Aug 13, 2025 | Economic News, Market Analysis, Real Estate
Navigating the Dynamic Tides of Australia’s Commercial Property Market in 2025
Ah, the Australian commercial property market—a landscape as vast and varied as our beloved outback. And just like any ambitious outback expedition, venturing into this market requires an understanding of the shifting sands underfoot. This year, three key forces are shaping the horizon: interest rates, unemployment, and the federal government’s new $3 million superannuation tax changes. Each of these factors is like a different shade of a sunset, beautiful yet telling of the weather to come.
Interest Rates: The Ever-Fluctuating Compass
Let’s start with interest rates, the financial equivalent of your morning coffee—necessary and occasionally, just a little too stimulating. The Reserve Bank of Australia (RBA) has recently cut rates to 3.6%, marking the third reduction in 2025 alone. This is great news for those who’ve been treading water, hoping for a buoy. Lower borrowing costs are like the siren call for activity in niche asset types such as childcare centers and smaller-scale commercial properties, which are now more accessible to savvy investors.
As Vanessa Rader, Ray White’s head of research, astutely points out, these subtle shifts in rates do wonders for market confidence. It’s like offering a map to a weary traveler—suddenly, the path forward isn’t quite so daunting. Investors should keep an eye on these rates as they navigate their next moves, particularly in the sub-$5 million price range where activity is set to pick up.
Unemployment: The Hidden Undercurrent
Next, we have unemployment, an undercurrent that can subtly reshape the landscape. Australia’s unemployment rate has risen to 4.3% as of June, a slight increase from May’s 4.1%. While these numbers might seem like minor fluctuations, they have a ripple effect across the commercial property market, particularly in office and retail sectors where leasing demand could wane.
Ms. Rader suggests that official unemployment figures might be underestimating the real picture. Like a minor crack in a windshield, the true impact can only be seen over time. Investors should remain cautious and consider how these employment trends might affect tenant demand and rental income potential.
Superannuation Tax Changes: The New Frontier
Finally, looming large on the horizon is the federal government’s proposed superannuation tax changes. For those with super balances over $3 million, these changes are like discovering your favorite coffee shop now charges a cover fee—unexpected and somewhat unwelcome. This proposal has already stirred concern among self-managed super fund (SMSF) investors, particularly those holding commercial property.
If enacted, this tax change could lead to a flurry of assets hitting the market as investors recalibrate their portfolios. It’s a bit like a game of musical chairs, where the music could stop at any moment. Investors should prepare for potential shifts in asset availability and pricing, and consider how these changes might influence their long-term strategies.
Actionable Insights for Investors
So, how does one navigate these waters without going overboard? First, keep a vigilant eye on interest rate movements and be ready to act when opportunities in niche sectors present themselves. Secondly, maintain a broader perspective on employment trends and how they might affect leasing dynamics. Finally, stay informed about legislative changes and prepare to adapt your strategy accordingly.
The commercial property market can be as unpredictable as Sydney’s weather, but with the right insights and preparation, investors can chart a course through 2025 with confidence. After all, understanding these market forces is like knowing the tide schedule—it doesn’t guarantee smooth sailing, but it certainly helps avoid the rocks.
Conclusion: Navigating with Confidence
In conclusion, the interplay of interest rates, unemployment, and superannuation tax changes will define the Australian commercial property market this year. Investors who stay informed and adaptable will be best positioned to seize opportunities as they arise. It’s a complex dance, but with a bit of savvy, you can lead rather than follow.
For those seeking insightful guidance through these turbulent times, consider partnering with experts who not only understand the numbers but also the nuanced dance of the market. After all, the right guide can turn a challenging journey into a rewarding adventure.
Aug 1, 2025 | Investment Property
Big changes are coming to superannuation from July 2025. The most important change is that employers must now pay 12% into your super instead of 11.5%. This completes a long series of increases that started years ago.
These changes will affect your take-home pay and could impact your ability to borrow money for a home. Here’s what you need to know and how to prepare.
What’s Changing in July 2025
Super Guarantee Goes Up to 12%
What happens: Your employer must put 12% of your pay into super from July 2025. This is up from 11.5% now.
Real example: If you earn $70,000 per year, an extra $350 will go into your super account. That’s money that won’t be in your pay packet anymore.
The trap: The limit for pre-tax super contributions stays at $30,000 per year. If you already put extra money into super through salary sacrifice, you might go over this limit and face tax penalties.
More Money Allowed in Retirement Super
What happens: Retirees can now hold $2 million in tax-free super (up from $1.9 million).
Why it matters: For couples, this means an extra $200,000 can earn tax-free income. At 5% returns, that’s $10,000 extra per year with no tax.
Who benefits: People with large super balances who want to move more money into the tax-free retirement phase.
Government Co-contribution Changes
What happens: More people can now get up to $500 from the government when they put their own money into super.
New rules: You can get the full $500 if you earn up to $47,488 per year. The benefit cuts out completely at $62,488.
How it works: For every $1 you put in (up to $1,000), the government adds 50 cents.
Contribution Limits Stay the Same
No change: You can still put up to $30,000 of pre-tax money into super each year. After-tax contributions are capped at $120,000.
Important note: High earners (over $250,000) still pay extra tax on super contributions.
How These Changes Affect Property Buyers
Less Take-Home Pay
The 0.5% super increase means less money in your pay packet each week. For a couple both earning $80,000, this means about $65 less per month to spend.
For new home buyers: Banks might lend you less money because your take-home pay is lower. This could reduce your borrowing power by $10,000 to $15,000.
For current homeowners: Check your budget to make sure you can still afford your mortgage payments.
More Options for Retirees
The higher super limits create new opportunities for people near retirement:
- Pay off investment property loans faster
- Fund home improvements
- Help adult children buy property
- Downsize without immediate tax problems
Four Steps to Prepare
1. Check Your Super Contributions
Add up all the money going into your super:
- Your employer’s contributions (now 12%)
- Any extra you put in through salary sacrifice
- Personal contributions you make
Make sure the total stays under $30,000 per year. If it doesn’t, you’ll pay penalty tax.
2. Review Your Budget
Calculate how much less take-home pay you’ll have:
- Multiply your annual salary by 0.5%
- Divide by 52 to get the weekly reduction
- Check if this affects your ability to pay bills or save for a house deposit
3. Claim Government Money
If you earn between $37,000 and $62,488:
- Put up to $1,000 of your own money into super before June 30
- The government will add up to $500
- This is a guaranteed 50% return on your money
4. Plan for Retirement
If you’re over 55:
- Consider starting a pension with your super money
- Take advantage of the higher $2 million limit
- Speak to a financial adviser about restructuring your super
What This Means Long-Term
While you’ll have less spending money now, the extra super contributions will grow over time. A 30-year-old could have an extra $50,000 to $80,000 when they retire because of this 0.5% increase.
The government designed these changes to help Australians save more for retirement. This reduces the number of people who will need the age pension in future.
Why These Changes Matter Now
These super changes happen during a time when:
- Interest rates are high
- Everything costs more due to inflation
- Many families are already struggling with money
The timing makes it extra important to plan ahead and adjust your budget.
Common Questions
Q: Can I opt out of the super increase? A: No, all employers must pay 12% super for eligible workers.
Q: What if I go over the $30,000 contribution limit? A: You’ll pay extra tax on the excess amount. It’s better to reduce your salary sacrifice to stay under the limit.
Q: Should I put less into super now? A: It depends on your situation. The extra 0.5% from your employer is free money that grows tax-free. But you might need to reduce voluntary contributions.
How Sanford Finance Can Help
We understand how super changes affect your ability to borrow money. Our team can help you:
First home buyers: We’ll show you how the super increase affects your borrowing power and help you plan your deposit savings.
Property investors: We’ll help you understand how super changes interact with your investment strategy.
Pre-retirees: We work with your financial planner to make sure your property and super strategies work together.
Current borrowers: We’ll review how the changes affect your current loans and future borrowing plans.
Our advisers stay up-to-date with all the latest rules and can guide you through the changes that affect your specific situation.
Take Action Now
Don’t wait until July to prepare for these changes. Start planning now to:
- Avoid going over contribution limits
- Keep your mortgage affordable
- Take advantage of government incentives
- Maximize your retirement savings
The earlier you plan, the better positioned you’ll be when the changes take effect.
Important: This information is general advice only. Super and tax rules are complex and change often. You should get personal financial and tax advice before making decisions. This article is current as of August 2025 and rules may change.
Aug 1, 2025 | Property Market
Australia’s Housing Crisis: Proposed CGT Reforms
Australia’s housing crisis has prompted calls for tax reform to encourage more building. Recent commentary suggests that the federal government is considering changes to the capital-gains-tax (CGT) rules that would reward property developers and investors who add new homes to the market. Under the proposal, tax obligations on newly built dwellings would be reduced, while concessions on existing detached homes could be trimmed. The goal is to incentivise construction and increase supply rather than simply curb demand.
What is being proposed?
The McKell Institute has suggested a targeted CGT reform that would:
- Increase the CGT discount on new attached builds to 70 percent (up from the current 50%), providing a greater incentive to invest in medium-density housing.
- Decrease the CGT discount on existing detached dwellings to 35 percent, discouraging speculative purchases of older homes.
- Maintain the current 50 percent discount on new detached houses and grandfather all existing investments so current owners aren’t adversely affected.
Supporters estimate that the changes could deliver up to 130,000 additional homes by 2030, helping Australia meet its National Housing Accord target. By directing incentives toward the supply side, the reforms aim to ease upward pressure on prices and rents.
Potential benefits for investors
- Stronger incentives for new builds: A larger CGT discount on new attached dwellings would improve after-tax returns for investors who fund townhouses and apartments. This could make development more attractive relative to purchasing existing stock.
- Balanced portfolio opportunities: Investors may benefit from diversifying into medium-density developments that attract higher CGT discounts, while still retaining existing properties under current rules.
- Long-term market stability: By expanding housing supply, the reforms could moderate price growth and reduce volatility, creating a more sustainable investment environment.
Things to consider
- Legislative uncertainty: The proposal is still under consideration and may change during consultations. Investors should follow official announcements for final details.
- Project timelines: Building new homes takes time, and investors should factor in planning approvals, construction costs and market demand.
- Broader tax planning: Any CGT changes will interact with other tax settings, such as negative gearing and state duties. Understanding the combined effect is essential.
How Sanford Finance can help
If CGT incentives for new developments are introduced, investors will need flexible funding options to seize opportunities. Sanford Finance works with a panel of lenders that specialise in construction finance, investment loans and property development funding. We can help you assess project feasibility, structure lending to maximise after-tax returns and navigate changing tax rules.
Speak with one of our advisers to explore how potential CGT reforms could fit into your investment strategy.
Disclaimer: This information is general in nature and should not be considered tax advice. Consult a qualified tax professional for personalised guidance.
Aug 1, 2025 | Interest rates
RBA Split on Interest Rates: What It Means for Your Home Loan
The Reserve Bank of Australia (RBA) kept interest rates the same in July. But new meeting notes show the decision was close.
Six board members wanted to keep rates at 3.85%. Three members wanted to cut rates. This split decision tells us a lot about what might happen next.
Why The Board Disagreed
Those Who Wanted Rate Cuts
Three board members thought it was time to lower rates. Here’s why:
- Prices are rising more slowly now
- The economy is slowing down
- Families and businesses need help with costs
- Waiting too long might hurt the economy
Those Who Wanted to Wait
Six board members wanted more time. Their reasons:
- Jobs market is still strong
- They want to see more proof that inflation is under control
- Better to be safe than sorry
- New data is coming soon
What Happens Next
The RBA will get important new numbers before their August meeting:
- Inflation data: How fast prices are rising
- Jobs data: How many people are working
If these numbers look good, rates might come down in August. Markets think this is likely to happen.
What This Means for Your Home Loan
Right Now
- Your mortgage rate stays the same
- No changes to loan payments yet
- A small break for borrowers
If Rates Drop in August
- A 0.25% cut could save you hundreds per year
- Example: On a $500,000 loan, you might save $100 per month
- It might be easier to get approved for a new loan
How to Prepare for Rate Changes
1. Check Your Budget
Look at your monthly spending now:
- Work out what you spend on essentials
- See where you can cut back if needed
- Save some money for emergencies
- Plan for different rate scenarios
2. Look at Refinancing
If you have a variable rate loan:
- Talk to a mortgage broker about better deals
- See if you can get a lower rate with your current bank
- Get pre-approved so you can act fast
- Compare what different lenders offer
3. Think About Fixed Rates
Some people prefer knowing exactly what they’ll pay:
- Fixed rates give you certainty
- You could split your loan (part fixed, part variable)
- This gives you some protection either way
- Talk to an expert about what works for you
4. Watch the News
Keep an eye on these important dates:
- Late July: New inflation numbers
- Early August: Jobs report
- First week August: RBA meeting
- After the meeting: Banks might change their rates
Why This Split Decision Matters
When RBA board members disagree this much, it usually means:
- Rates are close to changing
- The economy is at a turning point
- The next few weeks of data are very important
- Banks are getting ready to move
Questions People Are Asking
Q: Should I fix my rate now? A: It depends on your situation. If rates drop, variable might be better. If you want certainty, fixed could work.
Q: Will all banks cut rates if the RBA does? A: Most banks follow the RBA, but they don’t have to. Some might cut more, some less.
Q: How fast do rate cuts happen? A: Usually within a few days of the RBA announcement.
What to Do Right Now
Don’t wait to prepare:
- Review your loan: Check your current rate and terms
- Build savings: Put aside extra money while you can
- Research options: Look at what other lenders offer
- Get advice: Talk to a mortgage professional
- Stay informed: Watch for the new economic data
The Bigger Picture
This rate decision shows the RBA is being very careful. They want to help the economy without letting inflation get out of control.
For homeowners, this is good news. It suggests rates are more likely to fall than rise in the coming months.
How Sanford Finance Can Help
Interest rate changes can be confusing. Our team watches these developments closely and knows how they affect your loans.
We can help you with:
Current borrowers:
- Review your loan to find better deals
- Explain how rate changes affect your payments
- Help you decide between fixed and variable rates
Home buyers:
- Get pre-approved before rates change
- Find the best loan for your situation
- Navigate the application process quickly
Property investors:
- Structure loans for multiple properties
- Plan for rate changes in your investment strategy
- Maximize tax benefits
Business owners:
- Review business loan options
- Plan cash flow for rate changes
- Find competitive commercial rates
Get Expert Help
Don’t guess about interest rates. Get professional advice tailored to your situation.
Call us: (02) 9095 6888
Visit: Our office for a face-to-face chat
Online: Check our website for current rates
We’ll explain your options in plain English and help you make the right choice.
Important: This is general information only. Interest rates and loan terms can change quickly. Always get personal advice from a qualified mortgage professional before making decisions about your home loan.
Jun 11, 2025 | Sanford Team, Uncategorized
Sydney-based finance company receives prestigious nomination in Professional Services category
Sanford Finance has achieved a significant milestone by being named a finalist in the 2025 St George Local Business Awards, competing in the highly competitive Professional Services category. This recognition highlights the company’s exceptional service delivery and strong community presence in Sydney’s St George region.
Excellence in Local Business Recognition
The St George Local Business Awards represent one of the region’s most prestigious business recognition programs, celebrating outstanding achievements across diverse industry sectors. The awards focus on businesses that demonstrate excellence in customer service, innovation, and meaningful community engagement.
Being selected as a finalist from numerous applicants underscores Sanford Finance’s commitment to delivering superior mortgage and financial services while maintaining strong ties to the local business community.
Leadership Perspective on the Achievement
Ivo De Jesus, Director of Sanford Finance, expressed his pride in the team’s recognition: “Being acknowledged as a finalist in the St George Local Business Awards represents a significant honor for our entire team. This recognition validates our dedicated efforts to deliver personalized financial solutions and reinforces our unwavering commitment to serving the community we call home.”
The nomination reflects Sanford Finance’s approach to business, which prioritizes building lasting relationships with clients while providing tailored financial solutions that meet individual needs.
Community-Centered Business Philosophy
Sanford Finance’s finalist status stems from its community-focused approach to financial services. The company has built its reputation on:
- Personalized Service: Tailoring financial solutions to meet each client’s unique circumstances
- Local Expertise: Deep understanding of the St George area property market and community needs
- Client Relationships: Building long-term partnerships rather than transactional interactions
- Community Engagement: Active participation in local business networks and community initiatives
Comprehensive Financial Services
As a specialist in mortgage and finance solutions, Sanford Finance offers a comprehensive range of services including:
- Home loans for first-time buyers, investors, and refinancing clients
- Commercial and business financing solutions
- Asset and equipment finance
- SMSF lending and investment finance
The company’s expertise spans across multiple lending institutions, enabling them to secure competitive rates and terms for their diverse clientele.
Gratitude to Clients and Community
The achievement would not have been possible without the continued support of Sanford Finance’s clients and the broader St George community. The company acknowledges that this recognition belongs to everyone who has contributed to their success story.
“Our clients’ trust and the community’s support have been instrumental in reaching this milestone,” noted De Jesus. “This nomination motivates us to continue striving for even greater excellence in everything we do.”
Looking Ahead to the Awards Ceremony
The anticipation builds as the St George Local Business Awards ceremony approaches, where winners across all categories will be announced. The event promises to be a celebration of local business excellence, bringing together entrepreneurs, community leaders, and business professionals from across the region.
Sanford Finance looks forward to joining fellow local businesses at this prestigious event, regardless of the final outcome. The recognition as a finalist already represents a significant achievement for the company and its dedicated team.
Continued Commitment to Excellence
This nomination reinforces Sanford Finance’s position as a leading financial services provider in the St George area. The company remains committed to:
- Expanding their service offerings to meet evolving client needs
- Maintaining the highest standards of professional service
- Contributing positively to the local business community
- Innovating their approach to financial solutions
About Sanford Finance
Sanford Finance is a Sydney-based mortgage and finance company specializing in tailored financial solutions for individuals and businesses. With extensive industry experience and a network of trusted lending partners, the company prides itself on delivering exceptional service while maintaining strong community connections.
For more information about Sanford Finance’s services or to discuss your financial needs, contact:
Phone: (02) 9095 6888
Email: [email protected]
Website: sanfordfinance.com.au
The company continues to provide expert guidance and personalized financial solutions to clients throughout Sydney and the St George region, building on the foundation of trust and excellence that earned them this prestigious recognition
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