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Here are our top five pieces of interesting property news for this week!

   

Yields creeping higher 

Probably the biggest question in global financial markets right now is whether inflationary pressures around the world will force central banks to start hiking interest rates with implications for mortgages and housing markets. 


In New Zealand there have been some early rate hikes, while the Bank of England seems to be heading in the same direction. 


Some upwards pressure on yields in Australia, and a few fixed rate mortgage products inched 10 basis points higher over the past week. 


The Reserve Bank released its latest Board Minutes this week, with no interest rate moves predicted until 2024 at the earliest. ‘’It will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. The central scenario for the economy is that this condition will not be met before 2024 (and) will require the labour market to be tight enough to generate materially higher wages growth." 


For some valuable perspective, 5-year government bond yields are still only trading at just above 1 per cent. 


Property investors would normally do well to focus on the likely 5 to 10-year outcomes rather than the day-to-day media noise.

   
   

New Podcast: featuring footy legend Jonathan Giles

Tune in to Pete Wargent’s Property Pod, where I interview AFL star Jonathan Giles about his career and journey in property.

   
   

Hiring spree

Job advertisements are on the up, surging to a seasonally adjusted 229,000 in October. Most states now have far more job openings than before the virus. 

Expect some strong job hiring ahead.

Source: Department of Employment 

   
   

Looking to buy your next property? Talk to us today, to find out how we can help you buy better.

   
   

Sydney reopens to the world

Sweeping changes are afoot in New South Wales, with a new Premier sworn in, and quarantine rules soon to be dropped entirely for international arrivals into the country. 

There will be a sugar hit boost for Sydney on the reopening of trade, which we explored in this article, along with our top 18 suburbs to buy units and price appreciation

   
   

Investor Special Report

We’re just adding the finishing touches to our 2021-2 Investor Special Report. 

Overall, while there are some mixed signals in markets, the dynamics for property over the next few years remain quite solid, with historically low borrowing costs, and population growth expected to come back online in the new year. 

 We expect most capital cities to record house price growth of between 5 and 8 per cent in 2022.

   
   

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Thought of the week

There is a red-hot debate set to hit the news as Australia heads towards its next Federal Election…and it relates to immigration settings. 

Many commentators are seeing the temporary halt to immigration as the ideal time for a rethink as to what the ‘right’ level of immigration should be. 

Early signs from the government are that the cap for permanent migration should be listed from 160,000 to 200,000 per annum, while the NSW government has reportedly received advice to import up to two million new migrants over the next five years, to make up for skills shortages. Historically governments have leaned towards a greater intake of migrants, especially those aged under 30 (to increase headline GDP, lower the average age of residents and slow an ageing population, increase the participation rate and tax take). 

Alternative views believe creaking capital city infrastructure may struggle to cope with faster immigration with traffic congestion, schools overcrowding, and potentially some societal challenges as well. 

Whatever your view, this will undoubtedly be a formative issue in 2022.

Have a great weekend all! 


Pete Wargent 
BuyersBuyers Property Guru

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