Latest news with #owneroccupiers
Yahoo
15 hours ago
- Business
- Yahoo
RBA slashes interest rates delivering cash boost for millions of Aussies
The Reserve Bank of Australia (RBA) has cut interest rates for the third time this year, dropping the cash rate to 3.60 per cent. The move will provide relief to millions of mortgage holders following July's surprise hold. The decision to cut interest rates by 25 basis points was supported by falling inflation. Headline inflation eased to 2.1 per cent in June, down from 2.4 per cent, while trimmed mean inflation came in at 2.7 per cent, down from 2.9 per cent. Today's 0.25 per cent cut means owner-occupiers with a $600,000 mortgage could save $89 a month on their home loan repayments. Across all three cuts, this brings total savings to $272 a month, provided their bank passes on the cut in full. RELATED FOLLOW LIVE UPDATES: Michele Bullock told there's 'no reason' to risk reputation Centrelink warning for downsizing Baby Boomers over 'special' retirement rule New Zealand couple move to Australia after 'overwhelming' $20,000 cost to start familyWhat does today's cut mean for borrowers? Canstar data insights director Sally Tindall told Yahoo Finance she expects banks will 'step up to the plate' and pass on this rate cut in full to borrowers once again. 'This will be the third cut after 13 rate hikes. It's not time to be hitting the brakes on passing on rate cuts,' she said. But with more interest rate cuts predicted by experts and economists, Finder head of consumer research Graham Cooke said the banks might not be as generous in the future. 'Lenders might start to pull back and offer smaller cuts to customers, as we observed during the last round of cuts,' he said. Following today's cut, the average variable rate will be 5.54 per cent. If your rate is above the 5.50 per cent mark, both Tindall and Cooke said it could be time to find a better deal. The next RBA meeting will be on September 29 and 30.
Yahoo
6 days ago
- Business
- Yahoo
How you can still make money from flipping property
In the Nineties and Noughties, a significant number of property investors — and ordinary owner-occupiers — were making large amounts of money from buying properties in need of refurbishment, doing them up quickly and selling them on at a profit, aka flipping. But, 20 years on, this practice is much less common. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership According to recent figures from Hamptons Research, in the first quarter of 2025, the proportion of homes bought and then re-sold within a year (ie flipped) fell to 2.3% across England and Wales, down from 3.6% in Q1 2024. This equated to 7,301 flipped homes in Q1 2025, 27% below the 10-year Q1 average. The average profit of these Q1 2025 flips was £22,000 and Hamptons found that while 80% of flipped homes were sold for a higher price in Q1 2025, only 66% made a profit. So, how can you still make money from flipping? We spoke to several experts to find out. Why has flipping property become less profitable? While there are several factors eating into flippers' profits, the main one is stamp duty. Not only have rates increased over the last 20 years, but property price inflation means that more properties are liable for this tax, while investors with multiple properties have to pay stamp duty at an additional rate. Read more: What are branded residences and who's buying them? 'Bigger stamp duty bills are wiping out a lot of profit from flipping. The 5% surcharge for investors, coupled with a reduction in the point at which buyers start paying stamp duty, means it's harder than ever to make the sums stack up,' says Aneisha Beveridge, head of research at Hamptons. The average stamp duty bill which was once around 10% of a flipper's gross profit, now swallows up around 30%. 'As recently as 20 years ago the highest rate of stamp duty was 2%. Now it is 12%, plus an extra 2% if you are an overseas buyer and an additional 3% if you own a property anywhere else in the world. So, you could be paying as much as 15% of the value in tax,' flags Marc Schneiderman, director, Arlington Residential. Renovating a property has also become more expensive, meaning investors need to pay out increasing amounts initially. 'Renovation costs have also risen, while inflation in both labour and materials, along with new compliance requirements such as energy efficiency standards, has increased upfront investment and overall project risk,' says Caroline Marshall-Roberts, CEO and founder of BuyAssociation. Read more: The pros and cons of buying property off-plan Sarah Walker, owner of Walker Hall Estate Agent, gives the example of a kitchen refurb. 'A kitchen that might have been £8,000 just a few years ago can easily come in at £15,000 or more once you factor in appliances, fitting and VAT.' What's more, the reduction of the capital gains allowance and stricter rules on what can be claimed on this make tax-efficient renovations difficult. 'Combine this with uncertain market timing and tighter lending conditions, and today's property investors looking to flip properties are dealing with thinner margins and greater exposure to downturns,' adds Marshall-Roberts. Which areas of the UK are still profitable when it comes to flipping? There are still areas of the country where you can flip and make a profit. According to Hamptons Research, the North East is the only region where flipping has become more common over the last decade. This is predominantly due to the prevalence of homes costing less than £40,000, well below the stamp duty threshold of £125,000. 'We still see some success in parts of the North West, in particular in certain areas of the Wirral, where property prices are lower and demand is steady,' says Liam Gretton, Bespoke Estate Agent. 'Buyers are also looking in areas with planned regeneration, where prices are starting to rise.' While there are general regional patterns of flip profitability, Walker believes it's more likely that a good hyper-local knowledge will help you find a suitable property. 'You need to understand which streets, which styles of homes, and which improvements genuinely add value in your patch. Forget national 'hotspots.' Success comes from knowing your area inside out and running the numbers with zero room for guesswork.' What types of houses are good for flipping? In terms of what makes a successful flip property, many of the age-old rules still hold true. 'Probate sales, long-held family homes or rentals that haven't been touched in decades are the sweet spot. Dated kitchens, pink bathrooms, swirly carpets, all perfect,' suggests Walker. Read more: What is pre-application planning and can you do it yourself? With the cost of renovations high, you're looking for properties that have good bones, are structurally sound and just need cosmetic modifications. With the age of first-time buyers increasing, larger, family homes are increasingly in demand and, therefore, have more flip potential. 'Investors looking to flip property should focus on three- or four-bedroom semi-detached houses. These homes tend to appeal to families and young professionals, increasing the likelihood of a quicker sale and a stronger return,' says Marshall-Roberts. 'Terraced houses and standard flats in residential blocks can also make good flip candidates.' In contrast, luxury homes with large stamp duty bills come with higher stakes attached. 'High-end homes or unusual properties are harder to flip quickly and carry more risk,' says Gretton. While flipping can be seen as a way of making a fast buck, Gretton flags that there are hidden benefits and that it has its place in the property market. 'It brings older or neglected homes back to life, creating more modern, liveable spaces that are ready for today's buyers or renters. It also helps maintain and support local property values especially in areas where tired housing stock might otherwise drag the market down.' Read more: How school fees can affect your mortgage borrowing The pros and cons of getting a mortgage into your 70s Pros and cons of lifetime ISAs
Yahoo
6 days ago
- Business
- Yahoo
How you can still make money from flipping property
In the Nineties and Noughties, a significant number of property investors — and ordinary owner-occupiers — were making large amounts of money from buying properties in need of refurbishment, doing them up quickly and selling them on at a profit, aka flipping. But, 20 years on, this practice is much less common. According to recent figures from Hamptons Research, in the first quarter of 2025, the proportion of homes bought and then re-sold within a year (ie flipped) fell to 2.3% across England and Wales, down from 3.6% in Q1 2024. This equated to 7,301 flipped homes in Q1 2025, 27% below the 10-year Q1 average. The average profit of these Q1 2025 flips was £22,000 and Hamptons found that while 80% of flipped homes were sold for a higher price in Q1 2025, only 66% made a profit. So, how can you still make money from flipping? We spoke to several experts to find out. Why has flipping property become less profitable? While there are several factors eating into flippers' profits, the main one is stamp duty. Not only have rates increased over the last 20 years, but property price inflation means that more properties are liable for this tax, while investors with multiple properties have to pay stamp duty at an additional rate. Read more: What are branded residences and who's buying them? 'Bigger stamp duty bills are wiping out a lot of profit from flipping. The 5% surcharge for investors, coupled with a reduction in the point at which buyers start paying stamp duty, means it's harder than ever to make the sums stack up,' says Aneisha Beveridge, head of research at Hamptons. The average stamp duty bill which was once around 10% of a flipper's gross profit, now swallows up around 30%. 'As recently as 20 years ago the highest rate of stamp duty was 2%. Now it is 12%, plus an extra 2% if you are an overseas buyer and an additional 3% if you own a property anywhere else in the world. So, you could be paying as much as 15% of the value in tax,' flags Marc Schneiderman, director, Arlington Residential. Renovating a property has also become more expensive, meaning investors need to pay out increasing amounts initially. 'Renovation costs have also risen, while inflation in both labour and materials, along with new compliance requirements such as energy efficiency standards, has increased upfront investment and overall project risk,' says Caroline Marshall-Roberts, CEO and founder of BuyAssociation. Read more: The pros and cons of buying property off-plan Sarah Walker, owner of Walker Hall Estate Agent, gives the example of a kitchen refurb. 'A kitchen that might have been £8,000 just a few years ago can easily come in at £15,000 or more once you factor in appliances, fitting and VAT.' What's more, the reduction of the capital gains allowance and stricter rules on what can be claimed on this make tax-efficient renovations difficult. 'Combine this with uncertain market timing and tighter lending conditions, and today's property investors looking to flip properties are dealing with thinner margins and greater exposure to downturns,' adds Marshall-Roberts. Which areas of the UK are still profitable when it comes to flipping? There are still areas of the country where you can flip and make a profit. According to Hamptons Research, the North East is the only region where flipping has become more common over the last decade. This is predominantly due to the prevalence of homes costing less than £40,000, well below the stamp duty threshold of £125,000. 'We still see some success in parts of the North West, in particular in certain areas of the Wirral, where property prices are lower and demand is steady,' says Liam Gretton, Bespoke Estate Agent. 'Buyers are also looking in areas with planned regeneration, where prices are starting to rise.' While there are general regional patterns of flip profitability, Walker believes it's more likely that a good hyper-local knowledge will help you find a suitable property. 'You need to understand which streets, which styles of homes, and which improvements genuinely add value in your patch. Forget national 'hotspots.' Success comes from knowing your area inside out and running the numbers with zero room for guesswork.' What types of houses are good for flipping? In terms of what makes a successful flip property, many of the age-old rules still hold true. 'Probate sales, long-held family homes or rentals that haven't been touched in decades are the sweet spot. Dated kitchens, pink bathrooms, swirly carpets, all perfect,' suggests Walker. Read more: What is pre-application planning and can you do it yourself? With the cost of renovations high, you're looking for properties that have good bones, are structurally sound and just need cosmetic modifications. With the age of first-time buyers increasing, larger, family homes are increasingly in demand and, therefore, have more flip potential. 'Investors looking to flip property should focus on three- or four-bedroom semi-detached houses. These homes tend to appeal to families and young professionals, increasing the likelihood of a quicker sale and a stronger return,' says Marshall-Roberts. 'Terraced houses and standard flats in residential blocks can also make good flip candidates.' In contrast, luxury homes with large stamp duty bills come with higher stakes attached. 'High-end homes or unusual properties are harder to flip quickly and carry more risk,' says Gretton. While flipping can be seen as a way of making a fast buck, Gretton flags that there are hidden benefits and that it has its place in the property market. 'It brings older or neglected homes back to life, creating more modern, liveable spaces that are ready for today's buyers or renters. It also helps maintain and support local property values especially in areas where tired housing stock might otherwise drag the market down.' Read more: How school fees can affect your mortgage borrowing The pros and cons of getting a mortgage into your 70s Pros and cons of lifetime ISAs
News.com.au
28-07-2025
- Business
- News.com.au
‘Insane': Run-down home sells for $3 million
The more than $3 million sale of an overgrown two-bedroom house in Brisbane has raised questions about the state of the city's housing market. The home in Perrott Street, on a 473 sqm corner block in the ritzy inner-city suburb of Paddington, went under the hammer over the weekend. After an opening offer of $2.75 million, a flurry of bids quickly brought the sale price to $3.1 million – well above the suburb's median price of $1.9 million. The property listing said it had been in the same family for 100 years and was used as a hospital during the Second World War. But it had not been occupied since the 1990s and would require 'significant works to bring it up to a comfortable living standard'. Photos showed the house was in a state of disrepair with the roof overrun with weeds, though it stood on a spacious block and commanded views of the city. Reaction to the sale on social media was mixed, with some Aussies labelling the $3.1 million sale price as 'insane' and 'ridiculous', and the home itself as a 'dump'. 'Problem is someone will knock it down for the land and build some garbage thing,' one said. 'It gets you a block of land worth $3.5 million three weeks from now after you bulldoze the shack,' another added. But Ray White agent Max Hadgelias told that the new owners were a local family who intended to be owner-occupiers. There had been 'fantastic interest' in the home, with 15 registered bidders at the auction along with scores of locals who attended out of curiosity, Mr Hadgelias said. Given the home was a protected character house it was 'unlikely' to be bulldozed to make way for a development. 'It requires a lot of work, but someone restoring it will bring it back to its former glory.' Although the property was in a run-down state, the price was 'underpinned by its location,' which included its sought-after Paddington postcode, elevated position and city views. Mr Hadgelias described the local housing market as 'strong – there's good activity across all spectrums at the moment'. Leith van Onselen, chief economist at said the sale was indicative of overstretched demand for housing in Brisbane. The city had seen an 89 per cent increase in house prices since March 2020. 'Brisbane's had one of the biggest house price rises in the country since the pandemic,' Mr van Onselen said. 'It's gone from being one of the more affordable housing markets to being the second-most expensive (after Sydney).' The cause was a 'gigantic surge' in both interstate and overseas migration to Brisbane. 'It's a real pressure cooker situation in Brisbane unfortunately, and I think the (2032) Olympics will make it worse. 'Obviously the inward migration from overseas and Australia has overwhelmed supply.' PropTrack data for June showed Sydney remained Australia's most expensive city with a median house price of $1.18 million, followed by Brisbane at $908,000, Adelaide at $837,000, Perth at $836,000 and Melbourne at $818,000.
The Guardian
21-06-2025
- Business
- The Guardian
Tell us: what are your experiences of buying a home in Australia?
Australia has one of the most unaffordable property markets in the world, arguably made worse by tax breaks for investors. The share of investors buying homes has consistently grown over the past 25 years at the expense of prospective owner-occupiers. That trend threatens to accelerate again as younger buyers get priced out of the market amid another surge in property prices. A lack of housing stock has meant properties in favourable locations, near schools and transport networks, are subject to fierce competition between investors and those looking for a family home. We would like to hear your experiences of buying a home. How long have you been actively looking to purchase a property? What have been the worst of your near misses? Are you being outbid by other home buyers or investors? If you have recently bought a property – did you have to make any sacrifices in your search? Did your toughest competition come from owner-occupiers or investors? Tell us the suburb and city Please include as much detail as possible. Please include as much detail as possible. Your contact details are helpful so we can contact you for more information. They will only be seen by the Guardian. Your contact details are helpful so we can contact you for more information. They will only be seen by the Guardian. If you include other people's names please ask them first. If you're having trouble using the form, click here. Read terms of service here.
