National property prices are predicted to rise by up to 9% in 2022, according to REA Group, but which cities are tipped to lead the way in price growth this year? Let’s take a look.
National housing values grew a whopping 22.1% in 2021, and while things are expected to slow down throughout 2022, the fun ain’t over yet.
Especially so if you’re a homeowner in Hobart (9% to 12% predicted growth), Brisbane (8% to 11%), Adelaide (6% to 9%) and Canberra (6% to 9%).
“Brisbane and Hobart have the strongest price growth forecasts among the capital cities thanks to their low supply of stock for sale, heightened demand and relatively lower prices compared to Sydney and Melbourne,” explains Cameron Kusher, REA Group’s executive manager of economic research.
Meanwhile, property prices in Perth (3% to 6%), Sydney (4% to 7%), Melbourne (4% to 7%) and Darwin (5% to 8%) are still expected to grow – just not as much.
“Perth has shown a stronger slowdown in price growth already relative to other capital cities, while the more expensive property prices in Sydney and Melbourne may increasingly see demand shift to more affordable housing markets,” adds Mr Kusher.
Here’s the predicted price growth for 2022 for each capital city, broken down for you in a nice and easy format:
Sydney: 4% to 7%
Melbourne: 4% to 7%
Brisbane: 8% to 11%
Adelaide: 6% to 9%
Perth: 3% to 6%
Hobart: 9% to 12%
Darwin: 5% to 8%
Canberra: 6% to 9%
All capital cities combined: 6% to 9%
For starters, it’s because buyers can expect more choice in 2022.
Buyer demand peaked in August 2021, according to REA Group’s PropTrack data, and a more balanced market is expected in 2022.
For vendors, this means that they may have to lower their price expectations, warns Mr Kusher, and the increase in housing stock, should it continue, will likely contribute to a slowing of price growth in 2022.
“The recent lift in new listings should go some way to allow more buyers to find a home,” adds Mr Kusher.
“After that, the question will be … How large is the next wave of buyers? We believe this next wave is likely to be big, but not as large as the current one, so that should result in a better supply and demand balance.”
“We expect a smaller wave of buyers because prices have increased, rapidly pricing some buyers out.”
As property prices are tipped to continue rising throughout 2022, it’s never been more important to have a broker like us in your corner when it comes to securing your next property purchase – be that your dream home or adding to your investment portfolio.
In the current market, it’s also important to know your borrowing capacity before you start house hunting so you don’t stretch yourself beyond your limits.
If you’d like to find out what you can borrow – get in touch today. We’d love to sit down with you and help you map out a plan for your 2022 finance and property goals.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Most of us have at one time dreamed of discovering a hidden little gem and renovating it into the most enviable house on the street. With the $25,000 HomeBuilder grant, those dreams are closer to becoming a reality for many. But where to look?
Well, recent realestate.com.au data might have revealed the answer.
They’ve analysed all the listings in their database for keywords such as “renovate”, “renovation” and “STCA” (subject to council approval), and then ranked each suburb on the percentage of properties containing those keywords.
So with the federal government’s HomeBuilder scheme providing eligible homeowners a $25,000 grant to substantially renovate their homes, the below suburbs could be a good starting point for your search.
NSW: Lethbridge Park 2770 (70%), North St Marys 2760 (67%), Hebersham 2770 (64%), Oakhurst 2761 (62%), Kandos 2848 (59%).
VIC: Frankston North 3200 (70%), Mount Dandenong 3767 (50%), Canterbury 3126 (47%), Ivanhoe East 3079 (45%), Doveton 3177 (44%).
QLD: Sadliers Crossing 4305 (58%), Petrie Terrace 4000 (53%), Newtown 4305 (50%), Herston 4006 (50%), Grange 4051 (47%).
WA: Glen Forrest 6071 (50%), Northcliffe 6262 (47%), North Lake 6163 (42%), Greenmount 6056 (41%), Greenwood 6024 (40%).
SA: Angaston 5353 (50%), Happy Valley 5159 (50%), Hawthorndene 5051 (42%), Aberfoyle Park 5159 (41%), Panorama 5041 (40%).
TAS: Battery Point 7004 (50%), Triabunna 7190 (46%), Moonah 7009 (46%), West Moonah 7009 (38%), Dynnyrne 7005 (36%).
ACT: Wanniassa 2903 (46%), Farrer 2607 (42%), Evatt 2617 (40%), Curtin 2605 (37%), Mawson 2607 (32%).
NT: Driver NT 0830 (39%), Woodroffe 0830 (38%), Fannie Bay 0820 (33%), Rapid Creek 0810 (32%), Moulden 0830 (31%).
Day-dreaming about renovating is one thing; financing it and actually making it happen is another. Fortunately, that’s where we can help out.
So if you’d like help obtaining finance to pay for that reno project you’ve got your eye on, get in touch with us today – we’re here to help make your reno dream a reality.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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Small businesses all around the world are facing uncertain times. However, rather than shutting up shop until COVID-19 passes, the federal government is hoping to stimulate SME spending through a raft of initiatives and tax incentives.
Indeed, the government estimates its two new business investment initiatives have the capacity to support more than 99% of businesses across Australia (3.5 million SMEs).
Basically, it’s hoping these measures will encourage SME owners to “stick with investments they had planned, and encourage them to bring investment forward to support economic growth over the short term”.
Let’s take a look at what they involve.
The instant asset write-off threshold has been increased from $30,000 to $150,000 (ex GST) and can now be accessed by businesses with an annual turnover of up to $500 million (up from $50 million) until June 30 2020.
Assets that may be able to be immediately written off include a concrete tank for a builder, a tractor for a farming business, or a truck for a delivery business, for example.
Now, it’s important to keep in mind that “write-off” doesn’t mean “free asset”.
Basically, this initiative allows you to immediately claim all the tax deductions you would have claimed over the life of the asset.
This can help with your business’s cash flow, as getting this cash back sooner means you can re-inject it straight back into other parts of your business.
The other big initiative in the federal government’s plan to support SMEs is accelerated depreciation.
Basically, businesses will be able to immediately deduct 50% of the asset cost in the year of purchase and then also depreciate the remaining 50% over the asset’s useful life, so long as the business has a turnover of less than $500 million.
This initiative will provide businesses with a 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions.
Sound a little confusing? The good news is that the Business.gov.au website has two great case studies that explain exactly how this initiative works in more detail.
If you’d like to find out more about the instant asset write-off or the accelerated depreciation deduction, and how they might work with an asset purchase for your business, get in touch today. We’d love to help out any way we can.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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SME owners concerned about the coronavirus outbreak impacting their cash flow are being urged to talk to their creditors as soon as possible.
Earlier this month the RBA cut the official cash rate by 25 basis points to a new record low of 0.50% due to the impact of the coronavirus outbreak on global financial markets.
And as the economic ripple effects of the coronavirus start to hit Australian businesses, financial and consumer law firm MyCRA Lawyers says the repercussions of not meeting loan repayments in a timely fashion could impact businesses for five years.
“The risk of an extended and prolonged economic downturn is real and affecting the entire economy,” says MyCRA Lawyer’s CEO Graham Doessel.
“The problem is even though the tourists and customers may have stopped, the bills won’t stop and that can mean defaults on people’s credit files.”
Mr Doessel says as soon as you are 14 days or more late in making a loan repayment it can go on your comprehensive credit file for two years.
“This will impact your ability to access credit,” Mr Doessel says.
“[If you] get a default or a court judgement on your file you will be feeling the financial symptoms of coronavirus for five years.”
Mr Doessel says if your business is struggling to meet its bills you should contact your creditors straight away and apply for hardship.
“Most lenders have a positive obligation to offer hardship in genuine cases. If you have seen your cash flow decimated due to coronavirus, reach out to your creditors and ask for some breathing room,” Mr Doessel says.
“Whatever you do, do not stick your head in the sand, because you can’t hide from your financial obligations.”
Mr Doessel adds that lenders and companies like Telstra, Optus, AGL and Origin Energy have hardship policies for genuine victims of circumstances beyond their control.
“Anyone who finds themselves financially affected by the virus should make a list of their bills and contact each credit provider – in writing if possible – to let them know the circumstances and to check no bills have gone unpaid,” he said.
“Most companies have the discretion to forgive a debt in extreme cases.”
The coronavirus outbreak comes as many Australian businesses are still reeling from bushfires.
Indeed, a NAB survey has found that two-thirds of Australian SMEs have been directly or indirectly impacted by the recent bushfires, with business disruption, higher insurance, and lower customer confidence cited as key factors.
“We know that many families and businesses face an uncertain future and we recognise the significant impact the fires have had on cash flow, loss of customers and supplier disruption,” says NAB Chief Customer Officer of Business and Private Banking Anthony Healy.
There’s no doubt many Australian businesses are doing it tough right now – whether that’s because of the coronavirus outbreak or the summer bushfires.
If yours is one of them, please get in touch. We’re ready to assist you in any way we can and will work through your available options with you.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to a new record low of 0.50% as the coronavirus outbreak impacts global financial markets.
RBA Governor Philip Lowe said the coronavirus has clouded the near-term outlook for the global economy and global growth in the first half of 2020 will be lower than earlier expected.
“Prior to the outbreak, there were signs that the slowdown in the global economy that started in 2018 was coming to an end,” Governor Lowe said in a statement.
“It is too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path.”
The RBA previously cut the official cash rate to 0.75% in October, which was the third interest rate cut in 2019.
Governor Lowe also hinted that more rate cuts could be on the way in coming months, saying the RBA will continue to monitor developments closely and assess the implications of the coronavirus for the economy.
“The Board is prepared to ease monetary policy further to support the Australian economy,” Governor Lowe said.
Prime Minister Scott Morrison earlier in the day said he expected the big banks to “do the right thing” by Australians and pass on any rate cut in full.
“And honestly, I don’t see it any different to what Qantas did when we called out to Qantas and we said, we need your help to get some people out of China,” the Prime Minister said.
With this being the fourth RBA cash rate cut since June 2019, it can get a bit confusing as to just how much of these cuts your lender is passing on to you.
The good news is we’re following the market closely and can tell you which lenders pass this fourth rate cut on to their customers in full, and which lenders don’t.
So if you’d like to find out, then please get in touch – we’d be happy to help break it down for you.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Scams involving identity theft have cost Australians at least $16 million this year, and that figure is likely to be just the “tip of the iceberg”, says the Australian Competition and Consumer Commission (ACCC).
Worryingly, four in every 10 Scamwatch reports so far in 2019 have involved an attempt to gain information or the actual loss of a victim’s information.
“If you think scammers might have gained access to your personal information, even in a scam completely unrelated to your finances, immediately contact your bank,” says ACCC deputy chair Delia Rickard.
“Timeliness in alerting your financial institution is absolutely crucial.”
Identity thieves can empty victims’ bank accounts, take out tens of thousands of dollars in bank loans under victims’ names, and purchase expensive furniture or electronics under ‘no-repayments for 12 months’ schemes.
“Identity thieves can make victims’ lives a nightmare. They’ll change the victims’ phone carrier so they lose service and set up mail redirections so they’re in the dark about what’s going on,” says Ms Rickard.
Here’s the really scary bit, though.
You might not even know you’ve fallen victim to identity theft until the day you have difficulty obtaining finance due to an inexplicably bad credit rating, points out ASIC.
This is why it’s important to regularly check your credit report, which you can do for free every year via MyCreditFile.com.au (Equifax) or CheckYourCredit.com.au (illion).
ASIC says if you’re a victim of identity theft you should tell the credit reporting agencies so they can note it in your file.
“Check your credit report to see what companies have checked your credit history recently, and let them know not to authorise any new accounts in your name,” ASIC adds.
You can also consider placing a temporary ban on your credit report to give you time to report the matter to police, and then send the police report to the credit agencies.
While the freeze is in place (initially 21 days, but it can be extended), the credit reporting agencies cannot share your credit report with credit providers without your consent.
If you can prove you weren’t responsible for the fraudulent transactions then you’ll hopefully be able to get your credit score fixed.
Some of the common ways that scammers obtain personal or banking information include:
– phishing emails and text messages which impersonate banks or utility providers seeking your login details
– fake online quizzes and surveys
– fake job advertisements
– remote access scams in which the scammer has direct access to everything on your computer
– sourcing information about you from social media platforms
– direct requests for scans of your driver’s license or passport, often in the course of a dating and romance scam.
“No one is really selling an iPhone for $1, or rewarding the completion of a survey with expensive electronic goods or large gift vouchers. They’re scams to get your valuable personal information,” says Ms Rickard.
Be alert to the signs of identity theft, says Ms Rickard.
“If your mobile phone suddenly loses coverage, you haven’t received expected electronic or physical mail, or you receive unexpected notifications from a financial institution, call your bank,” she says.
If you have been the victim of identity theft, contact IDCARE on 1300 432 273. IDCARE can guide you through the steps to reclaim your identity.
People can also report a scam to the ACCC via Scamwatch.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to a new record low of 1%. Yep, that’s right, back-to-back rate cuts within just one month.
The RBA last cut the official cash rate to the previously historic low of 1.25% on June 4, which also happened to be the first rate cut in almost three years (since August 2016).
RBA Governor Philip Lowe says this second rate cut in as many meetings was made to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target.
“The outlook for the global economy remains reasonable. However, the uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy are tilted to the downside,” he says.
Lowe adds that while conditions in most housing markets remain soft, there are some tentative signs that prices are now stabilising in Sydney and Melbourne. Growth in housing credit has also stabilised recently.
“Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target,” Lowe says.
On the back of this RBA decision, you may see a number of lenders advertising interest rate cuts.
You’ll also probably hear a lot of talk about whether lenders will pass on the full cut, a partial cut, or not at all.
Now, with two RBA cuts so close together, it might get a bit confusing as to whether lenders have passed on this rate cut, or only the one before it.
The good news is we’re following the market closely and can tell which lenders are passing this second rate cut on to their customers in full, and which lenders aren’t.
So if you’d like to find out, then please get in touch – we’d love to help break it down for you.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
