Property resale values continue to rise despite lockdowns
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Australia’s property market has continued to soar throughout periods of lockdown, with the latest CoreLogic report finding that the three months to September 2021 saw the highest level of profitability in real estate for more than a decade.
The Pain & Gain report, which covers the September 2021 quarter, found that the rate of profit-making resales across Australia rose to 92.4%, up 50 basis points from the June quarter.
“The three months to September was the fifth consecutive quarter in which the rate of profit-making sales across Australia increased,” said Corelogic head of research, Eliza Owen.
Profit-making resales, when a property is solid for a profit on the price it was originally purchased for, have continued to rise as Australia’s real estate market grows stronger.
Resales had a typical hold period of 8.8 years, although properties held for more than 30 years had the highest median gain of over $745,000. Properties held for under two years had the highest nominal gains per year, with the median resale gains sitting at $120,000.
House resales continued to have a higher chance of nominal gain than units, although the report noted that the gap is narrowing. Regional Australia also saw a slightly higher rate of profit from resales than the capitals, however both saw an increase in profitability throughout the quarter.
The report noted a decrease in resale transactions during the period, with around 99,000 transactions analysed compared to 106,000 the previous quarter. Owen attributed this to social distancing measures, particularly the inability to physically inspect property across Melbourne.
Corelogic found that the national median nominal gain was $270,000, with total resale profits at $27.3 billion. Meanwhile median losses sat at $37,000, with total resale losses at $368 million.
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Optimum Fixed Rate Home Loan
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5.69
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6.34
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$2,899
Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.
- Interest rate
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5.69
%
p.a.
Fixed 3 years
- Comparison rate
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6.34
%
p.a.
- Upfront fees
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$0
- Ongoing fees
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$0.00
- Discharge fee
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- Extra repayments
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yes - free up to $20,000 p.a. during fixed rate term
- Redraw facility
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yes - free
- Offset account
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no
- Maximum loan to value ratio
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Flex Home Loan
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5.99
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6.34
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$2,995
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
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5.99
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$250
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$250.00 yearly
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$300.00
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yes - free
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yes - free
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yes
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Basic Home Loan
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6.25
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6.20
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$3,079
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6.25
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6.20
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$350
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$0.00
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$400.00
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yes - up to $10,000 p.a.
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yes - free
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no
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yes - up to $10,000 p.a.
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yes - free
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yes
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Fixed Rate
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6.54
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7.10
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$3,174
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
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6.54
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7.10
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$160.00
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no
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