Latest news with #AndrewWinter
News.com.au
17-05-2025
- Business
- News.com.au
Interest rate cut could save 250 suburbs $5k+ a year
New homeowners could get more than $400 a month back into their pockets in more than 250 Sydney suburbs if expected rate drops come to fruition – but there is a sting in the tail that make their home aspirations harder to attain. Analysis from comparison site Compare The Market has revealed just how much new buyers could save on their home loans in each suburb if rates were to drop 0.5 per cent in the coming months – a move widely expected by the major banks. Such a cut would make loans for homes priced at the current median more than $5,000 a year cheaper in over 250 suburbs – including Parramatta, Castle Hill, Marrickville, Epping, Hurstville and Randwick. Additional Mortgage Choice research showed home buyers across the state will also get an average increase in their borrowing power of about $45,000 with a 0.5 per cent cut. 'Shouldn't get one': Fury over rate cut hopes See how much a rate cut would cut off a loan in your suburb HERE But coming rate cuts would also bring a twist as prices are expected to be pushed higher. Following the February cash rate cut, the first rate reduction in over four years, Sydney property prices lifted to a new high, recording a median price of $1.118m in April, according to PropTrack data. Compare the Market property expert Andrew Winter said a rate drop at the RBA's Tuesday meeting would likely push prices up again. He explained that cheaper credit would lead to bigger offers on properties, particularly in highly sought after areas. 'The market in Sydney has been extremely resilient, and that's largely because there isn't enough supply to keep up with demand,' he said. 'These markets have performed well in less-than-ideal conditions. Another round of rate cuts is likely to add fuel to the fire.' Mortgage Choice numbers laid bare the kind of effect a rate cut would have. A homebuyer who now could qualify for a $795,000 loan – the current average loan size in NSW – would be able to borrow nearly $840,000 with a half a per cent cut to typical loan rates. Mr Winter said aspiring buyers may be anxious to 'get a foot in the door' now before market conditions become too competitive. But he warned that the capacity to borrow more money would not make buying a house easier for most people. 'The main hurdle for most first-time buyers is raising a deposit which can be extremely challenging when value growth outpaces wage growth in such an extreme way,' Mr Winter said. 'The good news is there are a number of low-deposit and stamp duty incentives open to first home buyers. 'There may be a rush to beat the 'fear of missing out' frenzy. Remember, it's nearly impossible to strategically time the market. The best time to buy is when you're ready.' Young couple Kristy Kumar and Marco Ip recently purchased their first home in Oran Park and said interest rate cuts encouraged them. 'The idea of rate cuts gave us a bit more confidence,' Ms Kumar said. 'While we weren't trying to take out the maximum loan we would be approved for, as we didn't want to be in a position where we couldn't meet our monthly repayments, we are trying to get ahead as fast as we can and will use the cut to keep our payments the same and pay off our debt faster.' Their broker, Owl Home Loans director Aidan Hartley, said rate cuts had seen a huge influx of first home buyers seeking approvals. 'I've been doing this a while and I've never been thrown as many contracts from new buyers,' he said. 'There's a big sense of urgency because a lot want to get in (to the market) before cuts because they're taking out variable rates,' he added. 'We did a lot of pre-approvals that are finally buying. My sense is that there was a lot of people waiting on the sidelines and now that rate cuts are looking likely, they are taking action.' Suburb (houses) Median value Monthly repayments after 0.50% rate cut Monthly $ Reduction Parramatta $1,875,070 $8,517 $476 Castle Hill $2,298,997 $10,443 $584 Marrickville $2,165,240 $9,835 $550 Epping $2,490,788 $11,314 $633 Hurstville $1,786,156 $8,113 $454 Randwick $3,437,576 $15,615 $873 Baulkham Hills $1,825,083 $8,290 $464 Ryde $2,436,858 $11,069 $619 St Ives $3,053,664 $13,871 $776 Maroubra $2,944,591 $13,375 $748 Paddington $3,540,979 $16,084 $900
Daily Telegraph
17-05-2025
- Business
- Daily Telegraph
Interest rate cut could save 250 suburbs $5k+ a year
New homeowners could get more than $400 a month back into their pockets in more than 250 Sydney suburbs if expected rate drops come to fruition – but there is a sting in the tail that make their home aspirations harder to attain. Analysis from comparison site Compare The Market has revealed just how much new buyers could save on their home loans in each suburb if rates were to drop 0.5 per cent in the coming months – a move widely expected by the major banks. Such a cut would make loans for homes priced at the current median more than $5,000 a year cheaper in over 250 suburbs – including Parramatta, Castle Hill, Marrickville, Epping, Hurstville and Randwick. Additional Mortgage Choice research showed home buyers across the state will also get an average increase in their borrowing power of about $45,000 with a 0.5 per cent cut. MORE: Major money trap Aussies fall for 'Shouldn't get one': Fury over rate cut hopes But coming rate cuts would also bring a twist as prices are expected to be pushed higher. Following the February cash rate cut, the first rate reduction in over four years, Sydney property prices lifted to a new high, recording a median price of $1.118m in April, according to PropTrack data. Compare the Market property expert Andrew Winter said a rate drop at the RBA's Tuesday meeting would likely push prices up again. MORE: Shock amount it costs to sell your home He explained that cheaper credit would lead to bigger offers on properties, particularly in highly sought after areas. 'The market in Sydney has been extremely resilient, and that's largely because there isn't enough supply to keep up with demand,' he said. MORE: Ex-Swans coach enjoys $4m+ win post-AFL exit Insane demands of mega wealthy exposed by staff 'These markets have performed well in less-than-ideal conditions. Another round of rate cuts is likely to add fuel to the fire.' Mortgage Choice numbers laid bare the kind of effect a rate cut would have. A homebuyer who now could qualify for a $795,000 loan – the current average loan size in NSW – would be able to borrow nearly $840,000 with a half a per cent cut to typical loan rates. Mr Winter said aspiring buyers may be anxious to 'get a foot in the door' now before market conditions become too competitive. But he warned that the capacity to borrow more money would not make buying a house easier for most people. 'The main hurdle for most first-time buyers is raising a deposit which can be extremely challenging when value growth outpaces wage growth in such an extreme way,' Mr Winter said. 'The good news is there are a number of low-deposit and stamp duty incentives open to first home buyers. 'There may be a rush to beat the 'fear of missing out' frenzy. Remember, it's nearly impossible to strategically time the market. The best time to buy is when you're ready.' Young couple Kristy Kumar and Marco Ip recently purchased their first home in Oran Park and said interest rate cuts encouraged them. 'The idea of rate cuts gave us a bit more confidence,' Ms Kumar said. 'While we weren't trying to take out the maximum loan we would be approved for, as we didn't want to be in a position where we couldn't meet our monthly repayments, we are trying to get ahead as fast as we can and will use the cut to keep our payments the same and pay off our debt faster.' Their broker, Owl Home Loans director Aidan Hartley, said rate cuts had seen a huge influx of first home buyers seeking approvals. 'I've been doing this a while and I've never been thrown as many contracts from new buyers,' he said. 'There's a big sense of urgency because a lot want to get in (to the market) before cuts because they're taking out variable rates,' he added. 'We did a lot of pre-approvals that are finally buying. My sense is that there was a lot of people waiting on the sidelines and now that rate cuts are looking likely, they are taking action.'
Herald Sun
16-05-2025
- Business
- Herald Sun
Geelong suburbs where sellers home prices hold or fold revealed
Fresh data has revealed the Geelong suburbs where buyers or sellers have the upper hand when it comes to sticking to their guns on price expectations. The PropTrack figures for vendor discounting – where homes sold by private treaty saw the biggest drop between the original advertised price and what buyers ultimately agree to pay – reveals the suburbs where buyers are able to negotiate the best deals. Coastal areas remained the best buyers' markets over the past 12 months, with prices sliding a median 8.3 per cent in Anglesea and Point Lonsdale between listing and sale, and close to 8 per cent in Portarlington and Barwon Heads. RELATED: Geelong's next $1m suburbs, emerging areas revealed Andrew Winter: Looming rate cuts to push up home prices Bidders love for bold Geelong renovation rewards sellers Barwon Heads has experienced an overall 20.7 per cent drop in median house price in 12 months to May (to $1.42m), PropTrack data shows, with the vendor discounting data showing sellers continue to grapple with where value sits in the Bellarine Peninsula hot spot. Pricing homes proved more stable across urban Geelong, with discounting most prevalent across the expensive inner suburbs, especially central Geelong, but also Manifold Heights, Newtown and Geelong West. Prices ebbed the most for central Geelong apartments, with a 5.7 per cent median discount between listing and sale. Sellers had it best in areas such as Armstrong Creek, Belmont, Corio, Grovedale, Lara and Newcomb, where the PropTrack data recorded a median vendor discount of zero. Hayeswinckle, Highton director Michelle Winckle said discounting price guides was more prevalent in more expensive inner suburbs where there were fewer buyers competing for homes. The data shows prices were most stable in Geelong's northern and southern suburbs. 'It's at a lower level where there's more people competing,' she said. Geelong's property market has endured a turbulent 24 months, with prices overall trending down until recently. Ms Winckle said price expectations were often changed to make homes more competitive in the marketplace. 'You often don't know until you've started a campaign and it's just not grabbing the market, so it needs to be adjusted,' Ms Winckle said. 'Quite often, it can still sell at what they originally wanted. It's just about changing up the strategy.' Buyers advocate Michael Ramsay said more properties were selling in coastal markets since interest rates were cut, though there were still examples of homes being listed at prices well above what the market considered fair. That was a sign that prices guides were getting closer to buyers expectations compared to the start of the year, Mr Ramsay said. SuburbData analyst Jeremy Sheppard said there's a correlation between higher discounts and softer demand. Buying in an area where vendors were accepting offers well below list prices often came with a downside, Mr Sheppard said. 'Bargain hunting is great if you're simply seeking a roof over your head and you plan to stay in the property for 20 years, but from an investment point of view it's not always good,' he said. '(In a high discount area) you'd have to be confident that you wouldn't need to sell for some time as it will be more difficult for sellers … if you're holding for the long term, this won't be an issue as the market will eventually balance out. All areas will eventually grow if given enough time.' GEELONG MEDIAN VENDOR DISCOUNT FIGURES Suburb Property type Median sale price Median vendor discount Point Lonsdale H $1,207,500 -8.3 Anglesea H $1,350,000 -8.3 Portarlington H $863,500 -7.9 Barwon Heads H $1,420,000 -7.8 Jan Juc H $1,270,000 -5.9 St Leonards H $720,000 -5.8 Geelong U $615,000 -5.7 Ocean Grove U $741,000 -5.4 Winchelsea H $650,000 -5.1 Geelong H $880,000 -4.4 Torquay H $1,175,000 -3.6 Newtown U $575,000 -3.4 Manifold Heights H $1,260,000 -3.1 Newtown H $1,150,000 -2.7 Ocean Grove H $955,000 -2.6 Geelong West H $850,000 -1.8 Drysdale H $710,000 -1.3 Lara U $447,500 -1.3 Belmont U $538,000 -1.1 Norlane H $451,000 -1 Grovedale U $496,250 -1 Highton H $861,000 -0.9 Clifton Springs H $652,600 -0.9 Leopold H $650,000 -0.7 Bannockburn H $785,000 -0.7 Hamlyn Heights H $720,000 -0.6 Herne Hill U $368,000 -0.6 Wandana Heights H $925,000 -0.5 Marshall H $630,000 -0.1 Armstrong Creek H $650,000 0 Lara H $680,000 0 Corio H $490,000 0 Belmont H $700,000 0 Mount Duneed H $700,000 0 Grovedale H $663,000 0 Charlemont H $615,500 0 Highton U $500,000 0 Bell Post Hill H $660,000 0 Bell Park H $611,000 0 Curlewis H $638,250 0 Newcomb H $550,000 0 Waurn Ponds H $765,500 0 St Albans Park H $585,000 0 Whittington H $529,000 0 Herne Hill H $700,000 0 North Geelong H $610,000 0 Geelong West U $387,500 0 East Geelong H $765,000 0 Hamlyn Heights U $530,750 0 Thomson H $512,500 0 Lovely Banks H $840,000 0 Source: PropTrack. Median vendor discount for homes sold in 12 months to May 2025. Excludes suburbs with less than 30 sales.
