Caitlin and Joel

Loan amount:
$670,000.

Monthly repayments:
$2700.

Grants accessed:
First homeowner $15,000 and 2020 HomeBuilder $25,000.

Deposit:
15 per cent plus 5 per cent guarantor finance to reach the 20 per cent threshold required to avoid paying Lender’s Mortgage Insurance (LMI).

While 2020 was the year many things in the world fell apart, it was the year everything came together for house hunters Caitlin and Joel, both 33.

“We had always talked about buying a house,” Caitlin says. “Then 2020 happened. Our jobs were secure because we were both working in schools. And when all the Government grants started coming out we thought, ‘Okay, maybe we can do this’.”

In June this year, they got the keys to their first, and hopefully forever, home – a four-bedroom, two-bathroom new build – completing a two-year journey.

“It’s lovely being in our own house because it’s ours. We can do what we want, and I don’t have to worry about inspections. I’ve got a lovely, beautiful, big kitchen. Before we’d only ever had teensy-tiny kitchens,” Caitlin says.

And watching what has happened in the rental market makes her extraordinarily grateful she and husband Joel made big leaps at the right time to secure a home.

Understand your needs

Caitlin says the fact she and Joel had lived in many different rental homes and had two children helped inform their choices.

“We knew what we wanted and what we didn’t want. We picked the land and the house based on where we wanted to grow our family. It’s close to work and we loved this community,” she says.

With an outer metropolitan location as the starting point, the couple approached a builder and chose a house design before they applied for a loan or found a block of land.

Fortunately, it worked for them because their builder jumped on board to help them secure land in a competitive market. After hearing about an upcoming land release in their dream location, they bought off-the-plan to nab a prime 707sqm corner block next to bushland. Then the clock was ticking to line up finance.

It’s personal

The whole thing almost went pear-shaped at the start, when the couple approached a local broker who, although well-regarded, seemed to find more problems than solutions.

“It was issue after issue and we thought we were going to lose the block of land,” Caitlin says.

After a personal recommendation from Caitlin’s brother, they turned to a broker who was based 1700km away and immediately found the help they needed. It led to two of Caitlin’s greatest learnings:

• Personal recommendations trump online reviews.
• Everything that matters can be done over the phone or online.

“Something I didn’t realise at the start was that I thought you probably had to meet face-to-face. But I think it actually ended up making it a lot easier that we could do it online. They were happy for us to ring them at any time or email at any time, and that made it easy. We even did our legal stuff digitally,” Caitlin says. To this day, Caitlin has never met her broker or his staff in person, but was grateful for their support throughout.

“Having a broker meant we didn’t have to do the running around. We both work full time. We’ve got two young kids. We’re time poor. And having a broker made it a lot easier. We could just say, ‘this is what we want’ and they would help with that,” she says.

The loan

After taking advice from family and their broker, Caitlin and her husband decided to split their loan, with the majority variable and a smaller amount fixed. The flexibility to make additional repayments and have an offset account were the deciding factors.

“We also made sure we didn’t borrow to our maximum, knowing interest rates could rise, and they have,” Caitlin says.

While the couple had a sizeable deposit saved, it didn’t quite meet the 20 per cent threshold required to avoid paying Lender’s Mortgage Insurance so Caitlin’s parents guaranteed the difference, saving them thousands. And with the meteoric rise in property values since they purchased in 2021, Caitlin says her broker expects to have the house revalued and her parents released from their guarantor obligations within months.

“We’ve honestly been really lucky with the whole process. The market has changed a lot in two years, but I think it will continue to change as well,” she says.

Tips: Caitlin’s advice for those thinking of buying or building:

• Join online forums: “There’s some Facebook groups for first home buyers. I’ve learned lots on that.”
• It’s a team effort: “We had a great broker. We ended up with a fantastic builder. We had good people in our corner who felt like they had our interest at heart and wanted us to be successful.”
• Put your name down early for land allocations: “Land goes pretty quick and that’s something we didn’t know to start with. So, put your name down on (developers’) lists early.” But also, be patient: “We could have bought a different block of land early on, but I’m thankful we didn’t because what we ended up with was so much better.”

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More than two-thirds – a record 66.9 per cent – of residential mortgages were written by brokers in 2021.¹ That’s a leap of 6.8 per cent on the year before and continues an astonishing climb from 2016, when the industry represented 50 per cent of the market.

You don’t see that sort of rise unless you’re doing something right. So, let’s consider what brokers have brought to the table.

Trust: you’re a legal priority

It’s no coincidence that the biggest year for broking kicked off with the introduction of new consumer laws to make mortgage broking the gold standard in lending. Known as Best Interests Duty, the new laws took effect from January 1, 2021,² and mean we’re now proudly held to a higher standard than branch lenders. Brokers have a legal obligation to show we have acted in our clients’ best interests at every point of the lending journey. This means taking the time to understand your financial situation and priorities as well as making sure you understand your lending choices. It’s been a win-win for consumers and brokers.

Choice

When he launched the model T, Henry Ford famously said buyers could have any colour as long as it was black. It can be a similar story going to a single lender – any loan as long as it’s theirs. Mortgage brokers have always aimed to deliver real choice, with products from a broad range of lenders spanning traditional banks to the newer non-bank and niche lenders. This fuels competition and expands options by helping smaller lenders reach more consumers, particularly those in rural and regional areas.

Simplicity

Everyone wants a greater choice, but sometimes it can be overwhelming. Should you go fixed, variable, or split? And what about add-on features – do you need an offset account, flexible repayments or a redraw facility? One of the most important things I can deliver is simplicity. You can’t be expected to be across the mortgage market, but I can. It’s the core of my job to understand your priorities, understand the market and help arrange a happy marriage between both. I’ll do the legwork, but also make sure you understand your options.

Fighting your corner

We work for borrowers, not lenders. And that means advocating for you at every stage. Our experience helping other clients also means we’re aware of any unadvertised/discretionary deals and discounts lenders have offered previously, so we have a good understanding of just how flexible (or not) they can be.

Transparency

Broker fees are usually paid on a commission basis by lenders, rather than borrowers, with very little difference in commission rates between lenders. We are required to be absolutely upfront with you about what we will earn from the different loan options available to you. Best Interests legislation introduced last year means brokers have a legal duty to ensure our recommendations are based on the best possible deal for consumers, without consideration of/for commission payments.

Keeping them honest

Mortgage brokers help drive interest-rate competition, with a Deloitte report noting the net interest margin big banks earned on residential loans fell an average of three per cent in the decades after the industry established in Australia.³ This downward pressure on profit margins continues to deliver maximum value to consumers.

Convenience

If we’ve learned one thing in the past two years, it’s where the mute button is on Zoom. Convenience is now about more than just flexible appointment times, it’s about flexible appointment options: phone, online or in person. Get in touch to arrange what works for you.

It’s not a one-off

Finding a home loan through a broker is about building a relationship, not making a deal.

We’re in it for the long haul. That means running an annual health check on your mortgage to make sure it still works for you at every stage of your life, whether it’s paying down principal, refinancing, renovating or looking towards retirement. The better we get to know you, the better we can help.

¹ More than two in three home loans written by mortgage brokers, Mortgage and Finance Association of Australia, November 29, 2021.

² Mortgage Brokers: Best Interests Duty, Regulatory Guide 273, Australian Securities and Investments Commission.

³ O’Mahony, J., The Value of Mortgage Broking: Assessing the industry’s role in the economy, Deloitte Access Economics, 2017.

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Lenders are helping parents boost their children’s buying power without putting their house or relationships on the line.

Despite a patchy customer service history, the Bank of Mum and Dad is soaring to new heights as the property market booms.

And no wonder – conditions are perfect to drive inter-generational lending. Surging prices have made saving for a deposit feel like chasing a runaway train. At the same time, price rises have delivered an equity windfall to older homeowners.

To many, it makes perfect sense for asset-rich parents to offer a leg up to their children. After all, with median home values leaping 13.5 per cent in the past year, the difference between buying now or later can be tens of thousands.

But even with the best of intentions, accepting money from relatives can be a minefield, not least because your average institutional lender is unlikely to ask why you can’t be more like your sibling, or guilt you into spending Christmas at their bank.

And these emotional strings pull both ways.

Recognising a growing need, lenders have developed a range of financial products to smooth the path for family lending that mitigates the financial and emotional risks for parents and children.

Pledge your allegiance

The major pain point for first home buyers is saving a deposit – specifically the 20 per cent typically required to avoid Lenders Mortgage Insurance (LMI), which can add thousands to borrowing costs. LMI kicks in when the loan to value ratio (how much you need to borrow relative to how much the property is worth) sits above 80 per cent. Its purpose is to protect lenders against default on higher-risk loans. But it’s expensive, and avoiding it saves money and can help borrowers access lower interest rates.

Lenders now have products that allow parents to tap into their home equity to help children reach that magic 20 per cent threshold on a property that would normally be beyond their reach. Known as a family guarantee, family pledge or family security guarantee, the loan allows parents to put up security to guarantee all or part of the deposit. Parents’ financial exposure is limited to just this amount, rather than the entire loan.

While many use home equity to secure the loan amount, term deposits can also be used.

Limit financial stress

The key advantage to a family guarantee is that parents don’t need to reach into their pockets to help. And if things should unexpectedly go pear-shaped, they are only liable for the pledged deposit amount. This limits the financial stress and emotional weight of helping out.

Family guarantees, or pledges, also have a limited span. When the LVR of the home loan dips below 80 per cent, the guarantor may be released from the pledge. Rising home values can help tip this balance in your favour earlier than expected.

Sharing is caring

Of course, if the borrower defaults on the loan, the guarantor would become liable for the pledged amount. So it’s vital both parents and children have a clear understanding of each other’s financial situation and obligations. This can be confronting, but a willingness to share financial information allows both parties to enter the arrangement with their eyes open.

Borrowers should also consider income insurance to guard against unexpected illness or job loss that could leave their guarantor exposed.

Acting as a guarantor may impact parents’ borrowing capacity during the lifetime of the guarantee.

Get in touch if I can help your family help each other.

Case study

Ruth is a single mum and has been saving for a home near her parents but was struggling to find one in her price bracket, where she could avoid the need for Lenders Mortgage Insurance. Her parents agreed to use a portion of their home equity to guarantee up to a total 20 per cent deposit on her $550,000 dream home around the corner from them. By doing this, Ruth was able to avoid expensive LMI costs.

When Ruth moved in, her parents were able to help with child-minding, freeing her to accept a full-time role and increase her repayment schedule.

Seven years later, with her increased repayments and a rising housing market, the Loan-to-Value ratio without the guarantee had fallen below 80 per cent, allowing Ruth’s parents to be released from their family guarantee obligations.

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Housing affordability is a key challenge for many younger people who are struggling to get into the housing market. Despite historically high house prices levelling out and lower interest rates, flat income growth and tighter lending practises haven’t helped people get a foot in the door.

This could all change this year.

The First Home Loan Deposit Scheme.

Supporting first home buyers to get into their own homes is something the Federal Government is very keen to do. So, it has established a new way to help. It’s called the First Home Loan Deposit Scheme and it offers loan guarantees for first home buyers who have saved as little as five per cent of the purchase price as a deposit.

In general, lenders like potential borrowers to have a deposit of 20 per cent. If they have less than that, the borrower will have to pay Lenders Mortgage Insurance (LMI), which adds to the cost of a loan.

The way the new scheme works is this: if you have 5 per cent of the cost of the home saved, the government will guarantee 15 per cent of the loan to take you up to the traditional 20 per cent deposit. You still have to borrow the 95 per cent that you have not saved for, but it helps a first home buyer look like a safer bet in the eyes of the lenders, in turn buying a home sooner by allowing them to access a loan under the scheme from participating lenders.

Not all lenders are taking part in the scheme so talk to me about which lenders are on board.

Who qualifies and how will it work?

If you’re a single person earning up to $125,000 a year, or a couple with a combined income of up to $200,000, and you’ve saved at least 5 per cent of the value of the home you’d like to buy, you may be eligible for the First Home Loan Deposit Scheme.

To make it possible, the government is setting aside $500 million to guarantee loans up to a value of 20 per cent of the home. Because buyers won’t have to save the full 20 per cent, they’ll be able to get into a home sooner. Buyers may also save thousands by avoiding LMI.

Unlike the First Home Owners Grant, you won’t receive the scheme just because you tick all the boxes. It is limited to 10,000 first home buyers. To give you an idea, that would mean less than 10 per cent of the 110,000 first home buyers in 2018 would have access to the scheme.

Support is being aimed at entry level properties, the value of which varies from place to place. The threshold on the value of the homes the scheme can be used for is different from state to state, and between cities and the country areas.

* The capital city threshold also applies to regional centres with a population over 250,000 which includes the Gold Coast, Newcastle and Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong.

The easiest way to check out the threshold in an area is to use the online tool at nhfic.gov.au/what-we-do/fhlds

Will the scheme help the market?

The limitation to 10,000 buyers has come under criticism from some quarters as it may not be enough to make a real impact on home ownership rates. The scheme may also simply bring the purchase date forward for the few who are close to the required deposit already.

Time will tell what effect the scheme has on the market but, for the people that can access it, there’s no doubt it will significantly cut down the time it takes to save for a deposit.

Money for nothing?

When the scheme was announced before last year’s election, Scott Morrison was quick to point out that this was not “free money”. He said, “The lenders would still be the ones lending the money. They would still do all the normal checks on the borrowers to make sure they can meet their repayments.”

This is an important point. While having a significant deposit is very important to lenders, it’s not everything. There are other factors and calculations the lender will make to evaluate your financial position to work out how much you can borrow. Especially for buyers new to the industry, it can be tricky trying to find your way through all the numbers needed and knowing which boxes to tick. The other key considerations are working out which lender and loan is right for your individual needs.

That’s where we come in.

Because we work with the lenders every day (and remember, it’s still the lenders that will be providing the loans, not the government) we know what they’re looking for in a loan application. Today’s stricter lending practises also means some lenders are in the market for first home buyers and are competing for new customers with favourable rates and offers. The market is always changing and we’re up to date with these changes.

If you need any assistance, or just have a question about the First Home Loan Deposit Scheme, please get in touch.

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The election result took most of us by surprise. The Labor victory many were expecting didn’t happen and the result on the property markets is already being felt.

As always, in the lead up to the election the market was a little flat, as people stopped to wait and see what happened. Perhaps even more so this time as Labor was promising to address affordability with reforms to negative gearing and the capital gains tax. Now this hasn’t happened there’s definitely more certainty, and some experts are predicting a shorter and shallower downturn as a result.

In addition, the Reserve Bank of Australia has dropped official interest rates twice in a row. This will have a positive impact on the market – rate drops always do – but there are still some conditions holding the larger economy back. Higher unemployment and weak economic growth will probably keep the market subdued.
Whatever the size of the effect, any rate drop will help housing demand because loans become more affordable, which means more people can potentially get into the market.

Say goodbye to the 7 per cent buffer.

What will really increase the effect of the rate drop is APRA’s decision to remove its requirement for lenders to use a minimum 7 per cent interest rate when assessing a customer’s ability to service a new loan.

This buffer was put in place a few years ago to protect borrowers from the financial stress of a rate rise. But with rates dropping 0.5 per cent in June and July, the gap between the lenders’ home loan rates and the 7 per cent minimum has got wider and doesn’t really reflect the home loan market.

If you’re a potential home buyer, your borrowing power will be increased.

More government help for first home buyers.

Now that its been re-elected, the Liberal Party is set to go forward with its promised First Home Loan Deposit Scheme. From January 1 the Government will offer loan guarantees for first home buyers, so they can buy a home with a deposit as low as 5 per cent of the purchase price.

If you’re a single person earning up to $125,000 a year, or a couple with a combined income of up to $200,000, and you’ve saved at least 5 per cent of the value of the home you’d like to buy, you’ll be eligible.

While this will no doubt enable some people to get into a new home much sooner, it’s difficult to tell how much this will help the wider market as the scheme is capped at 10,000, and there were 110,000 first home buyers in 2018.

For those who do qualify, they also stand to save thousands by having enough of a deposit to avoid paying lenders mortgage insurance.

Limiting it to 10,000 buyers may not be enough to make a real impact on home ownership rates, it will simply bring the purchase date forward for those who are close to the required deposit already. But if it gets people into a home who haven’t been able to afford it previously, it could act like the First Home Owners Grant and push up prices.

We’re keen to see the effect it has on the market but one thing’s for sure – for the people who can access it, there’s no doubt it will significantly cut down the time it takes to save for a deposit.

Keeping the competition alive.

One of the big pieces of news to come from the election campaign was the Liberal’s decision to delay a recommendation from the Banking Royal Commission and re-examine it in three years time. This recommendation would have changed the mortgage broking model so you, our customers, would have to pay for our services which have always been paid by the lenders. As an industry we are working to show the government the value delivered by the broker channel to our customers and the lending process and affirm the recommendation is not necessary.

It’s good news for us and even better news for you. As a broker, it’s our role to help you find a loan that’s right for your needs and individual circumstances. We meet with you, help get a clear picture of your financial situation, and then use this to go to a range of lenders to identify the products that suit you. We then speak with the lenders and handle the loan process from application through to settlement and beyond.

This doesn’t just make it easier for you, it forces the lenders to be more competitive as they have to fight for your business. It’s not hard to see that if brokers were no longer being used, more people would be going directly to the lenders, putting power back in their hands.

The value that brokers add to the process of finding and securing the right loan is seen in the fact that around 60 per cent of all Australians now choose to get their loan through a broker. Mortgage brokers also help smaller lenders compete with major banks that have a larger and more extensive branch network.

The competition this creates benefits us all, as lenders are continually improving their products, and keeping fees and rates low.

Thankfully, post-election, we’re still here to keep you up-to-date with how the mortgage market is changing and helping you make the most of it by getting you into your first home, or reassessing your situation to see if now’s the time to refinance.

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NEW SOUTH WALES

Sydney

After sitting at the top of the charts in recent years (an 85 per cent surge since 2013!), the Sydney market is finally off the boil and predicted by BIS Oxford Economic to have the slowest growth among capital cities in the next three years (3 per cent). But it’s not all doom and gloom with a strong jobs market, population growth and a robust economy expected to keep things buoyant.

Elsewhere

Not surprisingly, the hottest Sydney barbie topic is the escape plan, as those feeling the property pinch look for greener regional or interstate pastures. The exodus has been helped along by the $750,000 stamp duty concession ceiling, which seems generous but not in a market with a median price of $1.1 million.
A couple of hours up the Pacific Highway, Newcastle – once dependent on mining and steel production – is a growing and diverse, self-sufficient economy, now luring Sydney-siders. Similarly, Wollongong to the south offers mortgage relief, plus job, study and vibrant social prospects.
The good news for homesick Sydney-siders is that both these hubs are within two hours of the capital.

QUEENSLAND

Brisbane

After crawling along in recent years, Brisbane is once again having its moment in the sun – 238 days of sunshine each year, to be precise. The Queensland capital is forecast to have the country’s biggest surge (13 per cent) over the next three years.
Despite a much-publicised oversupply of inner-city apartments, Brisbane property prospects are bright. Game-changing investment in tourism and transport infrastructure, a precinct plan to disperse jobs beyond the CBD and interstate migration are just some of the factors contributing to Brisbane’s appeal.

Elsewhere

The Gold Coast is expected to maintain a post-Games glow as it continues to position itself as more than a holiday destination, while the Sunshine Coast is also predicted to experience long-term capital growth on the back of increased infrastructure. Further north, Townsville’s $2 billion investment in mining, military and port projects is boosting its local economy and property market.

VICTORIA

Melbourne

While not quite as phenomenal as Sydney’s surge, Victoria’s capital has gone gang-busters in the last five years (65 per cent growth). And while the market has slowed considerably with investors cooling their heels (especially over apartments), strong overseas and interstate migration is predicted to fuel the owner-occupier market and drive moderate 6 per cent growth over the next three years.

Elsewhere

Satellite hubs Ballarat and Geelong are not just within striking distance of Melbourne but growing increasingly self-sufficient as they transform their industrial roots into new jobs and capitalise on more relaxed lifestyles. Geelong is one of the fastest growing regional property markets in Australia (10 per cent), while pundits have described Ballarat’s revival as its second gold rush.

NORTHERN TERRITORY

Darwin

The Top End hasn’t quite lived up to its name, slumping 19 per cent over the past four years after rising and falling on the back of the resources sector. The Territory’s capital has been left with a housing glut, which may not be corrected until closer to 2021. Interestingly though, while capital gains have gone south, Darwin rental yields are defying the oversupply, remaining among the country’s strongest at 5.8 per cent.

Elsewhere

The most sparsely populated of our states and territories, the Northern Territory doesn’t have many hubs outside of its capital. Darwin’s secondary city Palmerston relies on Darwin’s economy for its success so has suffered the same resources slide.
Alice Springs, on the other hand, could be the Territory’s best-kept secret, thanks to a housing policy change for employees at the nearby US Pine Gap spy base. Employees, who used to have housing supplied, are now required to rent or buy themselves, driving sales up and rental vacancies down.

WESTERN AUSTRALIA

Perth

Patience might be the key to Perth’s market, which looks like it is finally bottoming out after sliding with the resources sector. There are mixed predictions for the next few years. Some market gazers tip further, minor dips, while others claim the economy is rebounding with strong jobs growth and increasing export demands.

Elsewhere

Nowhere has the mining slump been felt more keenly than regional Western Australia. The brunt has also been borne by non-mining towns, including Bunbury and Broome, but green shoots are peeking through. Bunbury is looking to shed its image as just an industrial port with investment in waterfront, lifestyle precincts and a digital economy. Broome, once dependent on its pearl industry, is looking to capitalise on food production. How Western Australia diversifies and sheds its reliance on mining will have a big impact on its regional economies and property markets.

SOUTH AUSTRALIA

Adelaide

Holden shutting shop in the city’s north last year cast an economic shadow over the city of churches. But it’s set to be something of a quiet achiever, with shipbuilding set to fill the Commodore-shaped hole. BIS Oxford Economics predicts 9 per cent property price growth for Adelaide over the next three years.
Investors, however, might be less enamoured. Weekly rental returns are among the nation’s lowest for a capital city – and going backwards, while rents in the rest of the country are on the rise.

Elsewhere

Despite struggling with an energy crisis and the ripple effects of the auto industry shutdown, South Australia’s economy is growing at its fastest rate in a decade.
Ironically, the electricity fiasco sparked investment in new energy infrastructure and exploration, while its mining sector has defied the downturn of other states, thanks to uranium prospects and hydrocarbons.
The benefits seem yet to flow through to property prices in regional centres but rents in South Australia’s outback have been on the rise, with returns sitting at about 7 per cent.

TASMANIA

Hobart

Hobart, long-overlooked as a property play, is now turning heads. The Apple Isle’s capital is currently the country’s strongest market, with 35 per cent growth in the past three years. Affordability has no doubt been a factor – at $485,000, Hobart’s median house price is a fraction of Sydney’s and about half of Melbourne’s. But so too has its hipster, foodie and culture cred, fuelled by its much-lauded Museum of New and Old Art (MONA) and increased tourism. Traditionally an owner-occupier market because it was so cheap, Hobart now has a shortage of rentals.

Elsewhere

In a state as small as Tasmania, it’s not surprising the capital’s surge has overflowed to regional centres. Sentiment is particularly optimistic in the north, with Launceston hitting record numbers of house sales early this year. Despite talk of the Tassie market peaking, there are still bargains to be had. The West Coast remained the most affordable region with a median house price of just $80,000.

AUSTRALIAN CAPITAL TERRITORY

Our nation’s politicians would love to poll as optimistically as our country’s capital. Second to only Brisbane in growth predictions, the Canberra housing market looks set to rise 10 per cent over the next three years.
The rental market also remains one of the country’s steadiest and strongest (its average weekly rent of $528 sits just behind Sydney’s $582), thanks largely to its government-centric employment and higher-than-average wages.
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Price growth

While property is a long-term proposition, it’s worth comparing the last five years of price growth from suburb to suburb. If one suburb has moved beyond your reach, check out the performance of neighbouring postcodes. You might time it right to catch a suburb on the rise.

Days on market

If most homes are selling in 30 days or fewer, the suburb is probably booming. Most homes in Australia take 30 to 120 days to sell, so if a suburb is moving most of its properties in 40 or fewer days, it’s worth closer inspection.

Clearance rates

A clearance rate is the percentage of properties sold at auction over a week or a month. Interest rates, the time of year and competing events can all affect clearance rates. In major cities, a suburban clearance rate of 70 per cent or more is a positive indicator. A high auction rate can also be a sign that agents and sellers are confident demand in the suburb is strong.

Rental yields

Look for steady rental yields. Rental yield is the median rental income over a year as a proportion of the median property value. Rental yields can remain high even in stagnant property markets, especially if there is little rental stock, so it is one factor to be considered with a range of others.

Vacancy rates

The lower the vacancy rate, the higher the demand for rental properties, which is often a sign of market health. However, a glut of apartments might have no effect on house prices in the same suburb so be careful not to make assumptions on vacancy rates alone.

Other factors

No single metric can sum up a suburb’s prospects. Beyond the data there are a range of other factors that can influence local property markets, including existing and planned transport and roads, the quality of local schools, restaurants and cafes and community spaces, such as parks.
Do your homework, and once you have homed in on a suburb, talk to me to help you find a loan that is right for you.
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