Market Essentials – April 2023

/ LOANSCAPE/
Market Essentials – April 2023

CoreLogic’s latest figures are showing strong signs of an ending downturn, with some of the most-affected markets, such as Sydney, already starting to recover.

Meanwhile, Australian borrowers have received some respite this month, with the RBA deciding to pause rate hikes for April after 10 consecutive rises. The successive rate rises had garnered negative reactions from the market and industry experts, however it remains to be seen whether this will be the last of the increases, or simply a pause for the time being.

Read More

Market Essentials – March 2023

/ LOANSCAPE/
Market Essentials – March 2023

The latest PropTrack data this month shows the market downturn is losing momentum, with the overall national home prices rising by 0.18% in February caused by tight supply and continued buyer demand.

However, according to Realestate.com.au Senior Economist Eleanor Creagh, this may not be the end of the downturn just yet. She says that ‘with additional rate rises expected, borrowing costs will continue to increase and borrowing capacities will be further reduced, weighing on prices’.

Read More

Market Essentials - February 2023

/ LOANSCAPE/
Market Essentials - February 2023

After the RBA’s most aggressive tightening cycle in over 30 years, top experts surveyed by The Australian Financial Review predict only two further rate hikes in 2023 as the RBA pauses to evaluate the effects of the fixed-rate mortgage cliff.

According to CoreLogic’s records dating back to 1980, Australia has experienced the worst property downturn in history, with the average dwelling price dropping by 8.4% between April 2022 and Jan 2023.

Read More

Stamp duty isn't going anywhere until we can agree on the tax to replace it

/ Loanscape/
Stamp duty isn't going anywhere until we can agree on the tax to replace it

Nearly all economists and most politicians seem to agree stamp duty is a bad tax. But nearly all state and territory governments rely on it to keep the lights on.

It’s a bad tax because it taxes homeowners every time they move, merely because they have moved. At A$40,000 per move on a median-priced home in Sydney or Melbourne, it’s enough to dissuade people from moving for a better job or to a bigger or smaller home when they have children or their children move out.

It’s even a de facto tax on divorce. When a family home is sold to allow assets to be split, each member of the separating couple needs to pay stamp duty to purchase again. It’s a big reason more than half of divorced women who lose their homes don’t buy again within a decade.

Read More

Market Essentials - December 2022

/ LOANSCAPE/
Market Essentials - December 2022

This month Super funds announced plans to invest $41 billion in properties over the next 10 years in line with the government’s housing accord. According to the Industry Super Australia report though, one of their biggest roadblocks will be insufficient large-scale developments to invest in.

Beta Shares modelling shows mortgage affordability at its lowest since 1990, with an average mortgage repayment to income ratio of 42.8%. The low employment rate is keeping mortgage arrears at bay, but further rate hikes may bring these to a tipping point.

Read More