Weaker Property Markets Across the Country

Currently we are helping:

• First Home Buyers in multiple situations, particularly regionally, where they are the only offer. Unlike 12 months ago where there were 5 parties bidding for a house, they are able to be patient and bid lower. A different market calls for different buying strategies now.

• A family upgrading from $850k to $1.9m. The $850k market remains generally strong so they aren’t taking a hit there (maybe slightly), but they are the only buyer at the $1.9m property (a big discount). If you are an upgrader, this is the market for it.

• This also includes city families using their Sydney and Brisbane equity to buy their dream acreage.

What We Are Seeing:

• We are seeing the sub $1m market relatively strong as investors who were previously at $1.5m have now dropped into this lower price bracket along with many first home buyers (unintended consequences of negative gearing changes). As a result of this, if you are looking at $1.5m - $3m for a home right now, this is an area where our clients are seeing more room to make offers at a bigger percentage discount.

• Across the country, even the previously hottest markets like Gold Coast, Brisbane and Perth are seeing a cooling. The strongest market relatively is Victoria right now, having badly underperformed over the last 5 years - Melbourne has effectively been FLAT (1% growth) over 5 years versus Perth, Adelaide and Brisbane 80-90% growth.

• With investors withdrawing from the market in many cases, banks are offering sharper interest rates to new customers. What rate are you on right now?

As a professional investor, stockbroker, financial planner and now mortgage broker for decades, cycles come and go, major tax changes happen, but we Aussies are an industrious lot, we always find a way to make things happen.

Turn off the noise and think about where you want to be in 5 years. Then act accordingly.

Want some help? Look forward to your email at [email protected] or call me 0403397060

Borrowing to Purchase Property in SMSF

The cut off day to sign a contract to purchase a residential property in superannuation with borrowings is 10 August - just 19 business days from now. After this date you will no longer again be able to use borrowings to buy residential property in your superannuation fund (this does not include commercial property).

You may just get in if you are organised and set up. SMSF providers are being over run by this right now as people bring plans forward or create plans on the fly.

People are rushing to get transactions in. The question is, is this your best retirement strategy? In some cases it is not, and I suspect there will be some people get burnt. If you havent started the process of setting up an SMSF, you may possibly have missed the boat. Want to chat about it? Give me a call, my background is that of a financial planner and SMSF specialist and I will point you in the right direction.

Get Your Financial Plan in Place

We’re in Tamworth this week, working out of Dpartmnt, worlds 2nd best co-work space (apart from Berrihub of course)

Want to discuss your financial needs? Lets catch up in person or via Zoom

That’s it for this week.

Keep showing up and keep cheering each other on — life is better when we support each other.

Reggie and the Thunderbolt Team