Higher interest rates make it harder for borrowers to qualify for larger loans or even loans of any size. That's because for every increase of 0.50 percentage points in interest rates, the average person's borrowing capacity falls by about 5%, according to PropTrack senior economist Paul Ryan. Since 2022, the Reserve Bank of Australia [...]
Are you a first home buyer or single parent who wants help getting a property? If so, you’ll be interested to learn that the federal government’s Home Guarantee Scheme (HGS) has now supported more than 150,000 buyers since its inception in January 2020. Eligibility is limited. There are property price caps, which vary from state [...]
Despite the rise in inflation and interest rates over the past two years, “nearly all borrowers continue to service their debts on schedule”, according to the latest Financial Stability Review from the Reserve Bank of Australia (RBA). “Households with lower incomes, including many renters, have felt these budget pressures acutely,” the RBA said. [...]
Australians purchased 5.3% more new homes in February than the month before, according to the Housing Industry Association (HIA). However, HIA chief economist Tim Reardon said this increase was off a “very low” base. Based on the number of new homes being approved for construction and purchased, he forecast there would be a decade-low [...]
Seller expectations are high but buyers want low prices – what’s to be done? Two real estate agents detail how to negotiate in a declining market. After years of rapidly rising house prices, the recent slowdown took many people by surprise – not least those with a home to sell. “For a while we [...]