The apartment market in 2023.
What will happen to the apartment market in 2023? Well the rental market will almost certainly continue to rise throughout the year. The sales market has too many economic and political factors at play to make any meaningful forecast. Which is another way of saying “I’m not sure”. That said the last few years have seen…Read More→
Cashback deals for new loans
Cash back deals for new loans is not new. Much has been written (including here) about the looming mortgage cliff. RateCity report around 100 billion dollars of fixed rate loans at historically low interest rates, expire during the second half of 2023. With many loans already expiring, it is creating a highly competitive mortgage market,…Read More→
Charging EVs in apartments?
Can apartment residents own and charge an electronic vehicle (EV) at home? Unfortunately, for most apartment residents the answer is no. At least not in the building or not easily. Owning an EV while living in an apartment is a conundrum. Some people have resorted to running an extension lead from their apartment to the…Read More→
What is affordable housing?
We all understand what social housing is. But affordable housing means different things to different people. When Dr Jim Charmers announced the National Housing Accord in last night’s federal budget, he talked about affordable housing. In that context, he is talking about rental accommodation (both private and goverment owned) with varying degrees of qualification and…Read More→
Housing shortage in Queensland
The housing shortage in Queensland is being reviewed by the State Government and non-government stakeholders who came together for a Housing Summit in October 2022. It addressed the acute shortage and rising cost of housing across the state and especially in South East Queensland which has attracted 90% of the 750,000 people that have migrated…Read More→
First home buyer schemes could be better.
First home buyers seem like a good idea but there are some underlying issues. Let’s say you’re a first home buyer in NSW and the “First Home Buyer Choice” programme has just com in. That means (from 16th Jan 2023), when you buy your first home (up to $1.5m), you get to choose between paying…Read More→
How will the Melbourne market adjust to rising rents?
What impact is the tightening rental market and rising rents having on renters attitudes? In 2021, the Melbourne apartment rental market became very tenant friendly. The market rent fell and there were large vacancies. Renters had the upper hand and were safe in the knowledge, they would almost always be offered a further term which created…Read More→
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→