August 2023 Newsletter
Great news as every home we have under management was rented, it meant we were 100% occupied. We have a few properties available now but not many. If any of our community have friends or family with vacant properties, please let them know to get in touch because we're excited to take on more properties to continue to grow our network.
In local news, it's never a dull moment in Victoria. Since last month, we have had the Commonwealth Games cancelled, inflation creating more headlines, the FIFA women's World Cup, new proposals to ban gas in all new homes... as I said, it's never a dull moment. With new information comes new ideas. What do you think about the Commonwealth Games Cancellation, or the new proposal to ban gas?
Melbourne continues to buzz! We have listed a few exciting events in our community bulletin board below. There's so much to explore and to contribute to our communities.
Thank you and enjoy your day, week, and month!
We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.
- Victorian Government has announced that they will prohibit gas connections in new homes from 1st January, 2024.
Admittedly, we're a bit stumped. Whilst this may sound great for the environment, it's a bold move considering our understanding is that there is not enough electricity in the grid to support the current demand. Naturally, there are lots of exemptions. Here is some more information here.
- There's lots to think about ahead of next week's RBA meeting.
The boomers boosting inflation as the RBA lifts rates to fight it. In the fight to bring down inflation, the Reserve Bank has smashed the more than one-in-three Australians with home loans by dramatically raising interest rates on repayments. However, a further third of our society have paid off their housing. These tend to be the older generations who are enjoying higher asset prices, now coupled with bigger returns from their savings. Data shows they're spending at a rate far exceeding inflation, which is working against the goal of lowering the temperature of the economy. While under-35s have increased spending by 3.4% in the past year, inflation has been closer to 7 per cent, so that's a real cut. Meanwhile, over-35s have increased spending by 7.7%, which is above inflation. People over 55 have gone on a purchasing spree - spending 10.4% more than a year ago, well above how much costs have risen due to inflation. This has a growing number of experts questioning whether interest rates should be used as almost the sole tool to tackle the inflation crisis at an annualised pace of 3.6 per cent on its preferred trimmed mean measure.
- House prices seem to be rising again.
Since last December, house prices across the capital cities have raised 3.4%. There's a lot of mixed commentary about the economy, but housing appears to be back in recovery mode. How long will it last?
- In the commercial market, there seems to be more and more bad news every day.
Lask week, we read about Charter Hall (one of Australia's largest commercial property owners) selling an $80m office block in Kensington, Sydney, to meet the redemptions from one of their funds. We're hearing that this is going to become increasingly common.
- Rental values increase in more than 90% of Australian markets in the past year, according to CoreLogic.
An interesting set of statistics from CoreLogic, which is going to be very relevant to our community of Owners and Renters.
COMMUNITY BULLETIN BOARD
What's new in your neighbourhood? These are a few recent updates that are happening in some of our local communities.
- Winter Night Market in Melbourne
Queen Victoria Market is running the winter night market every Wednesday evening from 5pm until August 31st. Expect food trucks. shopping stalls and lively entertainment with open fires to keep you warm and even a silent disco.
- THE LUME Melbourne
Experience the rich history and culture of our country through an artistic celebration of first nation artwork. The Connection exhibit has been created by 110 artists contributing to nearly 650 artworks.
- Truth. Beauty. Freedom. Love.
Moulin Rouge! The Musical is returning to Melbourne August 20th after a very successful run in 2021. You have until December to see this explosion of energy, but hurry as some shows have already sold out! Expect songs from the movie score, as well as well-known and original numbers, all threaded together in a spectacle of a show!
- National Science Week is August 12th - 20th
Science week is an opportunity to explore! See the science gallery after dark at the social animals party for drinks, bites and live music. See the new Dark Matters exhibit or join the comedy debate. Visit the University of Melbourne's science festival or partake in some citizen science.
CAUGHT OUR ATTENTION
Here are a few things that members of our team have stumbled across over the month. Whether thought-provoking, interesting or entertaining, we want to share them with you.
- Our decisions within our communities have a global impact. This short TED Talks Daily podcast by Anika Goss talks about the entwined relationship between the health of the economy and the effects of climate change. Poverty is further accentuated by negative environmental events.
- “Debating the future of AI". We have been fascinated by artificial intelligence in the past few months, given the rise of ChatGPT, Claude, Barred, and other systems that are now becoming available. This is a fascinating conversation between someone concerned and someone excited about its future.