RBA Reaffirms Rate Stability

RBA Reaffirms Rate Stability

This week, at the final board meeting of the year, the  RBA left the cash rate at 0.10%

The Reserve Bank has reiterated that it does not intend to lift interest rates next year, despite growing industry speculation of a rise.

This week, at the final board meeting of the year, the RBA left the cash rate at 0.10% and Governor Philip Lowe announced that the latest data and forecasts did not warrant an increase in the cash rate during 2022.

Lowe says that, despite the emergence of Omicron, leading indicators point to a strong recovery in the labour market, job ads are at historically high levels and wages growth has picked up.

“The emergence of the Omicron strain is a new source of uncertainty, but it is not expected to derail the recovery,” he says. “The economy is expected to return to its pre-Delta path in the first half of 2022.

“The Board will not increase the cash rate until actual inflation is sustainably within the 2% to 3% target range. This will require the labour market to be tight enough to generate wages growth that is materially higher than it is currently.”

Investors Pile Into The Market

Investors are keen to buy and pile in the market
The property market is still booming and investors flock to buy

Investors are borrowing big to buy real estate as first-home buyers take a back seat, but the market-share of investors remains below historical averages.

Economist Nerida Conisbee says investors have not been put off by rising property prices and are taking out new loans at near-record levels.

ABS lending indicators show loans to investors rose by 1.1% to $9.73 billion in October, the highest amount recorded in six years and more than double the recent low point of $4.23 billion at the start of the pandemic in May 2020.

ABS head of finance and wealth Katherine Keenan says the value of new loan commitments for investor housing has grown for 12 consecutive months.

“While the value of investor loan commitments has grown 90% over the past year, the number of investor loans only accounted for 33% of all new loan commitments in October,” she says.


Boom Not Over: Market Keeps Growing

Group of houses on sale

Australia’s pandemic property boom is continuing with the latest figures revealing house values have increased for the 14th consecutive month.

CoreLogic figures show values increased 1.3% in November, the lowest increase since January. But house values are rising faster in Brisbane and Adelaide with Brisbane’s home price up by 2.9% in November (the fastest rate in 18 years) and Adelaide up 2.5% (the highest rise since 1993).

“Housing affordability in Brisbane and Adelaide is less pressing, there have been fewer disruptions from lockdowns and interstate migration is fuelling housing demand,” says CoreLogic research director Tim Lawless.

“It’s still a hot market,” he says. “The boom isn’t over. Even in Melbourne and Sydney, where it’s slowed, you’re still seeing values rise 1% in a month. Even though the market has slowed in those cities, the rate is still well above average.”

Rental Property Pool Has Shrunk

The number of investors entering the property market has increased, but it is not keeping up with those leaving the market, leading to a shortage of rental properties. An exodus of property investors in previous years has resulted in the largest shortfall of rental homes being in seven years, according to new data from REA Group.

It says smaller returns, tighter lending policies and changes to landlord’s rights has caused many investors to sell more than buy, resulting in a shrinking rental market.

Simon Pressley from Propertyology says there are 20,000 fewer rental properties being advertised nationally compared to five years ago.

“Plain and simple, rental supply is a direct outcome of investor activity. It has always been that way,” he says.

“Since 2015, investor participation rates in this country have been well short of demand.”

The outcome is vacancy rates below 1.5% in six of the eight capital cities and in most regional areas.


Vacancies Hit Low, Rents to Rise

Competition for rental properties is higher than ever with the national vacancy rate now just 1.5%, but with most cities well below that level.

Renters are expected to find it even tougher when international borders re-open and international students and migrants return.

Domain figures show Hobart has the lowest vacancy rate of just 0.3%, followed by Adelaide 0.4%, Perth 0.5%, Canberra and Darwin, 0.9% and Brisbane 1.2%. Sydney has a vacancy rate of 2.3% and Melbourne 3%.

Domain chief of research and economics Nicola Powell predicts a “dramatic impact” on vacancy rates once international borders reopen. Rental demand will likely climb, reducing the already limited proportion of vacant homes and pushing prices beyond already record highs.

Graham Cooke, head of consumer research at Finder, says renters should start preparing for higher housing costs. “The pandemic turned the rental market on its head in some areas,” he says.

Quote Of The Week“It’s still a hot market. The boom isn’t over. Even in Melbourne and Sydney, where it’s slowed, you’re still seeing values rise 1% in a month. Even though the market has slowed in those cities, the rate is still well above average.”

CoreLogic research director Tim Lawless

Market growth, attracting investment. Raising taxes and house maintenance. Real estate price increases. High demand and value 

Thinking of buying an investment property? Book a free consultation with a Reventon property advisor today!

Talk to the Reventon team and we’ll give you all the guidance you need to be a successful at investing your money.

Additional Resources​

Reventon Residential – For all property sales, property management and property rental related services, our well respected team can help you.

Reventon Investments – Residential Property Investment. We help everyday Australians build wealth safely through property investment. Book a free consulation today.

Reventon Finance – For all your mortgage and finance needs. Our multi-award-winning finance team can help you with home loans, investment loans, mortgage refinance and more. Have a chat to a finance specialist today.



Latest Posts

Free Resources

Social Media

Your Name *
Phone Number *
Email Address
Cover Letter
Maximum file size: 5 MB
Maximum file size: 5 MB



Book a free one-one-one consultation with our qualified, award-winning experts today!

Brick by Brick starts construction

Lead With Kindness #LWK23

$1 billion under management


Add Your Heading Text Here

Download our full guide

A valid Australian mobile phone number is required to access the password to open this PDF.

Format your mobile as follows: +61 412 456 789

The Legendary Luncheons

Record-Breaking 5th Year Vinnies CEO Sleepout

The Inaugural Lead With Kindness Event (#LWK)

To kick off our most special Vinnie’s campaign ever, we teamed up with the incredibly talented musicians Matt Charles and Andrew Loadsman to get into the studio and record our charity anthem ‘A Little Means a Lot’. Thanks so much to Mark D’Angelo and the Backlot Studios for bringing this poem to life. Still gives us chills everytime.

A Little Means A Lot

Brick By Brick

Reventon Snooker Academy

The New Reventon Office

Reventon Raises Over $100K For Vinnies CEO Sleepout

Chris Christofi once again spent a night sleeping on the streets for his 4th Vinnie’s CEO sleepout. After raising progressively more and more in previous years, Chris placed 4th amongst CEO’ss nationally after raising over $113,000, after Chris pledged to match ever donation dollar for dollar.

Despite being a virtual event this year owing to covid restrictions, Vinnie’s set a new donation record with $9.4 million raised nationally.

Chris pledged that the following year, he would be the first Vinnie’s CEO to raise over $250,000.

Vinnies’ CEO Sleepout

Chris takes part in his first Vinnies CEP Sleepout. He exceeds his $40,000 target by raising $40,185 placing him 12th out of 1,462 CEO’s nationwide and in the top $1% of fundraisers across Australia.

You can check out Chris’ first ever LinkedIn post talking about his experiences on that first sleepout by clicking here. 

Chris’ Second Vinnies CEO Sleepout

After raising over $40,000 the previous year, Chris and the Reventon team are determined to beat that, and this year manage to beat their target of $60,000, raising $60,564 for homeless Victorians, after Chris promised to match every dollar donation with 50c of his own money. This year Vinnies hit a new record of $7.87 million nationally.

Chris Christofi On His Third Vinnie's CEO Sleepout

After raising over $60,000 in 2019, this year Chris and Reventon manage to easily clear their target of $80,000 and raised $82,177 after Chris vowed to match ever dollar donated with 75c of his own money.

Matt Charles from We Gift Wrap worked with Chris to produce a song raising awareness of Chris campaign.

Reventon Accounting Launch

A range of financial, accounting and property services are brought under the Reventon banner   

  • Preparation of Financial Report and Tax Return 
  • Tax Planning  
  • Business Activity Statement, FBT Return, and Tax Instalment 
  • Business Restructuring and Setting Up a new Entity

Reventon accounting is proud to provide the following services:

  1. Preparation of Financial Report and Tax Return – As part of our annual tax-related compliance work, our team is proactively establishing the best tax minimisation models for you, and also, ensuring tax compliance on your account. 
  2. Tax Planning – Everyone need the ultimate planning and strategy in all parts of life, especially Tax. Our highly experience team will build a personalised  tax strategy and minimisation according to your situation and needs and ensure you a maximum advantages on any investment asset transactions. 
  3. Business Activity Statement, FBT Return, and Tax Installment –  Small business owners spend hours every week dealing with Tax Requirements (BAS, FBT, and Tax Installment) which is a valuable time that you could have spent growing the business and the profit. Let our expert team to take this hassle away from your shoulder so you can build a valuable business for your retirement. 
  4. Business Restructuring and Setting Up a new Entity – Entity structure is one of the five foundations of a business. Our knowledgeable team will ensure you to have a solid foundation so you can focus on building a business on top of it. Your investment is your business too, don’t overlook them. 
  5. Bookkeeping, Payroll, and other Business Compliance – Our team takes ownership on anything that we do. We ensure high quality work and compliance in any levels of Accounting and Tax Regulations – ASIC Corporate compliance, workcover insurance, business-required licensing and insurances, Single Touch Payroll and payroll-tax, Superannuation Tax and Regulations. 
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
What's In Store For Residential Real Estate In 2022
Property Investment in South East Queensland
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
Property Investment in South East Queensland
What's In Store For Residential Real Estate In 2022
Guide To Your First Investment Property

Online budget planner

Have trouble sticking to a budget?

With the budget planner, you can log your incoming and outgoing expenses to keep track of your finances and set saving goals.

Check out our other calculators too

Loan repayment calculator​

Want to work out your repayments on a home loan?

Enter the details of your loan and discover how much you’ll be paying each month.

Check out our other calculators too

Borrowing-power calculator

How much could you borrow on a home loan?

Enter your income details and spending habits to discover your borrowing-power on a future home loan.

Check out our other calculators too

Stamp duty calculator

Confused by stamp duty?

Enter the property’s value and state or territory to discover exactly which fees and charges you’ll be required to pay.

Check out our other calculators too

Income tax calculator

Want a breakdown of your income tax?

Drag the controller for your income and discover your take home pay and tax rates.

Content Unavailable

We’re making some changes to our website and the content you are looking for is currently unavailable. Please check back later or book a free consultation by clicking on the button below.