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RBA maintains cash rate at 4.10 percent, homeowners wait for good news

RBA maintains cash rate at 4.10%, delaying relief for homeowners amid global tariff concerns and inflation risks.

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RBA maintains cash rate at 4.10%, delaying relief for homeowners amid global tariff concerns and inflation risks.

The Reserve Bank of Australia (RBA) has decided to maintain the official cash rate at 4.10 per cent, leaving homeowners awaiting further rate cuts. This decision follows the RBA’s board meeting held on Tuesday.

The RBA’s statement indicated that concerns over potential tariff expansions from the United States are influencing global economic confidence. The RBA noted that geopolitical uncertainties have increased, potentially affecting global economic activity and spending decisions by households and businesses.

Inflation concerns were also highlighted, with the RBA acknowledging the unpredictable nature of inflation rates. The board mentioned that although many central banks have relaxed monetary policies, they are becoming more cautious due to evolving global risks.

Market expectations aligned with the RBA’s hold on interest rates, as analysts indicated a low probability of a cut this month. Economist Saul Eslake suggested the RBA would consider upcoming jobs and inflation data before determining its next steps.

AMP Chief Economist Shane Oliver stated the RBA is likely to remain cautious, particularly during an election period. He noted that while inflation remains below forecasts, the job market shows tight conditions, justifying a careful approach.

The RBA previously lowered the cash rate from 4.35 to 4.10 per cent in February and has urged mortgage holders to remain patient as they strive to manage inflation. RBA Governor Michele Bullock expressed understanding of the challenges faced by homeowners but emphasised the importance of reducing inflation before further rate cuts can occur.

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Property

Investors discover 25 top house markets for growth

New report reveals 25 Australian suburbs offering strong rental growth, affordability, and investment potential

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New report reveals 25 Australian suburbs offering strong rental growth, affordability, and investment potential

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In Short:
– New research identifies 25 Australian house markets offering affordability, yield, and growth for investors.
– Strong local economies and infrastructure investments drive demand in these markets, ensuring long-term capital growth.
As rental markets tighten across Australia, new research identifies 25 house markets where investors find a strong match of affordability, yield, and growth.
The latest Pulse report by Washington Brown and Hotspotting highlights suburbs outperforming national trends, offering sustainable investment opportunities.
The list includes regions from New South Wales, the Northern Territory, Queensland, Tasmania, and Victoria.Banner

These selections are based on solid fundamentals, including strong local economies, infrastructure investments, and low vacancy rates, according to Hotspotting General Manager Tim Graham.

The report emphasises the potential for cashflow-positive outcomes without sacrificing long-term capital growth.

“These are not speculative picks,” Hotspotting General Manager Tim Graham said.

“They’re backed by real fundamentals, including strong local economies, infrastructure investment, and low vacancy rates.

“We’re identifying locations where investors can achieve cashflow-positive outcomes without sacrificing long-term capital growth.”

Strong Markets

Examples include Park Avenue in Rockhampton, which experienced a 29.1% annual price increase, and Lismore in New South Wales, surging 26.8% despite flood recovery efforts. Washington Brown Director Tyron Hyde notes that these markets are resilient and attract strategic investors focused on long-term growth rather than short-term returns.

“These markets are resilient, affordable, and on the move,” Mr Hyde said.

“They’re attracting investors who are thinking strategically and not just chasing short-term returns, which is always a bad idea.”

Regions like Victoria’s Red Cliffs and Mooroopna, as well as Northern Territory’s Moulden and Rosebery and Tasmania’s Ravenswood, signify a shift towards regional centres with increasing demand and infrastructure development.


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Property

Why government policies keep driving property prices higher

“New book reveals politicians’ policies inflate property values, making homes less affordable; insights for buyers from Terry Ryder.”

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“New book reveals politicians’ policies inflate property values, making homes less affordable; insights for buyers from Terry Ryder.”


Politicians often speak about housing affordability, but a new book reveals how their policies are in fact fuelling higher property values and making homes less affordable. Terry Ryder from Hotspotting joins to discuss his new book Why Property Values Rise.

We explore what politicians really want when it comes to property prices, how location myths mislead buyers, and why luxury features like pools or prestige suburbs aren’t what really drive value.

Ryder also explains how constant change shapes the housing market, what myths investors should ignore, and the key insights every buyer needs to know.


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Property

The hidden costs driving Australia’s housing crisis

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The biggest single problem causing Australia’s housing crisis is the cost of creating new dwellings.

The cost of the standard city house-and-land package is now $950,000 and is getting scarily close to $1 million for a newly constructed house in our capital cities.

Governments of all levels and persuasions tell us constantly that they desperately want to improve housing affordability, but what few of them shout about as loudly is that about 40% of the cost of new housing is made up of government taxes, fees and charges.

It seems incongruous that when cost is the biggest factor preventing new dwellings from being built, governments, which promise they are working on solutions, are doing nothing to ease the tax burden.

Builders and developers cannot deliver their normal products because the cost of construction is prohibitively high.

Earlier this year, the Productivity Commission revealed that government interference and bureaucracy had massively reduced productivity in the building industry.

Delays double the timeline

It now takes twice as long to deliver a new home compared to the 1990s.

This alone added considerable cost to new homes to the point where it is often no longer financially viable to build.

Recent analysis by the National Australia Bank confirms this. Its quarterly Residential Property Survey found that high construction costs and delays in getting approvals are by far the biggest barriers to producing new homes across Australia.

While much of the media would have us believe that interest rates are a big barrier, that was not the case, with very few of the survey respondents nominating that or tight finance as an issue.

It doesn’t matter how many new homes the Federal Government says it will build: until the issues of bureaucratic delays, high property taxes and the overall cost of construction are dealt with, building targets will not be met and the shortage will remain.

Terry Ryder is the Founder of Hotspotting and Host of  The Property Playbook on Ticker.

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