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CPI continues to provide good news for buyers and renters

The September 2019 quarter CPI figure continues to be good news for home buyers and renters, according to the Real Estate Institute of Australia (REIA). 

“The All Groups CPI increased by 0.5 per cent in the December quarter giving an annual increase of 1.7 per cent,” said REIA President of Adrian Kelly. 

“The annual changes for the analytical series of trimmed mean and for the weighted median were 1.6 per cent and 1.2 per cent respectively.

At a glance:

  • All Groups CPI increased by 0.5 per cent
  • Housing Group increased by 0.3 per cent for the quarter
  • Rents increased by 0.1 per cent for the quarter

“The annual change in the trimmed mean has been below 2 per cent since December 2015 and for the weighted median since March 2018 ensuring the continuation of historically low official interest rates for some time yet. 

“The Housing Group increased by 0.3 per cent for the quarter and 0.4 per cent for the year to September 2019. 

“Rents increased by just 0.1 per cent for the quarter and increased by 0.4 per cent for the year.

Mr Kelly said the average annual change has been less than 1.0 per cent since December 2015. 

“With the RBA meeting next week home buyers can be comfortable in the knowledge that the latest inflation data would suggest that the RBA will not be increasing official interest rates for some time yet,” said Mr Kelly. 

Source: The Real Estate Conversation 17th October 2019 https://www.therealestateconversation.com.au/news/2019/10/17/first-home-owner-scheme-officially-legislated/1571267513

This article provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such as it does not take into account your personal circumstances or needs. Professional advice should be sought prior to any action being taken in reliance on any of the information.

 

first home

First Home Owner Scheme officially legislated

The Bill to allow first home buyers easier access to the property market has now been passed in both the upper and lower houses.

first home

WILLIAMS MEDIA recently wrote of the progress of the First Home Loan Deposit Scheme as it made its way from the Senate to the Lower House. Read it here

The Bill to allow the scheme to become law has now passed through both the upper and lower houses and The Property Council welcomes the legislation that helps first homeowners and ensures a stronger supply of housing data for informed decision making.

Ken Morrison, Chief Executive of the Property Council of Australia, said the new first home loan scheme would not only provide pathways to home ownership for more Australians, but provide timely stimulus for housing and construction supply.

“The current ‘deposit gap’ has been a big hurdle for many first home buyers and adds to the time they need to spend saving to meet the lenders deposit requirements, or purchase expensive mortgage insurance,” Mr Morrison said.

At a glance:

  • It takes 9 years to save a 20 per cent deposit for a home
  • The First Home Loan Deposit Scheme reduces barriers for up to 10,000 homebuyers per year
  • Extra housing data will be available from new research function through the scheme

“According to recent data from CoreLogic, the average Australian homebuyer needs just under nine years to save for the 20 per cent deposit requirement – and longer in markets such as Melbourne and Sydney.”

“The First Home Loan Deposit Scheme reduces these barriers to entry for up to 10,000 first homebuyers every year, and boosts support for construction sector jobs, helping to drive economic growth at a critical time.

“We welcome a commitment to review the scheme after 12 months to ensure it will be responsive to demand.”

The Property Council also warmly welcomes the provision of extra housing data that will stem from the National Housing Finance and Investment Corporation’s (NHFIC) new research function.

“Australia has suffered from a lack of timely and reliable data on housing over past years,” Mr Morrison said.

“The NHFIC’s new research function will provide additional information on demand, supply and affordability that will be immensely helpful in shaping future housing policy.”

Source: The Real Estate Conversation 17th October 2019 https://www.therealestateconversation.com.au/news/2019/10/17/first-home-owner-scheme-officially-legislated/1571267513

This article provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such as it does not take into account your personal circumstances or needs. Professional advice should be sought prior to any action being taken in reliance on any of the information.

 

Howe much deposit do I need to buy a house

How Much Deposit Do I Need to Buy a House?

It’s common for many homebuyers to wonder how much deposit they need to buy a house. If you’re ready to start looking for your first home, a good starting point is to determine how much deposit you need to save to get started. Read more