Melbourne remains a sellers' market

Melbourne remains a sellers' market

New figures from the Real Estate Institute of Victoria (REIV) show strong property markets throughout Melbourne, the surrounding areas and regional Victoria over the June quarter, with buyers seeking greater value further from the city centre.

The REIV data shows the metropolitan Melbourne median house price rising 2.9% to $822,000 in the June quarter – the fifth consecutive quarter of growth.

The main drivers this growth were found to be the city’s middle and outer suburbs, with top-performing areas including Broadmeadows and Roxburgh Park in the north, and Malvern East and Toorak in the south-east.

The suburb with the highest quarterly increase in house prices was Croydon in Melbourne’s outer east, which saw prices rise by 20% to a median of $810,000.

The REIV also recorded a second consecutive increase to house prices in regional Victoria, rising 2% in June to a record high of $385,000.

Units also experienced strong growth in Melbourne over the June quarter, with the median price rising 4.3% to $606,500.

REIV acting president, Richard Simpson, described the Melbourne property market as being boosted by record-setting auction results, with more than 10,300 homes going under the hammer in the June quarter.

“Price growth is being supported by a number of key factors, including unprecedented population increases, record low interest rates and strong buyer demand.”

“It’s certainly a sellers’ market at present with strong competition for homes across the city, particularly in Melbourne’s more affordable areas.”

“Half of the suburbs making the top growth list this quarter are priced below the citywide median, suggesting buyers continue to seek value further from the city.”

Area Mar 17 quarter Jun 17 quarter Quarterly change Annual change
Metro Melbourne – House $799,000 $822,000 2.9% 10.30%
Metro Melbourne – Unit $581,500 $606,500 4.3% 7.7%
Inner – House $1,500,000 $1,468,000 -2.1% 14.20%
Inner – Unit $592,000 $630,500 6.5% 6.3%
Middle – House $961,000 $991,500 3.2% 10%
Middle – Unit $638,500 $681,000 6.7% 7.7%
Outer – House $619,000 $642,000 3.7% 9.8%
Outer – Unit $470,000 $490,000 4.3% 8.7%
Regional Victoria – House $377,500 $385,000 2% 6.4%
Regional Victoria – Unit $285,500 $296,000 3.7% 4.1%
Greater Geelong $460,000 $475,000 3.3% 8.7%
Greater Bendigo $330,000 $327,000 -0.9% -3.4%
City of Ballarat $325,000 $335,000 3.1% 5%

Source: REIV

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What do people do with a Macquarie Bank reverse?

There are a number of ways people use a Macquarie Bank reverse mortgage. Below are some reasons borrowers tend to release their home’s equity via a reverse mortgage:

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While there are no limitations on how you can use a Macquarie reverse mortgage loan, a reverse mortgage is not right for all borrowers. Reverse mortgages compound the interest, which means you end up paying interest on your interest. They can also affect your entitlement to things like the pension It’s important to think carefully, read up and speak with your family before you apply for a reverse mortgage.

When does Commonwealth Bank charge an early exit fee?

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The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

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The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

Remaining loan term

The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.

How is interest charged on a reverse mortgage from IMB Bank?

An IMB Bank reverse mortgage allows you to borrow against your home equity. You can draw down the loan amount as a lump sum, regular income stream, line of credit or a combination. The interest can either be fixed or variable. To understand the current rates, you can check the lender’s website.

No repayments are required as long as you live in the home. If you sell it or move to a senior living facility, the loan must be repaid in full. In some cases, this can also happen after you have died. Generally, the interest rates for reverse mortgages are higher than regular mortgage loans.

The interest is added to the loan amount and it is compounded. It means you’ll pay interest on the interest you accrue. Therefore, the longer you have the loan, the higher is the interest and the amount you’ll have to repay.

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Generally, if you’re 60 years old, you can borrow up to 15 per cent of the property value. If you are older than 75 years, the amount you can access increases to up to 30 per cent. You can use a reverse mortgage calculator to know how much you can borrow.

To take out a ME Bank reverse mortgage, you’ll need to provide information like your age, type of property – house or an apartment, postcode, and the estimated market value of the property. The loan to value ratio (LVR) is calculated based on your age and the property’s value.

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The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

When do mortgage payments start after settlement?

Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

How much are repayments on a $250K mortgage?

The exact repayment amount for a $250,000 mortgage will be determined by several factors including your deposit size, interest rate and the type of loan. It is best to use a mortgage calculator to determine your actual repayment size.

For example, the monthly repayments on a $250,000 loan with a 5 per cent interest rate over 30 years will be $1342. For a loan of $300,000 on the same rate and loan term, the monthly repayments will be $1610 and for a $500,000 loan, the monthly repayments will be $2684.

What is a line of credit?

A line of credit, also known as a home equity loan, is a type of mortgage that allows you to borrow money using the equity in your property.

Equity is the value of your property, less any outstanding debt against it. For example, if you have a $500,000 property and a $300,000 mortgage against the property, then you have $200,000 equity. This is the portion of the property that you actually own.

This type of loan is a flexible mortgage that allows you to draw on funds when you need them, similar to a credit card.

How does an offset account work?

An offset account functions as a transaction account that is linked to your home loan. The balance of this account is offset daily against the loan amount and reduces the amount of principal that you pay interest on.

By using an offset account it’s possible to reduce the length of your loan and the total amount of interest payed by thousands of dollars. 

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What is a low-deposit home loan?

A low-deposit home loan is a mortgage where you need to borrow more than 80 per cent of the purchase price – in other words, your deposit is less than 20 per cent of the purchase price.

For example, if you want to buy a $500,000 property, you’ll need a low-deposit home loan if your deposit is less than $100,000 and therefore you need to borrow more than $400,000.

As a general rule, you’ll need to pay LMI (lender’s mortgage insurance) if you take out a low-deposit home loan. You can use this LMI calculator to estimate your LMI payment.

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

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