Market Pulse
What moved this week?
1. Borrowing to buy a home inside your super is now banned. A law passed last week that stops self-managed super funds (SMSFs) from taking out new loans for residential property from 10 August. Existing loans are untouched.
2. Inflation cooled again, but not the part the RBA cares about most. Headline prices rose 4.0% over the year to May, down from 4.2%, yet the "core" measure the RBA watches crept higher to 3.6%.
3. The RBA held rates at 4.35%, and no one agrees on what's next. After three hikes already this year the bank hit pause, and with unemployment rising to 4.5% the major banks are now split on whether August brings a cut or another hike.
What it means for you:
Cheap money isn't coming back soon. With core inflation still sticky and rates possibly rising again, the amount a bank will lend you can shrink, so lock in your pre-approval and stress-test your repayments at a rate 1% higher before you commit. Also if buying property through your super was ever part of your plan, that door closes on 10 August.
Sources: RBA (cash rate), ABS (inflation), Parliament of Australia (SMSF law).
Negotiation Tip
One tactic to pay less and buy smarter
Never tell the agent your budget.
It's the first question almost every agent asks: "So, what's your budget?"
It sounds friendly, it is not.
The agent works for the vendor, and the moment they know your ceiling, that number becomes the target. Every counteroffer will nudge you toward it.
Here's how to handle it without being awkward:
When asked your budget, deflect: "It depends on each property our range adjusts based on what the data says it's worth."
Have 3 recent comparable sales that have sold recently and let those justify your decision making.
If pushed, repeat your range and ensure you know what you’re willing to pay
The Data
*Please note numbers above are preliminary auction clearance rates
What it means for you:
The auction clearance rate is the quickest way to read the market's temperature.
A high rate (above 70%) means buyers are competing hard and prices tend to rise, a sign of a hot market.
A low rate like this week's (under 50%) means there are more sellers than keen buyers, which usually leads to slower price growth or even small falls.
A softer clearance rate leads to less competition and more room to negotiate.
Suburb Spotlight
Beveridge VIC 3753
Analysis:
Beveridge is located 39KM from Melbourne’s CBD. This suburb is known for its development potential with new builds flooding the suburb. As an investor this should sound alarm bells.
Capital growth is a simple supply and demand game and due to the increase in supply and new build premiums this suburb is an easy no thanks.
Please be aware of any house and land packages being framed as “investment” potential as the supply here is too much which will not cause any pressure on house prices.
Unsure how these stats affect capital growth?
Check out our Instagram that breaks down each term.
Reader Question
"What's a cooling-off period”
“Do I actually get one?"
A cooling-off period is a short window after you sign a contract where you can change your mind and pull out (usually for a small penalty).
It's your safety net to confirm finance and get the contract checked. But the rules change depending on where you buy.
Buying at auction?
There is NO cooling-off period anywhere in Australia. The moment the hammer falls, you're locked in unconditionally.
For private sales, here's what each state and territory gives you:
VIC — 3 clear business days. Penalty: $100 or 0.2% of price, whichever is greater (~$1,300 on a $650k home).
NSW — 5 business days. Penalty: 0.25% of price.
QLD — 5 business days. Penalty: 0.25% of price.
ACT — 5 business days. Penalty: 0.25% of price.
NT — 4 business days. No penalty, full deposit refunded.
SA — 2 clear business days. No real penalty (you may forfeit up to $100).
WA — None by law. You can ask for a cooling-off clause to be written into the contract.
TAS — None by law. The standard contract has an optional 3-day cooling-off, but only if you tick it.
Want your question answered?
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That’s it for this week.
Keep showing up, keep working toward your property goals.
Your future self will thank you for it.
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Forward this on to them.
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This newsletter is general information only and does not constitute financial advice. It does not take into account your personal circumstances, please speak to a licensed professional before acting.
Finvyne Team
