Home loan news and advice - page 63

All the latest home loan news and top tips to help you manage your home loan.

Should i sell or rent out my property 5 must read tips

Should I sell or rent out my property? 5 must-read tips

Buying your first home may be a huge milestone, but chances are you’ll eventually wave goodbye to that two-bedroom apartment or townhouse and move elsewhere. That could be due to a number of reasons, whether it’s needing more space to raise your kids or looking for a change in scenery. However excited you may be to hunt for your next home, that’s not the only big decision you'll have to make. You’ll also need to figure out what to do with your existing home: Will you sell or keep it as a rental property?The answer isn’t always straightforward, as there are pitfalls to watch out for. Mortgage broker from Two Red Shoes, Rebecca Jarrett-Dalton says one mistake is letting your emotions drive your decision - growing so attached to the property that you aren’t willing to let it go.“[Your decision] has got to be affordable and make sense. What you don’t want to do is cripple yourself that you can’t afford your new lifestyle,” she says. Instead she recommends crunching the numbers and consulting experts, such as a mortgage broker and an accountant, before locking in your final decision. The bottom line is, how much is your choice going to cost you and can you afford it? To determine whether selling or renting out is more financially viable for you, here are five key factors to consider.

Clearance rates remain strong in sydney and canberra

Property clearance rates remain strong in Sydney and Canberra

Despite plenty of headwinds and a high volume of homes withdrawn from auction, activity in the property market is holding up across a number of capital cities, according to recent data from CoreLogic.As many as 1,344 homes in capital cities were taken to auction during the week ending 26 July, with preliminary clearance rates coming in at 59%. This was similar to the previous week’s result, which was later revised down to 53%.In Sydney, 602 homes were taken to auction, returning a preliminary clearance rate of 68.3%. This marks an improvement from the previous week, when a total of 515 auctions returned a final clearance rate of 61.4%.Canberra saw the highest preliminary clearance rates, with 80.5% of properties successfully sold at auction. Meanwhile, 60.7% of properties were cleared in Adelaide, 43.9% in Brisbane, and 28.6% in Perth.With plenty of challenges currently plaguing the Melbourne market, Corelogic expects the final clearance rate for the week to settle around 50%.

Property market rents slip in major cities

Property market: Median rent prices take a hit in major cities

The situation for renters across Australia continues to ease, with new data from CoreLogic showing rents steadily declining. According to the property research firm, national rent values fell 0.3% in June, and 0.5% over the June quarter. CoreLogic notes this was the largest quarterly decrease in rents since September 2018, and the downward trend is likely to continue in the coming months.Capital cities saw the greatest declines, with rents dropping 0.7% over the June quarter. In comparison, rents across regional Australia have been remarkably resilient, increasing by 0.2% over the same period.“Closed international borders created a significant shock to rental demand, as historically the majority of new migrants to Australia have been renters,” said Eliza Owen, head of research Australia at CoreLogic.“Furthermore, job losses in sectors such as hospitality, tourism and the arts, which ABS payroll data estimates has been around 20%, have also impacted demand, because households in these sectors are more likely to rent than in other industries.”Before the coronavirus pandemic struck, growth in the rental market was fairly subdued, with national rents lifting just 1.1% in the five years to June 2020. This has been good news for renters but unwelcome news for property owners.While there were faint signs that rents would rebound earlier in the year - after a decline in investor participation saw the supply of new rental properties taper off - the coronavirus pandemic has tilted the playing field decidedly in tenants’ favour.Among major markets, Hobart recorded the steepest drop in rental values, with median rents falling by 2.3%. Sydney saw the second largest decline at 1.3%.Asking rents have also pulled back slightly as owners try to attract tenants. In Sydney, estimated median asking rents decreased by 1.6% to $568 per week. Canberra asking rents, which fell by 1.7%, currently sit at $566.In third place, Hobart has a median asking price of $454 a week, followed by Melbourne at $453, Darwin at $442, Brisbane at $439, Adelaide at $397, and Perth at $396.For more information on property and lending trends, visit our home loan news hub. And if you’ve got your sights set on buying, browse our home loan comparison page, or check out the selection below.

Nsw pauses stamp duty for first home buyers

NSW pauses stamp duty for first home buyers

The NSW government has announced that stamp duty will be temporarily eliminated for first home buyers purchasing newly-built homes, as the state looks to the residential construction sector to spearhead economic recovery.The changes will come into effect on 1 August 2020, and will raise the current stamp duty exemption threshold from $650,000 to $800,000 for first home buyers. Discounts will also be offered at a tapered rate on homes valued up to $1 million.Importantly, the exemption will only apply to purchases of newly-built homes, meaning those looking to buy existing houses and apartments will not be eligible. It will also be kept in place for 12 months.NSW Premier Gladys Berejiklian said the move will offer some much-needed support to the building sector, which faces a diminishing supply of work, and allow first home buyers to begin their property journey sooner."Thousands of people will see their bank balances benefit from this change - it will help get more keys into more front doors of more new homes," she said."It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before."It’s predicted that the changes will help up to 6,000 Australians. According to NSW Treasurer Dominic Perrottet, the increased threshold will spare first home buyers from having to pay up to $31,335 in stamp duty on a new $800,000 home.

Bendigo bank slashes rates by up to 0 20

Bendigo Bank slashes home loan rates by up to 0.20%

Bendigo Bank has cut rates for its Express Home Loan by up to 0.20%, bringing it down to 2.69% p.a. (2.86% p.a. comparison rate*) for owner occupiers and 3.04% p.a. (3.21% p.a. comparison rate*) for investors. The changes will see existing customers saving much more on their monthly repayments. For example, owner occupiers paying off a $400,000 loan over 30 years (P&I, LVR 80%) will be looking at savings in the range of $43 a month, or $516 over a year.

Property prices tumble over the june quarter

Property prices tumble over the June quarter. How is your city faring?

The coronavirus pandemic and ensuing economic downturn have been threatening to topple housing prices for months now. While the property market has proven to be quite resilient so far, new research from Domain suggests the cracks are beginning to show. According to the report, Australian house prices fell by 2% and unit prices by 2.2% over the June quarter, the first quarter to show the impact of COVID-19. All capital cities saw drops in unit prices, while house prices fell everywhere except Adelaide, Canberra and Hobart.Domain Senior Research Analyst, Dr Nicola Powell said improved affordability, along with the rollout of a number of government incentives, has seen buyer interest recover after falling off a cliff in April. “The outlook for residential property has improved vastly in recent weeks. Sentiment towards housing and the purchase of a home has bucked the overall more negative sentiment around the broader economy,” she said.

No stopping the rate cut party as more lenders slash rates

No stopping the rate cut party as more lenders slash rates

Popular online lenders loans.com.au and UBank are the latest to join the July home loan rate cut party, in a frenzy that's showing no signs of stopping despite the fact that home loan rates are now hitting uncharted territory of under 2.00%.

Jobkeeper and jobseeker 1 3 million aussies could lose their home if support stops

JobKeeper and JobSeeker: 1.3 million Aussies could lose their home if support stops

Mozo research shows that more than a quarter of workers currently relying on JobKeeper and JobSeeker won’t be able to afford their rent or home loan repayments if the government support ceases. This amounts to approximately 1.3 million Australians potentially unable to keep a roof over their heads.This analysis comes after the government announced changes to Covid-19 support payments on Tuesday. While JobKeeper and JobSeeker have been extended beyond the planned September end date, both will see a reduction in the coming financial quarter, and eligibility criteria will change for the Coronavirus supplement.Around 3.5 million workers are receiving JobKeeker payments and 1.6 million are relying on JobSeeker. This means approximately 42% of Australia’s 12.1 million-person workforce is being supported via these government schemes.Mozo’s data showed the vast majority of these people (92%) require this support to remain financially stable. In addition to the worrying housing situation, a third of surveyed income support recipients said they would not be able to afford to pay their bills if the payments stopped, with a fifth also unable to cover the cost of groceries.According to the Australian Bureau of Statistics (ABS), unemployment has reached a 22-year high of 7.4%, with 992,000 people recorded as officially out of work. “With the jobs market on life support, JobKeeper and JobSeeker payments are critical in ensuring people can remain in their homes and have enough money to cover necessary expenses,” Mozo Director Kirsty Lamont said.