NAB’s latest residential property survey is out, and includes an update on which Australian suburbs are set to outperform over the next 12 months.
The quarterly survey of around 300 property professionals for Q4 2018 shows housing sentiment across Australia’s capital cities held steady at a reading of +20 — above the long-term average of +14.
But in the wake of the recent Sydney-led slowdown in the housing market, sentiment declined in NSW and Victoria. Those falls were offset by a sharp increase in the outlook for SA/NT, while WA also improved.
Within the headline numbers, the property experts surveyed also outlined which suburbs they think are more likely to enjoy above-average growth.
With the passing of the downsizer superannuation contribution (DSC) legislation in December, Aussies have one more tactic they can use to plan a successful retirement.
Effective from July 1, the cap is designed for people downsizing from their main residence, though it can be used in much wider circumstances. The downsizer cap is in addition to the other caps, and is available regardless of the amount of money the member already has in super.
However, the downsizer cap can only be used once, and the maximum amount that can be contributed under the cap is $300,000 or the actual sale proceeds from the property, whichever is less.
We’re living in a post-property-boom era, in a time when the term ‘off-the-plan’ starts ringing alarm bells. With almost all capital cities suffering from potential unit oversupply, RiskWise has compiled a list of the top 100 most risky suburbs across the country.
The widespread oversupply issue is universally acknowledged by banks, including the Reserve Bank of Australia, who have all compiled ‘blacklists’ for postcodes that are suffering from potential unit saturation. Lenders will either require a much higher deposit as security on their loan, or they may turn down a loan application entirely.
Younger people are twice as likely to be unaware of common tax deductions as older generations.
Only 23 per cent of people under 35 know interest repayments are tax deductible compared with 44 percent of people aged 35 and over.
Pretty says this is especially surprising given Gen Y’s eagerness to get into the market, but suggested the high cost of housing could be putting people off investing as they feared a negative impact on their lifestyle.
When it comes to buying an investment property, experts agree that the key is be informed. But it's just as important to do your own research.
“I’ve had clients who have bought through property gurus or investment groups, with no due diligence – now their properties are worth less,” Marion Mays, founder and director of the Thalia Stanley Group, says.
Unknown to most, many Millennials are using what is referred to as the "six-year rule", effectively allows first home buyers to become a rentvestor, claim negative gearing benefits while receiving income from a tenant, and sell for a profit without incurring a CGT bill.
Extraordinary property prices have put pressure on politicians to take action on housing affordability, with stripping the negative gearing tax concession considered one of the simplest and most effective options to drive down prices and open up the market to millennials.
Sometimes, very occasionally, the industry can be transformed overnight. Following America’s example, Scott Morrison recently announced the Government will force the major banks to share customer data (CCR) , starting just eight months from now. The decision hasn’t come easily; Scott Morrison has ended a fight that has lasted more than three years. Currently, less than 1% of customer data is being shared. By July 2018 the major banks will need to share 50% of their data and by July 2019 a full 100%.
The latest APRA figures have found an increase in the flow of residential mortgages to non-major and foreign subsidiary banks, while loan applications to credit unions and the majors have fallen.
These sobering findings, to anyone holding big four bank shares, should come as no surprise to observers of the ever evolving responsible lending guidelines all authorised deposit-taking institutions are invoking to cool the investor market and limit interest only mortgages.
Rest assured these, primarily APRA, regulations are having the desired effect with loans to owner occupiers jumping 32.6 per cent in the year to September 2017 while loans to investors have fallen for the 3rd consecutive quarter.
But of greater concern is just how tough it is to qualify for a home loan Amid regulatory and market concern, banks are scrambling to make mortgage applications tougher, leaving brokers to pick up the pieces, writes MPA editor Sam Richardson
Much has been written about the meteoric and sensational rise of cryptocurrencies, primarily Bitcoin and its ‘legitimizer’ the blockchain.