Brisk Finance

Getting approved for a home loan is just the start.

We work with you to structure a home loan that complements your immediate plans and long-term property investment strategy.

We want you to secure finance that works for you!

Property investors are experiencing significant income growth as rents continue to climb, with the national median rent increasing by 9.1% over the year leading up to May, according to PropTrack.

This rise includes a 9.6% increase in the capital cities and a 7.1% increase in regional areas.

“After a prolonged period of slow rental growth prior to the pandemic, changes in living preferences, smaller household sizes, and fluctuating population growth have driven up housing demand over the past two years,” noted Paul Ryan, senior economist at PropTrack.

"Simultaneously, the pandemic disrupted supply chains and hindered the construction of new homes. This combination led to rapid rent increases, with capital city rents growing by more than 10% annually for most of the time since early 2022, peaking at over 20% annual growth in early 2023.”

☀️🏝️Happy Sunday 🏝️☀️

🚨Breaking News🚨 - The QLD government has just increased the Stamp Duty Concession for First Home Buyers.

Eligible first homes buyers can now have stamp duty waived on established homes up to $700k, with partial concessions available for properties between $700k - $800k.

The improved incentives will also apply to the first home vacant land concession threshold, with stamp duty now waived on land up to $350,000, and partial concessions then phasing out up to values of $500,000.

We'll continue to update you as more information becomes available. As always, please feel free to call us if you have any questions 🙌💯🌟

Got a question about mortgages?

Post it below or send us a DM and we'll share our expert insights!

If you’re building a home, you pay a set amount for each completed stage. The amount depends on your contract. The usual stages are:
▪️ base
▪️ frame
▪️ lock–up
▪️ fixing.

Do not make higher or advance payments. Domestic building insurance may not pay claims on work you pay for in advance.

See https://www.consumer.vic.gov.au/housing/building-and-renovating/plan-and-manage-your-building-project/deposits-and-payments

Big news for First Home Buyers 🏠

Tax cut will BOOST borrowing power.

The 2024 Federal Budget introduced significant tax cuts that will increase typical taxpayers' take-home pay by thousands of dollars, will enhance borrowing power.

Impact on home buyers’ borrowing capacities
From July 1, every taxpayer will receive a tax cut, with amounts varying based on income levels.

For example, a person earning $73,000 annually will receive a $1,504 tax cut. Those earning $100,000 and $150,000 will save estimated $2,179 and $3,729 per year, respectively.

The effect of higher incomes will significantly increase a typical home buyer’s borrowing capacity.

For example, a home buyer earning $100,000 could see their ability to borrow increase by about $25,000, while a buyer with a $150,000 income could borrow around $37,000 more.

Contact us today to find out more

National property prices rise for 16th consecutive month according to core logic’s property data.

1. Property prices in Australia continued to climb in May, with the median price increasing by 0.8%.

2. This marks the 16th straight month of growth in property prices.

3. The national median property price reached a new high of $785,556.

4. Brisbane surpassed Canberra to become the second most expensive capital city, while Sydney maintained its top spot.

5. Across the capital cities, property markets are showing varying levels of performance, with annual price growth ranging from +22.0% in Perth to -0.1% in Hobart.

Demand for Australian property remains strong.

Although overseas search volumes for Australian real estate have decreased from their peak levels, they are still quite high compared to long-term trends.

In April, the number of searches from overseas buyers increased by 0.8% compared to the previous year, while searches from renters decreased by 2.3%.

The top seven countries for overseas search activity were the United States, China, Hong Kong, India, New Zealand, Singapore, and the United Kingdom.

Queensland was the most sought-after state for buyers, largely due to the popularity of the Gold Coast. Meanwhile, New South Wales, particularly Sydney, was the most searched state for renters, attracting many students and workers relocating to Australia.

What is home equity ?

How to unleash power of equity ?

Equity is the difference between the current value of your property and any debt that you still owe.

If you have a property valued at $500,000 and a loan of $200,000, then you have $300,000 of equity.

Three ways to use home equity
1. Use your equity as a deposit on an investment property
2. Use your equity to renovate your current home
3. Use your equity for other investments

What is offset account?

How does it work ?

An offset account is a transaction or everyday banking account that is linked to your home loan.

Every dollar you have in that account 'offsets' the balance of your loan – reducing the amount of interest you pay every month. Because these savings add up over time, you can also use this 'extra' money to pay your loan off faster.

For example, if you have $100,000 in your offset account and the balance of the linked variable loan account is $400,000, you’ll only be charged interest on $300,000.

Why rents have been rising so rapidly ?

The sharp increase in rents since the pandemic is primarily due to a shortage of rental properties rather than investors passing on interest rate hikes to tenants, according to Reserve Bank assistant governor Sarah Hunter.

“Demand for new housing slowed rapidly in 2020 but rebounded strongly afterwards (see graph). Supply, indicated by dwelling completions, has declined in recent years. As a result, demand growth is currently outpacing supply,” she explained.

“The imbalance between the supply of and demand for new dwellings is evident in both the rental and established housing markets. Rents are rising quickly in most major cities, and house prices have also increased significantly in recent years – a clear indication that supply and demand fundamentals are at play.”

Ms. Hunter emphasized that the undersupply of properties is the main factor driving market rents, not interest rates.

“At first glance, it might seem that interest rates and market rents are positively correlated since they often move together. However, our preliminary analysis indicates that market conditions, such as vacancy rates, account for most of the fluctuations in market rents, with little to no direct impact from higher interest rates in the short term.”

Unemployment Rate Update

The national unemployment rate has experienced a notable increase, climbing from 3.7% in March to 4.1% in April, according to the Australian Bureau of Statistics.

Despite a 0.3% rise in the number of employed individuals between March and April, the unemployment rate increased due to a 5.3% rise in the number of unemployed people.

Unemployment rates by state are as follows:

* ACT: 3.8%
* WA: 3.9%
* NSW: 4.0%
* Qld: 4.1%
* Tas: 4.1%
* NT: 4.1%
* Vic: 4.2%
* SA: 4.2%

“At Brisk Finance, our vision is to empower you to reach your goals. If you need financial assistance with your lending; we’re here to support you every step of the way.”

Phone: 0455 472 290
E-Mail [email protected]

Thinking about investment property?

Did you know that the equity from your existing property can be used to facilitate your next purchase?

Unleash the power of equity.

Ask us !

In the March quarter, wages saw a 0.8% increase, marking a decrease in the pace of wage growth for the second consecutive quarter. This slowdown hints at a potential easing of inflationary pressures, which is generally favorable for interest rates.

Comparing the recent quarters, wages rose by 1.2% in September 2023 and by 1.0% in December 2023, before slowing down to 0.8% in March 2024, as reported by the Australian Bureau of Statistics.

On an annual basis up to March, wages showed a 4.1% increase, outpacing the inflation rate of 3.6%. This indicates that workers experienced a real wage increase over the year.

The Reserve Bank of Australia (RBA) aims to manage inflation within a target range of 2-3%. Achieving this requires a moderation in economic activity, which could entail a deceleration in wage growth. Consequently, the RBA closely scrutinizes wage data as a crucial factor when determining official interest rates. Once the RBA perceives progress in containing inflation, it may contemplate reducing interest rates.

Australia achieves first consecutive budget surplus in nearly twenty years, with the Treasurer announcing a $9.3 billion surplus for the current fiscal year, following a $22.1 billion surplus in the previous year.

In addition to energy rebates and upcoming income tax cuts, the Budget addresses cost-of-living pressures by
*increasing the maximum rate of Commonwealth Rent Assistance by 10%,
*reducing student debt by $3 billion, and *introducing cheaper medicines through a new Community Pharmacy Agreement.

These measures are expected to reduce inflation by 0.75 percentage points this year and 0.5 percentage points next year, potentially bringing inflation back to the Reserve Bank of Australia's target of 2-3% by the end of 2024, ahead of the bank's initial prediction of mid-2025.

Property investors are experiencing significant gains in rental income.

According to CoreLogic, Australia's median weekly rent reached a record high of $627 by the end of April, marking an 8.5% increase compared to the previous year.

This represents a notable upswing from the recent low of 8.1% recorded in October 2023.

Eliza Owen, CoreLogic's head of residential research, pointed out that rather than being restricted by affordability limitations, annual rent growth has once again gained momentum as of the beginning of 2024. She suggested that one factor contributing to this national resurgence in rents could be renters moving towards more affordable peripheral housing markets due to being priced out of central metropolitan areas. These areas with slightly lower rents may provide more space for group households or offer slightly less competitive rental conditions, making them more appealing to prospective tenants.

“At Brisk Finance, our vision is to empower you to reach your goals. If you need financial assistance with your lending; we’re here to support you every step of the way.”

Phone: 0455 472 290
E-Mail [email protected]

Thank you.

🏠How your deposit size can shape the interest rate you pay🏠

Size matters! At least when it comes to how your home- buying deposit can impact the rate you pay.

Lenders often set your home loan rate taking into account your loan-to-value ratio – or LVR.

That’s the percentage of your home’s value that you need to borrow.

The smaller the LVR, generally the less risk for a lender – and that could see you rewarded with a lower rate.

How much lower? Give us a call and we'll help you
explore your options.

The Help to Buy scheme,

A shared-equity housing initiative by the federal government, is nearing its launch as public consultation has been initiated.

This scheme aims to facilitate property ownership for lower-income Australians. Eligible buyers will receive government support with an equity contribution of up to 40% for new homes and 30% for existing ones.

With a minimal deposit requirement of 2% and exemption from lender's mortgage insurance, the scheme aims to make homeownership more accessible.

Specific property price caps as per below image and income thresholds of $90,000 for single individuals and $120,000 for couples will be enforced.

Housing Minister Julie Collins expressed optimism, stating that Help to Buy will be transformative for many Australians, especially renters.

The consultation period concludes on May 21st.

“First home buyer”
“Melbourne property market”
“First-time buyer Melbourne”
“Affordable homes Melbourne”
“Melbourne real estate”
“Buying your first home in Melbourne”
“Melbourne suburbs for first home buyers”
“First home buyer grants Melbourne”
“Melbourne house prices”
“Home buying tips Melbourne”
“Melbourne mortgage options”
“Melbourne home loans”
“Property inspections Melbourne”
“Melbourne first home buyer guide”
“Melbourne auction process”

The RBA has announced NO CHANGE to the official cash rate, which remains at 4.35%.

National property value hit new peak !

The prices of houses and apartments in Australia keep going up. In April, they went up by 0.6%, which means they've been going up for 15 months in a row; according to CoreLogic.

On average, the price of a home in Australia is now $780,000, which is the highest it's ever been. In cities like Perth, Brisbane, and Adelaide, prices are at all-time highs, with big increases each year.

Sydney's prices are almost back to the highest they've ever been, and Melbourne's are close too. Other cities like Darwin, Canberra, and Hobart aren't quite as high as before, but they're getting there.

“First home buyer”
“Melbourne property market”
“First-time buyer Melbourne”
“Affordable homes Melbourne”
“Melbourne real estate”
“Buying your first home in Melbourne”
“Melbourne suburbs for first home buyers”
“First home buyer grants Melbourne”
“Melbourne house prices”
“Home buying tips Melbourne”
“Melbourne mortgage options”
“Melbourne home loans”
“Property inspections Melbourne”
“Melbourne first home buyer guide”
“Melbourne auction process”

The rental market is currently heavily favoring property investors, evident in the latest data from PropTrack.

In March, the number of newly advertised rental properties dropped by 13.7% compared to the previous year, marking the lowest March figure since 2010. Nearly all parts of the country, except for regional South Australia, witnessed a decline in rental listings compared to the previous year and the 10-year average, with Canberra being the only exception.

PropTrack noted that this scarcity of new rental listings is making it increasingly challenging for renters, as there's a significant shortage of available properties and a higher number of people seeking rentals.

Consequently, the low supply is driving up demand and leading to continuous monthly rent increases across much of the country.

“First home buyer”
“Melbourne property market”
“First-time buyer Melbourne”
“Affordable homes Melbourne”
“Melbourne real estate”
“Buying your first home in Melbourne”
“Melbourne suburbs for first home buyers”
“First home buyer grants Melbourne”
“Melbourne house prices”
“Home buying tips Melbourne”
“Melbourne mortgage options”
“Melbourne home loans”
“Property inspections Melbourne”
“Melbourne first home buyer guide”
“Melbourne auction process”

Why Melbourne’s housing crisis will get worse before its gets better Victoria’s population is growing faster than any other state but as housing demand outpaces supply and wage growth, its economic prosperity is at risk.

Over the past year, there has been a significant decrease in the national vendor discounting rate, indicating a rise in property market activity.

From March 2023 to March 2024, the typical discount offered by sellers in Australia decreased from 4.2% to 3.6%, as reported by CoreLogic.

This decline in discounting was observed in all capital cities except Darwin. Vendor discounting refers to the difference between a home's initial asking price and the final selling price.

A reduction in discounting suggests a strengthening market, as more sellers are able to sell their properties without having to lower their prices.

On ANZAC Day, we reflect on the bravery and selflessness of our servicemen and women who served and continue to serve our nation. It's a day to honour their courage, resilience, and strength in safeguarding our peace and freedom.

At Brisk Finance, we stand united with the nation in paying tribute to our heroes. Let's take a moment to remember and honour their memory and pledge to never forget their sacrifice. Lest we forget.