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Stay up to date with what’s happened in Australian markets over the past month.
Household wealth has grown for the third quarter in a row, rising by 2.6% in the June quarter, pushed up by rising house prices and increases in super balances.
Click here for our October 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
Buying a home takes time. Not so much the actual act of putting in an offer, having it accepted and waiting on settlement, which can take as long as the settlement period of 30 to 120 days. But the process that comes before all of that. The process of saving for, looking for, and buying your dream home.
Depending on what is happening in the market and where you are looking, it generally takes an average of nine months to locate a home to buy.
If you throw in the time it takes to come up with a deposit, your timeframe is a lot longer – often stretching out to many years. Even over a decade for some. That means it can be hard to keep the momentum going. Let’s look at some ways to manage what can at times feel like a never-ending journey.
If you’ve been saving for a deposit for a while, you might be feeling like you’ve been frugal forever! It takes a lot of discipline to come up with a decent deposit and there is always that little voice in your head thinking ‘if I only had a little more to spend’ that spurs you on to save even more.
While it’s important to stay on target with your savings it’s equally important when you are in for the long haul to have a little wriggle room to enjoy yourself and have some allowance for a planned splurge now and then.
It can be overwhelming with the amount of stock on the market, and if you feel your life revolves around going to open for inspections you might need to narrow the field a little.
While it’s useful to attend auctions and opens to get a feel for the market and understand what is a realistic price rather than rely on price guides that can be underquoted, it’s frustrating spending time looking at unsuitable properties. They key is to narrow the field, so think about things like where you want to buy and the size, age and condition of the property.
Also consider what you are prepared to compromise on. A neighbouring suburb may offer better buying power than the suburb you have set your sights on, or you may wish to consider a slightly smaller or older property.
Equally there are some things that might be non-negotiable for you. You might want something built in the last decade and be prepared to look at smaller properties to get that or you want an inner-city pad to be close to work and are happy to consider older ‘renovator’s delights’ to get the location you are after.
While it’s important to be flexible and distinguish between your ‘must haves’ and ‘nice to haves’, resist the temptation to buy a place that’s not quite right or exceed your budget to get the perfect property. It’s tempting to buy the next house you see so you can put all this stress and pressure behind you. However, you are likely to make multiple offers and be unsuccessful numerous times before you eventually succeed.
Remember that real estate agents are working for the vendor and if the terms are not to your liking or you are being pressured to make an offer that exceeds your budget or within an unreasonable timeframe, it’s OK to respond with a firm ‘no’. It can be a good idea to cultivate relationships with agents and let them know what you are after though, as they can do some of the legwork for you.
Take a break if you need to – it’s not a race and the odd weekend off might be just what you need.
Finally, make sure you have your ducks in a row. Your most important duck – even before making a verbal offer – is knowing what you can borrow and having a pre-approval in place, and we can help with that. You’ll also need to think about conveyancing and building and pest inspections.
It can seem like a long journey, but you will get there! We are here to help you every step of the way.
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
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.
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.
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.”
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.
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.
Suite 2, 1 Railway Crescent
Croydon, Victoria 3136
Email: integrityone@iplan.com.au
Telephone : 03 9723 0522
Suite 2, 1 Railway Crescent
Croydon, Victoria 3136
Email: integrityone@iplan.com.au
Telephone : 03 9723 0522