Traders are doubling down on bets that the Reserve Bank will have to lower interest rates this year after cooling US inflation reinforced expectations that the Federal Reserve is on the brink of kicking off its easing cycle.
 

Australian money markets ascribe a 26 per cent chance of an easing at the RBA’s next policy meeting on September 24, up from 15 per cent, and are fully priced for a move by Christmas according to the Australian Financial Review. 

Each 0.25% cut increases the average persons borrowing capacity by $20,000 - $30,000. So, if we get 3-4 rate cuts over the next 12 months everyone is going to have an extra $100,000 to spend.

Which means we are probably looking at a fresh wave of cashed up buyers entering the market in the months ahead. 
 
If you are looking for ways to maximise your purchasing power now so you beat the wave then you can Book a call with me for a Free Maximiser session  Click here to go straight to my calendar to make a time. 

Greg at MTA

Housing finance is sitting above decade averages in almost every area of Australia.

CommSec’s State of the States report says it is up by 37.8% in Western Australia, 32.3% in Queensland, 19.7% in South Australia, 14.6% in Victoria, 13.9% in NSW, 8.6% in Tasmania and 2.7% in the ACT. It is down by 7.1% in the Northern Territory.

PEXA’s latest Mortgage Insights Report says a total of 509,955 new property-related loans were issued in FY2024, a 6% per cent increase on the previous year while refinancing was down by 11.9%.

ABS monthly lending figures show investors are continuing to charge into the market. June lending indicators data show the total value of new investor loans was 30.2% year on year.

Brisbane’s median house price has been growing for the last year by $300 - $500 a day. And when the RBA starts cutting rates it is going create another wave. 

If you are looking for ways to maximise your purchasing power now so you beat the wave then you can either:

1) Book a call with me for a Free Maximiser session  Click here to go straight to my calendar to make a time; or

2) Get started today with a Finance Review.  Click here to get started

Click here for all the details on this property..

The population in Brisbane's North is expected to grow by 10,500 people a year out to 2041. Yet there were only 3,324 residential dwelling approved for the 2024 financial year of which only 2,368 were houses.  

With an average household size of 2.61 people this indicates an  shortfall of 1,824 of what is required.   

Given the median asking price is now $750,000 finding houses below $675,000 is pretty near impossible. Particularly in such a great location.

The latest monthly data shows Brisbane rose again by another 1.1% in July and is now up 16% for the year. 

The potential of a rate cut before Christmas is likely to trigger a wave of new buyers with increased borrowing capacity and confidence. So there may be a limited opportunity before prices jump again.
 

Click here for all the details on this property

Click here for the Report.

This suburb has experienced 13.8% price growth so far this year with still plenty of upside.

This high yielding property is 1km from local high school, 2km from shopping centre. There are multiple major employment hubs located within a 5km radius.

The potential of a rate cut before Christmas is likely to trigger a wave of new buyers with increased borrowing capacity and confidence. So there may be a limited opportunity before prices jump again.
 

Click here for more information

As soon as the CPI data was released the Aussie dollar dropped like a stone as did the long-term bond rates. With the market now pricing in a rate cut by Feb. And some economists not ruling out a cut this November.

On the flip side. According to Core Logic Brisbane’s median house price rose 1.1% to $873,987 in July and is now up 16% from this time last year.

If it maintains 1.1% a month then next month it will be $882,000 and in 12 months’ time it will be $986,000.

Or to think of it another way the house that you are looking at today which you think is overpriced is going up in value by $300 - $500 a day. Unless you can save faster than that you are going backwards everyday you delay.

This is all happening while rates have been at their peak.

If rates start coming down, this boosts everyone’s borrowing capacity.

Each 0.25% cut increases the average persons borrowing capacity by $20,000 - $30,000. So, if we get 3-4 rate cuts everyone is going to have an extra $100,000 to spend.

Note - some lenders have already quietly been cutting rates.

Based on the markets thinking this suggests there is maybe a 4-6 month window before you will be competing with a wave of new buyers with bumped up purchasing power.
 

If you are looking for ways to maximise your purchasing power now so you beat the wave then you can either:

1) Book a call with me for a Free Maximiser session  Click here to go straight to my calendar to make a time; or

2) Get started today with a Finance Review.  Click here to get started