Property & Finance - keeping up to date!

Just a friendly reminder that if you do your own taxes, you need to lodge your tax return by October 31. In the meantime, here are two stories about property, finance... and taxes we have selected from our recent client newsletter:

• Some fixed rate loans (and variable rate loans!) are getting cheaper
• Why banks will have to go green

*** We have even more for our clients so if you would like to regularly receive our Full Client Newsletter, let me know by following this link: https://www.bir.net.au/contact-us/

But first....

The results of our recent survey!

We recently asked our social media followers the following question:

Survey: How would you organise your next loan?

Not surprisingly, these results reflect the industry-wide statistics which show 70% of borrowers use a broker.

As you know, there are good reasons for using a broker - but as some of you have told us, not all brokers are created equal. ??

One thing we do a little differently

Apart from offering timeliness, responsiveness, objectivity, experience and expertise, we are always looking at ways to add value for our clients.

For those of you who are clients, you will already have experienced our Free Property Report service. But, now there's even more!!!

#1 Annual Property & Loan Reviews

These Reports will provide a full analysis of your property using the research grunt of domain.com.au and realestate.com.au. PLUS we will show you

• Your capital and equity growth from last year.
• Your equity at 80% LVR as we know most lenders and borrowers prefer to borrow up to 80% so they don't have to pay Lenders Mortgage Insurance (LMI).

#2 Our (up to) Five Suburb Comparison Reports

Are you looking at which suburb to invest in?

You can now order a Suburb Comparison Report for up to 5 suburbs! This can be ultra-handy for investors wanting a quick overview of some suburbs they might be considering investing in.

#3 Updates to our 30+ Region Reports

Our Region Reports produced by Sharon Taylor, Research Director, Performance Property Advisory, have been updated for the following regions: Ballarat < > Bendigo < > Tamworth < > Cairns < > Geelong < > Townsville.

Check out these reports and PPA's Property Clocks for these regions (Buy / Hold / Sell).

Click the link below to get access to your Free Property Report!

https://www.bir.net.au/report-request

Interest rate surprise: some fixed loans getting cheaper

With all the talk of interest rate rises, you might not have noticed that some lenders have been reducing rates on their fixed-rate loans. And, hot off the press, some variable rates are also on the decrease with some lenders - although probably for different reasons as set out below

However, variable rates are likely to continue to rise in line with future Reserve Bank of Australia cash rate increases, which are all but guaranteed.

But some fixed loans have been coming down lately. And, as noted above, some variable rates have also dropped slightly - but it seems with the proviso of assisting those with better risk profiles (eg lower LVRs).

Whereas with variable rates, lenders often take their cue from the RBA, they tend to reference financial markets when setting fixed rates.

Markets had priced in RBA rate rises longer before they occurred, which is why lenders started increasing their fixed rates as early as December 2020.

Now, though, some lenders have concluded the RBA won't increase the cash rate as much as they originally thought; and, therefore, that they went a bit far with their fixed increases.

As a result, some lenders have trimmed interested rates on their fixed loans — although they remain quite a bit higher than variable rates.

Interest rates can be confusing, so contact me if you want to discuss whether it's best to have a fixed loan, a variable loan or a split loan (which is part fixed and part variable) in this current environment.

Banks embracing more sustainable lending practices

Australian banks, like those around the world, will have to increasingly adopt 'nature-positive' policies that enhance rather than degrade our environment.

Two international organisations — the Task Force on Climate-related Financial Disclosures and the Taskforce on Nature-related Financial Disclosures — are creating frameworks for banks and other organisations about pricing and disclosing nature-related risks.

Banks will increasingly account for the impact their lending activity has on the planet, which will influence who they lend to, the terms they set and the interest rates they charge.

A new report from Deloitte, 'Banking on Natural Capital', has listed steps banks need to take to become nature-positive institutions. They include changing internal incentive structures and reallocating capital to nature-positive activities.

"The regulatory, market and stakeholder pressure to reduce detrimental impacts on nature and increase positive ones will only continue to increase," according to the report.

"With this pressure also comes potential opportunities, as demonstrated through the rise of sustainable finance, impact investments, and voluntary carbon markets."

Would you like more information? You can ring me now 1300 989 878 or email me at [email protected]

And one last thing….

"The time is now. What you have to do, do it now." ―Lailah Gifty Akita