Cheaper property is more affordable… Right? Wrong!
If property prices fall, that makes houses and apartments more affordable. Yes… Actually no….It doesn’t. Wait… how can that be? Broadly there are 5 factors that determine property prices. If we look at the current market there really only 2 things impacting it. Cost of living has gone up Interest rates have gone up. (as discussed here…Read More→
Freezing rents would be a disaster for renters.
When Governments reach for a “feel good” property policy, they risk unbalancing the property investment supply chain. The supply chain dynamics for most products or services are complex. Property investment is a great example. It has many stages, players and advisors and can take anywhere from 3 to 10 years to complete, meaning stability in the landscape is key to…Read More→
Why overseas migration so is critical for the Apartment Market
Net overseas migration into Victoria, was running at about 75,000 people per year for 5 years pre Covid. In 2021, this trend hit reverse with a net decline of 50,000 overseas migrants departing Victoria. That is a year-on-year switch of 125,000. Keeping those numbers in mind, now consider this… 77% of overseas born households rent…Read More→
Which is best? Fixed or periodic lease?
This question will becoming more and more important for apartment investors and renters over the next 12 months. The pros and cons for both sides of the deal depend on their own situation and the market. Fixed term lease or monthly? For an apartment owner who is thinking about selling in the next 12 months,…Read More→
Fixed rate or variable rate?
What is your revert rate? Not sure… If you have a fixed rate loan, the revert rate is the variable interest rate that your loan reverts to when the fixed rate term ends. There is reportedly a “cliff” of fixed rate loans totalling hundreds of billions of dollars, expiring over 2022 and 2023. Given most…Read More→
Apartment Market Outlook Remains Strong
One of Australia’s most respected property services firms Charter Keck Cramer (CKC), has just released its half yearly “State of the Market” report for apartments in Melbourne, Sydney and Brisbane. It focuses specifically on the apartment market including both the Build to Sell (BTS) and Build to Rent (BTR) markets. While increased interest rates and construction costs…Read More→
Rents set to rise in 2023
The news feeds have been whirring in August 2022 reporting a shortage of rental accommodation or listings AFR – Home Rental listing slump to record low. 7:30 Report – Disputes between landlords and tenants becoming common during rental crisis. These news reports picked up on data released by SQM property research in Aug 22 showing Australia’s…Read More→
How will WFH impact the apartment market?
Working from home (WFH) is the big post lockdown shift and we are all trying to understand its impact and outlook. Is it here to stay and to what extent? More importantly how will it impact the apartment market? Residential and commercial real estate owners have a big stake in the game. Developers need to make decisions…Read More→
Refinancing loans on the rise.
The rise in interest rates in early 2022, has driven a growing number of people to find a better deal for their home or investment property loan. In the PEXA Mortgage Insights Report for FY22, it showed a sharp rise in lending activity for the 2022 financial year. Refinancing in particular saw a sharp jump…Read More→
Do the rental rule changes work?
In March 2021 the Victorian Government introduced a raft of new rules with the intention of protecting residential renters. Did they work? Some did, but some had unintended consequences. Changes providing protection in situations of family violence were very welcome, but other changes have backfired. Who pays for cost of rental rule changes? Regulation always…Read More→
How to adjust rent payments?
Paying rent each month is straight forward. However, when it needs to be adjusted for different pay dates or part payments, it can get confusing. Hopefully this answers all your questions and helps you understand how it works. Rent payment fast facts. Rent is paid monthly in advance. Rent is paid from the same pay…Read More→
Is it a good time to buy?
Is it a good time to buy? The lower auction clearance rates in mid 2022 are a good barometer of market sentiment and direction, but don’t necessarily reflect an equal shift in market values. They also speak more to the housing market than apartments. In mid July 2022 in Melbourne and Sydney, apartments only represented…Read More→