The Reserve Bank of Australia (RBA) has held the cash rate at 4.35% – the first hold this year. This helps provide some stability for mortgage repayments and borrowing capacity following three previous hikes.

If we just look at the impacts of the heightened cash rate, having increased 0.75 percentage points this year, the average homeowner could be currently paying around $335 more per month on mortgage repayments. People looking to purchase would have seen their borrowing capacity decrease this year. Someone earning $120k per year likely would have seen their capacity decrease by over $40k.

This likely contributed to the slow down in the property market in many areas for both price growth and time on market. However, the federal budget announcement in May had further impacts.

Investors

Investors have recently been impacted by the federal budget’s proposal to eliminate negative gearing for investors purchasing after 12 May and changes to capital gains tax. The biggest immediate impact that it had was on borrowing capacity. Previously, lenders factored potential negative gearing into their lending calculations to determine how much an investor could borrow. As more lenders move to remove that consideration, investors’ borrowing capacities are dropping by around 20%.

Since the budget announcement, Loan Market data shows a 27% decrease in investor loan applications. This could be the result of investors considering their strategy amidst the changes.

First-home buyers

The key impact on first-home buyers has been their borrowing capacity following the cash rate increases. Someone with an income of $120k could have seen their borrowing capacity for a 30-year term shift from around $644k to $601k (note these numbers can change depending on your circumstances and the lender). 

Competition

According to Ray White data, open homes in May averaged 2.43 attendees – down from 4.32 in January. With fewer investors currently buying and fewer people inspecting properties, it could present an opportunity to get into the market. Whether looking to buy your first home, next home or investment, it is a good idea to speak to your broker to understand your options

Australia’s regional property markets could attract increased attention in the years ahead, following changes to negative gearing and capital gains tax announced in the federal budget.

The budget proposed that any purchases made after the announcement would not be able to be negatively geared from 1 July 2027, excluding new builds. The current capital gains tax discount will be replaced with cost-base indexation for assets held longer than 12 months.

Ray White Group Head of Research Vanessa Rader said the changes were designed to encourage investment in new housing supply, but the impact may vary significantly across the country.

“The intent is to shift investor demand toward new housing supply, however the reality, particularly outside capital cities, is more complicated,” Ms Rader said.

“These changes do not remove housing pressure, they shift it.”

According to Ms Rader, regional markets may become increasingly attractive to investors who are focused on rental income rather than tax concessions. She noted that many regional towns continue to offer affordable entry prices and strong rental returns.

Looking beyond the capital cities

While capital city property prices often dominate headlines, a number of regional locations combine relatively low purchase prices with attractive yields.

Ms Rader highlighted examples such as Port Augusta in South Australia, where the median house price is $321,000 and the rental yield is 6.9%, Rockhampton City in Queensland at $383,000 and 7.3%, and Broken Hill in New South Wales at $217,000 and 10.7%.

“For investors seeking properties that can work on a cash flow basis rather than relying on tax concessions, or for first-home buyers and lifestyle seekers priced out of coastal and metropolitan markets, these towns are worth understanding,” she said.

More than an investment opportunity

Ms Rader said regional markets may also appeal to owner-occupiers looking for a lifestyle change.

Many regional centres continue to experience demand for workers in industries such as healthcare, education, agriculture and resources. Combined with lower housing costs, this can create opportunities for buyers willing to consider locations beyond the major capitals.

“The budget changes do not take effect until 2027, and grandfathering applies to established properties already held,” Ms Rader said.

However, she believes the discussion highlights a broader trend.

“Entry at these price points, with yields that can stand on their own merits, represents a different kind of investment story, one that does not depend on policy settings remaining unchanged.”

For both investors and owner-occupiers, regional Australia may be worth a closer look as housing affordability and policy settings continue to evolve.

Considering a move beyond the capital cities? Get in touch to discuss whether a regional property could fit your investment or homeownership goals.

Electric vehicles are claiming an increasing share of Australia’s new-car market, showing a dramatic shift away from petrol.

VFACTS data shows battery electric vehicles accounted for a record 20% of all new vehicle sales during May. Electrified vehicles more broadly – including battery electric vehicles, conventional hybrids and plug-in hybrids – represented 46% of sales.

For the first time ever, an electric vehicle was the best-selling car in Australia in May, outselling previous favourites Ford Ranger, Toyota HiLux and RAV4.

Federal Chamber of Automotive Industries Chief Executive Tony Weber said the results showed buyers were increasingly adopting lower-emission technologies. “The shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly,” he said. “Today’s SUV buyer is increasingly choosing hybrid, plug-in hybrid and electric options.”

Electric Vehicle Council CEO Julie Delvecchio said record EV sales suggested more Australians were finding electric vehicles suited their needs. “We know Australians buy cars that save them money, suit their lifestyle and perform well,” she said.

Why EVs are becoming more attractive

Two federal policies are helping support the transition. The Electric Car Discount reduces the cost of eligible electric vehicles by removing fringe benefits tax from qualifying salary-packaged EVs. The New Vehicle Efficiency Standard is designed to encourage carmakers to supply more fuel-efficient and lower-emission vehicles to Australia.

Ms Delvecchio said these policies had helped create “more models, more affordable prices, more choice”.

EVs can offer lower running costs, reduced emissions and a quieter driving experience. However, they may not suit everyone. Purchase prices can still be higher than comparable petrol cars, charging access varies by location and long-distance drivers may need to plan trips more carefully.

Traditional petrol and diesel vehicles, meanwhile, can still appeal to buyers who want lower upfront costs, familiar technology, fast refuelling and broader model availability. However, running costs can be higher, particularly when fuel prices rise.

The key is to choose a vehicle and loan structure that suits your budget, driving habits and long-term plans.

If you’re thinking about buying an electric, hybrid or traditional vehicle, contact us to compare finance options and work out a loan structure that suits your situation.

The federal budget has prompted many property investors to reassess how they structure their investments – and consider investing through a self-managed super fund (SMSF).

From 1 July 2027, negative gearing for residential property purchased after 12 May 2026 will be limited to new builds that genuinely add to housing supply, while properties held on 12 May 2026, including those under contract but not yet settled, will be exempt. The Budget also confirmed changes to capital gains tax, with the 50% CGT discount to be replaced with cost base indexation and a 30% minimum tax rate on real capital gains. 

However, properties purchased through an SMSF retain their existing taxation benefits, which has led to some investors taking a closer look at this strategy.

How SMSF property investment works

An SMSF allows members to manage their own superannuation and choose how their retirement savings are invested.

One option is investing in property. An SMSF can purchase residential or commercial property, either outright or, in some circumstances, using a limited-recourse borrowing arrangement (LRBA). In simple terms, if the SMSF can’t repay the loan, the lender can generally only claim the property that was purchased with the loan, not the fund’s other assets.

However, strict rules apply. For example, residential property purchased through an SMSF generally cannot be lived in by fund members or their relatives, and the investment must satisfy the fund’s sole purpose of providing retirement benefits.

The potential benefits and drawbacks

For some investors, SMSF property investment can offer several advantages:

However, SMSF property investment is not suitable for everyone.

Potential drawbacks include:

The importance of professional support

Because SMSF property investing involves superannuation law, lending requirements, taxation considerations and property selection, it is important to work with experienced professionals.

A broker can help arrange suitable finance structures and identify lenders that operate in the SMSF market. At the same time, an accountant, financial planner and legal professional can help ensure the strategy aligns with your broader retirement objectives and complies with relevant regulations.

For the right investor, SMSF property can play an important role in a long-term wealth strategy. However, it is a specialised area that requires careful planning and consideration.

SMSF property investment involves specialised lending requirements. Contact me to discuss the process and whether this approach may suit your circumstances.

Buying a home on a single income can be challenging, but it is far from impossible. While couples often benefit from shared costs and combined borrowing power, many Australians are entering the property market on their own.

Finder analysis shows that singles face structural challenges compared to couples. Because they cannot split everyday expenses, singles tend to have less savings – $30,932 on average, compared to $50,192 for couples. This gap can make it harder to build a deposit and demonstrate to lenders that a loan is affordable.

The challenges of buying on a single income 

The challenge is not just getting into the market, but staying in it. Saving a deposit on one income takes longer, and once a property is purchased, servicing the mortgage can place greater pressure on household finances.

Finder’s data highlights just how tight the market can be for solo buyers. Only 31% of suburbs across Australia are considered affordable on the average single income without leading to mortgage stress, based on median prices, incomes and interest rates.

This means many single buyers need to think carefully about where and what they buy, as well as how they structure their finances.

Ways singles can improve their chances

Despite these challenges, there are practical steps that can make buying a property more achievable as a single person:

While the path may be narrower, it is still a viable one with the right strategy.

Taking a realistic but positive approach

Buying solo can require more planning, patience and flexibility than buying as a couple. However, it can also offer independence and the opportunity to build equity over time.

Understanding the challenges – and the options available – can help single buyers make informed decisions and take their first step into the market with confidence.

Reach out to discuss how you could approach buying a property on a single income and what options may be available to you.

Tax time can be complex for property investors, but getting organised early can make the process far more manageable.

Investors must declare all rental income in their tax return. This includes not just rent payments, but also any additional income related to the property, such as booking fees or reimbursements.

Keep clear and accurate records

One of the most important steps in preparing for tax time is maintaining accurate records throughout the year.

The Australian Taxation Office (ATO) emphasises that good record-keeping helps ensure your tax return is correct and makes it easier to substantiate any claims. Key records to keep include:

Keeping these records organised – whether digitally or physically – can save significant time and reduce the risk of errors.

Understand what expenses you can claim

The ATO allows property investors to claim a range of expenses, but only where those costs are directly related to earning rental income.

According to the ATO, common deductible expenses include:

However, not all costs can be claimed immediately. The ATO says it is important to understand the difference between repairs and improvements:

According to the ATO, you also cannot claim expenses for periods when the property is used privately or not genuinely available for rent.

Be aware of capital gains tax

Property investors should also keep in mind that capital gains tax may apply when an investment property is sold.

The ATO requires you to keep records from the time you purchase the property through to its sale. These records are used to calculate any capital gain or loss and determine how much tax may be payable.

Take a proactive approach

Preparing for tax time is not just about lodging your return – it’s about understanding your obligations, keeping accurate records and staying organised. 

By staying organised and understanding how rental property tax works, investors can reduce stress and avoid common mistakes.

It is a good idea to consult your accountant for more information about what you can and can’t claim, and what documentation you need to retain for tax purposes.

If you’d like to review your investment loan or structure ahead of tax time, reach out to discuss how your property strategy aligns with your financial goals.

The recent surge in petrol prices has been hard for many Australian households. With global tensions affecting supply chains, bowser prices have climbed sharply and there are concerns around future supply.

For anyone who relies on their car for work, school runs or day-to-day life, this is more than just a headline – it’s a direct hit to weekly budgets.

Why higher fuel costs shift the comparison

When petrol prices increase, the total cost of owning a traditional vehicle rises as well. Fuel is one of the largest ongoing expenses associated with car ownership, so sustained increases can materially change the long-term cost of running a vehicle.

By contrast, electric vehicles (EVs) are powered by electricity, which is generally cheaper and more stable in price than petrol. While EVs often come with a higher upfront purchase price, their running costs can be lower over time – particularly when fuel prices are elevated.

Let’s have a look at some numbers

To provide an example, if we assume petrol prices are 225 cents per litre and a medium-sized EV costs $20,000 more than a traditional vehicle in upfront purchase costs, and it is driven about 12,500 km each year, it could be around $3,000 cheaper per year to run an EV and the upfront costs would be recovered in about six years. This includes maintenance costs, but keep in mind there are many variables in the calculation and this is an illustration only.

The market is still moving and EV upfront prices are getting lower, so it would be worth running cost calculations for your own circumstances based on your preferred vehicle and driving needs. There are some calculators online that can give you an estimate.

This doesn’t automatically make EVs the right choice for everyone, but it does mean the financial comparison between petrol vehicles and EVs has shifted.

Government incentives are part of the picture

Another factor influencing the equation is the range of federal and state government incentives available to EV buyers.

Depending on the location and vehicle, these may include rebates, stamp duty concessions and registration discounts. Some employers are also offering novated lease arrangements with favourable tax treatment for eligible EVs.

These initiatives are designed to reduce the upfront cost barrier and make EV ownership more accessible, although eligibility criteria and availability can vary.

The financing perspective

From a lending point of view, vehicle choice can influence how a purchase is financed.

Whether you’re considering an EV or a traditional vehicle, there are multiple options available – including car loans, personal loans and novated leasing. Each approach has different implications for cash flow, tax and overall affordability.

With petrol prices currently elevated, more people are starting to reassess these decisions and look more closely at total cost of ownership rather than just the purchase price.

If you’re weighing up your options or looking to finance a purchase, I can help you understand how different choices may affect your cash flow and borrowing position.

With household budgets feeling stretched, many Australians are taking a closer look at their debts.

One option that sometimes comes up in these conversations is debt consolidation. But what does it actually involve and when might it make sense?

What debt consolidation means

Debt consolidation is the process of combining multiple debts into a single loan.

Instead of managing several repayments – often at different interest rates and due dates – a borrower brings those debts together into one facility, ideally with a lower overall interest rate or more manageable repayment structure.

Common debts that may be consolidated include credit cards, personal loans, car loans and buy-now-pay-later balances.

In some cases, eligible borrowers may also consolidate these debts into their home loan, which could potentially significantly reduce the interest rate applied.

When it might be worth considering

Debt consolidation can be helpful in certain situations, particularly when cash flow is tight.

For example, it may be beneficial for someone who:

By simplifying repayments and potentially lowering interest costs, consolidation can create breathing room in the monthly budget.

When caution is needed

However, debt consolidation isn’t always the right approach.

It may not be suitable where:

It is also important to keep in mind consolidating into a home loan significantly extends the repayment period. For example, moving short-term debt into a long-term home loan can reduce monthly repayments but increase the total interest paid over time.

The importance of the right structure

The effectiveness of debt consolidation depends heavily on how it’s structured.

Interest rates, loan terms and repayment discipline all play a role in whether it improves or worsens your financial position.

Given the current cost-of-living pressures, it’s understandable that many people are exploring ways to simplify their finances. The key is making sure any changes genuinely support your long-term goals.

Please reach out if you’re considering consolidating your debts or wanting to simplify your finances.

New analysis from Domain shows housing affordability deteriorated last year despite three interest rate cuts – because rising prices for entry-level homes offset the benefits of lower mortgage rates and government support programs.

This reflects a broader shift in Australia’s housing market. While interest rates have traditionally been the biggest factor affecting affordability, Domain’s research suggests tight housing supply and rising prices are now playing a larger role.

As a result, getting into the market today depends on more than just your ability to save.

Deposit timelines across the capital cities

Domain’s analysis assumed a typical first-home buyer was a couple aged 25–34 purchasing an entry-level property with a 20% deposit. Based on those assumptions, the time required to save a deposit increased in all eight capital cities for houses during 2025, and in six cities for units.

Sydney remains the most challenging market. Domain estimates it now takes 7 years and 7 months to save a 20% deposit for an entry-level house, although buyers targeting units could reach that goal in 4 years and 5 months.

In Melbourne, it takes about 5 years and 3 months to save a house deposit and 3 years and 4 months for a unit. Brisbane buyers face a longer journey, needing 6 years and 3 months for houses and 4 years and 11 months for units.

Adelaide buyers typically require 5 years and 7 months to save a house deposit and around 4 years for a unit. In Perth, the timeline is 5 years and 4 months for houses and 3 years and 10 months for units.

Among the smaller capitals, Hobart buyers need about 5 years for a house deposit and 3 years and 10 months for a unit. In Canberra, the figures are 5 years and 1 month for houses and 2 years and 10 months for units. Darwin remains the most accessible market, where saving a deposit typically takes 4 years for houses and 2 years and 7 months for units.

How first home buyers can still enter the market

While these figures highlight the challenge facing first-home buyers, a 20% deposit is not the only pathway into the market.

Many buyers enter sooner by purchasing a unit instead of a house, targeting more affordable suburbs or using government initiatives designed to help first-home buyers. Some schemes allow eligible buyers to purchase with a smaller deposit while avoiding lenders mortgage insurance.

With property prices and lending policies constantly evolving, understanding your options can make a significant difference to how quickly you enter the market.

Get in touch to discuss the different pathways available and how you could take your first step into the property market sooner.

Renovating before selling can increase a property’s appeal and potentially its value. However, not all upgrades deliver the same result.

Some improvements can make a home more attractive to buyers, while others risk limiting your buyer pool or failing to recover their cost.

The key is focusing on renovations that improve functionality, lifestyle and flexibility – the same qualities buyers are actively searching for. 

Renovations that can add value

If you’re considering updating your property, these improvements are often well received by buyers:

These types of improvements tend to appeal to a broad range of purchasers because they enhance how a property functions day to day.

Renovation traps to avoid

While upgrades can increase buyer interest, certain renovations can have the opposite effect:

For most homeowners, the goal of renovation is not just to improve the property, but to make it more appealing to the largest possible group of buyers.

Renovate with the buyer in mind

Successful renovations focus on improvements that enhance usability, comfort and flexibility rather than purely cosmetic changes.

By understanding what buyers value – and avoiding upgrades that limit appeal – sellers can position their property more effectively when it comes time to list.

Planning to renovate before selling? Contact me to discuss how different upgrade options could affect your finance and overall property strategy.