City dwellers escaping to the country in record numbers

City dwellers are ditching their poky housing in droves by prioritising quality of life and more affordable housing ownership options in regional Australia. The result has been a surge in demand, lower supply and a material rise in house prices in regional towns since early last year.

And with 1 in 6 Australians eying off a move to the country - at least according to recent responses from PIPAs property investment survey - demand for regional housing stocks is set to soar.

Think about it, you’ve been working in a cramped workstation in a city high rise office, and living in close confines already, when suddenly you go into lockdown. Simmering feelings of claustrophobia are amplified if you also have a WFH partner and home-schooled kids. Your only escape is the crowded supermarket to fight over pasta and toilet paper. It’s little wonder more and more people are off to greener (or sandier) pastures. 

The trend towards small town living has been further fuelled by record low interest rates and Reserve Bank Governor Phillip Lowe committing to leave rates lower for longer at a paltry 0.1% for at least three years. That’s translating to home loan rates around 2.5% with some fixed rates sub-2%. There’s almost never been a greater incentive for house price growth in the history of the Australian economy, and city dwellers are cashing in.

The Gold Coast has seen prices up an eye-watering 25% in parts like glitzy Miami Beach. The Sunshine Coast has gone further with rises of up to 46% in some towns. Noosa has always been a favourite with Melburnians flying north in Winter, and this year demand was stronger than ever with real estate sites reporting an average of 1218 web hits per property and record price growth.

So, a lot happening in our part of the world. If you want to secure a foothold in our own slice of paradise, book a strategy call today.

The RBA has done it again. Will your bank follow suit?

Looking for a silver lining in 2020? The RBA has delivered in the form of an historically-low cash rate of 0.10% (down from 0.25% last month). They've slashed the rate to help bolster our national economy as we navigate the continued impacts of the pandemic.

RBAs governor, Philip Lowe says the rate cut is intended to "support job creation and the recovery of the Australian economy from the pandemic".

What does this mean if you've got a home loan?

Well, hopefully your lender will pass the cut on to you and you'll pay less interest on your loan. While interest rates aren't everything, a lower one is something you can leverage to:

How likely is it that lenders will pass the rate cut on?

It depends. Some smaller, more agile lenders have already passed the rate cut on in full to their existing customers on variable interest rates. Whereas the Big 4 - ANZ, Commonwealth, NAB and Westpac - have announced changes to their fixed rate loans only (for new customers).

One thing is for sure: the home loan market is more competitive than ever. If your lender isn't playing nice then it's time to reassess your position. Complete our home loan health check to find out if you're paying too much on your home loan.