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Parliamentary inquiry calls for home loans reform ♾️📜

An inquiry by the House of Representatives Standing Committee on Economics has called for the introduction of ‘tracker mortgages’, whose interest rates would automatically move up or down in line with changes to the cash rate.

“One of the advantages of tracker mortgages is that they reduce the likelihood of disengaged consumers drifting away from the best available rate,” according to the inquiry's report.

Another advantage is that they would introduce transparency to the way lenders set their interest rates.

The inquiry found “that people with tracker mortgages are at less risk of paying an interest rate above the best available rate at the time, even if they do not pay attention to the market”.

As the graph shows, owner-occupiers with outstanding variable-rate home loans (the top line) are, on average, charged higher interest rates than people taking out new loans (the bottom line).

The inquiry recommended that the federal government cooperate with the banking sector to run a tracker mortgage pilot program.

#property #realestate #homeloans #realestateaccountants
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Parliamentary inquiry calls for home loans reform ♾️📜An inquiry by the House of Representatives Standing Committee on Economics has called for the introduction of ‘tracker mortgages’, whose interest rates would automatically move up or down in line with changes to the cash rate.“One of the advantages of tracker mortgages is that they reduce the likelihood of disengaged consumers drifting away from the best available rate,” according to the inquirys report.Another advantage is that they would introduce transparency to the way lenders set their interest rates.The inquiry found “that people with tracker mortgages are at less risk of paying an interest rate above the best available rate at the time, even if they do not pay attention to the market”.As the graph shows, owner-occupiers with outstanding variable-rate home loans (the top line) are, on average, charged higher interest rates than people taking out new loans (the bottom line).The inquiry recommended that the federal government cooperate with the banking sector to run a tracker mortgage pilot program.#property #realestate #homeloans #realestateaccountants

Urgent property sales falling 😫📉👍

Distressed property listings are at significantly lower levels than five years ago, despite the fact the cash rate is now 2.85 percentage points higher.

Domain research shows that between 2019 and 2024, the share of distressed listings fell in seven capital cities and remained unchanged in one:

* Hobart = from 0.7% in 2019 to 0.7% in 2024
* Adelaide = 2.6% to 0.9%
* Canberra = 2.3% to 0.9%
* Melbourne = 2.0% to 1.4%
* Perth = 6.2% to 1.6%
* Sydney = 4.9% to 2.8%
* Brisbane = 8.4% to 4.5%
* Darwin = 7.0% to 4.6%

Domain's chief of research and economics, Nicola Powell, said that although borrowers were now making larger mortgage repayments, few people needed to urgently sell their properties.

“The ongoing decrease in distressed listings is notable, especially considering the transition of mortgage holders rolling off their ultra-low home loan rates to the current mortgage environment,” she said.

#property #realestate #investing #realestateaccountants
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Urgent property sales falling 😫📉👍Distressed property listings are at significantly lower levels than five years ago, despite the fact the cash rate is now 2.85 percentage points higher.Domain research shows that between 2019 and 2024, the share of distressed listings fell in seven capital cities and remained unchanged in one:* Hobart = from 0.7% in 2019 to 0.7% in 2024
* Adelaide = 2.6% to 0.9%
* Canberra = 2.3% to 0.9%
* Melbourne = 2.0% to 1.4%
* Perth = 6.2% to 1.6%
* Sydney = 4.9% to 2.8%
* Brisbane = 8.4% to 4.5%
* Darwin = 7.0% to 4.6%Domains chief of research and economics, Nicola Powell, said that although borrowers were now making larger mortgage repayments, few people needed to urgently sell their properties.“The ongoing decrease in distressed listings is notable, especially considering the transition of mortgage holders rolling off their ultra-low home loan rates to the current mortgage environment,” she said.#property #realestate #investing #realestateaccountants

Population reaches 26.8 million 👶👶👶

Australia's population increased by a record 659,800 in the year to September 2023, according to new data from the Australian Bureau of Statistics, putting more pressure on the country's housing supply.

Population growth almost came to a complete stop during the pandemic, due to the closure of the international border. Since then, as migration has restarted, the population has grown strongly, reaching 26.8 million at the end of September 2023.

While annual population growth is expected to slow in coming years, the Centre for Population projects the population will reach 30.9 million a decade from now.

That is partly why the federal government is trying to facilitate the building of 1.2 million new homes in the five years from July 2024.

This is also why house prices will always trend upwards (demand exceeding supply)

#property #economics #investing #realestateaccountants
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Population reaches 26.8 million 👶👶👶Australias population increased by a record 659,800 in the year to September 2023, according to new data from the Australian Bureau of Statistics, putting more pressure on the countrys housing supply.Population growth almost came to a complete stop during the pandemic, due to the closure of the international border. Since then, as migration has restarted, the population has grown strongly, reaching 26.8 million at the end of September 2023.While annual population growth is expected to slow in coming years, the Centre for Population projects the population will reach 30.9 million a decade from now.That is partly why the federal government is trying to facilitate the building of 1.2 million new homes in the five years from July 2024.This is also why house prices will always trend upwards (demand exceeding supply)#property #economics #investing #realestateaccountants

Property prices reach new record high 🏆📈

Australia’s median property price has now increased for 14 consecutive months, after rising another 0.6% in March, according to CoreLogic.

Since falling 7.5% between April 2022 and January 2023, the national median has climbed 10.2%, and hit a new record high each month since November 2023.

That said, price growth has slowed from a quarterly rate of 3.3% in the middle of last year to 1.6% in the first quarter of this year.

“Rate hikes, cost of living pressures and worsening housing affordability are all factors that have contributed to softer housing conditions since mid-last year. However, an undersupply of housing relative to demand continues to keep upwards pressure on home values despite these headwinds,” CoreLogic research director Tim Lawless said.

#property #realestate #investing #realestateaccountants
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Property prices reach new record high 🏆📈Australia’s median property price has now increased for 14 consecutive months, after rising another 0.6% in March, according to CoreLogic.Since falling 7.5% between April 2022 and January 2023, the national median has climbed 10.2%, and hit a new record high each month since November 2023.That said, price growth has slowed from a quarterly rate of 3.3% in the middle of last year to 1.6% in the first quarter of this year.“Rate hikes, cost of living pressures and worsening housing affordability are all factors that have contributed to softer housing conditions since mid-last year. However, an undersupply of housing relative to demand continues to keep upwards pressure on home values despite these headwinds,” CoreLogic research director Tim Lawless said.#property #realestate #investing #realestateaccountants

Vendor discounting reveals level of buyer competition 📉🤔

Vendors who took their homes to market in the February quarter ended up selling them for 3.8% below the original listing price, according to CoreLogic.

That's a median figure that covers the whole country – vendor discounting can differ significantly from market to market. For example, discounting was as low as 2.5% in Perth and as high as 5.0% in Darwin.

Hotter markets have less vendor discounting, because buyers are more likely to move up to the seller's price, while cooler markets have more discounting, because vendors are more likely to be dragged down to the buyer's price.

Changes in vendor discounting tend to indicate shifts in market dynamics. As the chart shows, vendor discounting decreased in six capital cities between February 2023 and February 2024, increased in one and was unchanged in one.

#property #realestate #investing #realestateaccountants
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Vendor discounting reveals level of buyer competition 📉🤔Vendors who took their homes to market in the February quarter ended up selling them for 3.8% below the original listing price, according to CoreLogic.Thats a median figure that covers the whole country – vendor discounting can differ significantly from market to market. For example, discounting was as low as 2.5% in Perth and as high as 5.0% in Darwin.Hotter markets have less vendor discounting, because buyers are more likely to move up to the sellers price, while cooler markets have more discounting, because vendors are more likely to be dragged down to the buyers price.Changes in vendor discounting tend to indicate shifts in market dynamics. As the chart shows, vendor discounting decreased in six capital cities between February 2023 and February 2024, increased in one and was unchanged in one.#property #realestate #investing #realestateaccountants
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