Home values increased in all but two capital cities last week, with only Sydney and Adelaide recording falls, according to the latest CoreLogic data.

Melbourne was the highest climber at 0.3 per cent, followed by Brisbane and Perth at 0.2 per cent and 0.1 per cent respectively. Both Sydney and Adelaide fell 0.1 per cent, CoreLogic’s Property Market Indicator data showed.

The monthly index was up by 0.2 per cent for the week. It rose by 8.6 per cent for the year. Sydney and Melbourne remained the main drivers at 10.5 per cent and 12.1 per cent, respectively.

Houses remained more popular than units, and the average time for houses on market shortened slightly last week, with Canberra, Melbourne and Sydney performing best at 26 days, 28 days and 29 days, respectively.

Perth and Darwin performed the worst at 84 days and 91 days each.

Brisbane is still the top pick for property investors according to the The Property Investment Professionals of Australia national survey.

The survey found 43 per cent of investors prefer Brisbane above any other capital city when it comes to property. Melbourne is the second most popular investment destination (32 per cent), followed by Sydney (7.8 per cent).

70 per cent of investors believe that now is a good time to invest in residential property with 61 per cent looking to purchase a property in the next six to 12 months and 47 per cent having purchased a property over the past year.
 

How are your investment plans going? Feel free to contact me to arrange a review or grab a copy of our Cash Positive Property Guide 


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Greg Carroll
MTA Finance
www.mtafinance.com
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So if you are thinking of switching or just looking to save on your mortgage you should be contacting me today about this offer as I'm not sure how long it will last.  
 

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Thanks

Greg Carroll
MTA Finance
Now followed by over 11,400 subscribers

Better cashflow makes it easier to hold investment property. The following are a good place to start.

Just renegotiated another rate discount for a client with their existing lender. Estimated annual saving $3,077. Over 5 years that's a whopping $15,385! Talk to us about your lending.

There’s an opportunity to put more cash in your pocket

Banks and lenders have been playing around with their pricing for a little while which has created some gaps in pricing. This has been opened up more with the RBA cutting the cash rate last week. 

Some lenders have passed on the cut in full some a smaller percentage.

We now have a situation where across the big 4 banks the gap from their lowest to their highest variable rate is 1.65%. Once we look a bit broader to other lender this spreads out to over 2%.

Being able to reduce your interest rate by 1% on a $500,000 loan could save you over $3,500 a year.

Consolidating some other personal debts like credit cards could really improve your cashflow as well.

We recently saved one client nearly $10,000 a year in repayments

Talk to us about ways to put more money in your pocket today

 
Super changes will see increased property values

The low tax environment that super offered, particularly to high income earners is gone and will shift many peoples focus into other options like property investment.

The strict limits on the amount of money that can be pumped into super, combined with a cap on how much can be transferred to a tax-free private pension and a rise in the contributions tax for high income earners, has made the super system a far less attractive vehicle for wealthy savers trying to avoid the taxman.

When you consider a high income earner can get back 45% of their expenses via a tax refund for property investment it’s no surprise more capital will find its way into the property market.

Low rates will drive retirees into the property market

Last week’s rate cut is a further blow to self-funded retirees who were relying on interest as income.

Only a few years back a savings balance of $1 million dollars could have earnt you $60,000 to $70,000 a year. Now you’d be doing well to get an income much above $25,000.

That’s a 66% fall in income. Low deposit rates will force retirees to look at alternate investments like property and shares which will generally offer higher yields.

Talk to us about how to finance your investment plans.

Check out our answers to some popular home loan questions.


Get more than just a low rate
If you are looking to purchase property or want to review your existing lending it is worth talking to us to get your home loan options properly assessed. We not only look at your interest rate we can also assist with developing a longer term plan focused on your financial goals.   Contact us to discuss you plans.

Dwelling values have increased across all but two capital cities over the last 12 months, new research has revealed.

According to the latest CoreLogic RP Data April Home Value Index, Melbourne was the best performing capital city over the 12 months to 30 April 2016, with dwelling values increasing by 10.1 per cent.

This was followed by Sydney with an increase in dwelling values of 8.9 per cent, Brisbane with 6.2 per cent, Canberra with 4.5 per cent, Adelaide with 3.6 per cent and Hobart with 1.1 per cent.

The Brisbane Market ahs gone up for 14 straight quarters. Click here for the full story

A major report by Infrastructure Australia shows Queensland’s population will grow to 6.4 million and south-east Queensland’s population will grow by 1.4 million in 15 years.

Over the period from 2011 to 2031, Australia’s population is projected to increase by 8.2 million people. The bulk of this growth will occur in cities, which are forecast to grow by almost seven million people by 2031. Almost-three quarters of our population growth will be in the four largest cities: Sydney, Melbourne, Brisbane and Perth.

The report highlights the need for major investments in infrastructure in Queensland and lists which projects should be given priority. The list includes:

High priority projects – must start within five years

• Ipswich Motorway – Rocklea to Darra section.
• Pacific Motorway M1 – Mudgeeraba to Varsity Lakes.
• Cross River Rail – extra rail line across the Brisbane River because existing rail bridge gets congested from 2016.
• Freight rail access to the Port of Brisbane.

Priority projects – must start within 10 years

• Gold Coast light rail stage two.
• Gateway Motorway/Pacific Motorway merge upgrade project.
• Bruce Highway progressive highway upgrades.
• Beerburrum to Nambour rail upgrade – widening the single rail section.
• Gladstone Port land access improvements.
• Mt Isa to Townsville new rail line.
• Lower Fitzroy River water infrastructure – raising the Eden Bann Weir on the Fitzroy River.
• Upgrading 4.7 km of the Cunningham Highway from Yamanto to Ebenezer west of Ipswich.

Nathan Birch, an investor who owns 200 investment properties that net him approximately $500,000 in income a year puts South East Queensland as his pick. “If I had to start my portfolio again from scratch, today, I’d be buying in southeast Queensland,” he said. “The prices are better than in Sydney and Melbourne and there’s more room for them to increase. Sydney will still see some growth this year, but it’s probably close to maxing out.”

He added that there are similarities between the property market now and when he bought his first home in 2004.

Back then, Sydney was coming off a price boom that had stirred fears of a price bubble. Homebuyers were nervous about possible interest rate hikes and if the economy would land in trouble.

“In some ways, it’s easier now,” Mr Birch said. “At the end of the last boom there were a lot of homes for sale, but not enough people who wanted them. Right now, there’s still a housing shortage in Sydney and a lot of people looking to buy.

”The way I see it, there are good and bad times to be buying property, but ultimately you have to take action. Too many people have goals, but don’t do anything to make them happen.”

Through our property investment service we've been able to source investment properties that pay for themselves and put cash in your pocket so there's not really a good argument not to progress your investment plans at present.

To find out more about our property investment service Contact Us