Buyers missing out despite lowest rates in history

first_imgBuyers who did not have financing in place before approaching a property were missing out in the current market.The latest Big Four bank survey has pinged a sharp ‘uptrend’ in housing, but despite the lowest interest rates in history, some buyers are missing out even when they can afford it.The latest Commonwealth Bank of Australia Household Spending Intentions readings, out Tuesday, found that the positive effects of lower interest rates, tax rebates and the turn in the housing market in August were surrendered in September. Investors turning homes into student accommodation Buyers who were not prepared with their funding risked missing out on homes like 32 Princess St, Bulimba.“Houses are really strong in the area at the moment and apartments are performing better than they were this time last year. We’re seeing a lot of interest from buyers when properties hit the market between $800,000 and $1,000,000.”Mr Given, who marketed the home with Tanya Douglas and Tomas Mian of LJ Hooker AVNU, said a local won the home after negotiations on auction day. CBA’s Household Spending Intentions (HSI), October 2019. Source: CBA/Supplied.“The sharp uptrend in home buying intentions continues. The improvement in home buying intentions since the April lows has put the HSI (household spending intentions) at the upper end of the historical range. Dwelling prices are responding. A positive “wealth effect” is one outcome.” MORE: Top 10 suburbs predicted to boom Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:42Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:42 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenTop 5 hot Brisbane suburbs 01:43 Brisbane rents rising faster than other mainland capitals Comparethemarket.com.au banking head Rod Attrill said it was concerning to see how many Aussies were not confident enough about everyday financial products.“With many Australians admitting they aren’t on the best deal — and a significant proportion realising that there are better products out there — we urge Australians to shop around and compare financial products so that they better understand the value they are getting and slowly build up their confidence in the products they own.”More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours agocenter_img The five bedroom, four bathroom, double car park home had 50 parties through during inspections.Three bidders had registered but only one put in a bid at $1.75m, and then negotiated up to $2.085m when it was put on the market and sold to her.“There has been more confidence in the past two weeks since the last interest rate drop,” Mr Given said. FOLLOW SOPHIE FOSTER ON FACEBOOK Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:36Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:36 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenWhat do QLD buyers want?00:36 32 Princess Street, Bulimba, sold for $2.085m after negotiations on auction day.Ray White New Farm agent Nicholas Given, whose most recent sales include 32 Princess Street, Bulimba, for $2.085million, said with demand growing in certain segments of the market, buyers who were unprepared were missing out.“There were lots of people desperate to buy this home but didn’t have their finances in place so I can’t stress enough how important it is to talk to a broker and be in a position to bid on auction day,” he said. “Our view for some time now is that monetary policy changes do little to support household activity. Fiscal policy via tax cuts / rebates is more effective in dealing with the root cause of weak consumer spending — the lack of disposable income,” CBA chief economist Michael Blythe said.But he said “the one area where rate cuts still work is the housing market”. The most lavish listings on Millionaires’ Row CBA HSI: Home buying annual percentage change (HSI — blue line, smoothed — pink). Source: CBA/Supplied.The second annual Financial Consciousness Index, commissioned by product comparison firm Comparethemarket.com.au and developed by Deloitte Access Economics, found 58 per cent of buyers were not confident they were getting the best deal on their home loan — up four points from last year.One in five “never look at other home loans on the market, up four per cent from last year”, the FCI report said, while 30 per cent reconsidered their position once a year — a figure which has dropped 2 percentage points in a year.last_img

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