NAB predicts 3 interest rate cuts for 2025!

NAB has come forward with its predictions for interest rate cuts, penning a total of three for 2025.

NAB Group CEO Andrew Irvine released a statement on behalf of the major bank, saying that Aussies should expect some relief after economic troubles plagued many throughout 2024.

“It’s my view that we’re at the hardest point of the economic cycle right now and things will get better from here,” Irvine said.

“We’re seeing tax cuts for Australians that most are actually saving, so deposit balances are increasing in the sector, which I think is promising. And we do expect interest rates to start to fall by the middle of this year. We’re then expecting two further cuts during the year.”

With potential interest rate cuts and a federal election expected to shake things up, 2025 is set to be a big year for Australia. NAB has recognised right now as the hardest point of economic pressure, with challenges set to ease.

“People are juggling, people are budgeting and they’re budgeting hard to make ends meet every single month,” said Irvine.

“The big thing for us is employment and the strong employment market conditions throughout Australia and the minimal amount of unemployment. Typically, in my experience, as long as people have jobs and there is income coming into the household, most bills, most mortgage payments are met, and the worst doesn’t happen.”

According to Irvine, a rate cut will be the sigh of relief Aussies are after and this decision will mark the beginning of the end of the major economic challenges of recent years.

“My prediction is that over the course of the year, it’s going to be slow and measured improvement. And when we get that first rate cut, I think it’s going to have a significant impact on the psyche of consumers, as well as business people that is likely far greater than the actual impact it will have on cashflow,” he said.

“I think that at the back end of this year you’ll start to see good growth. Businesses are confidence players and frankly consumers also, and I just think it will create a positive environment for spending and for employment as well.”

Further to the wider population doing it tough, so too have SMEs. NAB said that this year will bring a sense of optimism back to both consumers and business operators.

“SMEs are the heartbeat of our economy. Thankfully, in many sectors, SMEs continue to be doing well. Regionally, businesses in Queensland, WA, NT are doing well. Businesses that support the resources sector, energy, agriculture, defence – these are large tracts of our economy that are doing well,” Irvine said.

“At the same time, businesses that focus on value and have really good value lines are also trading really well. If you’re a business that serves luxury goods or you’re a restaurant that people want to go to and be seen at, those types of businesses are trading really, really well.

“It’s businesses that have skews that are in the middle, where they’re seeing a downgrade to value and that’s then compressing their margins. And I think that’s where we’re seeing the most pressure in our client base with SMEs.”

Despite this optimism, there are some factors that could stand to disadvantage our economy. The election of Donald Trump in the US is one major hurdle, with looming worries of a “trade war” placing added pressure.

“We will have to see how Mr Trump’s comments about increasing tariffs play out over time, but it’s clear no one wins in a trade war,” Irvine said.

“What gives me optimism is that over the past four or five years, many Australian businesses have diversified their markets. We have seen terrific diversification not just in commodities and agriculture but across all sectors. That puts Australia in a stronger relative position.

“This is testament to the hard work and achievements of many small and medium businesses. We’ve got good products and services to sell, and I continue to be optimistic.”

So let me ask you a question…

Do you have a game plan for 2025?

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)

Or, will you join them?

The choice is yours!

So, what are you waiting for?

Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

Melbourne home buyers have been warned it’s a “critical moment” with just days left to secure a home before Christmas.

Property experts are advising to “seize the opportunity now”, with Melbourne offering some of the most competitive deals nationally.

However, experts are warning a potential interest rate in the new year will bump up prices.

With 1369 properties slated for auction it is expected buyers will remain very much in control.

PropTrack senior economist Paul Ryan said Melbourne’s auction clearance rate from last week sat at a steady 58 per cent, “signalling a strong buyer’s market”.

“Buyers are feeling confident, playing sellers off against each other in hopes of securing favourable deals,” Mr Ryan said.

“As we hurtle towards the New Year, with over 1300 auctions set for this weekend, Melbourne buyers face a critical moment to get into the market now.

“Those buyers who capitalise on the current surplus of stock are likely to secure homes before the market activity drops over the Christmas period.”

Buyers advocate Cate Bakos said the amount of homes on the market presents a “golden opportunity” to wrap up the perfect pre-Christmas gift – a new home.

“We’ve had the most stock on the market since October 2012 – so from a supply and demand point of view it’s perfect for buyers,” Ms Bakos said.

“As we get closer to Christmas buyers will get wrapped up in their plans and their attention span won’t be focused on property shopping.

“From a vendors perspective they might want to sell their properties before Christmas for financial reasons.”

So let me ask you a question…

Do you have a game plan for 2024 and for 2025? 

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)

Or, will you join them? 

The choice is yours!

So, what are you waiting for?

Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

Australian home prices have surged to new heights in October, marking the 22nd consecutive month of growth despite ongoing affordability challenges.

National home prices increased by 0.26 per cent in October, with the combined capital cities now up 5.85 per cent over the past year.

Melbourne emerged as the strongest performer among capital cities, with prices jumping 0.49 per cent after six months of decline.

REA Group Senior Economist, Eleanor Creagh said price falls have started to reverse in Melbourne, with buyers out in force for the peak of spring selling season.

Here are some of Melbourne’s best performing suburbs in the September quarter of 2024;

Interested in getting educated on Australian property investing?

Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Dear Fellow Property Investors,

Victorian government's stamp duty cuts on off-the-plan apartments, units, and townhouses offer significant savings for property buyers. Learn more about eligibility, how to benefit, and why now is the prime time to buy with these expanded concessions.

In a significant policy move aimed at stimulating the property market, the Victorian government has announced a major reduction in stamp duty for off-the-plan apartments, units, and townhouses.

Effective from October 21, 2024, the expanded concessions will apply to all eligible off-the-plan purchases and will remain in place for one year.

This initiative, designed to address the state’s housing affordability crisis, opens a window of opportunity for prospective buyers, particularly investors and owner-occupiers, to secure substantial stamp duty savings.

Key Changes to Stamp Duty Concessions;

Previously, stamp duty on off-the-plan purchases was calculated based on the total price of the property, including the construction value. Under the new scheme, stamp duty will be calculated solely on the land value before construction begins. This shift in policy significantly reduces the financial burden for buyers, particularly in metropolitan areas where property prices continue to rise.

For example, a Victorian purchasing an off-the-plan apartment valued at $620,000, with the land component valued at $77,500, will now pay just $4,000 in stamp duty—down from $32,000. This $28,000 saving represents a significant reduction in upfront costs for property buyers, potentially unlocking the market for a wider demographic.

The changes also eliminate the previous cap on concessions, expanding eligibility beyond first-home buyers to include any purchaser of off-the-plan apartments, units, or townhouses within a strata subdivision.

Who Benefits from the Scheme?

The new stamp duty concessions are aimed at boosting sales in Victoria’s off-the-plan sector, which has been slowing due to high taxes and market uncertainty. The scheme covers properties that are part of a strata subdivision. However, it excludes house and land packages or dwellings not part of a strata subdivision.

Existing concessions for first home buyers remain unchanged. Homes valued up to $600,000 will continue to benefit from full stamp duty exemptions, and concessions apply to properties valued up to $750,000.

A Limited-Time Opportunity for Buyers

The stamp duty concession is a time-sensitive initiative, with the expanded benefits available only until October 21, 2025. Buyers who are considering entering the market are urged to act promptly to take advantage of the scheme, as the concession will revert to its previous structure after this period.

For developments currently under construction, buyers are also eligible for reduced stamp duty, although the exact savings will depend on how much of the construction has been completed at the time of purchase.

What Buyers Need to Know;

For those interested in purchasing an off-the-plan property, feel free to contact Konrad Bobilak CEO of www.investorsprime.com.au via 

Summary of Eligibility:

• Applies to off-the-plan apartments, units, and townhouses within a strata subdivision.
• Stamp duty is calculated based on land value, not total property price.
• Available for one year, ending October 21, 2025.
• No cap on eligibility; open to all buyers, not just first-home purchasers.
• With the Victorian government’s stamp duty concession, now is an ideal time for property buyers to enter the market while this limited offer remains available.

Interested in getting educated on Australian property investing?

Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Richard Swanson faced a tough choice: sell the South Yarra investment property he had owned for six years for a loss, or hold on and hope it recovered in value.

He chose to hold. That was five years ago and since then prices have only fallen further. After about 11 years, he has just sold the apartment for $156,000 less than he paid.

This is the puzzle at the heart of Melbourne’s housing affordability crisis: property prices have soared over the long term, but not for all properties. There aren’t enough homes, but there are too many of the wrong type of home. Young families have increasingly been locked out of home ownership, but there are few willing buyers for well-located, entry-priced apartments.

The Victorian government this week unveiled fresh plans to increase housing density in areas close to transport and amenities, along with a range of proposals to unlock land in the outer suburbs, speed up subdivisions and offer relief on stamp duty to address affordability.

Of the 25 new activity centres, eight are in the City of Stonnington, one of the most desirable areas to live in Melbourne.

And yet, that puzzle: of the homes that sold in Stonnington in the June quarter, 25.8 per cent traded at a loss, figures from research firm CoreLogic show. Stonnington runs second to the Melbourne City Council area, where 39 per cent lost money.

Split by property type, 32.4 per cent of Stonnington apartments that sold in the June quarter lost money. Only 2.1 per cent of houses met the same fate.

Since nearly one in three apartment sellers in Stonnington are losing money, stories like Swanson’s are not unusual, even if many owners are reluctant to speak publicly.

The Beechworth-based public servant, 63, and his wife bought their two-bedroom apartment off the plan about 11 years ago for $691,000. They will settle to the new buyer on Monday for $535,000.

Taking into account holding costs, he estimates conservatively they have lost $200,000.

The property is near South Yarra train station, where a cluster of high-density apartment blocks have been built. It was rented out but the tenant relocated after the COVID-19 pandemic hit. Then the apartment was competing for tenants with its similar neighbours.

Once interest rates jumped, the rent no longer covered the mortgage repayments. Then the Victorian government increased land tax on second home owners.

“It’s a lovely apartment in a lovely complex where we are in South Yarra but what we weren’t aware of is at the same time, there was a lot of other developers who were also building lots of apartments,” Swanson said.

“I think the apartment market is overcrowded. I know there’s a lot of people needing rental accommodation … it’s a catch-22 in a way.”

He sold through Woodards South Yarra, which handles sales of a mix of properties, from apartment towers and art deco unit blocks to multimillion-dollar houses. Director Luke Piccolo says large two-bedroom boutique apartments can cost close to $2 million.

There are much more affordable options in the Forest Hill precinct near the train station, where some towers have had cladding issues, water issues, or lesser-quality builds.

Buyers could associate some of these homes with uncertainty and risk if they had heard they might have to pay for cladding repair or they might face a drop in value, Piccolo said.

“Some first home buyers have bought a one-bedroom apartment for $450,000 to $500,000 and it’s now worth in the high $300,000s or $350,000,” he said.

“Losing $100,000 on your first purchase sets people back a long way, a very long way.”

Interested in getting educated on Australian property investing?

Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Are you thinking of buying Melbourne Investment Properties in 2024 whilst they are still cheap?

Remember that not all Melbourne property is created equal; you need to know where to buy, what to buy, and which suburb represents the best value for money!

Dear Fellow Property Investor,

Australia’s housing market has had a mixed start to spring, but PropTrack data has revealed a number of suburbs around the country that have seen massive growth over the past 12 months.

The data looked at Melbourne suburbs with at least 100 sales for the year, revealing that some areas had experienced boom-like growth cycles.

Melbourne’s housing market shows resilience with significant growth in suburbs like Ivanhoe, Diamond Creek, and Coburg North. Ivanhoe leads the housing growth, while Blackburn, Box Hill, and Surrey Hills witness strong unit growth driven by overseas interest and skilled migrants.

Melbourne’s market has faced unique challenges, including unfavourable investment taxation and changes to tenancy laws making investment properties less attractive.

Leading house price growth over the last 12 months was Ivanhoe (17.3 per cent), Diamond Creek (13.2 per cent) and Coburg North (12.8 per cent).

Blackburn (22.1 per cent), Box Hill (11.1 per cent) and Surrey Hills (11 per cent), led unit growth.

“With higher interest rates, we’ve seen sales at higher price points and a higher turnover in the top quartile.

“With units, Blackburn, Box Hill, and Surrey Hills have all seen significant overseas interest, especially since the Covid lockdowns – skilled migrants have been arriving in these areas and the hospital precinct.“

So let me ask you a question…

Do you have a game plan for 2024?

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)

Or, will you join them?    

The choice is yours!

So, what are you waiting for?

Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

They say a picture can be worth a thousand words….

Check out the latest HTW Australian National Property Clock for Melbourne!

That’s right, Melbourne has been slowly moving though the bottom of the housing market property cycle and is now in the best possible section of the property clock – 8:00 o’clock, moving onto 9:00 o’clock which coincides with the BOOM phase!

The BOOM phase starts at 9:00 o’clock and peaks at 12:00 o’clock…

Remember…

You will ONLY get one opportunity like this every 10 years!

So let me ask you a question…

Do you have a game plan for 2024? 

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)

Or, will you join them?

The choice is yours!

So, what are you waiting for? 

Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

Sydney has long been Australia’s most expensive city for homebuyers, but the price difference between Sydney and Melbourne has reached unprecedented levels.

PropTrack’s Eleonor Creagh said that as of August, Sydney’s median house price is 70% higher than Melbourne’s, with Melbourne homes now 41% cheaper – a $600,000 difference, marking the largest price gap in 20 years.

Housing supply and land constraints drive Sydney’s premium.

One significant factor behind Sydney’s rising premium is its constrained land supply. 

Sydney’s natural features, including its harbor and surrounding national parks, limit the availability of developable land. In contrast, Melbourne has seen a higher rate of new home completions per capita.

Over the past decade, Victoria averaged 9.5 new dwellings per 1,000 residents per year, compared to just seven in New South Wales, PropTrack reported.

Higher building costs in Sydney

A recent report by The Centre for International Economics (CIE) also highlighted Sydney’s higher construction costs. Red tape, taxes, and other fees make building new homes in Sydney more expensive, with 50% of these costs tied to such charges, compared to 37% in Melbourne.

“Waterfront properties and international appeal have kept Sydney’s market strong,” Creagh said.

Melbourne’s market struggles post-pandemic

Melbourne has lagged behind other cities since the COVID-19 pandemic, losing population and experiencing less dramatic price increases than other Australian capitals.

Since March 2020, Melbourne has been the weakest performing capital, with house prices still 4.7% below their peak. The city has even dropped to fourth place among Australia’s most expensive capitals, with Brisbane and Canberra surpassing it.

Investor confidence declines in Victoria

Several factors are contributing to Melbourne’s continued underperformance.

Higher land taxes for investment properties have made Melbourne less attractive to investors, while stock levels remain high. In July, Melbourne listings were the highest since November 2018, providing buyers with plenty of choices.

The future of the Sydney-Melbourne divide

Looking ahead, Melbourne’s housing market is expected to remain subdued compared to Sydney, Creagh said.

The combination of a high inventory of homes and softer economic conditions may cause Melbourne prices to fall further. However, as Melbourne houses become more affordable, the price gap could eventually narrow.

While Sydney’s geographic limitations and global appeal may ensure it retains a price premium, the historic price swing may make Melbourne more appealing in the future.

“At some point, Melbourne may be seen as undervalued, given its current price levels relative to Sydney,” Creagh said.

Let me ask you something…

Do you have a game plan for 2024?

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?

Or, will you join them?

So, what are you waiting for?

Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

Recent infrastructure developments and upgrades to local amenities have been key factors in Altona’s recent property price surge, according to a local real estate director. 

Real Estate Institute of Victoria (REIV) data showed a 25 per cent increase in the median property price to $1.2 million in the June quarter

The number of properties sold in Altona has remained steady, with 120 properties sold this quarter compared to 118 in the March quarter.

Ray White Altona director Anthony Anile said the steady volume of sales and rising prices indicates a strong demand.

Properties have been selling faster, with the average days on market reducing from 45 to 30 days, while Mr Anile said was a sign of increased buyer interest and competition.

Auction clearance rates have also risen considerably, going from 70 per cent to 85 per cent, the data revealed.

First-home buyers and investors alike have shown an interest in Altona, with increased activity from both demographics.

Mr Anile mentioned “the appeal of a coastal suburb with a relaxed lifestyle,” as being among the deciding factors.

The suburb is attracting young professionals, singles and couples, as well as families,” he said.

“They are drawn by the family-friendly environment, good schools, parks, and community facilities,” he said.

The suburb saw the largest median price increase in Hobsons Bay and Maribyrnong and was significantly higher than the rest of metro Melbourne, which recorded a 1.5 per cent decrease to property prices.

Among the suburbs in Hobsons Bay and Maribyrnong to also record a rise were Altona North (7.8 per cent to $965,000), Footscray (5 per cent to $1.1 million), Kingsville (1.6 per cent to $1.1 million), Laverton (0.8 per cent to $578,000), Seabrook (2.8 per cent to $784,000) and West Footscray (11.4 per cent to $1.02 million).

Let me ask you something…

Do you have a game plan for 2024? 

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?

Or, will you join them? 

So, what are you waiting for? 

Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!