Real Estate Your Way

19/02/2025

RBA UPDATE | Effective February 19, 2025

For the first time since 2020, the Reserve Bank of Australia (RBA) has dropped the official cash rate to 4.1% following 13 rate hikes. The news was announced after their first board meeting of the year, providing borrowers with some much-needed relief.

Whilst the RBA’s decision was in acknowledgement of easing “a little bit of that restrictiveness,” that was handed down from the November 2025 rate increase, RBA Governor Michele Bullock has warned “we cannot declare victory on inflation just yet,” as the board cautioned borrowers not to count on too much more rate relief.

PROPERTY MARKET FORECAST | 2025

According to KPMG's Residential Property Market Outlook, house prices in Australia are expected to rise by 3.3% in 2025, with Perth leading at 4%. Unit prices are predicted to grow by 4.6% nationally.

The rental market is stabilising, with Sydney and Melbourne seeing no changes in the December quarter, maintaining median rents of $730 and $570, respectively. Perth and Adelaide are the strongest markets, with Perth's rental price growth at 8.3% and Adelaide at 7.4%. Adelaide's median weekly rent of $580 has surpassed Melbourne's, while Perth at $650 has moved ahead of Brisbane's $630.

Regional areas continue to outperform capital cities, with regional rents climbing 10% to $550 per week, compared to capital cities' 6.7% growth to $640. The market shows signs of moderating demand, with median days on market increasing from 19 to 20 days, and average enquiries per listing decreasing from 24.1 to 19.5 nationally.

The RBA's next meeting will be announced on Tuesday, April 1.

25/01/2025

09/01/2025

Beat the festive slowdown with a business loan

The holiday season can bring a festive mood, but for many businesses, it also brings a slowdown in operations and cash flow challenges.

Whether it’s delayed payments, seasonal dips in revenue or increased expenses, maintaining smooth operations during this period is vital. Here’s how business loans can help you manage the festive lull:

1. Bridge the cash flow gap
Working capital loans can provide the funds you need to cover day-to-day expenses like payroll, rent, and utilities, ensuring your operations continue without disruption.

2. Stock up for the New Year
Use the downtime to prepare for 2025. A business loan can help you stock up on inventory, invest in marketing or pre-pay suppliers for better deals.

3. Cover seasonal expenses
Holiday-related expenses like bonuses, promotions or festive events can strain your cash flow. Financing offers a solution to manage these costs without impacting your operations.

4. Take advantage of opportunities:
The festive season often brings special deals on equipment or inventory. A business loan can help you take up these opportunities without waiting for payments.

09/01/2025

6 predictions for commercial property in 2025

Knight Frank’s Horizon 2025 report predicts renewed opportunities in Australia’s commercial property market are on the way, making it a promising year for investors.

1. Market recovery in sight
Core assets in Australian commercial property are poised for recovery, with Sydney’s industrial and CBD office markets leading the way.

2. Interest rates will drive strategy
The Reserve Bank of Australia’s interest rate policy will shape market dynamics, with investors needing solid strategies for varying rate scenarios.

3. Investors set to re-enter
Renewed confidence and revised strategies are expected to drive higher liquidity and broader interest across all asset classes.

4. Office market adjustments
While vacancy rates remain high, fewer new developments in Sydney and Brisbane could push up rents for premium office spaces.

5. Industrial rents diverge
Rental performance will vary, with oversupplied markets like Sydney’s Outer West seeing weaker growth compared to tighter markets like South Sydney.

6. Retail revival
Investor demand for retail assets is at its strongest since 2015, fuelled by rising incomes and improving performance.

07/01/2025

3 reasons to buy commercial property in 2025

Ray White believes that commercial property is going to be a good buy in 2025. Here are three reasons why.

Market at the Bottom of the Cycle

Many sectors have been weaker in 2024 and have reached the bottom of the property clock. Capitalisation rates have expanded significantly, creating attractive pricing compared to the compressed yields of 2021-2022.

Improved risk-reward

Current prices are based on risks like higher interest rates and economic uncertainty, meaning much of the downside has already been priced in. As central banks shift towards more accommodative monetary policy in 2025, refinancing opportunities could boost returns for assets secured at today’s prices.

Sector-specific opportunities

Each commercial asset class offers potential:

- Industrial: E-commerce demand supports good fundamentals.
- Office: Premium, well-located spaces suit evolving tenant needs.
- Retail: Neighbourhood centres are strong due to changing consumer behaviour.
- Alternative Assets: Data centres, healthcare facilities and self-storage show long-term growth trends.

02/01/2025

Brisbane and Adelaide set to join the million-dollar club

Big things are on the horizon for Brisbane and Adelaide! By the end of 2025, both cities are predicted to join Australia’s exclusive million-dollar median house price club, according to Domain.

Despite economic headwinds, these markets have shown resilience with strong demand and undersupply, driving significant price growth.

Forecasts for 2025 project house price growth of 5-7% in Brisbane and 7-9% in Adelaide, taking them past the million-dollar mark. Smaller cities like Perth, Adelaide, and Brisbane are no longer in the shadow of Sydney and Melbourne, emerging as standout performers in 2024.

Shifting buyer preferences have also reshaped the market, with pools and waterfront properties in high demand, reflecting lifestyle-driven choices. Looking ahead, 2025 is expected to unfold in two phases with a softer start transitioning to a stronger second half as affordability pressures ease and potential rate cuts attract more buyers.

30/12/2024

Property prices continue upward

Property prices across the country continue to rise, however, the pace of growth is easing. November’s CoreLogic Home Value Index (HVI) edged up 0.1%, marking the 22nd straight month of growth.

Perth continues to shine, leading the nation with a 1.1% rise last month and 3% growth over the quarter. Regional markets also remain resilient, outperforming capital cities with a 1.1% quarterly increase, highlighting the ongoing appeal of lifestyle destinations.

Even in softer markets like Sydney and Melbourne, elevated stock levels are giving buyers more choice, while affordability challenges are encouraging creative investment strategies.

CoreLogic says that with 2025 on the horizon, potential policy changes and a housing supply crunch could create new opportunities for market growth.

26/12/2024

Use the holiday season to find your dream home

The holiday season is a time of celebration and relaxation, but it can also be an excellent opportunity for house hunting. While most people are busy with festive preparations and school holidays, the property market often goes quiet.

One major benefit of house hunting during the holidays is reduced competition. With fewer buyers actively searching, you have a better chance of finding the perfect property without the pressure of an active market.

On top of that, sellers who list their homes during December are often motivated to make a quick sale, making it an ideal time for buyers to negotiate better terms.

The slower pace also gives you the chance to thoroughly explore the market, attend inspections and take the time to look through properties without feeling rushed.

If purchasing a home is on your list of goals for the new year, now is the perfect time to start looking.

11/12/2024

RBA UPDATE | Effective December 11, 2024

There will be no relief for borrowers as they enter the holiday period, with the Reserve Bank of Australia (RBA) opting to keep the official cash rate steady at 4.35% during its final monetary policy meeting of 2024.

The decision aligns with market expectations, marking the ninth consecutive time the central bank has kept the cash rate unchanged where it has remained for over a year since the cash rate last moved (November 2023).

Key Media reported that although inflation is easing, the central bank remains cautious about acting prematurely.

The cash rate has been a key focus for borrowers, businesses, and mortgage brokers, as higher rates continue to weigh on household budgets and borrowing costs. Yet some experts aren’t expecting a rate drop until May 2025.

Meanwhile, PropTrack data recently revealed that a median-income household earning over $112,000 per year can now afford just 14% of homes nationwide, compared to 43% three years ago.

Data from the MFAA reveals that brokers are writing more than seven out of ten home loans (74.6%), with refinancing emerging as a key driver of growth in the current economic environment.

Mortgage brokers offer access to a broad panel of lenders, expert guidance, time-saving convenience, and ongoing support, making them a preferred choice over dealing directly with lenders.

If you would like to understand more about your options as a borrower, get in touch with a mortgage broker today.

04/12/2024

The benefits of invoice finance for service businesses

For service-based businesses, cash flow can be a challenge – especially with longer payment terms common in industries like consulting, marketing and IT.

That’s where invoice finance can help. Here’s how:

1. Immediate access to cash: Instead of waiting 30, 60, or even 90 days for clients to pay, invoice finance lets you access funds tied up in unpaid invoices right away. This boosts cash flow, helping you cover expenses or invest in new projects.

2. Financial predictability: With a steady cash flow, service businesses gain greater control over their finances. You’re no longer at the mercy of client payment schedules, giving you a clearer picture of the resources you have available.

3. Growth opportunities: Having cash means you can say yes to more opportunities. Whether it’s taking on bigger projects or expanding your team, invoice finance gives you the flexibility to grow without the financial strain.

4. Less pressure on cash reserves: By using invoice finance, you can free up cash without needing loans or lines of credit, keeping your reserves intact for emergencies or future investments.

01/12/2024

Future-proofing your business with equipment financing

Scalable equipment financing helps businesses grow without heavy upfront costs, or the risk of being forced to rely on outdated equipment.

Instead of committing to big purchases, flexible financing options – like leasing or adjustable loans – allow you to upgrade or expand as needed, giving your business room to adapt.

For industries where technology’s always changing, scalable financing keeps you competitive and lets you respond to new demands without straining your cash flow.

Choosing a financing approach that grows with you can be a smart way to keep your business agile and ready for what’s next.

Flexibility is key for business owners, and it will allow you to keep growing with confidence.

29/11/2024

Is the industrial property market reaching the bottom of its cycle?

Australia’s industrial property market may be nearing the bottom of its cycle as yields stabilise and investors return. New data from CBRE shows over $5 billion was invested in industrial assets during Q3 2024, well above last year’s total and suggesting early signs of recovery.

PropTrack economist Anne Flaherty said that industrial values have adjusted after two years of downturn, and investors may now see it as an opportune entry point. Industrial yields, which expanded post-pandemic, have recently stabilised. This prompted expectations of increased transaction volumes into 2025, especially with potential interest rate cuts on the horizon.

Nationally, rental growth remains strong, with super prime rents up 1.6% quarterly. However, supply challenges are still around, as vacancy rates remain low due to limited new warehouse space. This trend is expected to continue supporting rental growth.

28/11/2024

Pub market set for a revival

Australia’s pub market has been a solid asset class over the past few years and that trend looks set to continue.

Despite pandemic challenges pubs have thrived, with smart publicans tapping into diverse revenue streams across food, gaming, accommodation and retail.

According to Ray White, with interest rates rising and premium assets held tightly by owners, transaction volumes have dipped over the past 18 months. However, the market is showing signs of revival, with Q3 2024 volumes exceeding long-term averages.

The pub sector’s charm lies in its varied income sources and limited supply, with iconic properties often being community hubs. From airspace rights to upgrading offerings, investors continue to seek out opportunities in these beloved, adaptable assets, keeping the pub market alive and thriving into 2025.

25/11/2024

Tips for buying a boat at marine auctions

Marine auctions can offer excellent deals on boats, but it’s important to be prepared. Here’s how to navigate the process:

1. Do your research
Gather details on the boat model, its market price and condition. Arrange an inspection if possible.

2. Familiarise yourself with auctions
Attend an auction without bidding to observe. On auction day, arrive early and be ready.

3. Set a budget
Establish a maximum bid you won’t exceed. Pre-approved boat finance can help set a realistic limit.

4. Bid strategically
Avoid bidding too early and wait until the competition slows down. Project confidence – looking calm can deter other bidders.

5. Arrange payment
Be ready to pay immediately if you win. With pre-approved finance, you’ll have payment sorted.

For assistance with boat finance and marine insurance, reach out to a finance broker today.

22/11/2024

How to confidently attend your first auction

Attending an auction for your dream home? Here’s how to keep calm and focused:

1. Ignore the competition
Don’t let the appearance or confidence of other buyers shake you. You belong there as much as anyone – stay focused on your goal.

2. Set your budget
Know exactly what you can afford. Arrive with clear financial limits to help you feel in control and prepared.

3. Attend practice auctions
Watching other auctions can build familiarity and confidence. Observe how the process unfolds so you’ll know what to expect.

4. Know the home’s value
Do thorough research on the property’s value. Understanding the sale price of homes in the area can be helpful for this.

5. Project confidence
Believe in yourself and stay focused on the task, not the crowd. Sometimes, confidence comes from “faking it until you make it.”

19/11/2024

Property market shows signs of cooling despite record prices

Property prices have reached record highs in the major capitals, but experts say the market may be turning in favour of buyers.

The latest Domain House Price Report shows record highs in cities like Perth, Adelaide, Brisbane and Sydney. Perth led the way with a 25.3% annual increase, followed by Brisbane at 14.8% and Sydney at 6.1%.

Despite these highs, growth rates are slowing due to affordability constraints and the cost-of-living crisis. Sydney and Perth’s quarterly growth halved, while Brisbane’s rate fell by a third. Even Melbourne and Canberra saw slight declines too.

With new supply at its highest since March 2022, properties are staying on the market longer and negotiation opportunities are increasing, signalling a shift toward a buyers' market.

16/11/2024

Rental market shows signs of easing despite continued challenges

Australia's rental market is showing early signs of relief, with rental price growth slowing and more properties entering the market, according to new research.

PropTrack said that annual rental growth slowed in September and is now increasing at half the rate of last year. Despite this, annual growth still outpaced inflation, making affordability tough for renters.

Capital city rents rose 6.8% annually to reach $640 per week, while regional areas experienced stronger growth at 8%, with rents at $540 per week.

While supply improved, with new listings up 8.6% year-on-year, the vacancy rate remains tight at 1.3%, suggesting there are still ongoing demand pressures.

PropTrack said that while more renters may transition into homeownership, rental market conditions remain strained, and rents are likely to keep rising.