Welcome to this week’s 2-Sense on The Australian Property Podcast, where the team takes a look into the top 3 property news stories and breaks down what this means for you and your property.
Buyer’s Agent Pete Wargent and Mortgage Broker Chris Bates are discussing the regional market, underuse of dwellings & lending buffers in this week’s episode.
This week’s stories:
Story 1 – Regional Markets Under Pressure
- Migration patterns are now normalising post COVID
- Capital city prices up 1% in August, closing in on previous highs, but some regional markets are under pressure and are now seeing price declines
- CoreLogic’s latest regional market analysis shows interest rates are impacting regional Australia more than in the big cities
- On the plus side inflation figures did ease – and building costs and building approvals are slowing
- Pre-retirees selling homes to fund retirement
Story 2 – 1.3% of dwellings unused
- Only 1.3% of dwellings appear to be unused according to electricity use
- It’s a lot different from the 10% talked about on Census night when people are often travelling or overseas
- What does this mean for holiday homes and Airbnb? Some Airbnb properties are doing 10% yields
- How is this impacting rental markets? Thoughts on regulations and whether they are a good investment?
Story 3 – Lending buffers – non-banks pushing the envelope
- Pepper is now using a 1% buffer for some investors
- Is 3% too tight?
- Shayne Elliott of ANZ says the settings are wrong
- Peter Tulip also says it’s paternalistic and unnecessary
- What happens next and when? What do we think will happen with interest rates and borrowing capacity in the future?
- What we think could occur for first home buyers who want to enter the market
