Rateseeker June 2022 Property News Round-up

Rateseeker June 2022 Property News Round-up

Having just passed the winter solstice and the shortest day of the year, Aussies can expect a little more sunshine with each passing day. Despite the recent chill through the property market, it still boasts housing prices that can make it a real challenge for those who dream of buying a home at an affordable price.

Missed the latest news? Check out the four latest updates in the property market over the last month below.

Property prices achieve milestone as they double in seven years

According to recent data from the Australian Bureau of Statistics ( ABS), it’s been revealed in the March quarter that the total combined value of all residential properties across the country has passed the $10 trillion mark. For the very first time in history, and is sitting at a cool $10.2 trillion.

To add to the incredible feat of the nation’s property prices, only seven years ago the combined value was only half of what it is today, recorded at 5.1 trillion in June 2014,

Much like any market, there are cycles through highs and lows, and despite this, many Aussie homeowners have enjoyed remarkable long-term growth through investing in real estate.

With a strong chance of success in the growing property market, it’s proven that real estate is an excellent way to build wealth for retirement. There’s no question as to why so many Australians hope to own their own home ( or invest in more than one).

Are you thinking about building your wealth through real estate? Talk to our team of expert brokers and we can help answer any questions, compare rates and assess your financial circumstances.

Expansion of Low-Deposit Housing Scheme

While focus is on creating better access for Australians into the housing market, the federal government’s flagship low-deposit housing scheme has been expanded and will be offered by a total of 32 lenders from July 1, 2022.

Welcoming aboard the newest additions to the Home Guarantee Scheme (HGS), Credit Union SA, Illawarra Credit Union, IMB Bank, Newcastle Permanent Building Society, and Unity Bank joins the 27 existing lenders, comprised of major banks such as Commonwealth Bank, NAB, along with other smaller lenders.

Are you eligible for the HGS ( also known as the First Home Loan Deposit Scheme)?

See if you meet the requirements below:

• Your household income must be less than $125,000 for individuals and $200,000 for couples
• The property you buy must be less than the price cap, which ranges from $250,000 in regional South Australia to $950,000 in Sydney, depending on where you buy and the type of property you purchase

Along with the welcome help of the HGS, eligible first home buyers can buy a home with as little as a 5% deposit, along with a 2% deposit for eligible single parents. The upside? Home buyers who participate don’t need to pay lender’s mortgage insurance (LMI) as the loan is guaranteed by the government.

Are you eligible and looking to purchase a home using HGS but need help? Get in touch with us for an obligation-free chat and our team can help you get started.

“Surge” expected in the number of total property listings

Recent data of homes listed for sale through May suggests that the number of property listings has taken a dive, after only 246,000 homes around Australia were up for sale, according to SQM Research. The fall in listings shows a 2.2% reduction compared to the previous month and a further 9% lower than last year.

Experts such as SQM managing director Louis Christopher were unsurprised by the decline with reason to believe that real estate activity often slows down during a federal election campaign.

“Going forward, I expect a surge in new listings for this current month, even while we have now reached the quieter winter months. SQM Research has recorded a surge in new auction listings, hence why we have this view.”

Should the expected surge occur, Aussie home buyers may benefit from the downward pressure on housing prices, which, due to the growth in the supply of listed properties often leads to a decrease in buyer demand.

ATO issues a warning to property investors to declare all income

It’s nearly that time of year again, tax time, however, if you own investment properties you can be sure that the ATO will be keeping a close eye on your returns.

This means investors who have received income through the following channels will need to ensure they include:

• Any income made via short-term rental arrangements ( such as Airbnb)
• Any income associated with insurance payouts 
• Any income from retained rental bonds 

The ATO has additionally urged investors to ensure they keep their records up to date as all rental income and deductions will require manual entry, even if their tax return has been prepared by a registered tax agent such as an accountant.

“If we do notice a discrepancy it may delay the processing of your refund as we may contact you or your registered tax agent to correct your return,” according to the ATO.

“We can also ask for supporting documentation for any claim that you make after your notice of assessment issues.”

The Australian Tax Office

Is your financial situation keeping you from buying your first or next home? Get in touch with Rateseeker for expert financial advice and take advantage of our obligation-free consultation to get started today.