LJ Gilland Real Estate: Buying a home is an aspiration for many Australians and for the first time, we’re seeing suburbs and towns in every state where it is more affordable to buy than rent.

For the first time, Hobart is the least affordable capital city to rent.

CoreLogic’s head of research for Australia Cameron Kusher says the end of the housing downturn has had to be adjusted.

“The recent drop in property values follows a long period where prices increased at a much faster pace than household incomes,” Kusher noted.

“We predict that price falls will settle later this year, followed by modest price growth starting from 2020,” Mr Kusher said.

Kate Gibson, ANZ’s homeowners lead, says some areas it is more affordable to buy than rent.

Buying a home is an aspiration for many Australians and for the first time, we’re seeing suburbs and towns in every state where it is more affordable to buy than rent.

“This shift, combined with record low-interest rates, is driving more first home buyers to look at entering the market.

“For the first time in fifteen years most buyers are not chasing a rising market,” Gibson said.

Albury in regional New South Wales is one of the areas where it is more affordable to buy than rent.

Some 26.8% of household income goes on a rental home, however, to service the repayment of an 80% LVR mortgage is only 25.4% of household income.

Broken Hill and the Far West area has one of the biggest gaps between rental and mortgage repayments.

Some 25.9% of a household income goes on a standard rental, whereas only 9.2% of household income would go on servicing a mortgage.

In regional Victoria, Glenelg and the South Grampians cost 24.3% of household income to afford to rent, as opposed to the 19.4% repayments on a mortgage.

It is cheaper in Gippsland East, Latrobe Valley, Loddon, Maryborough, Mildura, Moira, Murray River, Shepparton and Wellington to repay a mortgage than to rent.

There are no areas in Sydney and Melbourne’s CBD ring that it is cheaper to pay off a mortgage than rent, however there are a number in Brisbane.

Beenleigh, Caboolture Hinterland, Ipswich Hinterland and the Springwood Kingston region are all more affordable to have a mortgage than rent.

Sales activity has fallen 17% over the year to February 2019, according to the latest CoreLogic Regional Report.

The report suggests it was the largest fall recorded across all five regions in Queensland.

Of the 15,475 dwellings that transacted, 43% were houses, while 57% were units. Gold Coast home values are down slightly when compared to March 2018, with house values falling -2.8%, while unit values are down -0.4% over the year. Of the 15,475 dwellings that transacted, 43% were houses, while 57% were units.

The advertised rental rates across the region increased by $20/week for houses and $10/week for units over the year, an increase of 3.7% and 2.4% respectively.

The average home is taking an additional 14 days to sell for houses and 13 days for units when compared to February 2018, while the average vendor discount has increased to

The advertised rental rates across the region increased by $20/week for houses and $10/week for units over the year, an increase of 3.7% and 2.4% respectively.

The average home is taking an additional 14 days to sell for houses and 13 days for units when compared to February 2018, while the average vendor discount has increased to -6.4% for houses, and -6.3% for units over the same period.

The CoreLogic Regional Report reveals challenging property market performance across Australia’s regions, with falling sales activity in the 12 months to February 2019.

-6.4% for houses, and -6.3% for units over the same period.

The CoreLogic Regional Report reveals challenging property market performance across Australia’s regions, with falling sales activity in the 12 months to February 2019.

Relaxing lending standards starts a chain reaction... the number of first-home buyers jumps, the extra demand pushes up house prices and it becomes even harder for young couples to get a foothold into the housing market.

As prices rise, and affordability worsens, other potential buyers who are saving for a deposit panic, and rush into the market.

To make matters worse, before the election the Federal government announced plans to let first-home buyers into the market with just a 5 per cent deposit.

The final step in the cycle is interest rates rising, homes being foreclosed and housing prices falling, or at least staying flat.

The latest interest rate cut puts Australia on a slippery slope.

With rates at historic lows, a cut from 1.5 per cent to 1.25 per cent will do nothing to stimulate the economy.

Rates are now so low that any changes can make little difference to the economy

Best Regards

Linda 姬琳达珍 and Carlos Debello (LREA)

LJ Gilland Real Estate Pty Ltd

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