It’s been an interesting week from an economic standpoint, with COVID-19 placing even more pressure on the Aussie market: Here are the biggest property stories from this week.
Welcome to Smart Property Investment’s new weekly round-up of the stories that are most important to you as an investor.
To compile this list, not only are we taking a look at the week’s most-read stories and the news that matters to you, but we are also curating it to include stories from our sister platforms that could have an impact on your investment journey.
Stage 4 restrictions in Victoria have not noticeably impacted on house prices yet.
“Melbourne housing values have dropped 1.1 per cent, the numbers of owner-occupiers had increased in demand by 0.5 percent and demand from investors has dropped by 0.3 per cent,” a Herron Todd White monthly property report said.
“Melbourne CBD high-rise apartments in the city and fringe areas will suffer the largest price fall as a result of the coronavirus.”
CoreLogic’s head of research, Eliza Owen, has pointed to a number of factors, both health and economic, which are driving different segments in different directions.
She pointed out that even with government support of around $18 billion a month, cities where labour markets are more impacted are also likely to underperform, as will those with more significant exposure to overseas migration as a source of housing demand.
Century 21 has revealed its C21 IGNITE model, which introduces “a new, fully supported model for high-performing real estate agents to operate their own business without the need for a traditional office shopfront”.
While remote work is not a new concept for the industry, the Century 21 concept offers up “the strength of its consumer-facing brand, which similar offerings cannot match”.
Danny Fox and Jed Wood are launching Fox & Wood in Sydney’s south, with a statement announcing the independent agency’s launch detailing a commitment to “high-end, client-centric service”.
The new business venture is a product of the Eview Group model, with the group’s CEO calling out Fox & Wood as a “modern and daring brand”.
RE/MAX has announced that it is expanding its operations into, Queensland, with real estate agent Rachel Ellis starting her own agency.
“Maryborough offers something special,” she said. “The city still has its heritage but is growing, changing … moving forward, and I want to be part of it, building a team that shares my values, my passion for real estate and my commitment to this community.”
MCG Quantity Surveyors director Mike Mortlock believes this is a time of change, with investors now buying, on average, around 300km away from home.
“The idea of wandering too far from your ‘locality of comfort’ frightened investors in the past, so an average distance of 293 kilometres is substantial… Just 6.9 per cent of Australian-based investors bought within their home suburb. I’d suggest this is a dramatic drop from the proportion we’d have seen 10 or 20 years ago.”
Effective immediately, BOQ will cease lending to home loan applicants with a debt-to-income (DTI) ratio – total debts divided by gross income – exceeding 8. It will also cease processing applications from non-PAYG borrowers with a DTI ratio greater than 6.
According to Momentum Intelligence’s latest Broker Pulse statistics, ANZ continues to trail the pack, with its turnaround times increasing for the fifth consecutive month, from an average of 26 business days in June to 27 business days as at 31 July.
CBA and Westpac Group recorded the sharpest monthly increases, up by an average of three business days to nine business days and 14 business days, respectively, while NAB’s turnaround times increased from an average of nine business days in June to 10 business days.
Rentvesting is an ideal strategy for anyone looking to build their wealth but keep their living arrangements “fluid”, according to an investment expert.
Signs of property market recovery across many parts of Sydney has come to an “abrupt halt” as a result of COVID-19, according to new research.