House prices projected to jump 30% in three years: RBA

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It’s the document that was never meant to see the light of day. But a Freedom of Information request reveals the Reserve Bank of Australia projects a 30% increase in house prices if interest rates remain low for the next few years.

The internal, not-meant-for-public-viewing analysis by the RBA looks at the impact of low interest rates on asset prices, including property.

The November 2020 document projects that housing prices could increase by 30% after about three years, so long as the official cash rate remains near record low levels (at or below 0.5%).

And that part of the equation looks promising, as the RBA board said they “weren’t expecting to increase the cash rate for at least three years” when they cut it to 0.1% in November.

What does this mean for property owners?

A lot more than just a potential 30% increase in the value of their property.

The RBA says both households and businesses can expect their borrowing capacity to increase, too.

That’s because low interest rates will lift asset prices (including property), which in turn will boost wealth, household spending and the value of collateral.

And as the value of collateral increases, so too will the borrowing capacity of households and businesses, the RBA document states.

What about prospective property owners?

With house prices projected by the RBA to rise 30% over the coming three years, it begs the question: is now a good time to jump into the property market?

Well, like most things in life, it will depend on your earnings, savings, borrowing capacity, goals, and where you’re at in life right now.

But it’s worth noting that there are a wide variety of generous federal and state government initiatives currently on offer, including the First Home Loan Deposit Scheme, HomeBuilder and stamp duty exemptions/concessions.

The quickest way to find out whether you can finance that home you have your eye on is to get in touch with us today – we’d love to explore your financing options with you.

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.

What are Australia’s most popular vehicles? The 2020 results are in

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Long gone are the days of Holden vs Ford. These days it’s all about the SUV vs the great Australian ute. So which vehicle type topped the list in 2020?

Let’s wind back the clock a bit.

It’s the year 2000: we’ve dodged Y2K (phew!), you can still photograph your kids sitting next to the pilot, and you’re either a fan of Peter Brock (Holden) or Dick Johnson (Ford) – never both.

Back then the Holden Commodore and Ford Falcon were our two top-selling vehicles, both of which have been discontinued in recent years.

How times change, huh?

So what’s the most popular kind of vehicle in 2020?

These days it’s all about the SUV, which is getting more and more popular.

In fact, SUVs claimed 49.6% of the market during 2020, an increase from 45.5% market share in 2019, according to the Federal Chamber of Automotive Industries (FCAI).

Light commercial vehicles (LCVs) – mainly utes and vans – were also popular in 2020, with 22.4% market share.

Sales for this vehicle type were no doubt boosted by the federal government’s instant asset write off scheme – now expanded to ‘temporary full expensing’ – which allows businesses to immediately deduct the business portion of the cost of eligible new depreciating assets.

What are the most popular brands and models in 2020?

The highest-selling brand for the year was Toyota, with an impressive 204,801 vehicles sold for a whopping 22.3% market share in Australia, says the FCAI.

In second place was Mazda (85,640 sales for 9.3% market share), followed by Hyundai (64,807 sales for 7.1% market share).

In fourth place was Ford (59,601 sales for 6.5% market share), narrowly beating out Mitsubishi (58,335 sales for 6.4% market share).

It’s interesting to note that out of the top ten vehicles for the year, seven of them were either SUVs or LCVs.

So without further ado, the top-selling vehicles for the year 2020 were:

1. Toyota HiLux (45,176 sales)
2. Ford Ranger (40,973)
3. Toyota RAV4 (38,537)
4. Toyota Corolla (25,882)
5. Toyota Landcruiser (25,142)
6. Mazda CX-5 (21,979)
7. Hyundai i30 (20,734)
8. Mitsubishi Triton (18,136)
9. Toyota Prado (18,034)
10. Kia Cerato (17,559).

Got your eye on a vehicle? Get in touch

If you’re thinking of purchasing a new vehicle and want to explore your finance options for it, then please get in touch.

As mentioned above, if you’re a business owner and need to use the vehicle for your business, you might be able to take advantage of the federal government’s ‘temporary full expensing’ scheme, which is designed to help boost your business’s cash flow.

To find out more, please get in touch with us today – we’d love to help you hit the road in a new set of wheels.

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.

New year, new you: 3 quick and easy finance resolutions

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Whenever we think of New Year’s resolutions, the first thing that comes to mind is a health kick. But here are three (easy) New Year’s resolutions that’ll help improve your financial wellbeing in 2021.

Below we’ll run you through three straightforward, and most importantly, achievable New Year’s resolutions to set yourself this year (and not a diet or boot camp in sight!).

1. Get a home loan health check

Quick question (no judgement): do you know the interest rate on your home loan?

Don’t stress if you don’t, studies show that about half of mortgage holders can’t recall their home loan interest rate.

But it does beg the question: if you don’t know your rate, how do you know whether or not you’re getting a good deal on your loan? You could very well be paying too much.

This is why making a home loan health check your New Year’s resolution is so important, particularly with interest rates at record low levels after a series of RBA cash rate cuts.

Indeed, a recent RBA study found that for loans written four years ago, borrowers are charged an average of 40 basis points higher interest than new loans.

So if it’s been a while since you’ve refinanced – so long that you can’t recall your rate – then it’s probably time to get in touch for a home loan health check to see if you can get a better deal.

Rest assured we’ll make it quick and painless. Simply get the ball rolling by giving us a call today.

2. Set yourself a financial or lifestyle goal

If you’re not back at work yet, use this precious time to carefully consider what financial goals you want to achieve in 2021.

With renewed post-COVID optimism on the horizon, now might be time to launch that business idea you’ve been thinking about.

Perhaps it’s time to upgrade from an apartment to your first house. Or with international travel on hold for a while, maybe now’s a good opportunity to explore Australia with a new set of wheels.

Whatever your flavour, consider taking stock of what you want to achieve in 2021 so that you can work out a plan to achieve it.

And if you’re unsure about how you’ll finance that goal, we’re here to discuss your funding options. We can help you work out whether you might be able to make them a reality in 2021, or if it’s more realistic to work towards 2022 instead.

3. Cut back on your microtransactions

Once you’ve identified a big financial goal to hit in 2021, you’ll want to start saving towards it.

But micro-transactions – purchases that are low in cost and trivial in nature – can be a real obstacle.

For example, did you know that buying a $4 takeaway coffee each day costs you a whopping $1460 per year, whereas making it yourself using a french press or aeropress costs just $260.

That’s a saving of $1200.

Other micro-transactions that most families can cut back on include alcohol, take-away food such as Uber Eats, gym memberships, and multiple entertainment subscriptions such as Spotify, Netflix and Foxtel.

With a little bit of budget tinkering, you can save yourself hundreds – even thousands – of dollars each month.

So what’s your first step?

That’s easy – get in touch today for resolution #1: a home loan health check.

There’s a reason tens of thousands of families are currently refinancing their home loans: competition among lenders is fierce.

And by getting the ball rolling on resolution #1, you’ll also be contributing towards resolutions #2 and #3 by saving money that you can put towards your 2021 financial goal.

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.

Happy New Year! Here’s to a prosperous 2021!

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Well, that was a year for the history books. Time to start looking forward, we reckon! And the good news is 2021 offers plenty of promise. So what’s your New Year’s resolution?

While we saw the national housing market dip throughout the middle of 2020, it’s already started to recover, and many experts predict it’ll rebound even stronger in 2021 as the COVID-19 vaccination is rolled out across the country.

With that optimistic outlook in mind, now’s a great time to sit down and ask yourself: what am I aiming for in 2021?

A new home? A caravan to explore Australia in? Or now that you’ve had a taste of working from home, possibly a new business idea?

Because, let’s face it, while we’re all for health-inspired New Year’s resolutions (well, kinda), it doesn’t hurt to have a financial resolution too.

And usually the two work hand-in-hand quite well.

For example, the less you spend on booze, take-away coffees or Uber Eats, the more you can put towards savings to your 2021 financial goal.

So over this New Year’s long weekend have a little think about what you might want to achieve in 2021.

Whatever it is, rest assured that we’ll be here for you to help you achieve it.

And if you just want to enjoy 2021 after enduring the horror show that was 2020, we’re all for that too!

Happy New Year and all the best for 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.

Season’s Greetings! Bring on 2021!

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To all our wonderful clients: this has been a year like no other, so we can only hope that you’re treated to a relaxing time with family and friends this festive season.

We want to say a huge thank you for your support over these past twelve months. It’s fair to say it’s been an incredibly challenging year for households and businesses alike.

That said, it’s been an absolute pleasure and an honour working with you towards your lifestyle and business goals.

May you feast alongside those you love this Christmas, and enjoy some time off over the New Year period.

We look forward to working with you towards a prosperous 2021! (and leaving 2020 behind us all!).

Merry Christmas and Happy New Year!

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.