Australia: More Reason to Buy vs Rent Dwelling
By Sophia Rodrigues
Published On 01 Nov 2019 , 12:00 AMMore reason to buy vs rent? For the first time since at least 2007, gross rental yields for properties in Australia's combined capital cities may be higher than investor mortgage rates (based on 3-year fixed rates). This is because mortgage rates fell faster than gross rental yields in recent months. According to CoreLogic data, gross rental yields for Australia's combined capitals fell to 3.65% in October, the lowest since November last year, due to subdued rental growth and rising housing prices. At the same time, 3-year fixed investor mortgage rate which was around 3.8% at the end of September, may have fallen below 3.65%. (ANZ website shows 3-yr P&I investor mortgage rate is currently 3.44%). This means more properties in capital cities might be showing positive cashflow. Equally importantly, renters may be better off buying a home and paying down mortgage than continuing to rent, according to CoreLogic.
LATEST SNIPPETS
Headlines from RBA Lowe's Speech Tuesday
RBA Lowe: No Change in View Little To Be Gained from Negative Policy Rate
RBA Lowe: Negative Policy Rate Extra...
More Headlines from RBA Policy
Any bond-buying to support 3-yr target would be in addition to A$100B QE
Not expecting to raise cash rate f...
Published on : 03 Nov 2020 , 02:35 PMHeadline from RBA's November MonPol Decision
From the RBA's November Monetary Policy Decision statement:
-Cuts cash rate target to 0.1% from 0.25%
RBA TFF drawdown steady since Sep 30 as bks await rate cut
Total amount drawdown from the RBA's Term Funding Facility has been unchanged for three straight weeks...
Published on : 30 Oct 2020 , 04:13 PMAustralia Note yields continue declining on expectation of 1bp ES rate
Yields fell further to new record lows at the AOFM weekly T-Note tenders as market factors in the possibili...
Published on : 29 Oct 2020 , 10:42 AMAustralia Note yield drop to new low ahead of RBA cuts
As expected, the yield on near-term T-Note fell to a new record low at today's AOFM's auction. The weighted a...
Published on : 22 Oct 2020 , 10:40 AMCould Australia Note Yield Drop to New Low at Auction?
Looking forward to the AOFM's weekly T-Note auctions later this morning. The record low weighted average yield fo...
Published on : 22 Oct 2020 , 10:09 AMRBA Kent's speech title
The title of RBA assistant governor Chris Kent's speech on Tuesday is a very interesting one, "The Sta...
Published on : 19 Oct 2020 , 08:19 PMAustralia Note yields drop to new low
Yields at AOFM's Treasury Note auctions dropped to new record low on ample liquidity and expectations of cut...
Published on : 01 Oct 2020 , 10:43 AMJust one investor buys entire A$2B of 2030 govt bond at tender
One bidder got the entire A$2.0 billion of the 1% December 2030 government bond at the tender today. The yield was 0....
Published on : 30 Sep 2020 , 11:20 AM