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At its regular monthly meeting on Tuesday, The Reserve Bank of Australia held official interest rates at 0.25%, where it has been since mid-March.

The RBA acknowledged that the Australian economy is going through a very difficult period and is experiencing the biggest contraction since the 1930s. But as difficult as this is, the downturn is not as severe as earlier expected.

At its meeting today, the Board decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points – https://t.co/YnEMgjQzYX

— RBA (@RBAInfo) August 4, 2020

However, in a statement, the Central bank said: “this recovery is likely to be both uneven and bumpy, with the coronavirus outbreak in Victoria having a major effect on the Victorian economy.”

On Sunday, Victorian Premier Daniel Andrews announced six weeks of stage 4 restrictions for metropolitan Melbourne in a bid to stop the spread of coronavirus cases, which have surged in the state. Premier Andrews also placed all of regional Victoria into stage 3 lockdown.

The RBA has decided to hold official interest rates at a record low 0.25%. Picture: Getty.

Stage 4 lockdown across metropolitan Melbourne is expected to cause a slow down in the real estate and housing sectors. 

The RBA has signalled it would not start lifting interest rates until inflation approached its 2-3 per cent target range and the jobs market was strengthening.

Interest rate rise “even further away” amid Melbourne’s stage 4 lockdown

Given what’s happening in Melbourne, an interest rate hike looks even further away now, said executive manager of economic research at realestate.com.au, Cameron Kusher.

“Although the RBA has forecast inflation to remain on target for the next few years, it seems the bank is not willing to use additional unconventional monetary policy to help spur on inflation,” Mr Kusher said.

“Given lockdowns in Melbourne, the bank is now forecasting a higher peak unemployment rate than federal treasury predicted last week.”

In a baseline scenario, the Board predicted output would fall by 6% over 2020 and then grow by 5% over the following year. In this scenario, the unemployment rate would rise to around 10% later in 2020 due to further job losses in Victoria and more people elsewhere in Australia looking for jobs. Over the following couple of years, the bank expects the unemployment rate to decline gradually to around 7%.

According to federal treasury’s July Economic and Fiscal Update, weighing up the devastating impact of the health crisis on the economy, unemployment in Australia is expected to peak at 9.25% by Christmas. That’s another 240,000 people out of work.

More to come.

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Star Casino CEO Matt Bekier has sold in Vaucluse. Picture: Justin Lloyd.

The Star casino chief Matt ­Bekier and his wife Melinda snappily sold their seven-­bedroom, five-bathroom Vaucluse home last week.

It had been listed with a $7.5 million to $8.2 million guide by Raine & Horne agent Samuel Schumann.

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A gorgeous spot in the heart of Sydney.

It’s easy to see why it sold so quickly.

It seems it happened so quickly the agency hadn’t quite updated the open for inspection web notifications, so hopeful attendees were still turning up yesterday.

The three-level house last traded in 2012 for $4.05 million when sold by former rugby league player-turned hotelier Steve Bowden.

They bought it in 2012.

Opulent.

The home was bought shortly after Bekier departed Tabcorp, where he was CFO.

Fairview’s prior owners include the art dealer Marlene Antico. It now comes with $667,000 approved plans from Weir Phillips Architects that would see a top floor redesign, accessed by a spiral staircase as well as a lift.

The Bekier’s have owned a beachfront house at Callala Beach on Jervis Bay since 2014 that cost $1.1 million.

The post The Star casino chief Matt ­Bekier sells seven-bedroom Vaucluse home appeared first on realestate.com.au.

Homeowners who refused to refinance were losing thousands in extra interest payments according to experts. Picture: Richard Walker

It’s taken the coronavirus pandemic to do it, but just under half of mortgage holders – who lose thousands in “loyalty tax” on expensive home loans – are now ready to kick their financier to the kerb to capitalise on record low rates.

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Experts are predicting that interest rates on mortgages will continue to fall despite the Reserve Bank of Australia today deciding to ignore the market, holding its cash rate target at 0.25 per cent.

The market had predicted that the RBA board would cut the official cash rate to zero at its August 4 meeting on Tuesday.

Governor of the Reserve Bank of Australia Phillip Lowe has defied market predictions that the official cash rate would drop to 0.00 per cent.

“The ASX 30 Day Interbank Cash Rate Futures August 2020 contract was trading at 99.875, indicating a 57 per cent expectation of an interest rate decrease to 0.00 per cent at the next RBA Board meeting,” according to the ASX RBA Rate Indicator – August 2020.

But as COVID-19 takes its toll and mortgage rates hit record lows, many borrowers who have also been sitting on their hands can’t justify inaction any more.

RateCity.com.au research found that the percentage of people keen to refinance had doubled in just two years, jumping from 19 per cent after the banking royal commission in 2018 to 43 per cent now.

It warned that owner-occupiers were wasting thousands of dollars on high mortgage costs, paying over 1 percentage point more than they needed to.

RateCity research director Sally Tindall said “the loyalty tax gets worse the longer you stick with your bank”.

“It’s taken a pandemic to get people to shift their mindset, but hopefully we’ll come out of it more budget-conscious and less complacent towards our mortgages,” she said. “People won’t just tolerate overpaying anymore.”

If they switched to the lowest ongoing variable rate, they could save $2,805 in the first year, the research found, with the figure rising to $19,235 over five years including switching costs, on a typical $400,000 owner-occupier loan. The calculation was based on an owner-occupier who switched five years into a 30-year loan.

Experts say market rates will continue to drop despite the RBA not moving on the official cash rate target. Picture: NCA NewsWire/Jeremy Piper.

“The latest figures from the ABS for May showed refinancing increased 63 per cent compared to last year, and our research suggests it is not losing steam.”

“The best way you can get a rate cut is to turn yourself into a new customer and switch. If you aren’t in a position to refinance, pick up the phone and try some old-fashioned haggling with your bank.”

According to Canstar’s database, there were 64 cuts to variable home loan rates and 201 cuts to fixed rates in July alone. “Variable rates were cut by an average of -0.19 per cent while fixed rates were cut by an average of -0.24 per cent.”

Tips from Canstar to manage your personal finances:

Home loan repayment strain:

Switch to a lower rate if you can right now and pour any savings into your offset account to help reduce the interest burden.

Savings goal:

Switch to a higher earning savings account and play the rate game of chasing a better promotional offer every three or four months.

Credit card debt:

Look at a balance transfer offer and get the debt down during the interest-free period, but don’t add more debt along the way.

Source: www.canstar.com.au.

Canstar home loan expert, Steve Mickenbecker, said “now is the time for borrowers to be in budget repair mode”.

“You don’t have to be alarmist to see now as the time to look for massive loan repayment savings, while you can. Anyone with a mortgage who has been fortunate enough to avoid any impact to their income during the pandemic could be right for refinancing to save more on their monthly repayments. The door to refinance could still be open for borrowers who have seen their income reduced as long as they are making their regular loan repayments.”

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The post ‘It’s taken a pandemic’ but 43pc ready to ditch home loans now appeared first on realestate.com.au.

Following the Victorian government’s announcement of Stage 4 restrictions on Sunday, it’s safe to say Melburnians have a few questions about what they can and can’t do when it comes to property and real estate.

Under the new rules to stop the spread of COVID-19, Melbourne residents are banned from travelling further than 5km from their homes for at least the next six weeks, and they can only leave their homes for necessary shopping, care giving or seeking care, exercise (one hour per day) and essential work. 

Some details concerning real estate are still being ironed out between industry and government but here’s what we know so far:

1. Can I move house during stage 4 lockdown?

Yes. Premier Daniel Andrews covered this in his Monday press conference saying, “I don’t want to see people who are supposed to move from one place to another because the lease has run out unable to do so.”

However, the move will have to occur between 5am and 8pm due to an overnight curfew now in place, and you’ll be required to wear a face-covering as are all Victorians when outside their homes. 

Metro Melbourne is facing confusion around the new stage four restrictions. Picture: Getty

2. Can I move house outside of the 5km radius?

Yes. Metro Melbourne residents moving to a home outside the 5km radius of their current primary residence with an existing contract or arrangement in place, can do so provided there is an agreement in place.

3. Are house inspections and open homes still available for tenants?

The short answer is yes, but these will move to online only with all in-person inspections now banned, according to a statement from Premier Daniel Andrews late Monday.

4. I am now out of work. What rent relief is available to me?

The federal government introduced financial supports in the form of JobKeeper and JobSeeker payments in March, which have gone some way in helping out-of-work tenants stay in their homes, however, there is further support available. 

We’ve compiled a complete list of six government support payments tenants can access during COVID-19 here. 

Consumer Affairs Victoria also suggests that tenants experiencing difficulty should get in touch with the Tenancy Assistance and Advocacy Program for more advice.

5. Can I sell a house during Stage 4 lockdown?

The Victorian government announced that the real estate industry was one of the business sectors that must close during the six-week stage four measures, however, a government representative has confirmed that  “online inspections and auctions are permitted”.

6. Is my real estate agent still available for contact in case of emergency?

Yes, provided they’re working from home you’ll still be able to contact your real estate agent remotely if you need to ask a question.

7. I am in the process of building my house. Can new home builds and construction continue?

Yes, construction can continue during Stage 4 lockdown but sites will be required to keep the number of attending tradespeople down to five.

On larger projects above three levels, the workforce will need to be reduced to 25% of its original capacity.

8. Can I still visit my new house under renovation?

Under the new restrictions, this activity fails to fall within the four reasons to leave home.

Melbourne residents are not permitted to “go for a drive” according to the DHHS website.

9. Can I get a tradie to visit my house?

Yes, tradies can still visit homes but this has now been restricted to emergency support situations only.

“There’ll be no cleaners going to your house. There’ll be no one mowing your lawns,” Premier Andrews said. “It’s not the time to be painting your house or having unnecessary, non-urgent work happen.”

10. Tradies are in the middle of renovating my bathroom at my primary residence. Can they still continue working?

Yes. Tradies can continue to work provided work has already started but physical distancing will need to be adhered to.

11. What does “pilot light phase” in the residential building industry mean?

This phrase means that while construction hasn’t stopped completely, it is now operating at a far reduced capacity. The state government has placed strict limits on the kinds of jobs that tradies can do – from restricting callouts to emergency situations only to limiting the number of trades that can attend a site to just five.

Tradespeople will be restricted as to which jobs they can attend under Stage 4 restrictions. Picture: Getty

“This will allow the industry to keep ticking – while also making sure we limit the number of people on-site,” Premier Andrews said on Monday.

“To date, we’ve halved the number of people onsite on some of our biggest government projects. Now we’re going through project-by-project, line-by-line to make sure they are reduced to the practical minimum number of workers.

“These workplaces that are continuing to operate will have additional requirements including extra PPE, staggering shifts, staggering breaks, health declarations and more support for sick workers to ensure they stay home.”

12. How do I come up with a COVID safe plan for my construction site?

Under Stage 4 restrictions, some small businesses that are still able to stay open are now required by law to come up with a COVID Safe Plan.

Within the construction industry, depending on the scale of the site you’ll be required to implement either a High Risk COVID-19 safe plan (large-scale projects above three storeys excluding a basement) or a Universal COVID-19 safe plan (projects smaller than three levels).

You must also adhere to the following:

• Must demonstrate not blending shifts;
• Tradies will now only be allowed to attend one site at a time, rather than working across multiple jobs as many currently do now and;
• Workers will be required to give their details to enable contact tracing to occur.

The post Stage 4 Restrictions: top 12 questions for property and real estate appeared first on realestate.com.au.

Liam Hemsworth has revealed new plans for his Byron estate. (Photo by Alberto E. Rodriguez/Getty Images)

Hollywood heart-throb Liam Hemsworth has building plans for his private Byron Bay estate. Nothing as grand as his big brother Chris, but the next task is constructing a yoga studio.

Just 58sq m, but the cabana will sit idyllically beside an existing dam with day beds and a built-in barbecue on its decking. There will be a wharf that extends over the water, the Harley Graham Architects plan reveals.

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The newest addition to the Hemsworth estate.

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@menshealthmag @rikerbrothers @richdorment @scott.hendo

A post shared by Liam Hemsworth (@liamhemsworth) on Apr 13, 2020 at 2:39pm PDT

It’s set to cost just $138,000 and should take around two months to construct in a small valley on the 35ha Broken Head property that the family company CHLH Management bought last September for $4.25m. The company director remains just Chris Hemsworth, but the company names suggest Luke holds an interest.

Council approvals were nearly not required, but its floor space and height are slightly above automated permits. There’s no plans for any grand homestead, but the application does suggest the brothers have been busy constructing a horse arena on the former cattle farm.

The Hemsworth family moved into Byron in 2014. Picture:Instagram/@aprilmun

View this post on Instagram

Happy mother’s days to all the incredible mums out there we salute you!! Xoxo 😘

A post shared by Chris Hemsworth (@chrishemsworth) on May 10, 2020 at 2:12am PDT

The Hemsworth family took to Byron in 2014 when Chris and wife Elsa Pataky spent $7m on Kooeloah, the Balinese-style trophy home they demolished to make way for their modern mansion. Their project was estimated to have cost $8.8m.

All up the family have spent $17m buying property around Byron. Liam and Gabriella Brooks, who have been dating for seven months, have been resident at Byron through much of the pandemic.

With additional reporting by Joel Robinson

The post Liam Hemsworth reveals building plans for Byron Bay estate appeared first on realestate.com.au.

Adelaide’s median property value recorded a slight increase in July, latest CoreLogic data shows.

Adelaide property values are back on the rise after a brief period of decline in the wake of the nationwide coronavirus-led market downturn.

CoreLogic’s latest home value index reveals the city’s median property value climbed 0.1 per cent in July to $441,826.

It comes after a 0.2 per cent drop in June, 0.4 per cent increases in both May and April and a 0.3 per cent increase in March.

Adelaide was one of two capital cities across the country to record growth, albeit slight, in July, with Canberra notching a 0.6 per cent increase.

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Melbourne recorded the largest decline in July at 1.2 per cent, followed by Sydney (0.9 per cent), Perth (0.6), Brisbane (0.4), Darwin (0.3) and Hobart (0.2).

Real Estate Institute of South Australia president Brett Roenfeldt said strong demand for limited properties on the market was still holding values up in Adelaide.

“Everything hinges on the amount of listings on the market,” he said.

“As long as the stock level remains at roughly the level it’s at, then we’re probably going to see this continue.”

Mr Roenfeldt said traditionally the number of properties for sale would surge during spring, but he didn’t think that would happen this year as agents urged vendors to list their homes now while demand was hot.

REISA president Brett Roenfeldt.

“We’ll probably see a little bit more come into the market but it’s going to be nowhere near where we’ve seen in the past,” he said.

“I think that our market will be … very stable.”

Nationally, the median property value fell for a third consecutive month, recording a 0.6 per cent decline to $552,912 in July – a slight improvement from June’s 0.7 per cent drop.

CoreLogic research head Tim Lawless said despite the collective fall, housing markets had remained relatively resilient through the COVID-19 crisis so far.

“The impact from COVID-19 on housing values has been orderly to date, with CoreLogic’s national index falling only 1.6 per cent since the recent high in April, and housing turnover has recovered quickly after its sharp fall in late March and April,” he said.

However, he said with government support set to taper from October and repayment holidays set to expire at the end of March, the outlook remained uncertain.

The post Adelaide property values on the rise again despite COVID-19 downturn appeared first on realestate.com.au.

Chef Brigid Kennedy is selling in the inner west.

The commute from Sydney to the Southern Highlands must have ­become too much for chefBrigid Kennedy
and her farmer husband Kevin Nott.

The pair, who have used their Rozelle home as their Sydney base for eight years, have listed it for sale with ­expectations of $2.1 million.

The couple own The Loch in Berrima, a working farm that offers boutique accommodation and a restaurant for Sunday dining.

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Kennedy is the chef and Nott is a farmer and landscaper who manages Loch Farm Stall, the farm gardens for their paddock-to-plate restaurant, The Tasting Room.

Inside The Loch in Berrima.

Their Roser St home is a two storey property; the top level is a three-bedroom, three-bathroom place in which they live when they are in Sydney.

The lower level a separate self-contained one-bedroom apartment with a study that is currently leased for $500 a week, an option agentLynsey Kemp
of Belle Property Balmain hopes will set the home apart.

“(Brigid and Kevin) have been spending more and more time in Berrima so it’s a situation where they don’t need their Sydney base any more,” Kennedy said.

“It’s a beautiful double-fronted home in a central location but a big feature of it is that it offers the flexibility to keep the lower level leased to provide an income, or convert it into a big family home.”

Kennedy adds this flexible option which allowed them to lease the lower level of their home has been a financial boon over the years.

“Having a stylish self-contained apartment is a financial-drought proofer with either a permanent tenant or a more lucrative Airbnb arrangement,” Kennedy said.

“It’s very appealing, especially so close to town.” An August 29 auction is planned.

– With additional reporting from Mercedes Maguire

The post ChefBrigid Kennedy and farmer husband Kevin Nott list Rozelle base appeared first on realestate.com.au.

No. 37 Golf View Road, Heatherton sold for $860,000.

Strange tactics proved fruitful for one buyer on Melbourne’s final auction weekend before stage four lockdown restrictions.

Property inspections can only be able to be conducted online across the city over the next six weeks.

All auctions will also be digital, as regional Victoria, now under stage three restrictions, also shifts online. Private inspections will still be allowed regionally, though.

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The bright kitchen at the Heatherton home.

Victorian Government information state Melbourne property operators and real estate services are required to close on-site from 11.59pm Wednesday.

Momentum was maintained at a Heatherton auction on the first weekend of August by the eventual buyer, bidding against himself to spook his main opponent.

The unconventional tactic worked for the buyer and seller at 37 Golf View Road, with the former paying a $25,000 premium for the keys to the four-bedroom house.

The home was on a 735sq m block.

The property sold for a $25,000 premium.

The property fetched $860,000 for its vendor, who watched the online auction live.

“He was texting his wife rolling updates and he was absolutely over the moon when it sold,” EYS Auctions director Fabian Sanelli said.

The auctioneer said the “interesting tactic” was a way of keeping other buyers on their toes.

“I guess by doing that you in a way show a bit of aggression and strength,” Mr Sanelli said.

“By keeping on placing bids, you’re forcing your competitor to rethink their next step — it gives you more opportunity to throw them off.”

It came as realestate.com.au recorded a preliminary clearance rate of 73 per cent from 162 reported auctions across Melbourne.

That figure was a slight improvement from the 70 per cent clearance rate, based on 140 auctions, recorded the previous week.

It was a case of love at first sight for the first-home buyers that won the keys to 23 Gleeson Drive, Bundoora.

The first-home buyers knew they wanted to secure 23 Gleeson Drive, Bundoora.

They paid $813,500 for the 542sq m block.

There was bidding from four groups on the Bundoora property.

The couple paid $813,500 for the tastefully updated three-bedroom house.

“They fell in love the first time they saw it,” Barry Plant North Eastern Group partner Michael Egan said. “She mentioned after the auction that as soon as she saw it she knew she was buying it — there was very much an emotional attachment.”

That heartfelt interest allowed the vendor to pocket $33,500 above the reserve price for the house.

Four groups competed, with first and second-home buyers competing against an investor for the 542sq m block.

“We’ve had some great success with the online system, we’re finding buyers are comfortable with it,” Mr Egan said.

The agent said that from the comfort of their own homes, property hunters were happier to disclose their price expectations.

“In the street everyone’s trying to be a little less open,” he said.

“If you’re in the comfort of your own home, you don’t have to hide your emotions.

Close to 100 bids were needed to break the deadlock at 11 Talbot Road, Mount Waverley, which sold for $1.07m.

Almost 100 bids were required at 11 Talbot Road, Mount Waverley.

Buyers wanted the flat 757sq m block.

The property was announced on the market at a bid of $991,000.

“Everyone just wanted it,” Harcourts Judd White director Dexter Prack said.

“The ones that are reasonably priced you can see that people are definitely still there.”

A Melbourne buyer had to find a friend to do the bidding for them at the auction of 4 Lichen Grove, Highton.

Five groups competed for 4 Lichen Grove, Highton, which sold for $710,000.

Five groups competed at the auction, which was conducted publicly because of different restrictions in Geelong and regional Victoria.

The property sold for $710,000, after being quoted with a price range of $650,000-$715,000.

Barry Plant Geelong agent Michael Falzon said the auction was “very competitive”, with the buyer motivated to land-bank in the tightly held street.

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jack.boronovskis@news.com.au

@jackboronovskis

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