Three financial New Year’s resolutions to tackle 2025 head-on

How are your New Year’s resolutions coming along? If you’re like most people, they’re likely related to health, fitness or abstinence. But why not consider a financial one too? Here are three resolutions worth considering for 2025.

There’s no denying that 2024 was a tough year for many mortgage holders – in no small part due to the hope of rate cuts dangling just out of reach, coupled with inflation.

But by kicking off the year with one or two of the ideas below, you could be in a better position to tackle 2025 head-on, come what may.

1. Call us for a home loan health check

Do you know the interest rate on your home loan?

Don’t stress if you don’t, about 40% mortgage holders can’t recall it.

Not knowing the rate is usually a good sign that it’s time to check if your mortgage is still well-suited to your needs.

An analysis by RateCity shows the average borrower who has not refinanced their home loan in the past 12 months has paid almost $6,000 more interest during that period as a result.

Rest assured we’ll help make the process painless. Simply get the ball rolling by giving us a call today.

2. Cut unnecessary expenses from your budget

When was the last time you had a thorough look at your spending account?

It’s good to get into the habit of conducting regular expense audits.

After all, many of us have been guilty of subscribing to one too many streaming services that we rarely use – let alone takeaway coffees, takeaway meals and other impulse purchases.

Little tweaks here and there can add up.

For example, a daily $5 takeaway coffee habit costs you $1825 per year. Switching to a DIY French press brew can cost just $350-$450 per year.

3. Leverage your equity to achieve other property goals

A home loan doesn’t just have to be a debt.

It can also be a valuable tool that lets you work through a personal bucket list by putting home equity to work.

And you could be starting 2025 with more equity than you realise.

Back in January 2023, the median home value across Australia’s state capitals was $770,374, according to CoreLogic.

Fast forward to now, and the median value has increased to $897,580.

That means that over the past two years the average city homeowner in Australia has gained almost $130,000 more equity in their property, which they could possibly leverage for other investments.

In fact, that $130,000 rise in equity is the equivalent of a 20% deposit for a $600,000-$650000 investment property.

Alternatively, you could use that equity for home renovations to improve your primary place of residence.

Call us today to get a clearer picture of your home’s potential equity – and how you could use it to tick off your wish list in the year ahead.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Merry Christmas! And thanks for your support in 2024!

With the holiday season upon us, we’d like to express our heartfelt thanks to all our amazing clients for your trust and support throughout 2024.

With the hope of rate cuts always dangling just out of reach, coupled with inflation, 2024 was tougher than many families anticipated.

Please know that we’re always here if you ever want to discuss your mortgage – including ways we could potentially help you reduce your monthly repayments.

Looking ahead, 2025 offers plenty of promise (maybe we’ll start getting those highly anticipated RBA rate cuts!), and we’re ready to walk alongside you to tackle your goals and aspirations – whether they be buying your first home, second home, a holiday home or an investment property.

But first, we hope you take a well-deserved break to enjoy the magic of the festive season.

Whether it’s spending quality time with loved ones or simply unwinding with some holiday cheer, this is your moment to relax and recharge.

The next 12 months may bring more surprises, but one thing remains constant – our commitment to being here for you every step of the way.

So, throw on that festive jumper (the uglier, the better!), savour the holiday treats, and celebrate all you’ve accomplished this year.

May your festive season be joyful, your happiness be abundant, and your challenges small. We can’t wait to help you continue your property journey in 2025!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Have you refinanced recently? It could be time this summer break

If you haven’t looked into refinancing since the start of higher interest rates, it might be time to ask yourself ‘why not?’ New research shows it could be time to try again – especially if you want to start 2025 off on the right foot.

A new report from Canstar shows more than one in five borrowers were able to negotiate a better interest rate from their lender this past year.

One in ten successfully switched to a new lender in the last 12 months.

Even so, fewer home loans have been refinanced this year compared to 2023.

With rates looking like they might stay higher for longer, it could be worth taking a fresh look at refinancing over the summer break.

What’s holding borrowers back?

According to Canstar, around 5% of borrowers tried to refinance in 2024 but didn’t have enough home equity.

A further 5% didn’t meet the bank’s requirements.

It’s a situation dubbed ‘mortgage prison’ – where you’re stuck paying more on your home loan because you don’t qualify for a lower rate home loan.

As Canstar notes, a lot of people think they’re in mortgage prison.

But if you haven’t tested the lock recently, now could be the time to try.

Why it could be time to revisit refinancing

Even if you’ve had a go at refinancing in the past, it’s worth talking to us to see if you could qualify for a new loan today.

On the home equity front, home prices increased nationally by 5.5% in 2024. So you could have more equity than you realise.

Also, if you have a solid record of regular repayments, some lenders may be willing to stress-test refinancers using a loan serviceability buffer as low as 1% (below the standard 3%).

The important thing is that you speak with us to get to know your options.

How much could you save by refinancing?

Well, that depends on how big your current home loan is, what your current interest rate is, and how much you reduce that rate by.

But an analysis by RateCity shows the average borrower who has not refinanced their home loan in the past 12 months may have paid almost $6,000 more interest during that period as a result.

Is refinancing difficult?

Almost one in five (17%) borrowers surveyed by Canstar said they had no plans to refinance because they believe “it’s too much like hard work”.

Let’s clear the air on that one.

As home loan professionals, we’ll help you with the legwork, track down a home loan that meets your needs, help with the paperwork, and liaise with lenders on your behalf.

The bottom line is that we can streamline the refinancing process for you.

Put us to the test.

Get in touch today to see if your home loan is still suitable for your needs – and if not, we’ll help you find one that is.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How did property prices go in 2024? And what’s tipped for 2025?

As we head towards the end of 2024, let’s take a look at how property markets performed over the last year – and discover what the experts say may lie in store for home prices in 2025.

2024 has been a year of change, with property values and market conditions shifting across many of our state and territory capitals.

In fact, the only constant has been the Reserve Bank of Australia’s cash rate, which has held steady at 4.35% since November 2023.

After a year that saw home values rise nationally by 5.5%, according to CoreLogic, it’s worth looking at what we can expect in the new year.

The Australia-wide picture

November 2024 saw home values rise nationally by a barely perceptible 0.1%.

Technically speaking, it’s the 22nd straight month of growth since January 2023. But realistically, 0.1% hardly qualifies as a cracking pace of growth.

Quite simply, CoreLogic says the market is losing steam, and a downturn is gathering momentum – particularly in Melbourne and Sydney.

That’s good news for buyers who may be able to take advantage of softer price growth in 2025.

However, in a market as large and diverse as Australia, it pays to drill down to local trends.

With this in mind, let’s take a look across our major capital cities.

Queensland

Brisbane home prices have climbed 12.1% over the past year. Can the growth be maintained? Maybe, though perhaps not to the same extent. Domain is predicting price growth ranging from 5-7% for houses, and 7-9% for apartments in 2025.

New South Wales

Sydney is up 3.3% over the past year and likely hit a cycle peak in August. Home values have flattened or fallen ever since, says CoreLogic, with the city’s median home price of $1.2 million proving an affordability challenge. Domain is predicting a 4-6% rise in home values through next year.

Victoria

Melbourne took out the wooden spoon for property price growth in 2024, recording a 2.3% fall in prices over the last 12 months. The new year could bring a change of pace. Domain predicts house values could rise 3-5% in 2025 though apartments are expected to drop by up to 2%.

Australian Capital Territory

Home prices in Canberra have barely budged in 2024, declining by just 0.1% in the past 12 months. Domain is taking an optimistic view, expecting house values to rise by 3-5% next year, while unit values could drop by up to 4%.

Tasmania

Hobart values fell 1% in the year to November, bringing the total falls to 12.1% since the market peaked in March 2022. However, more affordable prices plus generous stamp duty reforms launched in mid-2024 could make 2025 a big year for first home buyers in Tassie.

South Australia

Home values in Adelaide have jumped 14% over the past year. However, CoreLogic says Adelaide’s 2.8% rise in values over the past three months was the lowest since June 2023. Even so, there may be plenty of steam left in the market, with Domain forecasting a 7-9% rise in prices in 2025.

Western Australia

Perth has seen home prices soar 21% over the past 12 months. But with listings up 33% in November, CoreLogic says the pace of price growth is slowing. Domain is expecting prices to rise by a more modest 8-10% next year – still nothing to sneeze at.

Northern Territory

Prices in Darwin have barely budged this year, mustering up just 0.9% growth over the past 12 months. Next year may be better. SQM Research is predicting home values in Darwin could rise anywhere from 3% to 10% in 2025 depending on interest rates and population growth.

Get to know your borrowing power

A cooler market could be the opportunity you’ve been itching for to buy a property next year.

Call us today if buying a first home, investment property or upgrading your current home is on your radar for 2025 – we’ll help give you a clearer idea of your borrowing power.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Thinking of buying a holiday home? Here’s what to weigh up

The coming weeks will see millions of Aussies enjoy a well-earned getaway, and for some, a memorable holiday will inspire plans to buy a holiday home. But is it a good idea? And can a weekender still stack up financially? We explain what to consider plus tips to fund a vacation property.

It’s that time of year when we lock up our home, load up the car, and hit the highway to unwind with an all-too-brief sea or tree change.

It can add up to a wonderful experience, and some holidaymakers will stretch the vacation buzz a lot further by purchasing a holiday home.

But given the current state of property prices, is a weekender a smart move?

Here’s what to weigh up.

A holiday retreat is a major outlay

No matter whether you’re thinking of a coastal retreat or hinterland hideaway, homes in popular holiday spots can be pricey.

As a guide, an apartment in Coolum on Queensland’s Sunshine Coast, can set you back about $870,000.

If you’re thinking of a house in Byron Bay on the NSW north coast, you’ll likely need a budget of around $3.5 million.

That said, there can still be relatively affordable holiday spots.

A unit in Victoria’s seaside town of Portland, about four hours drive from Melbourne, can cost around $304,000,

And in the wine growing regions of WA’s Margaret River, or Tanunda in South Australia’s Barossa Valley, you may be able to pick up a house priced from around $670,000-$770,000.

Can a weekender still be a smart investment?

Wherever you buy, a holiday home is likely to involve an outlay of several hundred thousand dollars.

That sort of money could pay for a lot of vacations around the nation – and across the world.

So, first and foremost a holiday home should stack up as a good investment.

This is where it’s worth putting down the pina colada and taking off the rose-tinted glasses.

Ideally, you probably want your holiday home to deliver long-term capital growth.

The thing is, vacation properties tend to be located in regional areas where price growth can be very different from our big cities.

That’s not to say regional neighbourhoods don’t tick the box for capital gains.

CoreLogic points to areas such as Mackay, Geraldton and Townsville, which are seeing “exceptional growth” driven by affordability and lifestyle appeal.

However, not all regional markets are booming.

The holiday town of Batemans Bay, on NSW’s south coast, and Victoria’s coastal city of Warrnambool, for example, have both experienced declining values over the past year, according to CoreLogic.

Long story short, be sure to research any area you’re looking at buying into to get a feel for how property values are likely to move in the future.

Can a holiday property pay its way?

Gone are the days when most holiday homes stood empty for most of the year.

Platforms like Airbnb and Stayz offer a chance to put a vacation retreat to work earning short-term rental income.

The catch is that various state governments are limiting the number of nights these properties can be offered for rent each year.

Also, a number of councils such as Hobart City Council, have raised rates for short-term accommodation properties.

These factors need to be accounted for in your holiday home budget.

On the plus side, if your vacation property is rented out or available for rent, you may be able to claim at least some of the ongoing costs as tax deductions each year.

Funding your holiday home

Loans for holiday homes work in much the same way as a regular mortgage, but with a few differences.

Demand for properties in holiday hot spots can be highly seasonal. This increases the risk for lenders, who may ask you to stump up a bigger deposit compared to an owner-occupied home loan.

Your vacation retreat could also be seen as an investment property, meaning you could be asked to pay a higher investment loan rate.

The big plus is that if you are a home owner, you may be able to use your existing home equity in lieu of a cash deposit on a holiday property.

Get in touch

Call us today to find out more about loans to buy a holiday home.

It could turn a vacation pipedream into a fun-filled, financially rewarding reality for your family.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.