a consequence of the Hayne Royal Commission, we are more than likely to see rates on hold for a considerable time,” Mortgage broker network 1300HomeLoan managing director John Kolenda
