Top 5 property investor trends for 2021-22

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With house prices going gangbusters in the first half of 2021, is it still a good time to buy property? The majority of investors think so, according to the latest annual survey. And investors have their sights set on one city in particular.

The 2021 PIPA Property Investor Sentiment Survey, which gathered insights from 800 property investors across the country in August, found more than 76% of investors believed property prices in their state or territory would increase over the next 12 months.

That’s up strongly from 41% this time last year, when COVID-19 had some investors a touch nervous.

“When we think back to last year, which was a time of much fear and uncertainty, it’s clear that property investors and the market, in general, has weathered that turbulent period better than anyone dared to hope,” said PIPA Chairman Peter Koulizos.

Here are the top five trends the PIPA survey identified.

1. Most investors believe it’s a good time to invest

This year’s survey found that nearly 62% of investors believe that now is a good time to invest in residential property, which is a tad down from 67% in 2020.

PIPA says that dip in confidence may be due to the high property price growth this year as well as significant lockdowns taking place at the time of the survey.

2. The sunshine state looks to be the property hotspot

This year’s survey produced the biggest ever margin when it came to the location investors believe offers the best potential over the next year.

“A staggering 58% believe the sunshine state [Queensland] offers the best property investment prospects over the next year – up from 36% last year,” Mr Koulizos says.

New South Wales came a distant second at 16% (down from 21%), and Victoria was third at 10% (significantly down from 27%).

Brisbane also beat its capital city counterparts, with 54% of investors believing it has the rosiest outlook.

Mr Koulizos says the boost could be to do with Brisbane being named host of the 2032 Olympic Games, and significant upcoming infrastructure spending.

“All of these factors, as well as the affordability of property in southeast Queensland and strong interstate migration, are some of the reasons why investors are so optimistic about market conditions there,” he adds.

3. Regional and coastal markets continue to grow in demand

While investors still believe metropolitan markets offer the best investment prospects at nearly 50% (down from 61% in 2020), regional and coastal markets are closing the gap.

A quarter of property investors now favour regional markets (up from 22%), while 21% of survey respondents have their eye on coastal areas (up strongly from 12% last year).

4. Fewer investors looking to sell

The lingering impacts of the global health emergency – as well as robust price growth over the past year no doubt – mean fewer investors (59%) are looking to sell a property this year compared to last year (71%).

“Part of the reason for the uplift in property prices over the past year has been the continued low levels of supply in most locations around the nation,” Mr Koulizos notes.

“With a decrease in the number of investors indicating they intend to sell over the short-term, it seems unlikely that this boom market cycle is going to change anytime soon.”

5. Almost three-quarters of property investors use a mortgage broker

Just 17% of respondents secured their last investment loan directly via a bank, while 4% used a non-bank lender.

The vast majority (72%) of respondents secured their loan through a broker, a slight increase on last year’s figure of 71%.

And 72% of respondents said they’d use a broker to finance their next investment loan.

It just goes to show that it doesn’t matter how far you are on your property journey – whether you’re a first home buyer, refinancer or savvy property investor – we can help you every step of the way.

So if you’re looking to add to your property portfolio, looking for a change of scene, or keen to crack into the market, get in touch today.

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.

Refinancing figures are on a record-breaking run: here’s why

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With interest rates at record low levels, the number of homeowners refinancing skyrocketed to an all-time high in July. Today we’ll run you through why so many people are refinancing, and why you should consider doing so too.

We’re currently seeing more people refinance their home loans than ever before, and the latest ABS figures out this week prove we’re not imagining things.

Refinanced home loans reached an all-time high of $17.2 billion in July, which is a 6% increase on June.

It’s also more than double the value that was refinanced exactly two years prior in July 2019.

So why are homeowners refinancing in record numbers?

For starters, the RBA cash rate is at an all-time low of 0.1% following six rate cuts in three years.

As such, competition amongst lenders is fierce, with many offering record-low home loan rates in a bid to win over as many customers as possible.

In fact, RateCity reports the number of variable rates under 2% on its database has jumped from 28 to 46 in just two months.

Borrowers are also opting to lock in their interest rate too, says the ABS, following reports that lenders have started increasing the rates on 3-5 year fixed-rate loans.

“Borrowers are seeking out lower interest rates, particularly for fixed-rate loans, and cashback deals across a large number of major and non-major lenders,” says ABS head of Finance and Wealth, Katherine Keenan.

COVID-19 is likely increasing the number of homeowners refinancing, too.

With many households and businesses around the country doing it tough right now, one simple way to reduce your monthly mortgage repayments is by refinancing.

How we help you refinance the right way

Now, fixed-rate loans and cashback deals might look super appealing at first glance, but they might not always be the best fit for your situation.

And that’s why it helps to have someone like us in your corner.

We can help you go through the fine print, fees and limitations that might exist within these loan options.

We can also help you determine whether a fixed, variable or split loan is better suited to your needs.

The other thing we’re great at is negotiating with your lender.

Your current lender won’t automatically give you their lowest rate going. You’ve got to ask them for it.

And you’ve also got to make it clear that if they don’t reduce your interest rate, you’re willing to find another lender who will.

This can be both intimidating, not to mention time-consuming and frustrating if they don’t want to play ball.

But lucky for you, we can do the leg-work for you.

So if you haven’t refinanced in the past few years, get in touch with us today and we could help you save thousands of dollars in interest repayments on your mortgage.

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.

Nine in 10 FHBs trust brokers to help them buy their first property

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Remember that classic TV ad: ‘nine out of 10 dentists recommend using [toothpaste brand]?’ Well, it turns out we’ve earned a similar level of trust when it comes to helping first home buyers sink their teeth into the property market. 

That’s because nine out of 10 first home buyers (FHBs) recently said they trust a mortgage broker to help them buy their first property.

And, unlike dentists, we’re actually allowed to show our faces!

So why do so many first home buyers trust mortgage brokers?

The Genworth First Home Buyer Report 2021 surveyed 2,077 prospective FHBs, and 1,008 recent FHBs – and we’re pretty chuffed with the results.

Here’s what one respondent said:

“Go and see a professional broker in-person early on in the process. That way they know your situation and are able to best guide you through and help you out,” the 32-year-old recent FHB from WA said.

And he wasn’t alone.

Almost nine in 10 FHBs believe mortgage brokers help cut through the complexity in the home buying process.

The report also found a similar proportion of FHBs believe mortgage brokers provide reliable, trusted advice and information.

And finally, close to 90% of respondents said mortgage brokers provide valuable support during the home buying process.

So in a nutshell:

Trusted = tick.
Jargon busters = tick.
Reliable advice and information = tick.
Valuable support = tick.

How we could help you buy your first home

You might have noticed the property market has picked-up over the past 12 months, to say the least.

It’s left a lot of prospective first home buyers frustrated that the suburbs they were once focusing on have moved out of their price range.

While this may be the case for a lot of people, it’s not always the case.

There are a number of federal government schemes available to FHBs, including the First Home Loan Deposit Scheme – which can allow you to buy your first home with a deposit of just 5% without paying for Lenders Mortgage Insurance.

There’s also a range of state and territory government schemes designed to give FHBs a leg up into the property market, including first home buyer grants and stamp duty concessions.

For more information, give us a call today – we’d love to discuss your situation and help you make the leap from renter to first home buyer, and get you smiling as proudly as your dentist does!

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.

SME Recovery Loan Scheme revamped to help more businesses

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More small and medium-sized businesses struggling to stay afloat due to the economic impacts of COVID will have access to cheaper funding after the federal government expanded the eligibility criteria for the SME Recovery Loan Scheme.

The government is removing requirements for SMEs to have received JobKeeper during the March quarter of 2021, or to have been a flood-affected business, in order to be eligible for the SME Recovery Loan Scheme.

What’s special about the SME Recovery Loan Scheme?

Ok, basically the federal government will guarantee 80% of each loan in the scheme, and because of this, lenders can offer the loans “more cheaply and more freely” compared to ordinary business loans.

The first iteration of the scheme kicked off back in March 2020 under a slightly different name – the SME Guarantee Scheme (and back then the government was only guaranteeing 50% of the loan).

Under today’s version of the scheme, SMEs dealing with the economic impacts of COVID with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.

Other key features of the SME Recovery Loan Scheme include:

– Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
– Loans can be used for a broad range of business purposes, including to support investment.
– Loans may be used to refinance the pre-existing debt of an eligible borrower, including debts from the SME Guarantee Scheme.
– Loans can be either unsecured or secured (excluding residential property).

Could this scheme help your business?

So far, 74,000 loans totalling around $6.2 billion have been written under the scheme – so it’s already helped a lot of other businesses around the country.

NAB and Westpac, both participating lenders in the scheme, immediately welcomed the changes, with NAB stating “SME Recovery Loans are a good option for businesses who need additional capital at this time”.

It’s important to note, however, that the loans will only be available through participating lenders until 31 December 2021.

So if you’re interested in finding out whether the SME Recovery Loan Scheme could help your business, get in touch today and we can help you apply through one of the participating lenders.

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.

COVID hardship and grant options that could help you

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With the pandemic once again tightening its grip around many parts of Australia, today we’ll run you through hardship and grant options that could be available to you or your business.

Setting all politics aside, it’s safe to say no one wants to be here. Yet here we are – this time with no JobKeeper or the original JobSeeker payment to help keep us afloat.

So what grants, schemes and hardship arrangements are available to small businesses and individuals this time around?

Let’s run through this year’s COVID support options below.

Loan deferrals on home and business loans

Impacted small businesses with loans in good standing are being supported by lenders with repayment deferrals of up to three months.

For home loan holders, lenders are also providing a range of support measures, including loan deferrals on a month-by-month basis.

Since July 8, more than 14,500 home loans have been deferred, while more than 600 business loans have been deferred.

“Support is available to all small businesses and home loan customers significantly impacted by current lockdowns or recovering from recent lockdowns, irrespective of geography or industry,” says Anna Bligh, CEO of the Australian Banking Association.

Business grants and payments

As you’ll see below, each state and territory has their own grants and schemes available for businesses and individuals.

As the situation is constantly evolving, it’s worth double-checking to see if your business is eligible for any other grants or payments not listed below.

NSW: If you’re a business, sole trader or not-for-profit organisation in NSW and you’ve been impacted by the recent COVID-19 restrictions, you may be eligible for a one-off grant of $7,500, $10,500 or $15,000. Apply here by September 13.

Victoria: There are several grants in Victoria for employing and non-employing businesses. The Small Business COVID Hardship Fund provides $10,000 grants for eligible SMEs that have experienced a reduction in turnover of at least 70%. Apply here by September 10. The Business Costs Assistance Program Round Two offers grants of $4800 to eligible businesses in specific industries. Apply here by August 20.

Queensland: Lockdown-impacted businesses in Queensland can apply to receive a grant ranging from $10,000 to $30,000, depending on the size of their annual payroll. Grants of $1,000 are also available for non-employing sole traders. Apply here by November 16.

Western Australia: The Small Business Lockdown Assistance Grant: Round Two provides $3000 cash flow support to small businesses in industry sectors most impacted by the recent circuit-breaker four-day lockdown and interim restrictions. Apply here by August 31.

South Australia: Small and medium-sized businesses forced to close as a result of the state’s lockdown (beginning 20 July 2021) may be eligible for a $3,000 emergency cash grant. Sole traders may be eligible for $1000. Apply here by October 17.

ACT: COVID-19 Business Support Grants will provide up to $10,000 for employing businesses and up to $4,000 for non-employing businesses that experienced a turnover decline of 30% or more as a result of the COVID-19 lockdown health restrictions. Find out more here.

For individuals

The federal government’s COVID-19 Disaster Payment is a lump sum payment to help workers unable to earn income due to a COVID-19 state public health order.

This may involve a lockdown, hotspot or movement restrictions. How much you can get depends on your location and circumstances. It’s available to eligible ACT, NSW, QLD, SA and Victoria residents.

Tenant and landlord support

NSW landlords who reduce rents for tenants hard-hit by the pandemic will be able to access up to $3,000 per tenancy agreement.

For landlords to be eligible, their tenant’s take-home weekly income must have fallen by 25% or more. The tenant also needs to continue to pay at least 25% of the rent payable.

Meanwhile, the Victorian Government has made it a requirement for commercial landlords to provide rent relief that matches their tenants’ fall in turnover in response to coronavirus, where the tenant is eligible for commercial tenancy relief support.

Get in touch today

Last but not least, it’s worth noting that there are refinance or restructure options you can explore in order to reduce your business or home loan repayments each month (without hitting the pause button). These include:

– asking for a better rate or moving to a lender that can provide one;
– extending the length of your loan;
– switching to interest-only payments for a period of time; and
– consolidating debt.

So if your business or household is one of the many doing it tough again, please get in touch today – we’re ready to assist you through 2021 and beyond, in any way we can.

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.