Category: Property Market

The Rental Crisis And How NOT To Fix It!

The rental situation is getting worse across the country driven by the pandemic-induced shrinkage in average household size as people demanded more space. This has effectively reduced the number of homes available to rent.

Plus many investors are lifting rentals to try to turn unprofitable investments positive (especially as capital gains on many apartments remains a pipe-dream).

CoreLogic reported that rents across Australia continue to explode, surging by 8.7% nationally and by 10.7% across the combined regions in the year to March 2022.

With rental growth (2.6%) outperforming value growth (2.4%) over the three months to March, national dwelling yields have recorded a one basis point rise since December (3.22%) and two basis points since reaching a new record low of 3.21% in January and February. Despite the recent rise, national rental yields are still 32 basis points below the yield recorded this time last year (3.55%).

But BTR is another fake ‘affordability’ policy as a new report in The AFR suggests recent Australian BTR projects charging a 20% premium on traditional rentals.

Its frankly a mess, with long standing consequences for households across the country. Its shameful.

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Its Edwin’s Monday Evening Property Rant!

Edwin visited me in the DFA studio today for our weekly property chat. We discussed the political ball game around property, news from China about migration to Australia, and how to react to the latest market information.

Is there a path to higher home prices ahead?

Go to the Walk The World Universe at https://walktheworld.com.au/

New Zealand Home Price Falls Accelerate!

The REINZ came out last week with their report for March 2022, which they say solidifies the changes in the market seen over the past months as pressure on property prices eases, inventory levels increase, demand softens and sales activity decelerates.

“There is a pervasive feeing of uncertainty, and people are hitting pause. While more stock makes this a favourable market for buyers who find themselves in a position to wait for the right property and negotiate — particularly buyers with their finances lined up — many are balancing fear of over paying with an outlook of further interest rate increases. Conversely, sellers are holding out for the right price in a changed market.

So, we look at the latest numbers and consider the consequences.

Go to the Walk The World Universe at https://walktheworld.com.au/

The Social Housing Crocodile Tears…

The Guardian highlights the problems with NSW Public Housing policy. We discuss the reasons why this is happening.

https://www.theguardian.com/australia-news/2022/apr/16/more-than-3bn-of-social-housing-sold-by-nsw-government-since-coalition-took-power

The New South Wales government has sold off $3bn worth of social housing during its decade in power, while failing to meet its own targets for new properties.

New figures released through parliament this week show that since it was first elected in 2011, the Coalition has sold off 4,205 social housing properties across the state.

The sales have added about $3.5bn to the government’s coffers over the same period.

But while the government said all of those funds were used to prove “more, and better” social housing stock, data for new social housing constructions reveal the government has fallen well behind its own targets for new dwellings.

In 2016, the Coalition pledged to build 23,000 new social housing dwellings in the next decade as part of its Future Directions housing strategy. It committed to funding new social housing construction through the $22bn Communities Plus program.

But eight years on, with more than 50,000 people on the social housing wait list in the state, the Communities Plus program has achieved only 10% of that goal.

The Bank Of Mum And Dad Is Getting Strangled!

We examine the role of the Bank of Mum and Dad, in the light of the latest data. As well as highlighting inter-generational issues, there are pressures on both parents and their kids. And if you do not have “wealthy” parents the chances of getting into the property market is diminished significantly.

Go to the Walk The World Universe at https://walktheworld.com.au/

FINAL REMINDER: DFA Live Q&A Flood Special With Meighan Wells: Brisbane Property 8pm Sydney Tonight

Join us for a live discussion as I explore the latest in Brisbane Property with Meighan Wells. We will be looking in particular at the issues around flooding.

As the Principal of Property Pursuit and co-founder of the Home Buyer Academy and co-presenter of Your First Home Buyer Guide Podcast, Meighan is committed to excellence and the swelling list of satisfied clients as well as its multi-award-winning status is a testament to her ethics and hard work. In recognition of her expertise and high standards in the fast-growing buyer’s agency industry, Meighan was engaged to develop and deliver the education module for the REIQ course Acting as a Buyer’s Agent and is the former Chairman of the REIQ Buyers’ Agent Chapter.

Meighan Wells

You can ask a question live.

Go to the Walk The World Universe at https://walktheworld.com.au/

Seeking Property Smoke Signals…

Real estate sales are facing headwinds as buyers and sellers grow more wary ahead of the federal election campaign and deal with affordability problems and the prospect of rising interest rates.

And there are Easter and the school holidays.

Data from SQM Research shows “Vendors are racing to sell to make the most of the current strong prices and before the market softened further,” SQM Research managing director Louis Christopher said.

“Sellers now understand that this is probably as good as it gets when it comes to selling, with the federal election and rate hikes looming, buyers are likely to stay on the sidelines.”

Buyers’ advocate David Morrell believes uncertainty, ranging from the federal election to rising interest rates, has caused buyers and sellers to “hit the pause button”.

“The market is in a state of flux as people look for a smoke signal telling them where the market is going,” Mr Morrell said. “Others are pulling up stumps before Easter.”

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Its Edwin’s Monday Evening Property Rant!

More from our Property Insider, Edwin Almeida. In today’s show we look at lock-downs in China, the latest auction and listings, and the current property market slowdown. In addition we somehow got onto pushing a wheelbarrow in high heals and food rations.

https://www.ribbonproperty.com.au/

Go to the Walk The World Universe at https://walktheworld.com.au/

The RBA Predicts House Price Falls!

The RBA Financial Stability Report includes a warning about high household debt AND home price falls. But their “new” model is proposing a less powerful relationship between prices and interest rate moves than their previous one (which was built at a time lower rates were expected…) I smell a rat…

They suggest 15% falls over a couple of years if interest rates rise by 2%, whereas the previous model was ~28% for 1% change.

Pretty convenient eh?

Go to the Walk The World Universe at https://walktheworld.com.au/

The New Zealand Time Machine Housing Pivot Bites!

New Zealand housing is a significant bellwether for other markets, seeing as pricing peaked early due to excessive stimulus associated with COVID, and then the Central Bank started to lift the cash rate ahead of other central banks. Now we are seeing the impact spilling out into the housing sector.

Westpac, the last of the main banks, has now moved to raise home loan rates. Though like two other rivals, Kiwibank and BNZ, they have refrained from raising their 3.99% one year fixed rate.

The QV House Price Index has experienced its largest drop in more than a decade, with the main centres currently taking the brunt of the impact of rising interest rates and tightening bank credit.

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.