The truth about the ban on foreign property investors

New ban on foreign investors, rent-vesting on the rise, and Telstra tops telco complaints list. Here are five things you may have missed this week.

Foreign investors banned from buying Aussie homes

The Albanese Government will ban foreign investors from buying established homes for at least two years from April 1, 2025, to March 31, 2027.

The optics may look good as we head into an election. But the ban on foreign buyers is unlikely to relieve poor housing affordability.

It's estimated that of the 520,000 homes sold in Australia annually, fewer than 5000 (less than 1%) go to foreign buyers.

Ironically, the February rate cut could be the thing that makes life harder for first home buyers.

Research by CoreLogic shows previous rate cuts have pushed home values higher, by an average of 6.1% for each 1% drop in the cash rate.

Denton Pugh, NAB Executive for Home Lending, says past experience shows house prices "typically bounce in the first 3-4 months following a rate cut", but he adds that this time around, "any uplift might be a bit more modest".

High numbers of homes listed for sale, especially in Sydney and Melbourne, are likely to keep property price growth in check.

Apple releases new, cheaper iPhone

Expect to see long queues outside Apple stores on February 28, when Apple's new iPhone 16e hits the shelves.

The phone has all the usual bells and whistles, but Apple says it represents a commitment to more affordable devices and will be priced from $999 - about $400 cheaper than the iPhone 16.

Shoppers can expect to get up to $210 in credit when they trade in iPhone 11, or up to $270 in credit when they trade in iPhone 12.

'Rent-vesting' on the rise as more Australians look to buy in 2025

More than half (54%) the nation's first home buyers are considering 'rent-vesting' to get into the property market - up 4% from last year.

'Rent-vesting' involves buying an investment property, often in an affordable area, while renting in your preferred (less affordable) neighbourhood.

The idea is that it provides a leg-up into the property market, with the rising value of the rental property going towards buying an owner-occupied home at some stage.

Westpac research shows NSW is the rent-vesting capital of Australia, with 61% of first-time buyers considering rent-vesting, followed by Victoria (54%) and Queensland (52%).

Damien MacRae, Westpac managing director of mortgages, says rent-vesting is growing in popularity "as more buyers look to get their foot on the property ladder sooner, particularly in capital cities where housing prices are typically higher".

Not happy Jan: Telco complaints surge

Australia's telcos are missing the mark for customer service, with a 13% surge in complaints in the final quarter of 2024.

The Telecommunications Industry Ombudsman (TIO) found that among the 13,645 complaints made by consumers (and remember, this is just for one three-month period), the leading concerns were around lack of, or delayed, action by a telco, lack of phone or internet service, and service and equipment fees.

Telstra, Optus and Vodafone continue to have the highest proportion of complaints, with Telstra racking up more than 5500 formal complaints in the quarter.

Telecommunications Industry Ombudsman Cynthia Gebert notes there has been an increase in "persistent challenges" with patchy service and dropouts, and no phone or internet service, and adds that telcos can do more to resolve complaints.

It costs nothing to reach out to the TIO for help, but you will need to try and resolve the issue with your telco first. The TIO can be contacted on 1800 062 058.

One in five young drivers uninsured

One in three (36.5%) drivers aged 18-26 have been in a car accident.

Yet these younger drivers are also least likely to be insured, with one in five having no comprehensive car cover.

That's according to a Compare the Market survey, which found almost 20% of young drivers have a bingle within just one month of getting a car.

For drivers aged over 26, the likelihood of having a prang is highest when they've owned the vehicle for at least two years.

Sure, car cover can be pricey for younger drivers. But it can also prove to be a money saver.

Compare the Market found only 7% of drivers who've had a car accident walked away without their car needing repairs. Almost one in five said their car ended up being a write-off.

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