Welcome to our November Newsletter

We’re almost at the end of another busy spring selling season, and what a standout it’s been, especially for vendors.

Sellers have come out on top this spring, with property prices rising at impressive levels across the country, thin housing supply, and buyer demand remaining strong.

This month, the Reserve Bank of Australia (RBA) left the cash rate on hold, after hotter-than-expected inflation data in the September quarter. It’s looking increasingly unlikely borrowers will see another rate cut this year.

That said, interest rates have dropped three times in 2025 (in February, May and August) and competition is strong amongst lenders for new clients, so there are a lot of good reasons to purchase a property.

If you’re looking to snap up your first home, next home or an investment property before Christmas, chat to us about pre-approval on your finance today.

Interest Rate News

The Reserve Bank of Australia (RBA) decided to keep the cash rate on hold at 3.60% again this month, amid escalating inflation.

The Consumer Price Index (CPI) rose 3.2% over the 12 months to the September quarter, with the most significant rises in housing (2.5%), recreation and culture (1.9%), and transport (1.2%).

Trimmed mean annual inflation was 3% to the September quarter, at the upper end of the RBA’s preferred 2-3 target range, and up from 2.7% to the June quarter. It was the first time trimmed mean annual inflation has increased since December 2022.

Underlying inflation, as represented by the trimmed mean, also rose to 2.8% in September, up from 2.6% in August.

Unfortunately for borrowers, RBA Governor Michele Bullock dampened hopes of one final cut before year’s end.

“We have already had three interest rate cuts,” she said.

“I know mortgage holders always want more, but it’s also important that we make sure that we keep inflation under control because ultimately that’s also what impacts people’s living standards, so it’s really important we get that right.”

Some experts believe the next move from the RBA could even be a cash rate hike.

If you haven’t reviewed your home loan recently, it could be a good time to arrange a home loan health check with us.

The next RBA cash rate decision will be announced on 9 December.

Home Value Movements

According to Cotality, home values have been rising at the fastest pace in more than two years.

National dwelling values increased 1.1% in October – the strongest monthly gain since June 2023.

Every capital city recorded a monthly increase in values, ranging from 1.9% in Perth to 0.4% in Hobart.

“Before the February rate cut, housing conditions were losing momentum, even recording flat-to-falling values through late 2024 and January 2025,” said Cotality research director Tim Lawless.

“The first rate cut in February marked a clear turning point, with home values moving through a positive inflection across most regions and gathering steam since then.”

One factor fuelling growth is the lack of housing supply. Advertised stock levels over the four weeks to 26 October were 18% below average, according to Cotality.

The uptick in growth also coincides with the expanded 5% Deposit Scheme (which became available from 1 October). This has added demand to the lower and middle price points of the market among first home buyers.

Regional areas saw solid growth, recording a 1% increase in October – the highest monthly gain across the combined regional markets since March 2022.

Ready to buy?

If you’re contemplating a summertime property purchase, get in touch early and we’ll organise pre-approval on your finance.

If you’re new to the property market, why not explore the Australian Government’s 5% Deposit Scheme. Under the scheme, first-home buyers can purchase with as little as 5% deposit, without having to pay expensive lenders’ mortgage insurance (LMI).

The number of places are now uncapped, income caps have been removed and property price caps have increased. Chat to us about the eligibility criteria.

Additional sources:

Cotality Data Daily Home Value Index: Monthly Values

https://www.realestate.com.au/auction-results/

TIPS FOR A BUDGET-FRIENDLY
FESTIVE SEASON

The festive season is a time to celebrate, relax and connect with loved ones, but it can also put extra pressure on the household budget.

With the rising cost of living, a little planning can go a long way towards keeping the season merry without overspending. The festive season can be expensive, especially with the current cost-of-living crisis and increasing financial pressures on households.

According to Moneysmart, adults in Australia estimated they would spend almost $800 in the lead up to Christmas, while 34% planned to spend $1,000 or more. For those living paycheck to paycheck, coming up with that extra cash can make the festive season more stressful than magical.

Thoughtful planning is the secret to avoiding overspending. Here are our tips for a stress-free, budget-friendly festive season.

Map out your holiday spending

Planning in advance will help you to create a spending budget for the festive season. This is key if you want to avoid getting into financial trouble.

Create a budget for gifts and start buying them sooner rather than later. Giving yourself a runway to plan out your expenses in the lead up to Christmas can make a world of difference when it comes to managing your outgoings. You may even be able to make the most of end-of season spring sales or Black Friday (28 November) discounts.

Once you have a clear idea of your expected expenses, you can start planning how to generate the extra funds you’ll need. You may have to reduce non-essential spending on things like dining out if necessary.

You could also drum up some additional income by selling unwanted items online, having a garage sale, or by starting a side hustle like pet sitting, tutoring or dog walking.

Ditch costly gifts

We all enjoy a good festive feast, but there’s no doubt this can be one of the most expensive parts of Christmas.

Having a set meal plan and buying in advance can be a great way to save money. Grab products when they’re on sale, and stock up on items that may get costlier as Christmas approaches.

Also, if you have a big family attending a festive meal, ask each guest to bring a dish. People usually don’t mind contributing, and it will help ease the load (and financial burden) on you.

Why refinance?

Some key motivators to refinance include:

To secure a lower interest rate (and reduce your mortgage repayments)
To change your loan term (paying your home loan off faster reduces the interest you pay over the life of your loan)
To unlock equity for big-ticket purchases, like an investment property, new car or your kids’ education.
To access a loan that better suits your needs (for example, with interest-saving features like an offset account or redraw facility)
To consolidate debt.

Plan your festive feast ahead

We all enjoy a good festive feast, but there’s no doubt this can be one of the most expensive parts of Christmas.

Having a set meal plan and buying in advance can be a great way to save money. Grab products when they’re on sale, and stock up on items that may get costlier as Christmas approaches.

Also, if you have a big family attending a festive meal, ask each guest to bring a dish. People usually don’t mind contributing, and it will help ease the load (and financial burden) on you.

Avoid maxing out the credit card

At Christmas time, it can be tempting to tap and go, then worry about the consequences later. However, running up your credit card isn’t ideal, as it may lead to overspending and you could struggle to pay off your debt in the new year.

Keep in mind that interest on credit cards can be high, so if you don’t pay it off regularly, you may end up paying a lot more for the items you purchase.

Instead, try to stick to using cash or your debit card, so that you stay within budget and don’t spend beyond your means.

Thinking of a bigger purchase?

If your festive wish list includes a new home or investment property, we can help make it happen.

As your finance broker, we’ll explain your purchasing capacity, organise pre-approval and find you a competitive home loan that suits your goals and aspirations.

Get in touch today to start the conversation.

YOUR GUIDE TO INVESTING IN A HOLIDAY HOME

Imagine waking up in a cosy mountain retreat or in a beach shack overlooking the ocean – all in your very own holiday home. Sounds dreamy, right?

Whether you’re after a sea change, a tree change, or simply a place to unwind, investing in a holiday home can be an attractive way to diversify your property portfolio and create a retreat to escape to.

But before you turn this dream into a reality, here are a few reality checks you may need to consider before you dive in.

Plan how you’ll use it

As with any property purchase, it’s imperative you do your homework before purchasing a holiday home.

What’s the supply versus the demand like for holiday rentals?

Get to know the local tourism scene and holiday rental market. Will you have to rely on seasonal crowds, and if so, how will you cover costs during quieter times?

Check for capital growth indicators in the local area. It’s a good idea to choose locations that provide access to amenities such as shops, cafes and public transport. Check whether there are any infrastructure upgrades in the pipeline, as this could impact the property’s capital growth potential.

Check the local laws, rules and regulations

You’ll want to get your head around the local requirements for short-term rental accommodation. Regulations vary around the country.

Some areas may have restrictions on short-term holiday letting, or you may need to register the property to operate a short-term rental.

There may also be limits on how long you can live in the holiday home, as well as minimum standards of behaviour and requirements. Local councils may have laws (such as fire safety, noise control, parking or overcrowding) that could affect your holiday home.

There could also be other things like levies to consider. In Victoria, for example, a short-stay levy of 7.5% applies for bookings of less than 28 consecutive days.

Bottom line: do your research and understand your obligations.

Understand the financial implications

You’ll need to be able to cover the ongoing costs of owning a holiday home. Examples include:

Mortgage repayments
Council rates
Home insurance
Public liability insurance
Cleaning fees
Maintenance costs.

It’s important to be aware of the tax implications of owning a holiday home and to chat through these with your accountant or financial planner.

Examples of financial implications to consider:

Tax deductions – You can claim tax deductions for expenses associated with earning rental income (interest on the home loan, maintenance costs, etc.), but only to the extent the home is rented out or genuinely available for rent. See the ATO’s holiday homes page.

Negative gearing – If the property’s costs are greater than the income it produces, you may qualify for tax breaks through negative gearing. This means you can deduct any losses against other income, like your salary, wages or business income.

Capital gains tax – You may be subject to capital gains tax when you sell, assuming you make a gain. If you own the property for more than 12 months, however, you may qualify for the capital gains tax discount, meaning 50 per cent of the gain is tax-exempt.

Stamp duty and land tax obligations.

Ready to make it happen?

If you’re ready to take the next step towards owning your dream holiday home, we’re here to help.

Get in touch today to start the conversation about bringing your holiday home dream to life.

4 STEPS TO HELP YOU AVOID OVERPAYING FOR YOUR FIRST HOME

Home prices continue to climb across Australia. In October, national dwelling values rose 1.1% – the strongest monthly gain since June 2023.

Several factors are fuelling the uptick in growth. One is the lack of housing supply in many markets. The expansion of the Australian Government’s 5% Deposit Scheme from 1 October also saw a surge in first homebuyer activity and added demand to the lower and middle price points of the market.

The scheme has made it easier for first home buyers to get into the market with a deposit of just 5% (without paying LMI). However, it’s important to understand the risks involved. If the property’s value drops, borrowers could get caught in negative equity territory.

That’s why it’s so important to purchase the right property for your needs in the right location, without overspending. Here are some tips so that you can approach the market with confidence.

1) Do your research

Thoroughly research the area you’re looking at buying in. Check out the median prices, recent sales, capital growth trends, access to amenities, planned developments, population growth and local employment.

These insights will help create a clear picture of the suburb, what you can expect to pay, and how you can anticipate your property might perform.

Tip: Ask us for a free suburb report to help inform your decision making.

2) Get familiar with the market

It’s extremely rare to find the right property the first time you do an inspection. Usually, it takes a few goes to get a feel for the market and know what you really want in a home. So, be prepared to dedicate several weekends to open houses.

You could even check out some auctions to see how they work. It may give you insight into the kinds of buyers you may be competing with.

Once you do find a property you like, look for any intel around the neighbourhood that could be used as a negotiating tool. Street noise, perhaps? A dodgy-looking house on the corner? Anything that affects the appeal of the property is a potential bargaining tool.

3) Have your finance ready to go

A finance broker can explain your borrowing capacity and organise pre-approval on your finance. Pre-approval is an in-principle estimate of the maximum amount a bank is likely to lend to you.

Having pre-approval in place helps mitigate the risk of overspending and gives you confidence during the negotiating or bidding process. It also shows the seller that you mean business and are actually serious about buying

4) Walk away if necessary

When you fall in love with a property, it can be hard to walk away if the price is out of reach.

However, it’s important not to let clever marketing tactics like a beautifully staged home trick you into paying more than you need to.

If the vendor won’t budge on price, you may need to look elsewhere.

Ready to get started?

By doing your research, understanding the market and organising your finance early through us, you can rest assured you’re not overspending. Whether you’re looking to get in before the end of the year, or want to discuss your options for next year, I’d be happy to chat through your purchasing aspirations or get the ball rolling on pre-approval.

Get in touch today to discuss your options.