The quick takeaway from the RBA’s June rate

  • As expected, RBA keeps rates at 0.10%
  • Property is well and truly holding strong: national property values rose 2.2% in May
  • The end of JobKeeper and JobSeeker did not mean an end to the Australian economy *phew
  • Interest rates are low but the RBA’s emergency monetary policy package offering banks money at 0.1% ends June 30: will this put pressure on interest rates?
  • Unexpected growth is coming through city houses and apartments, driven by high income earners and asset holders with large financial gains post-COVID
  • Despite rollercoaster share market and bitcoin sectors, the bubble hasn’t burst yet – and unlikely to with such a promising economy
  • Those who’ve owned their property for 3 years or longer can view huge growth with their property – this is the ideal time to enjoy a significant return on investment
  • Make the most of your opportunities now while the market is still warm
  • While it’s a sellers market right now, sellers beware: the tide will turn – it always does.

 

The insights into RBA’s June rate

As expected, the Reserve Bank of Australia’s rate for June remains unchanged at 0.10%. This is also unlikely to change until unemployment recovers enough for a significant rise in wage growth and inflation.

While the end of Jobkeeper could have bumped us, we’ve recovered really well with a positive outlook for the economy ahead. May’s Federal Budget ideal for buyers, sellers, investors, tenants and small business will stimulate an already dynamised area.

 

QUICK WRAP UP OF FEDERAL BUDGET 2021-22

  • $15.2B spending on infrastructure to overflow through to building and construction
  • First Home Super Saver Scheme allowing contributions up to $50K from Superannuation for a deposit on their first home
  • First home buyers boosted to buy or build a new home with 5% deposit with New Home Guarantee.
  • While Homebuilder has come to a close, the construction commencement period has been extended across 18 months to carry the construction industry further
  • Single parents are boosted to buy or build a new home with 2% deposit on their first home
  • Lenders’ mortgage insurance will continue to be underwritten by the government for single parents and first home buyers
  • The Superannuation Downsizer Scheme for retirees has been lowered from age 65 to 60:
    One-off $300K payment from proceeds of property sale can be contributed to Superannuation; double the amount applies for couples
  • $780M stimulus on the housing market through Homebuilder Scheme
  • $124.7M in funding for social and community housing

 

The property market’s first quarter of 2021 saw the most aggressive upswing it’s ever been in 30 years with Corelogic revealing national home values rising 2.2% in May.

Unexpected strong growth has come through in the city houses and apartment sector – suggesting a drive from high income earners and asset holders with large financial gains post-Covid. Despite rollercoaster share market and bitcoin sectors, the bubble hasn’t burst yet – and unlikely to with such a promising economy. 

Property is well and truly holding strong.

I’m also finding home owners are in 2 minds right now:

1. Keep riding the wave to stay where they are
You’re enjoying your home stay-cation, tailoring and personalising your property for your lifestyle with upgrades to pool surrounds and landscaping. Now is the ideal time to get pool-ready for Spring.  pssst…. Renovating your pool? Ask builders >these handy questions before you sign off!

2. Recognise the huge growth with their property – and cash in now or never.
For those who’ve owned their property for 3 years or longer, this is the ideal time to enjoy a significant return on your investment and find your dream home.

Historically, this is the time the property market starts preparing for Spring selling season.
But selling in a warm market could be the last best opportunity before it changes to a buyer’s one.
While it’s a sellers market right now, sellers beware: the tide will turn – it always does.

 

What’s the value of your home in this booming market? Find out with a Free Online Property Appraisal right now

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