July 24 - investment Property Purchases are at near record levels - why?

According to the latest data from the Australian Bureau of Statistics. Property investor borrowing is close to record levels

January 2022 - $11.762 billion

January 2023 - $7.849 billion

July 2024 - $11.708 billion

That's an increase of 49.2%.

Why are so many investors entering the market? rising prices?

rising rents?

an expectation that interest rates might fall in early 2025?

a combination of the 3 

Would you like to invest in a property 

This year ?

In next 3 years?

Never ? 

Give the team at bsifinance a call !!

Www.bsifinance.com.au

#property #realestate #homeloans #distinctfinancial #mortgagebroker #mortgages

Anna Porter from Sunrise shares 7 amazing tips ro help you with your mortgage!!!

Now is a great time to speak to a broker and look at your mortgage!

Anna Porter from Sunrise shares 7 amazing tips ro help you with your mortgage!!!

1. Get a  better interest rate - refinance to another bank who may have a better deal

2 negotiate with your bank to pause payments for a while , while you get ahead 

3. Airbnb your place while staying at your family for awhile! 

4. Renting out a spare room 

5. Convert garage into spare room to rent out 

6. Share house with family and friends 

7. Try pay an extra $100 dollars a week on your home loan and save $100s of thousands of dollars 

Sit down with a financial planner to help you plan out your retirement 

Is Australia becoming a population of renters?

Demand from existing homeowners and investors will continue over the next 10 years as a shortage of houses is expected to continue - as 130k migrants pour into Australia each year, writes Michael Bleby of the AFR. He points out that new loans to investor buyers rose 5.6 per cent in April, their fastest monthly rate since November 2021. 

Although higher borrowing and construction costs have made new projects unviable for many developers , Emma Bray from Macromonitor expects housing starts to increase . 

They have to!! 

She says they estimate that housing starts lifted sharply from a forecast 162,000 this financial year (a 6.5 per cent decline from FY23), up nearly 12 per cent next year to 181,000, up 20 per cent in FY26 to 217,000 and a further 16 per cent to 251,000 in 2027.

So, who will buy these homes? 

Investors or homebuyers? 

It seems that Australia will become a renter society with young people and new migrants not being able to afford the Australian dream of home ownership .

https://www.afr.com/property/commercial/the-next-home-building-boom-is-coming-20240625-p5jonb

Demand from existing homeowners and investors will continue over the next 10 years as a shortage of houses is expected to continue - as 130k migrants pour into Australia each year, writes Michael Bleby of the AFR. He points out that new loans to investor buyers rose 5.6 per cent in April, their fastest monthly rate since November 2021. 

Although higher borrowing and construction costs have made new projects unviable for many developers , Emma Bray from Macromonitor expects housing starts to increase . 

They have to!! 

She says they estimate that housing starts lifted sharply from a forecast 162,000 this financial year (a 6.5 per cent decline from FY23), up nearly 12 per cent next year to 181,000, up 20 per cent in FY26 to 217,000 and a further 16 per cent to 251,000 in 2027.

So, who will buy these homes? 

Investors or homebuyers? 

It seems that Australia will become a renter society with young people and new migrants not being able to afford the Australian dream of home ownership .

https://www.afr.com/property/commercial/the-next-home-building-boom-is-coming-20240625-p5jonb

Median household prices around Australia - June24

Australia's leading independent property economists Dr Andrew Wilson's latest Australian property report shows the performance of median house prices as of June 2024 between various major capital cities in Australia.

Perth topped the chart for the month, year, 1 year as well as 2 year with a whopping growth of 26.8% in the past 12 months!! Followed by Brisbane and Adelaide. 

(Maybe catching up to Melbourne?))

 Melbourne, Darwin and Hobart has been flat , with Sydney growing 5pc .

Where to from here? 

Is the trend your friend?

Where is each market on the property clock?

If you want finance or preapproval - call www.Bsifinance.com.au 

#housing #perth #landdevelopment #landsubdivision #brusbane  #adelaide  #finance #mortgage #bsifinance

www.Bsifinance.com.au

Property prices expected to surge in most capital cities in 2025 ! Time to buy?

House prices in Brisbane, Perth, Adelaide and Sydney expect to have a growth spurt by 8pc says Nicola Powell - research and economics chief of Domain talks to Nila Sweeney of the afr.

Domain predicts Sydney house prices are poised to increase Ny $132k to an average of $1.76m - a climb by up to 8 per cent - with Perth Adelaide and Brisbane hitting the )1m mark!!

She suggests units will increase more than houses - as that is what most can now afford ! 

Why?

• strong population growth, 
• increased borrowing capacity 
• a supply shortage as a result of 
• - a scarcity of land, weak building approvals and high construction costs

So what will slow down this increase?

“ Affordability constraints and serviceability limits” says Nicola

Melbourne is expected to be sluggish next year - but Nicola expects the spurt to come !!

Government and industry need to work together to find a solution to help those who cannot afford to buy a property to be able to !!

There are solutions to 

• increase supply
• Help front line workers and those who can’t afford to enter the property marke

Some solutions 

• Co-buying 
• Co-investing 
• Fractional ownership 
• Government support - “help to buy” 
• Opening immigration to construction workers - concessional interest rates? 
• Fast train to outer areas ?

Exciting times ahead 

Nils Sweeney researches where Investors are investing

Gotta luv Nila Sweeney of the afr

She has been researching the property market and has identified that properties increased by over 10pc around Australia - with bank economists predicting further rises over the next 2 years.

Investors interest in property is rising and mortgages are being written 

This is where The gurus are predicting 

Scott Kuru, Freedom Property Investors

• Gold Coast: Surfers Paradise, Southport
• Perth: Baldivis, East Perth
• Melbourne: Eynesbury
• Sydney: Bankstown, Liverpool

Arjun Paliwal - InvestorKit

• Rockhampton (Qld): Wandal, Kawana
• Townsville (Qld): Berserker, Kelso, Condon, Kirwan
• Perth: Gosnells, Kelmscott, Carey Park

These areas all have median house prices below $500,000 - affordable , strong rental yields and low inventory yields - good indicator of growth 

Kent Lardne -  Suburbtrends

• Adelaide: Golden Grove, Eden Hills, Moana, Trott Park
• Mackay-Whitsundays (Qld): Glenella, Marian, Rural View
• Townsville: Bushland Beach, Bohle Plains, Mount Low
• Cairns: Redlynch, Brinsmead
• Perth: Caversham, Pearsall, Yangebup, Aubin Grove, Secret Harbour
• Brisbane: Eatons Hill

Terry Ryder, founder of property market research firm Hotspotting

• NSW: Shoalhaven local government area
• Sydney: Surry Hills
• Perth: Carey Park

Anissa Cavallo - EDA Property

• Melbourne: Melton South, Fraser - There’s a new hospital being built, household incomes are increasing strongly, and house prices are still affordable

Damian Collins - Momentum Wealth

• Perth: Bayswater, Clarkson, Mandurah - cheap , accessible , station , close to city 

9 Things to look out for when buying a property 

1. Area with strong demand, with  rising population - need for housing 
2. demographics - find Affluent residents are less likely to default on rent payments, m
3. Close to commercial centres - with a diverse and growing local economy 
4. Close to  infrastructure such as schools, parks, public transport
5. Strong rental yield of more than 4.5 per cent 
6. Low vacancy rates
7. Affordable
8. Limited amount of land to avoid potential oversupply in the future.
9. Get a loan when interest rates are high - so you know you can afford the property .  When interest rates decrease, you will have additional funds to pay off the property faster.

Here’s the article in the afr