Australia’s rising living costs are prompting changes in how people manage their finances. Recent insights from the CommBank iQ Cost of Living Report highlight shifting priorities across generations and regions. While younger Australians are tightening their budgets, regional areas like Western Australia and Queensland are showing surprising resilience in spending.

How to review and sign the investment property agreements. The Australian property investor can follow this step-by-step guide. 

Australia's housing market continues to present challenges for both buyers and investors, as rising property values and rents consistently outpace income growth. The 2024 ANZ-CoreLogic Housing Affordability Report paints a difficult picture, showing that affordability metrics have reached record lows. For many families, this makes securing housing or expanding their property portfolios more difficult than ever.

It is unlikely that you are unfamiliar with the phrase "speculate to accumulate.". To rephrase, to get the benefits, you must be willing to take some chances.

The NAB has shifted its call for the first interest rate cut back into May 2025,

overturning an earlier projection that a cut would be passed in February 2025.

This change follows NAB's September announcement, which earlier than it had

expected an earlier rate cut thanks to a more optimistic inflation forecast. Today,

however, the Reserve Bank of Australia faces a stronger-than-expected job market

and limited new data on which to assess before its next policy decision in February

2025.

With only two employment reports and one quarterly CPI release coming in before

the February meeting, NAB Economics believes that the RBA wouldn't be rushing to

policy adjustments while inflation and unemployment remained steady.

The major banks now expect a measured rate-cut path, to start with a

quarter-point cut in May 2025 and drift down to 3.10 percent by mid-2026.

NAB Takes the Lead

However, the revision made NAB the first major bank to signal a rate cut, and it is

its competitors who are left wondering if they will follow through. Westpac, still,

insists that its projected February 2025 cut hinges on higher unemployment rates

and moderated CPI data.

The base variable home loan rate NAB had trimmed 40 basis points to 6.4% per

annum. It was the bank's first rate cut in a year, in efforts to stem its fierce

competition, as well as its digital-only offerings that CommBank and ANZ Plus offer.

Loans with LVRs of up to 95% now get to borrow at the new rate, to maintain

competitive terms for even the lowest deposit homebuyers.

Take Control of Your Financial Future with OM Financials

Interest rate changes are not just news- they are opportunities for you to define

your journey in finance. From buying a dream home to saving with better refinance

rates, or just purchasing a property, OM Financials is here to guide you all through

it.

Our experts are on the wheel to turn these market swings in favor of your finances.

The Process of Buying a Property Most individuals perceive the process of purchasing a property as their most significant endeavor, which has just begun and will persist until its completion. Purchasing a house is a complex process that involves several legal stages to protect the owner's financial information and ensure the house meets state standards. Or, in other words, nothing bad is going to jump out and surprise you, and everything will go according to plan.

In a surprising shift, the latest Equifax Quarterly Consumer Credit Insights report for September 2024 reveals that Australians are gradually returning to the property market. Mortgage demand in the September quarter rose by 2.9% over the same period in 2023, the first increase since 2021. This resurgence suggests a cautious optimism among consumers, who are showing interest in property despite economic challenges.

Australia’s property market is bustling this spring, with a notable influx of both investors and first-home buyers eager to capitalize on favorable conditions. According to PropTrack, enquiries are up significantly, indicating that confidence is on the rise among Australian property buyers.

Karen Dellow, a senior economist with PropTrack, attributes this renewed interest to improved economic stability and affordability in certain high-demand suburbs. ABS data confirms this trend, reporting a 30% increase in new home loan commitments from investors year-over-year as of September. First-home buyers are also joining the wave, with a 2% increase in loan commitments, reflecting a shared sense of opportunity across both buyer segments.

Significant Aussies feel the pinch of rising costs of living

As per recent research, more than half of Aussies feel worried about RBA announcing its cash rate stance on the occasion of Cup Day tomorrow. Rising costs of living have been bothering households for quite some time now

Given Australia’s resilient labour market and constant vigilance over inflation, the Reserve Bank of Australia has kept the cash rate steady at 4.35 percent recently. This protects existing mortgage holders from any recent rate hikes, thus stabilizing their monthly payments to some extent. However, the prospect for less interest exhaustion toward the end has an important connotation for current homeowners, potential purchasers, and players in the mortgage market. Let's delve into the reasons behind RBA's decision to retain the rate at its present level, implications for the mortgage holders, and how to make use of the time wisely.