Stellar Mortgages

140 prime suburbs for investors: where rents cover repayments Investors are returning to the market to take advantage of rising weekly rents and yields, which are being driven by heightened rental demand and a limited supply. In certain suburbs, they are discovering impressive returns on their investments, with rental earnings sufficient to cover their mortgage payments. Although interest rates are currently at their highest level in 12 years, they have stabilized and are anticipated to decrease by early next year. Furthermore, rent growth has surpassed the increase in home prices over the past year, creating increasingly favourable conditions for investors. While many are benefiting from the existing market conditions, those owning properties in select suburbs are experiencing not only rental income that covers their mortgage but also generating positive cash flow. Click on the link below for the complete article as well as the list of 140 suburbs. https://lnkd.in/gXjjqAbj #propertyinvestor #interestrate

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Shock salary you now need to buy average home A recent study reveals that aspiring home buyers in Australia need to earn twice as much as they did at the beginning of the COVID-19 pandemic to afford the average home in most cities. This translates to an annual income increase of $50,000 to $150,000 from 2020 levels, driven by soaring home prices and significant interest rate hikes, which have severely limited purchasing power. The Finder.com.au analysis indicates that for buyers to avoid mortgage stress (spending over a third of income on repayments), they need a significantly higher income, especially in Sydney, where the required salary has jumped by about $148,000 to $278,000. Adelaide and Brisbane have also seen drastic increases (131% and 128%, respectively). While income requirements for apartment buyers have increased less dramatically (50-75%), the overall trend highlights the escalating issue of housing unaffordability, with average wage growth of only 12% over the same period not keeping pace with housing costs. Read the complete article here: https://lnkd.in/gF4phz_S - 3 min read #mortgage #interestrate

Got an investment property? Your tax returns will be “in the spotlight this tax time” Investors in Australian residential property are poised to benefit from increased tax deductions as rental markets strengthen. However, many are at risk of making costly errors when claiming expenses on their tax returns. Despite using registered agents, a majority of rental property owners frequently misunderstand deductible expenses, with overclaiming on loan interest payments being a common issue. Recent data from the Australian Bureau of Statistics (ABS) indicates a significant rise in property investment, driven by higher rental yields and increased investor borrowing capacity. This surge has prompted the Australian Taxation Office (ATO) to closely scrutinize tax returns from new property investors, particularly focusing on repair claims to ensure accuracy. To see what investors are doing wrong and some myths busted, read the full article by Martin Kelly here: https://lnkd.in/eBR6yzNP #investmentproperty

Population density: where is it the highest and what does it mean for housing trends Australia is experiencing rapid population growth, leading to increased density in our cities and towns. Despite having a low national population density of 3.5 people per square kilometre, half of our population resides in the three largest cities. In fact, 75% of Australians live on just 2.6% of the land. Population density becomes more relevant at a city level, with Melbourne having the highest density among capital cities, followed by Adelaide and Sydney. While Sydney has a larger amount of medium to high density housing, its vast land area results in a lower population density. Across smaller areas, inner city precincts in Melbourne and Sydney have the highest population density nationally. However, density rankings have shifted significantly over the past two decades. The relationship between population density and rental growth is complex. Areas with high population density show slightly stronger rental appreciation for units, but weaker growth for houses. Only a few locations have seen a larger rise in rents compared to the capital city benchmark. High density unit markets generally have lower value growth over the past 12 months and 10 years. House values, on the other hand, show virtually no correlation with population density. In conclusion, Australia's population growth is reshaping our cities and towns, influencing trends in population density, rental growth, and property values. Read the full article from Corelogic here: https://lnkd.in/gKtbsKZU

Renovations: How to Determine If It's a Good Flip or a Flop After finally discovering your dream home filled with charm and character, you may come to realize that it has been renovated to perfection - or has it? What appears to be a high-quality restoration of an older home could actually be a quick money-making scheme by an investor known as a "flip". While some hastily completed renovations may be up to standard, others could lead to expensive issues down the line. How can you tell if a property is a "flip" or just a poorly done renovation? Read the full article here: https://lnkd.in/evT-sUdK

SCAM SPOT: Beware bank impersonators In a world where personal information is getting less and less personal, it can seem quite normal to get a call from a seemingly trusted bank and have your personal details recited to you. But here's where it can all go wrong. #scam

The central bank has made its first cash rate decision of the year. The Reserve Bank of Australia (RBA) has announced the official cash rate remains unchanged at 4.35 per cent in its first monetary policy meeting of 2024. #interestrates #mortgage

The median house price in Sydney has hit a new peak of $1.6 million. Will the growth continue…. or is this the peak? #interestrates #mortgage #houseprices

Wondering what Australian interest rates will do in 2024 and 2025…? Let’s see what the big banks say. #interestrates #mortgage #houseprices