Faith Finance

09/09/2026

Data sources from Cotality, PropTrack and My Housing Market show negative growth in almost all capital cities except Darwin in August.

To some, it can be viewed as negative sentiment, while to others, it is indeed a window of opportunity to buy.

No one knows for sure if this is the bottom or near the bottom. Are you in the market and ready to pull the trigger?

27/08/2026

29/07/2026

Where have we been?

You’ve likely seen the coverage: property markets across Australia are cooling, particularly in the $1 million-plus segment. When the right opportunity appears, we act.

Over the past week, we inspected a number of open homes and attended an auction last Saturday. There was only one other bidder. We stopped bidding at $1.38 million; the competing bidder reached $1.385 million. The property was passed in and later sold for $1.4 million.

We also attended several other auctions that day to gauge market conditions. The market appears to be in a transitional phase. Vendors are still anchoring to pre-Budget price expectations, while many buyers recognise that values are softening. Auction pass-ins become more common when the gap between vendor and buyer expectations is wide.

Will we buy now? We remain active in the market. Once vendor expectations align more closely with our view of value, we will act.

Should we wait for further price falls? No one can predict the future with certainty. Prices do not decline indefinitely. At some point the market will stabilise and values will recover. There is also the possibility that the current softening proves relatively short-lived. When the next genuine opportunity arises, we intend to act.

/ Ko Ko

20/05/2026

Not everything is doomed and gloomed. As seasoned investors, we navigate through politics and keep our focus on our long-term financial goals. We control what we can control.

Here’s a concise overview of the positive news from last week’s budget on negative gearing:

- Existing negatively geared properties are fully-grandfathered — investors can continue claiming losses as usual. There’s no need to sell or change current strategy.

- SMSFs can still negatively gear established residential properties.

- New housing opportunities (the main focus of the budget):
- Brand new apartments and greenfield houses can be negatively geared.
- Knock-down and rebuild projects work best as duplexes (replacing one dwelling with two) — offering two rental incomes and higher depreciation benefits.
- Granny flats remain a strong option when built on an existing negatively-geared property.

- Losses on properties that will no longer qualify for negative gearing can still be claimed until 1 July 2027, with unused losses carried forward for future use.

Overall, the budget supports existing investors while actively encouraging new housing supply.

Source:https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf

05/05/2026

The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.35%, marking its first increase since early 2025. This move aligns with broader market forecasts and reflects the bank's proactive stance on cooling the economy.

In its official statement, the RBA highlighted several key factors driving this decision:

* Geopolitical Influence: Ongoing developments in the Middle East have driven fuel prices higher, contributing significantly to inflationary pressures.
* Secondary Impacts: There is growing concern that these energy costs will lead to "second-round effects," trickling down into the broader pricing of goods and services.
* Domestic Pressures: This new inflation spike follows high levels recorded in early 2026, largely driven by persistent capacity constraints within the Australian economy.

Looking ahead, the Monetary Policy Board anticipates that inflation will stay above its target range for the foreseeable future. The Board noted it will remain "attentive to the data" and continue to evaluate evolving risks before determining any further adjustments to the cash rate.

23/04/2026

Good Intentions, Tough Outcomes: The First‑Home Buyer Scheme Effect

Stronger price growth below the cap: Since the scheme’s expansion in October, homes priced below the deposit guarantee caps rose 6.7% over six months, compared with 3.6% growth for homes above the caps. 📈🏠

Market fragmentation: This divergence shows the housing market is increasingly split between lower‑priced, entry‑level homes and higher‑value properties, with demand concentrating strongly in the former. 🔀🏘️

Drivers of competition:

* Demand “brought forward” as buyers rushed in ahead of the scheme’s rollout ⏩👥
* Serviceability constraints from higher interest rates pushing buyers towards cheaper properties 💸📉
* Rising investor activity, with investors making up around 40% of mortgage demand in Q4, adding to competition faced by first‑home buyers 🏦⚔️

Regional impacts: The trend is evident across almost all capital cities and regions except Regional WA & NT, with Sydney showing the largest gap as under‑cap homes rose while above‑cap homes declined. 🗺️📊

Shrinking affordable supply: As prices rise, the proportion of suburbs with median values below the price caps has fallen sharply, reducing choice for first‑home buyers. 🔍⬇️

Outlook: The scheme’s stimulatory impact is expected to fade as more properties exceed the caps and buyers face tighter borrowing constraints, with demand shifting toward outer‑city, regional areas and more affordable units. 🔮🏘️

Source: https://www.cotality.com/au/insights/articles/first-home-buyer-scheme-fuels-competitive-tensions-at-the-lower-priced-end-of-housing-market

31/03/2026

This is a very well-written article on the current state of the property market across Australia. It is neither fear-driven nor greed-driven.

You may have heard people say the property market is about to crash. But the data tells a different story.

17/03/2026

The Reserve Bank of Australia announced today that it has raised the official cash rate target by 25 basis points, bringing it to 4.10%.

This adjustment follows the Monetary Policy Board's assessment of recent inflation outcomes, which have shown a material upward shift, alongside expectations of significantly elevated fuel costs stemming from ongoing geopolitical tensions in the Middle East.

For mortgage holders and other borrowers, the principal implications include the following:

- Variable-rate home loans and investment property loans are highly likely to experience a corresponding rise in scheduled repayments.
- The majority of lenders are anticipated to pass on the full 25-basis-point increase, with formal notifications generally issued within several business days.
- Fixed-rate loans will remain unaffected until the conclusion of their current fixed-term period.
- Facilities structured on an interest-only basis, as well as any products explicitly linked to the cash rate, will also reflect this change.

Should you wish to discuss potential strategies—such as fixing a portion or the entirety of your loan, refinancing to a more advantageous offering, or revising your repayment approach—please do not hesitate to contact me for a detailed review of your circumstances.

03/02/2026

The Reserve Bank of Australia has today increased the official cash rate by 25 basis points to 3.85%.

This decision reflects the RBA Board’s continued focus on managing inflation and supporting sustainable economic conditions.

For borrowers, the key implications are:
- Variable rate home loans and investment loans will almost certainly see a corresponding increase in repayments.
- Most lenders are expected to pass on the full 0.25% rise, with announcements typically made within 1–2 business days.
- Fixed-rate loans remain unchanged until the fixed term expires and reverts to variable.
- Interest-only facilities and any products directly linked to the cash rate will also be affected.

If you would like to explore your options – such as fixing part or all of your loan, refinancing to a more competitive product, or adjusting your repayment strategy – please feel free to reach out.

14/01/2026