The whistle may have just blown on the 2018 World Cup, but there’s also plenty going on in the property and mortgage markets, and recent developments could help you kick some goals of your own.
First up, property prices. The latest figures from CoreLogic shows a relatively stable market across Australia with home values slipping by just 0.3% over the three months to the end of May 2018.
On a city-by-city basis the picture is mixed. Values in Sydney and Melbourne fell by 0.9% and 1.2% respectively over the quarter. However, Hobart continues its run of growth with gains of 3.7% over the quarter, taking property price growth over the last 12 months to an impressive 12.7%.
Good news for Perth and Darwin with both cities notching up quarterly price gains of 0.1% and 1.3% respectively, suggesting conditions could be levelling in these markets.
In fact, all the remaining state capitals recorded modest value rises over the quarter, with home owners enjoying steady gains in Brisbane (up 0.2%), Adelaide (0.3%), and Canberra (0.8%).
Long term gains can be spectacular
Property is generally regarded as a long term asset, and Aussie decided to put this to the test with the help of CoreLogic. The result is a landmark new report – 25 Years of Housing Trends, that shows just how spectacular the long term price growth of property can be.
We found that house values nationally have risen by 412% since 1993. In other words, a home that you paid $111,500 for 25 years ago could now be worth $571,400. Add in the fact that our homes are usually a tax-free asset, and it’s a compelling argument for home ownership.
The report is well worth a look to see if your suburb made it to the top 100 growth locations across Australia. Download your copy here or ask your Aussie Broker for a free copy. You can also read more about this below.
Good news for investors
Just 12 months ago our banking regulator APRA introduced initiatives to rein in investment loans, and that’s meant property investors can pay a higher rate than home owners.
However, in a recent report the Reserve Bank says increased competition for property investment lending has seen some lenders lower rates for investment loans. That can make it worth speaking to your Aussie Broker to see if your investment loan is still offering a competitive rate plus the features you need.
Home loan rates falling
The Reserve Bank may have left the official cash rate on hold at 1.5% in June but in its monthly Board meeting the Reserve noted, “The average mortgage interest rate on outstanding loans is continuing to decline”.
That could be a cue to talk to your Aussie Broker about a free home loan check to be sure your current home loan is still the right product for you as we head into a new financial year.
You may also be interested in Australia’s top performing suburbs for long term price growth, How do calendar events affect the property market? and In an uncertain property market, mitigate risk with these key tips