Distressed properties can provide an excellent source of instant equity, through the purchase of a property at a price below the deemed market value.
Properties which have a positive cash flow are a great benefit to investors as they can assist in creating an extra source of income (pre-tax). These properties cover the costs of holding and maintenance, and allow the extra rent paid to become additional income for you to enjoy.
House prices across the country have continued to boom in May, with the latest data showing values increased by 2.2% and 10.6% annually.
Statement by Philip Lowe, Governor: Monetary Policy Decision
International economic development Members commenced their discussion of international economic developments by noting that the global outlook had improved, and risks had become more balanced, because of progress in vaccinations and the provision of additional fiscal support. Growth in the global economy was expected to rebound solidly in both the current and the following year. Even so, the global recovery remained uneven. Output remained well below pre-pandemic levels in a number of countries because of recurring outbreaks of COVID-19, and in some emerging market economies, where financial conditions had tightened, there was limited scope for ongoing large-scale fiscal support. The level of output was expected to remain below its pre-pandemic trajectory in many economies over the forecast period, with the United States and China notable exceptions.
It was said to be one of the most important budgets in Australia’s history, but as is often the case, there wasn’t a lot on offer for property investors. However, as we’ve seen over the past 12 months, there continues to be a large focus on helping first home buyers get into the property market.
Understanding the level of vendor discounting in an area is important as it can help you determine the level of demand for property in the area.
While the pace of house price growth might be slowing, property markets are clearly still in a strong bull market.
Policy actions during COVID The Reserve Bank of Australia (RBA) has taken a number of complementary policy actions to support the Australian economy since the onset of COVID. The RBA has lowered its policy interest rate to near zero, set a target for the 3-year government bond yield, enhanced its forward guidance, commenced a program of purchasing government bonds and provided long-term low-cost funding to the banking system. I will explain each of these actions in more detail shortly.
The Chart Pack summarises macroeconomic and financial market trends in Australia and provides some information about developments for our main trading partners. The graphs in the Chart Pack are updated monthly.
One of the reasons residential real estate is one of the best investment vehicles available to Australians is because of leverage.
Over the past 12 months, we’ve started to see a lot more interest in both buying and selling property off-market.
The exceptionally strong growth in house prices shows no sign of slowing down with the latest data from CoreLogic showing dwelling values are rising at the fastest rate in 32 years.
Property prices across Australia continue to surge higher with the latest house price data showing another big jump in February. According to the latest data from CoreLogic, house prices rose by 2.1% across the nation, marking the largest jump we’ve seen since 2003.
2021 has started in strong fashion as most property markets across the country continue to see rising prices. According to the latest data from CoreLogic, house prices are up once again in February and it appears that the big banks are also predicting significant price gains over the next 12-24 months. Month to date, house prices in our major capital cities are 1.2% higher according to CoreLogic, taking the year to date gains to 1.4%. Out of Australia’s five largest cities, Perth has so far been the strongest this year, with gains of 2.4% followed by Brisbane at 1.5%.