Finance – Michmutters

Tag: Finance

Categories
Australia

Prime Minister to investigate claims of Scott Morrison’s secret ministry grab during COVID-19

Prime Minister to investigate claims of Scott Morrison's secret ministry grab during COVID-19

Prime Minister Anthony Albanese says the government will investigate claims former prime minister Scott Morrison swore himself in as joint health, finance and resources minister during the height of the pandemic.

Mr Albanese says the Department of Prime Minister and Cabinet is seeking legal advice from the solicitor-general.

The ABC understands then-health minister Greg Hunt agreed to Mr Morrison’s joint position as a safeguard to incapacitation from COVID-19, but that Matthias Cormann was not told that Mr Morrison had appointed himself as joint finance minister.

Former resources minister Keith Pitt has told the ABC Mr Morrison also used his self appointment to Mr Pitt’s portfolio to block a controversial petroleum exploration licence.

Prime Minister Albanese said the revelations were “extraordinary”.

“The people of Australia were kept in the dark as to what the ministerial arrangements were, it’s completely unacceptable,” Mr Albanese said.

This is very contrary to our Westminster system. It was cynical and it was just weird that this has occurred.”

Mr Albanese said it was a serious allegation, but also “just weird”.

“Perhaps this explains why we didn’t order enough vaccines. I mean, the Minister for Health might have thought the Prime Minister was ordering them because he was also the Minister for Health, and he thought the Minister for Health was ordering them,” Mr Albanese joked.

Former Morrison minister slams secret appointments

Nationals leader David Littleproud, who served as agriculture minister under Mr Morrison, told ABC Radio this morning he did not know the former prime minister had sworn himself into several roles.

“That’s pretty ordinary, as far as I’m concerned,” Mr Littleproud said.

“If you have a government cabinet, you trust your cabinet.”

Mr Littleproud said to his knowledge, the then-Nationals leader Barnaby Joyce was also not made aware of Mr Morrison’s self-appointments.

“These are decisions of Scott Morrison. I don’t agree with them, and I’m prepared to say that openly and honestly,” Mr Littleproud said.

Little proud looks off camera, bordered by two silhouetted figures.
David Littleproud says the former prime minister was wrong to secretly swear himself into several roles.(ABC News: Matt Roberts)

Mr Morrison also used his self-appointment to the resources portfolio to overrule the then-minister to block a petroleum exploration license off the NSW Central Coast.

National MP Keith Pitt told the ABC he “certainly made inquiries” when Mr Morrison told him about the joint-appointment, but ultimately accepted the move.

“I certainly found it unusual, but as I said I worked very closely with Scott through a very difficult period through COVID,” Mr Pitt said.

“I’m just not going to throw him under a bus, I just won’t.

“It was clearly something I was concerned about, as you would expect.”

Former Labor leader Bill Shorten, who lost the 2019 election to Mr Morrison, said it was a bizarre decision by the former prime minister.

“To find out he was ghosting his own cabinet ministers, goodness me, he was off on a trip,” Mr Shorten said.

“Honestly I’ve never heard of this, in World War II I’m not aware John Curtin swore himself in as Defense Minister … I don’t know what was going through [Mr Morrison’s] head.

“If he felt the need to do it, why not tell people? Why be secretive?”

Mr Albanese said he would not pre-empt the findings of the solicitor-general as to whether the former prime minister broke the law.

But he noted it was possible there were other secret appointments made by Mr Morrison.

Constitutional expert says self-appointments were inexplicable

Professor Anne Twomey, an expert in constitutional law, said it was “confusing” how Mr Morrison may have taken joint control of several portfolios.

Professor Twomey said only the Governor-General can swear in a minister, but noted reports that Mr Morrison may have found an administrative workaround.

She said there were already provisions for other ministers to take over portfolios if a minister is incapacitated, and it seemed unnecessary.

“What on Earth was going on, I don’t know, but the secrecy involved in this is just bizarre,” Professor Twomey said.

“You just wonder what’s wrong with these people that they have to do everything in secret.”

live updates

By Shiloh Payne

That’s all for the press conference

To recap, Prime Minister Anthony Albanese says he will be seeking legal advice from his department after revelations Scott Morrison appointed himself to multiple portfolios.

Here’s what we know:

  • Mr Morrison granted himself powers of Health, Finance and Resources Minister at various points when he was Prime Minister.
  • Some Ministers knew at the time, but others didn’t.
  • Mr Albanese has described the former prime minister’s actions as contemplated for the democratic process.
  • Mr Albanese will be briefed on the claims later this afternoon.

The solicitor-general will also be providing advice.

By Shiloh Payne

PM describes Morrison’s actions as ‘contempt for democratic process’

Prime Minister Anthony Albanese says Scott Morrison’s appointments as different ministers could have caused confusion in the government.

“Perhaps this explains why we didn’t order enough vaccines,” he says.

“The Minister for Health might have thought the Prime Minister was ordering them because he was also the Minister for Health and he thought the Minister for Health was ordering them.”

“What we know is that this is a shambles and it needs clearing up and the Australian people deserve better than this contempt for democratic processes and for our Westminster system of government, which is what we have seen trashed by the Morrison Government.”

By Shiloh Payne

Key Event

Will the solicitor-general look into this?

The Prime Minister is taking questions.

He was asked if the solicitor-general will look into these claims regarding Scott Morrison, here’s what he says:

“I have asked the Secretary of the Department of Prime Minister and Cabinet,” he says.

“We will be seeking advice from appropriate people including the Solicitor-General about all of these issues.

I’ll be getting a full briefing this afternoon. This is dripping out like a tap that needs a washer fixed and what we need is actually to get the full flow of all the information out there and then we’ll make a decision about a way forward here.

“But these circumstances should never have arisen.”

By Shiloh Payne

‘Nothing about the last government was real, PM says

Prime Minister Anthony Albanese says there is an ‘absolute need’ for clear transparency.

“This isn’t some local footy club,” Mr Albanese says.

“This is a government of Australia where the people of Australia were kept in the dark as to what the ministerial arrangements were.”

“It’s completely unacceptable.”

By Shiloh Payne

PM: ‘Whole lot of questions arise’ from Morrison portfolio claims

Prime Minister Anthony Albanese says claims that Scott Morrison took on additional portfolios as “extraordinary and unprecedented”.

He says he will have briefings on the situation when he returns to Canberra this afternoon.

“A whole lot of questions arise from this,” he says.

“What did Peter Dutton and other continuing members of the now shadow ministry know about these circumstances?

“How is it that the Australian people can be misled whereby we know now that Scott Morrison was not only being Prime Minister, but was Minister for Health, was Minister for Industry and Science at the same time as resources, was the Minister for Finance, and we had the extraordinary revelation that Mathias Cormann, apparently, wasn’t aware that Scott Morrison was the Minister for Finance as well as himself.”

By Shiloh Payne

Key Event

You can watch the press conference here

Prime Minister Anthony Albanese is speaking in Melbourne.

You can watch it here:

loading

By Shiloh Payne

Anthony Albanese is speaking in Melbourne

Close up of Anthony Albanese. He wears glasses with a black frame and a suit with a yellow tie.
(Supplied: James Alcock)

Prime Minister Anthony Albanese is speaking to the media in Melbourne.

He is expected to discuss the government’s plans to investigate claims that former prime minister Scott Morrison had secretly sworn himself into three ministerial positions at the height of the pandemic.

There are claims Mr Morrison swore himself in as joint health, finance and resources minister.

Good morning, I’m Shiloh Payne and I’ll be taking you through the latest updates.

posted , updated

.

Categories
Business

Urgent recall of Westinghouse glass cooktop over serious injury risk

Urgent recall of Westinghouse glass cooktop over serious injury risk

An urgent national recall has been announced for a popular Electrolux home product after parts of the item have been found to shatter, posing serious injury.

Product Safety Australia on Thursday recalled the Westinghouse black tempered glass gas cooktop.

The product, which does not comply with the Domestic Gas Cooking Appliances Standard, comes in a 60cm three-burner cooktop and a 90cm five-burner cooktop.

Warning: Urgent recall on household appliance. Picture: Supplied.
Camera IconThe Westinghouse black tempered glass gas cooktop has been recalled. Supplied Credit: NCA NewsWire

The cooktop, which is sold both nationally and internationally in stores such as Harvey Norman, JB Hi-Fi, The Good Guys, Reece Plumbing and Winning Appliances, has been on sale since February 2020.

Consumers have been urged to check the model number of their cooktop to see if it is affected.

The model numbers are WG638BC and WHG958BC or serial digits 5301134 – 22503805.

Authorities said other identifying numbers on the device include AGA 8145G.

Affected consumers should contact Electrolux to arrange a refund or for a service technician to attend free of charge to replace the product.

For more information, consumers can contact Electrolux Home Products on 1800 001 218 or via email at [email protected].

.

Categories
Business

‘Fill up now’: Aussie drivers urged to head to the petrol pump before prices skyrocket

'Fill up now': Aussie drivers urged to head to the petrol pump before prices skyrocket

Australian motorists are being urged to take advantage of falling petrol prices and fill up now to make the most of the “lowest levels we have seen for some time” before it is too late.

Prices across the nation last week were down almost 20 per cent from their July peak and experts say more price relief is on the horizon.

Watch more on high diesel prices in the video above

For more Personal Finance related news and videos check out Personal Finance >>

The national average pump price fell by 8.1c to $1.73 per liter last week, down from a recent peak of $2.12 in the first week of July.

National Roads and Motorists’ Association’s Peter Khoury said Australia was nearing the bottom of the price cycle, but warned it could soon jump back up.

“They’ve been falling now for several weeks in accordance with the price cycle, but they have definitely fallen to levels we haven’t seen for some time,” he told 7NEWS.

Khoury said Sydney had hit its cheapest average price since April, reaching $1.62 on Monday.

“We are almost at the bottom of the cycle,” I explained.

“But also, we know oil prices have been falling steadily since hitting those high points that we saw in June.

“The average in the middle of June for regularly unleaded in Sydney was $2.19. It’s now at $1.62. That gives you an idea of ​​how much oil prices have failed.”

While motorists will welcome the relief at the pump, Khoury says it is not clear how long it will last.

“The falls are highly volatile,” he said, adding “we have no idea whether they’re going to be sustained long term.

“What we do know is that over the last two or three weeks it’s been pretty consistent, driven largely by concerns about the global economy.”

While it has taken about 50 days for prices to fall this low, Khoury says, it will only take a few days for them to jump back to the top.

“That’s just the unfortunate reality of price cycles nationally is that when they go down, they go down very slowly, and when they jump, they absolutely skyrocket,” he said.

“So at some point in the coming days, possibly later this week we will see that price cycle turn. And that’s why it’s really important for (motorists) to fill up today or tomorrow.

“Keep a very close eye because you’re going to see lots of service stations are below a $1.60.”

As for when motorists will see cheap prices again, Kheary says it depends on how long the next cycle is.

Man stunned after friend charges him $2.47 for fuel money.

Man stunned after friend charges him $2.47 for fuel money.

Here’s where to find the cheapest petrol in your postcode, as of Monday afternoon.

sydney

Real time fuel price tracker PetrolSpy says Sydney’s inner west boasts the cheapest petrol, with Payless Fuel in Sydenham offering $154.8.

Franks Automotive in Marrickville offers the second cheapest at $156.9.

melbourne

Metro stations in Carlton and Collingwood are offering the lowest prices, with $157.9 and $159.9 up for grabs respectively.

Brisbane

A tank of unleaded will be cheapest at Puma Wilston, Grange Auto Care or Puma Grange, which are all offering deals of $159.5.

Adelaide

Motorists can find the petrol on offer in Adelaide at X Convenience Prospect and Woolworths Ampol Nailsworth for $153.5.

Perth

Motorists will get the most bang for their buck at United Petroleum service stations in Northbridge, Mount Lawley and East Victoria Park, where prices are tied at $156.5.

The second cheapest suburb is Yokine, where Puma is offering $156.7.

Canberra

Prices in Canberra are yet to plunge quite as low as the rest of the country, with the cheapest $179.9 at Metro Petroleum Fyshwick, followed by $182.9 at BP Fyshwick.

Darwin

Drivers in Darwin face the most expensive prices, with FuelXpress Winnellie offering the cheapest deal of $189.5.

United stations at Darwin (Smith Street), Parap, Ludmilla, Winnellie Roadhouse and BP Winnellie are all offering prices of $195.5.

Hobart

BP Moonah, Coles Express Moonah, Ampol Moonah and Ampol Central Moonah are all offering petroleum for $176.9.

Man with 2 boomerangs smashes window in road rage incident.

Man with 2 boomerangs smashes window in road rage incident.

.

Categories
Business

President raises concerns about CSE operations – Business News

President raises concerns about CSE operations - Business News






  • Says SOEs will not be listed on CSE where a few can benefit
  • Calls for changes in the CSE and says if not a new institution will be set up

President Ranil Wickremesinghe yesterday raised concerns about the manner in which the country’s capital market, the Colombo Stock Exchange (CSE), operates, and asserted the need for the entire system to change.

He said that shares of State-Owned-Enterprises (SOE) will not be listed on the Colombo bourse as a part of restructuring efforts as it is controlled by a few investors.

Highlighting the market manipulation that takes place at the CSE, Wickremesing he stressed he would not list the SOEs on the CSE so that a few investors can benefit from such a move.

“The Colombo Stock Exchange (CSE) is not recognized by the London Stock Exchange. There are many questions about the stock exchange that a few people control it. And a few people rig it.

“Now can I put an SOE shares on to that?” said Wickremesinghe while questioning the credibility of the stock market operations in Sri Lanka.

The President called for changes to take place at the CSE, failing which he said a new institution will be set up.
“I don’t want any arguments on that. If we are to use the present stock exchange, we all should be satisfied that it is neutral and will benefit all,” asserted Wickremesinghe.


.

Categories
Business

$9 for milk and $84 for instant coffee: The Aussies hit hardest by soaring grocery costs

$9 for milk and $84 for instant coffee: The Aussies hit hardest by soaring grocery costs

Milk costing more than $9 and a tin of instant coffee for an astounding $84. These are real prices – and they show just how dire things are for some Aussie shoppers.

Consumers all across the country are being hit by the cost-of-living crisis, which has sent the price of everyday goods such as lettuce and milk soaring.

But shocking photos shared to social media show how grocery bills cost more in some places – and expose just how dire the situation has become.

Watch the latest News on Channel 7 or stream for free on 7plus >>

One photo of an April receipt from a store in the town of Kaltukatjara, southwest of Alice Springs, showed a two liter carton of milk costing $9.20.

At a Sydney Woolworths, the same product was being sold for just $3.10 this week.

Milk was spotted at a high price in one remote community. Credit: Facebook

Donna Donzow, an operations manager for the non-profit EON Foundation which helps grow and supply fresh produce to communities in Western Australia and the Northern Territory, said she noticed the unusually high grocery prices in June when she was in Minyerri, a town 240km southeast of Katherine.

“The cost of a mixed salad pack was $17,” Donzow told 7NEWS.com.au.

By comparison, a mixed bag of salad at a Sydney Woolworths this week cost just $3.

The high grocery prices in remote areas are due to a range of issues including long supply chains, poor quality roads and freight costs – and experts say more needs to be done to sort out the problem.

A long-time problem

Food has cost more in the regions than in our biggest cities for years – as photos on social media show.

One photo shared in 2020 showed a tin of instant coffee selling at a Hope Vale grocery store, in remote Queensland, for $84, according to the poster.

According to a 2021 report by healthcare policy organization Aboriginal Medical Services Alliance Northern Territory (Amsant), food in supermarkets is 56 per cent more expensive in remote communities than in regional supermarkets.

A 2020 inquiry by federal MP Julian Leeser echoed these findings, stating that “the cost of purchasing food is considerably higher for remote Aboriginal and Torres Strait Islander communities than for people living in larger population centers in urban and regional Australia”.

A tin of instant coffee was being sold at a Hopevale Island and Cape grocery store, in remote Queensland for $84. Credit: Facebook

The Australian Bureau of Statistics says the cost of groceries has increased by 5.9 per cent across all of Australia’s capital cities since June last year – and there’s reason to believe costs are also going up in rural Australia, where prices were already astronomically high.

In Minyerri, for instance, Donzow said she saw signs around the shop advising community members of that fruit and vegetable costs had gone up due to flooding in Australia’s southern states.

EON Foundation executive chair Caroline de Mori said she’d had a similar experience.

“I heard people complaining the other day about a lettuce for sale in Sydney for $8, but can you imagine what it’s like when you go a few thousand kilometers inland?” de Mori said.

“You end up paying $12 for one brown-headed broccoli.”

‘It’s only getting worse’

The enormous costs aren’t just an issue for getting food on the table now – they have flow-on effects for the future.

De Mori told 7NEWS.com.au that the lack of cheap fruit and vegetables meant some shoppers were turning to processed food.

“By the time it all gets (to remote communities) it’s moldy and not fresh, so it’s not necessarily an option,” she said.

“This means we see astronomically higher disease rates and health issues in these communities, and it’s only getting worse.”

The foundation helps set up community gardens to encourage locals to grow their own fruit and veg. Credit: EON Foundation
The community gardens are being accessed more and more by locals. Credit: EON Foundation

De Mori added some communities only have one store selling essentials for the whole town.

“Because they’ve got the monopoly, they can charge whatever they like and it just seems to be a terrible downwards spiral,” she said.

University of Queensland public health policy professor Amanda Lee told 7NEWS.com.au while experts recommended numerous solutions over the years, little has been done overall.

Lee recommends subsidizing freight costs and preventing supermarkets from marking up fruit and vegetables.

“Unfortunately, while there’s a long list of recommendations from all the inquiries over the past 40 years … there’s been very little collective action to address it.”

.

Categories
Business

RBA interest rates: Otivo reveals the Perth postcodes set to be hardest hit by mortgage stress

RBA interest rates: Otivo reveals the Perth postcodes set to be hardest hit by mortgage stress

Almost a quarter of a million WA homeowners will find themselves in the grips of mortgage stress as interest rates continue to climb, with little sign of a slowdown on the horizon.

The Reserve Bank on Tuesday announced that it would lift its official interest rate by 50 basis points to 1.85 per cent for the fourth month in a row.

The cash rate target has now increased by 1.75 percentage points since the start of May to 1.85 per cent, with the hike expected to add about $472 a month to repayments on a $500,000 loan, with Commonwealth Bank the first of Australia’s big four banks making the move to hit borrowers with the full increase.

With families across Australia already struggling under the weight of the surging cost of living, new data suggests the move will plunge 1.8 million owner-occupied mortgaged households into financial stress — including 228,621 in WA.

The new report by digital financial advice service Otivo, in partnership with Digital Finance Analytics, surveyed 52,000 households to reveal the real impact of interest rate rises on Australians with owner-occupied mortgages — with a household deemed to be under “mortgage stress” if there is more money going out than in.

The Otivo Mortgage Stress Report stated that at the end of July 2022, more than 1.7 million (or 45 per cent) of Australians were already suffering under mortgage stress.

More than 1.8 million Australians will suffer off the back of the RBA’s latest cash rate hike.

The report further predicted Tuesday’s RBA announcement would force an additional 140,839 Australians into the same boat, bringing the total to 1.8 million.

Otivo then drilled down to reveal the top three postcodes in each State or Territory expected to feel the most significant impact off the back of the latest cash rate hike.

The report revealed some of Perth’s most affluent suburbs would soon be hit with mortgage stress, with homes in some of the city’s most prestigious areas warned to curb spending and brace themselves for the bleak outlook.

An eyewatering 59 per cent (or 1760) households in postcode 6153 (Applecross, Ardross, Brentwood, Mount Pleasant) are expected to fall victim to mortgage pain, with the latest rise pushing an additional 644 homes into stress compared with July’s numbers.

Second on the list is 6152 (Como, Karawara, Manning, Salter Point, Waterford), with an extra 580 households bringing the total number of homeowners under stress to 2087.

Further south, 518 more homes in Mandurah’s 6210 postcode area (Coodanup, Dudley Park, Erskine, Falcon, Greenfields, Halls Head, Madora Bay, Mandurah, Meadow Springs, San Remo, Silver Sands, Wannanup) will take the total number in the 6210 postcode area to 3623 homeowners.

Otivo chief executive Paul Feeney said the mortgage stress report reiterated the need for Australians to seek personal financial advice, regardless of what interest rates and inflation do over the coming months.

“With Australians looking down the barrel of the rising cost of living and higher interest rates, and more than 1.8 million Australians set to be suffering from mortgage stress off the back of the RBA’s latest cash rate hike, now more than ever Australians need quality and affordable financial advice to help them stay on top of their finances,” he said.

Mr Feeney’s top tips for Australians under financial pressure due to mortgage stress

Review or create a budget—Understand what money is coming in and what money is going out. What are the non-negotiable costs (such as your mortgage, utilities, groceries and transport costs) and where can you cut back. If you want to avoid mortgage stress, you’ll need to make some small changes to your monthly spending patterns.

Understand the benefit of an offset or redraw — If you have a mortgage, put spare cash into an offset account or redraw facility. This lowers your loan balance that interest is charged on, saving you money each month.

Discuss your mortgage with your lender — If you’re concerned about interest rate rises, discuss this with your lender and understand if there is an opportunity to get a better rate. Banks are often open to helping their clients if they are under financial stress. You will have to make it up eventually but this may provide some short-term relief for your household right now.

.

Categories
Australia

Wondering what the ACT budget means for you? Here are the five key takeaways

Wondering what the ACT budget means for you? Here are the five key takeaways

The ACT government has today released its 2022-23 budget, setting out its spending for the coming year.

There are few surprises enclosed in the documents, with major announcements for health and housing already made in the past week.

But what the papers do reveal is an ACT economy that is thriving, despite outside forces continuing to threaten Canberrans’ hip pockets.

1. Things are better than we thought

First, the good news: the territory is faring better than expected.

In October last year, ACT Chief Minister Andrew Barr delivered an economic update. An outbreak of the Delta variant of COVID-19 had forced a lengthy lockdown, leading to a $951.5 million deficit.

But, according to the budget papers released today, that position has improved, with the deficit now sitting at $580.4 million.

“The ACT economy has outperformed expectations, demonstrating resilience and flexibility in the face of the COVID-19 pandemic and other adverse global and national events,” the budget papers state.

Today, Mr Barr, who is also the ACT’s Treasurer, credited that improved economic position largely to a surging population.

“Revenue has driven that improved situation, which is largely a reflection of the territory’s increased population,” he said.

A main street lined with trees and greenery.
The ACT economy’s recovery from the effects of lockdowns has been stronger than expected.(ABC News: Ian Cutmore)

But it’s not all good news — that boom in people also has a downside.

“The fact that our population has grown by nearly 90,000 people demonstrates that people want to live in Canberra,” Mr Barr said.

“And that explains why we have seen such strong demand for housing, such strong enrollments in our schools and pressure on our health system.”

And it’s that growth and demand that has guided much of the budget spending announced today.

2. Costs are going up, but the government says we can afford it

Close-up of Australian currency on leather handbag with keys and face mask to the right
Some costs are expected to increase, including parking fees and gas bills.(ABC Everyday: Fiona Purcell)

Over the past two years, many costs have been mitigated or put on pause by the government to ease financial pressures brought about by the COVID-19 pandemic.

But those measures are gradually ending.

A pause on an increase to government paid parking is set to end, which means Canberrans will notice a jump in prices.

Home owners will also notice an increase in household rates of 3.75 per cent on average.

For homes, that means $111 more per year and, for units, an extra $67.

.

Categories
Business

Canstar research shows banks offering discounts on mortgages for low-risk borrowers

Canstar research shows banks offering discounts on mortgages for low-risk borrowers

Borrowers with big deposits or equity in their homes can shave more than $50 a month off their mortgage repayments as banks ramp up efforts to win low-risk customers.

Research by financial comparison site, Canstar, shows up to half of all lenders are now offering discounts to borrowers with a sizeable deposit or home equity.

Canstar group executive of financial services, Steve Mickenbecker, said banks were seeking to counter the risk posed by falling house prices on the east coast.

Canstar group executive of financial services Steve Mickenbecker.
Camera IconCanstar’s Steve Mickenbecker says customers need to ask to get the discounts. Credit: METHOD

He said the discounts were being offered by many lenders in WA even though local property prices had not failed.

But Mr Mickenbecker said it was up to borrowers to request the discount from their bank, with lenders highly unlikely to volunteer the potential saving.

The new research shows that 49 per cent of banks are offering customers with a 40 per cent deposit – or equity in their home worth the same amount – a discount on their interest rate worth an average 0.21 per cent.

Do not wait for a bank to tell you because it rarely happens

Its research states that a $470,000 loan with these banks would normally be subject to an average variable rate of 3.69 per cent interest, if the borrower had an 80 per cent loan-to-value (LVR) ratio on a mortgage for a $587,000 house.

However, these same lenders would discount the rate to 3.48 per cent for the same sized loan for customers with a 60 per cent LVR, which is worth a saving of $56 per month in interest.

”When it comes to the discount, you have to take the initiative – do not wait for a bank to tell you because it rarely happens,” Mr Mickenbecker said.

“And a 0.21 per cent discount is a decent saving.”

The research shows a smaller interest rate discount – worth 0.13 per cent – is being offered by almost a third of lenders to customers with a 30 per cent deposit, or the same sized equity in their home.

.

Categories
Business

Property prices Australia: Home prices tipped to dive in wake of RBA rate hikes – but still remain well above pre-pandemic levels

Property prices Australia: Home prices tipped to dive in wake of RBA rate hikes - but still remain well above pre-pandemic levels

Property prices across the country are tipped to fall up to another 5 per cent before the year is out, a new report forecasts.

The mid-year report by market analyst PropTrack predicts the average property price nationally will drop between 2 per cent and 5 per cent by the end of December.

By the end of next year, they are expected to fall further, potentially as much as another 10 per cent.

Watch the latest News on Channel 7 or stream for free on 7plus >>

PropTrack director of economic research and report author Cameron Kusher said the research highlighted the rapidly changing housing market.

“While there were already some signs that the rate of price growth was slowing at the beginning of this year, we were not expecting interest rates to rise until early 2023,” he said.

“There’s since been an outbreak of inflation, resulting in the Reserve Bank (RBA) lifting rates in each of the three months to July 2022.”

Property prices across the country are tipped to fall up to another 5 per cent before the year is out, a new report forecasts. Credit: James Ross/AAPIMAGE

The cash rate is currently 1.35 per cent but is expected to be hiked for a fourth consecutive month when the board meets on Tuesday.

That follows the release of the latest consumer price index figures, showing Australia’s inflation rate had risen to 6.1 per cent.

The PropTrack research operates on the assumption that the cash rate would rise to between 2.5 per cent and 3 per cent by the end of 2022.

They would then be subject to further hikes at the beginning of 2023 before remaining on hold, with the potential to be reduced late in the year or early into 2024.

Watch more on the RBA’s rate decisions in the video below

Kochie rips into RBA over rate rises.

Kochie rips into RBA over rate rises.

“The recent run-up in prices, coupled with reducing borrowing capacities as interest rates rise, is likely to see price falls broaden and then accelerate further into 2023, with the more expensive cities expected to record the largest price falls,” Kusher said.

The report predicts that the most expensive cities, Sydney and Melbourne, will lead the falls in prices.

They would decline between 3 per cent and 6 per cent this year and 9 per cent and 12 per cent in 2023.

According to PropTrack, the average price of a house and unit in Sydney is $1,435,000 and $780,000 respectively, meaning a worst-case scenario would shave $86,100 off the price of a house and $46,800 off the price of a unit before the year is out.

Hobart’s prices are forecast to decline between 1 per cent and 4 per cent this year and 7 per cent and 10 per cent next year.

Darwin’s are projected to drop between 0 per cent and 3 per cent this year and between 4 per cent and 7 per cent next year.

Canberra’s are projected to decline between 3 per cent and 6 per cent this year and 7 per cent and 10 per cent next year.

The only capital cities forecast to show a growth in prices for the rest of the year are Adelaide and Perth.

Property prices in both cities are forecast to increase by between 2 per cent and 5 per cent.

Brisbane’s prices may also increase, with a projection of between 2 per cent growth and 1 per cent decline.

The report, however, isn’t all good news for prospective buyers.

Even if there was a 15 per cent fall in property prices by the end of next year, home prices would still be well above the level they were prior to the pandemic.

“Though, home prices have grown at an exceptional pace over the last two years, rising 34 per cent since the pandemic onset in February 2020.”

The report predicts that the most expensive cities, Sydney and Melbourne, will lead the falls in prices. Credit: DAN HIMBRECHTS/AAPIMAGE

Economists predict another interest rate hike when the RBA board meets on Tuesday following the release of Australia’s inflation rate, which jumped to 6.1 per cent.

Treasurer Dr Jim Chalmers said the figures were “not news” to many Australians.

But he did forecast more interest rates would follow.

“They’ve flagged themselves, the Reserve Bank Governor has said that there are more interest rate rises to come and people need to brace for that,” he said.

“I’m not prepared to nominate a number. The Treasury, when they make their forecasts, they use an assumption about what the market is expecting and it’s not really for me to do that.

“But interest rates are going to go up further, and that will make life harder for people who are already dealing with these skyrocketing costs of living.”

Aussie men win gold in 4x100m freestyle

Aussie men win gold in 4x100m freestyle

.