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Market movements & economic review – September 2023

September 4, 2023

Stay up to date with what’s happened in Australian markets over the past month.

After endless gloomy forecasts, there was a glimmer of hope last month that the cost of living might be easing.

Inflation continued to fall, despite predictions by economists of a rise.

The ASX200 ended the month down with gains in financial stocks being offset by losses in mining and energy shares because of their dependency on China.

Click here for our September update video.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.


Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Filed Under: Blogs, News

Quarterly property update – September 2023

September 4, 2023

Australia’s housing recovery gains momentum in August

Interest rates continue to be a hot topic of conversation among commentators, economists and mortgage holders. There is cautious optimism that rates are approaching stabilisation with rates remaining unchanged over the last two months of the quarter.

National growth back in the black

The CoreLogic National Home Value Index reached a milestone over the winter period, clawing back loses over the last 12 months to grow by 0.8% in August. The National HVI rose for the sixth consecutive month in August since bottoming out in February with growth broadly recorded across the country, the rate of growth increased again in August after the previous two-month trend slowing capital gains.

While the upper quartile of the market drove growth earlier in the year, the nation’s slowdown in the growth rate earlier in the quarter was largely being driven by easing gains in this segment of the market. There was, however, resilience in the middle and more affordable segments of the market, thanks to a bounce back from first home buyers and investors in recent months.

What impact are interest rates having?

Eleanor Creagh, Senior Economist at PropTrack shares that “stronger housing demand and a limited flow of new listings hitting the market have offset the impact of interest rate rises” over the quarter.

She believes with interest rates are nearing their peak, this will likely sustain current market confidence and maintain the lift in home values. However, she cautions, “the full impact of recent rate rises is yet to be felt, and the potential for further tightening remains a headwind for the market.”

Spring starts with a bang

The strong winter momentum looks set to flow into the spring selling season. Spring is set to start with a bang, with PropTrack data showing that the number of auctions scheduled for the first week of spring is up 13% compared to the same time in 2022.

PropTrack economist Anne Flaherty believes the unusually high number of auctions could be due to sellers holding off selling their properties over the first half of this year and late last year, a general improvement in selling sentiment and confidence increasing amid signs that interest rates may have peaked.

The influx of new properties hitting the market could be good news for buyers working to alleviate some of the competition.

Dwelling values over the quarter

The national Home Index Value grew by 2.5% over the quarter, with Brisbane leading the way. Within the capital cities, house values rather than unit values generally showed a sharper recovery trend.

Sydney
Sydney grew 3.8% over the quarter, with the Harbour City’s ongoing recovery now placing dwelling values at 1.2% higher over the last 12 months. Sydney’s monthly pace of growth has increased to 1.1% in August, with the rental yield holding relatively steady at 3.1%.

Melbourne
The Victorian capital continued its steady growth with 1.6% over the quarter, growth slowing slightly in August compared to July. The rental yield unchanged in August with 3.5% returns.

Brisbane
Brisbane led the growth for the nation’s capital cities in August with 1.5% growth and increasing by 4.2% over the quarter. In Brisbane, renters can take note of the 4.2% gross rental yield in August.

Canberra
Canberra recorded an increase of 0.5% over the quarter. After a decline in growth in July, dwelling values rebounded to grow by 0.3% in August. The nation’s capital has a current gross rental return of 4.0%.

Perth
Perth saw a 2.9% jump in values over the quarter, building on its annual growth of 4.5% and recording a new cyclical high through August. One of the few cities to do so. Investors will be happy with the country’s second highest gross rental return (behind Darwin) at 4.9%.

Note: all figures in the city snapshots are sourced from: CoreLogic’s national Home Value Index (September 2023)

If you have any questions or need any information please give us a call on 039723 0522.

Nicholas Berry Credit Representative Number 472439 is a Credit Representative of Integrity Finance (Aust) Pty Ltd – Australian Credit Licence 392184.
This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Filed Under: Blogs, News

What you need to know about debt consolidation

September 4, 2023

Rising levels of debt and finding ways to manage it is a concern for many of our clients. For some, it’s aiming to improve their credit score when applying for a mortgage or government home ownership scheme. For others, it’s being able to cover rising mortgage repayments or unexpected expenses.

Fortunately, there are a number of ways to manage debt, including debt consolidation and accessing home equity. Here are some things you need to consider when making a debt management plan that’s right for you.

Work out your debt management plan

It can be confronting seeing your financial situation laid bare, but it’s impossible to create a workable debt management strategy if you aren’t clear on your total debts and expenses. That means making a list of your debts, their current interest rates as well as your income and valuables. And don’t forget, lenders will want to see at least 6 months’ worth of recent bank statements anyway.

Once you have a full picture of your finances, you can begin to look at your debt repayment options. Part of that plan may mean prioritising which debts to pay off first, switching to a cheaper or drawn down mortgage and combining your debts into one consolidation loan that reduces the interest and fees you’re paying. It may also mean cutting back on non-essential spending.

What are the benefits of consolidating your debts?

Debt consolidation involves combining several debts including any personal loans, credit cards and your home loan, into one loan. It can make your repayments simpler to keep track of, with a single reoccurring repayment, rather than multiple payments with different interest rates to stay on top of.

Consolidating multiple debts into one loan also provides a timeline of when you can be debt-free and can give you greater control of your budget, by reducing costs such as a lower total interest rate and fewer fees.

If you’re concerned about how your debts are impacting your credit score, consolidating into one loan may be beneficial. While it may initially lower your credit score, over time it will likely improve as it’ll be easier for you to manage your repayments.

However, debt consolidation is not appropriate in all circumstances, so it’s important to consider whether it’s for you.

Considerations when considering debt consolidation

While streamlining your debts can sound like a no brainer, there are some risks and considerations before undertaking the process, largely will you be financially better off?

Initially there may be upfront costs such as balance transfer fees, closing costs and new loan fees and long term you may end up paying more interest overall. When you consolidate your debts into one loan and extend the length your loan to reduce your monthly repayments, you will end up paying more interest and spend more over the lifespan of the loan.

Debt consolidation and your credit score

If you already own property, remortgaging to a lower interest rate is something to look into. After all, even on today’s interest rates, your mortgage is lower than your credit card or personal loan repayments.

You have probably seen your equity rise over recent years, so freeing up that money via a draw-down facility can look like a no-brainer. However, lenders don’t see things that simply. Lenders have to decide if you can manage the larger loan and like to see proof that you are managing your money well. They give just as much weight – maybe even more – to your credit score when deciding if you are a suitable candidate.

Your credit score takes into account the amount of debt you already have and if you are struggling with existing repayments. It’s a good idea to assess your credit score before applying for a new loan to consolidate your debts and risk getting your loan rejected, as that lowers your rating.

We’re always happy to help you assess whether you are a strong candidate for a new home loan to assist you in taking control of your future. Simply give us a call to get started.


Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Filed Under: Blogs, News

How the Aussie dollar moves your investments

September 4, 2023

It has been a wild ride for the Australian dollar since the Covid-19 pandemic struck and that could mean good news or bad news for your investment portfolio.

In March 2020 the Aussie dipped below US58 cents for the first time in a decade. Since then, a high of just over US77 cents in 2021 has been followed by a rollercoaster ride, mostly downhill.

In October 2022 the dollar plummeted to US61.9 cents, bounced its way back up to US71.3 cents in February this year but by mid-August it had slipped to a nine-month low at under US64 cents.

Many analysts agree that further falls are on the cards with some even predicting the dollar could fall to as low as US40 cents within five years.

What’s driving the dollar?

Given any currency’s susceptibility to changing economic conditions both at home and overseas, the Aussie has had quite a bit to deal with lately.

Rising interest rates can boost the Australian dollar by making us more attractive for foreign investors, providing our rates are rising ahead of the US and others.

If foreign investors buy more Australian assets because they can get a bigger return on their investment, more money flows into Australia which increases demand for Australian dollars. And if investors hold more Australian assets than overseas ones, less money leaves the country, decreasing supply. So, increased demand and decreased supply see the Australian dollar rise.

While the Reserve Bank of Australia (RBA) has increased rates by 4% in Australia since May last year as it battles to get inflation under control, rates have also been rising in the US.

The US Federal Reserve has undertaken its most aggressive rate-rising cycle in 40 years with rates now at a 22-year high and signs of further increases likely. This has put pressure on the Australian dollar, narrowing the difference between the US and Australian rates, meaning foreign investors will look for better returns elsewhere.

Changing economic conditions

The value of the Australian dollar is also affected by changes in economic conditions as well as rises and falls in other financial markets. For example, in August news that the unemployment rate had increased slightly and an easing in wage price growth led to speculation that the RBA would put a hold on rates, putting a dampener on the Aussie.

Also affecting the dollar was a decline in US share markets in August, confirming the typical pattern of the Australian dollar falling when prices in equity markets drop.

Meanwhile, the performance of China’s economy plays a significant part in Australian dollar movements. China is currently battling soaring unemployment, particularly among young people, falling land prices and a housing crisis, among other ills.

As Australia’s largest trading partner, both in terms of imports and exports, any slowdown in China means lower sales of our commodities and other goods and services and less investment in property and business.

How the dollar affects us

There are advantages and disadvantages of a falling Australian dollar. On the plus side, our exports will be more competitive because our customers will pay less for our goods and services compared with those produced overseas. Conversely, imported goods will be relatively more expensive.

There could also be an increase in tourism – the cost of travel in Australia will be cheaper for those coming from overseas. Unfortunately, those planning an overseas trip will need to find a significantly greater pile of Australian dollars to pay for airfares, accommodation and shopping.

For investors, it is a useful exercise to review the currency’s effect on your portfolio.

For example, if you’re invested in Australian companies that rely on overseas earnings, look at how they handle their exposure to the currency risk. A lower dollar is good news for those with overseas operations and those that export goods. On the other hand, those that need to buy in components or products from overseas may suffer.

In any case, have a chat to us to look at the best way forward in these uncertain times.


Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Filed Under: Blogs, News

Is your mortgage still working for you?

August 14, 2023

A mortgage is a long-term commitment, one in which many people enter with a ‘set and forget’ mentality. Most loans are around 30 years – a long time in which many things can change, not just in your personal circumstances but in the financial world, seeing the introduction of new loan products and fluctuations in interest rates.

If you haven’t reviewed your loan for a while, now is a good time to consider whether it still suits your circumstances or whether you’re better off making some changes. It’s what many Aussies are doing, with the ABS reporting the value of owner-occupier refinancing of $13.4 billion last November.i

Reviewing your loan

It is a good idea to review your loan annually and there’s no better time than the present.

While this can seem like an arduous task, it doesn’t need to be complicated. Read back over your loan’s terms as a starting point. To ensure you’re receiving the best interest rate for your loan – and whether your loan is still fit for purpose – ask yourself a few things:

  • Has there been a change in your employment status?
  • Has there been a change in your family situation?
  • Have your financial goals changed?
  • Are there pressing matters that need financing (i.e. renovations, needing a new car, etc)?
  • Are you wanting to invest or change your existing investments?

Knowing where you are standing financially can help you then decide whether it’s worth refinancing and chasing a better interest rate, or whether your existing mortgage is still working for you.

Types of refinance loans

There’s not just one type of refinancing, but many different types of refinance loans, including:

Rate-and-term refinance loan

This is where you replace your loan with a new loan that is the same amount, but at a changed interest rate and/or term. This is the most common refinancing option and often what people think of when it comes to refinancing.

Cash-out/cash-in refinance

A cash-out refinance loan enables you to access the equity in your home by taking out a new loan with a higher loan balance than your existing loan.

A cash-in refinance loan has you lowering your overall loan amount by contributing a lump sum – this is done by taking out a new loan less than your old loan, paying out the difference to close your old loan.

Fixing your interest rate

As opposed to a variable rate, a fixed loan guarantees a locked interest rate for a period of time (usually between 1-5 years). This is a popular option during a time of rate hikes. However, it can come with drawbacks such as not being able to take advantage of any rate cuts.

Split loans

As its name suggests, a split loan allows you to split your loan into multiple parts with different interest rates and terms. For instance, you could have part of your loan at a variable interest rate and another part as a variable rate.

Consolidation refinance

This is where you combine all your various debts into the one debt (including credit cards, car loans, etc) and therefore one repayment. This can make your debts easier to manage but can mean your short terms debts are stretched over the life of your new home loan.

Things to keep in mind

While (generally speaking) the goal of refinancing is to save money, there are a few considerations to be aware of, so you don’t end up paying more in your quest to save.

Refinancing can impact your credit rating, causing it to drop. However, it’s worth keeping in mind that this dip is short-term and shouldn’t have too big an effect on your credit score in the future.

Another thing to be mindful of is that you may need to pay Lender Mortgage Insurance (LMI) again. As LMI protects lenders, your original LMI payment won’t cover a new lender, which is why you can expect to pay this again. For most borrowers, you’ll need 20% of the property’s current value to avoid paying LMI again, keep in mind the value of your property may have changed since you first took out your loan. You might also need to pay LMI even if you stick with the same lender, but you’ll likely be given a discount.

There are also costs related to refinancing, such as application fees, discharge/break fees and valuation fees. Some lenders waive these costs or offer a discount, so be sure to ask what you will be expected to pay and see what you can negotiate.

You may also find that your bid for refinancing is rejected if you have accumulated too much debt or if your living expenses are now too high. Changes to your loan could also stretch out the repayment period, leading you to pay more in the long run.

Keeping on friendly terms with your mortgage

Whether you decide to refinance or stick with your current loan, by refamiliarising yourself with the conditions of your loan and assessing your financial situation, you’ll be better placed than if you ‘set and forget’.

Set a reminder to do this once a year – it can be easier to remember come the end of the financial year or the start or end of the calendar year.

You don’t have to go through the process alone. Give us a call on 039723 0522 to discuss your existing loan and circumstances and to chat about your future financial goals.

Nicholas Berry Credit Representative Number 472439 is a Credit Representative of Integrity Finance (Aust) Pty Ltd – Australian Credit Licence 392184.
This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Filed Under: Blogs, News

Market movements & economic review – August 2023

August 7, 2023

Stay up to date with what’s happened in Australian markets over the past month.

While the price of most goods and services continues to rise, the good news is the rate of increase is continuing to slow.

As a result, the markets are beginning to breathe a sigh of relief.

The ASX rallied to close the month on a positive note due to a combination of stronger than expected growth data, better than expected earnings and lower inflation.

Click here for our August update video.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.


Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Filed Under: Blogs, News

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Integrity One Planning Services Pty Ltd (ABN 59 125 846 933) is a Corporate Representative (315000) of Integrity Financial Planners Pty Ltd (AFSL No. 225051).