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Noosa up, Brisbane down in Queensland home pricing

Noosa up, Brisbane down in Queensland home pricing

It’s not all doom and gloom for Australian home prices, with select parts of Queensland reporting growth in median house prices.

Parts of the country may well be experiencing falling property prices, but if you’re looking to sell in Queensland, you may just escape some of the fear, as parts of the state report improvements in house and unit prices.

The report comes courtesy of the REIQ Queensland Market Monitor released this week, which says house prices in Noosa have grown 6.9 per cent in the past 12 months to June, while unit prices have grown 10.2 per cent.

REIQ reports that Noosa’s annual median house price has leapt to $695,000, higher than the median home prices of Brisbane ($673,000) and the Gold Coast ($622,031). Noosa’s improvements weren’t alone, however, as Brisbane reportedly delivered growth, something that was forecast by CoreLogic earlier in the year.

While Noosa currently holds the top spot for Queenslanders looking to sell, REIQ has reported that the Sunshine Coast region also delivered strong results, with median prices growing 6.5 per cent to $575,000.

“This is a highly desirable part of the world, with stunning natural features, world-class beaches, beautiful climate year-round, outstanding shopping and dining precincts, and, crucially, exclusivity,” said Antonia Mercorella, CEO of REIQ.

“There is limited housing supply being added to Noosa and competition is obviously driving price growth,” she said.

In the apartment world, the Gold Coast reportedly reigns supreme in Queensland, with over 10,000 units sold in the year to June this year, with positive growth also found in this market, as well.

But while the Gold Coast is showing marked improvements, Brisbane’s apartment market has eased, with REIQ suggesting this comes back to “oversupply”.

“We are seeing parts of Brisbane still coping with some apartment oversupply,” said Ms Mercorella. “But we know that the population growth to the southeast corner is strong and as major transformative projects such as Queen’s Wharf begin to take shape, we are confident excess apartment supply will be absorbed.”

As variable home loan rates begin to change for many Australians, this eased apartment pricing could positively impact buyers looking to cash in on the apartment oversupply, especially amidst rate hikes.

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This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.

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What are the features of home loans for expats from Westpac?

If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

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

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

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. 

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

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.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.