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RBA data highlights interest rate differentials 🔃🤌

Different types of home loan borrowers get charged very different interest rates, as the most recent lender interest rate data from the Reserve Bank shows.

The average interest rate for new home loans in October was:

* Owner-occupied – all loans = 2.37%
* Owner-occupied – interest-only loans = 3.14%
* Owner-occupied – principal-and-interest loans = 2.30%
* Investment – all loans = 2.70%

So the averages suggest:

* Owner-occupiers are charged 0.33 percentage points less than investors
* P&I borrowers are charged 0.84 percentage points less than IO borrowers

#property #realestate #homeloans
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Building approvals rise 3.6% 🏗️👷‍♂️

Home building approvals rose in November, although they're still some way off the record-high set in March 2021, according to the Australian Bureau of Statistics.

A total of 16,448 home builds were approved in November – 3.6% higher than the month before but 30.1% lower than March.

The reason building approvals reached record levels in March was because Australians were rushing to take advantage of the HomeBuilder incentive, which ran from June 2020 to April 2021.

Building approvals in November 2021 were 10.8% higher than November 2019, before HomeBuilder started.

An increase in the supply of new properties typically puts downward pressure on buyer demand, and therefore prices.

#property #realestate #homeloans
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Building approvals rise 3.6% 🏗️👷‍♂️Home building approvals rose in November, although theyre still some way off the record-high set in March 2021, according to the Australian Bureau of Statistics.A total of 16,448 home builds were approved in November – 3.6% higher than the month before but 30.1% lower than March.The reason building approvals reached record levels in March was because Australians were rushing to take advantage of the HomeBuilder incentive, which ran from June 2020 to April 2021.Building approvals in November 2021 were 10.8% higher than November 2019, before HomeBuilder started.An increase in the supply of new properties typically puts downward pressure on buyer demand, and therefore prices.#property #realestate #homeloans

New listings up 2.4% ↗️📃

More evidence has emerged that 2022 is likely to see an increase in for-sale properties.

Predictably, the number of new property listings fell sharply between November and December, as many vendors held off selling until the new year. However, the number of new listings in December 2021 was 2.4% higher than the same time the year before, as the chart from SQM Research shows.

That national result hides different conditions in the different capital cities.

New listings increased in Sydney, Perth, Canberra and Darwin over the year, while they fell in Melbourne, Brisbane, Adelaide and Hobart.

An increase in for-sale properties tends to put downward pressure on property prices, as buyers have more choice and don’t have to compete as hard to buy their dream home.

Will 2022 be your year?

#property #realestate #homeloans
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New listings up 2.4% ↗️📃More evidence has emerged that 2022 is likely to see an increase in for-sale properties.Predictably, the number of new property listings fell sharply between November and December, as many vendors held off selling until the new year. However, the number of new listings in December 2021 was 2.4% higher than the same time the year before, as the chart from SQM Research shows.That national result hides different conditions in the different capital cities.New listings increased in Sydney, Perth, Canberra and Darwin over the year, while they fell in Melbourne, Brisbane, Adelaide and Hobart.An increase in for-sale properties tends to put downward pressure on property prices, as buyers have more choice and don’t have to compete as hard to buy their dream home.Will 2022 be your year?#property #realestate #homeloans

National vacancy rate rises to 1.7% ↗️🏠

The national vacancy rate crept up from 1.5% in November to 1.7% in December, according to Domain

The longer-term trend, though, tells a different story.

Over the year to December, the national vacancy rate fell from 2.4% to 1.7%. Vacancy rates also fell in every capital city except Darwin.

The vacancy rate is the share of untenanted rental properties in a particular location. The lower the rate, the harder it is for tenants to find accommodation; conversely, the easier it is for landlords to fill their properties and push up rents.

#property #realestate #propertyinvesting
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National vacancy rate rises to 1.7% ↗️🏠The national vacancy rate crept up from 1.5% in November to 1.7% in December, according to DomainThe longer-term trend, though, tells a different story.Over the year to December, the national vacancy rate fell from 2.4% to 1.7%. Vacancy rates also fell in every capital city except Darwin.The vacancy rate is the share of untenanted rental properties in a particular location. The lower the rate, the harder it is for tenants to find accommodation; conversely, the easier it is for landlords to fill their properties and push up rents.#property #realestate #propertyinvesting

Home loan burden getting lighter 🏋️⚖️

With interest rates at historically low levels, it’s almost never been easier to repay a mortgage.

Right now, the average household is spending 4.4% of their income on home loan interest payments, according to the Reserve Bank.

(If that figure seems low, it’s because it includes only interest payments, not principal repayments. Also, it includes all households, whether they have a new/large mortgage, an old/small mortgage or no mortgage at all.)

As the chart shows, that 4.4% figure is the smallest since 1992. So while rising property prices have meant larger mortgages, those mortgages are relatively easy to repay.

By way of comparison, households spent 10.7% of their income on mortgage interest payments in 2008, when property prices were significantly lower.

Why the difference? Because in 2008, the Reserve Bank cash rate was 7.00%, while today it’s at a record-low 0.10%.

#property #realestate #homeloans
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Home loan burden getting lighter 🏋️⚖️With interest rates at historically low levels, it’s almost never been easier to repay a mortgage.Right now, the average household is spending 4.4% of their income on home loan interest payments, according to the Reserve Bank.(If that figure seems low, it’s because it includes only interest payments, not principal repayments. Also, it includes all households, whether they have a new/large mortgage, an old/small mortgage or no mortgage at all.)As the chart shows, that 4.4% figure is the smallest since 1992. So while rising property prices have meant larger mortgages, those mortgages are relatively easy to repay.By way of comparison, households spent 10.7% of their income on mortgage interest payments in 2008, when property prices were significantly lower.Why the difference? Because in 2008, the Reserve Bank cash rate was 7.00%, while today it’s at a record-low 0.10%.#property #realestate #homeloans
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