Our commentary on issues important to home owners, investors and borrowers
The next time you engage a conveyancer, it is a good idea to quiz them on their email and internet security protocols. For now this is a point of vulnerability, which if not adequately protected, could you leave you with a serious financial shortfall.
Read MoreThe peak body for Mortgage Brokers, the MFAA has issued a strong defence of the current lending industry structure following bad publicity emanating from the Royal Commission into the banking sector. Whilst nearly all of the bad behaviour exposed by the Commission has fallen directly at the feet of the banks, some of the major banks have tried to use the commission as an opportunity to wrest back control of the lending market.
Read MoreIn news this month, AMP Capital economist Shane Oliver has stated that he is not expecting interest rates to change until 2020, a view increasingly supported by actions from the RBA who are looking to maintain a balance between economic growth and a cooling property market.
This is good news for those wanting low mortgage rates, with young Australians still very keen on buying property - ING’s Millennial Homeownership Report finding three quarters of 22-37 year olds are ready to make substantial sacrifices to save for a home beyond just forgoing luxuries.
Read MoreHistorically Australian government strategy, implemented via the FIRB, has been to funnel foreign investment in real estate into creating more housing stock. According to the report, that was the case this financial year with 85% of approvals being for new dwellings or vacant land for development. But we also know that there have been problems with compliance with this law due to poor oversight - many overseas buyers were simply ignoring the guidelines and buying local real estate anyway.
Read More45% of the new full-time jobs on the Sunshine Coast over the last five years have been in construction. Across all employment types, the Sunshine Coast saw full-time jobs losses last year of 210 and a 1,155 fall in construction positions. The Sunshine Coast is creating jobs but not necessarily full-time ones. This will have an impact on what type of housing is needed and where it is located.
Read MoreIn this month’s edition, the real estate slowdown across the country continues, with Domain Group data showing national property prices slumping 1.2% in the 3 months to March. Over the year however, prices were up 6.3% on CoreLogic data, with Tasmania taking out top spot for six of the 10 most sought-after suburbs in the country.
Read MoreLoanscape is your information resource about lending and property.
Combined dwelling values have re-accelerated across the nation in February, with all mainland capitals soaring in value. It probably comes as no surprise that Perth claimed the top spot by gaining a whopping 1.8% for the month
Loanscape has today released its Borrowing Capacity Index for Q1/2024. It shows that the borrowing capacities of Australian individuals and families continue to decline. The more modest decline in the size of average loans being taken confirms that lower income borrowers are being disproportionately impacted by interest rate hikes: the family income required to qualify for the average loan in Australia is now 32% higher than 18 months ago.
The end of the year is fast approaching, with most capitals experiencing a strong recovery on dwelling values from the downturn that culminated at the start of 2023.
The recovery is mainly due to an influx of immigration and constricted supply, which the Government is trying to remedy with its ambitious goal of building 1.2 million homes by 2029 through HAFF.
In this months report, the $10bn Housing Australia Future Fund (HAFF) has finally passed the Senate after the Labor Government struck a deal with the Greens to add another $1bn for public and community housing. The HAFF plans to build 30,000 social and affordable homes in the next five years; though, national spokesperson for Everybody’s Home, Maiy Azize says it won’t solve the existing “shortfall of 640,000 homes”.
In this months news, CoreLogic’s Mapping the Market tool shows rent values rose in over 90% of Australian markets over the last 12 months, with Adelaide and Perth’s suburbs topping the list.
In response, the National Cabinet has introduced new measures to counter the rising housing crisis, including a New Home Bonus, a Housing Support Program and a National Planning Reform Blueprint.
It has also agreed to A Better Deal for Renters, which will streamline renters’ rights across the nation with consistent policies for eviction grounds, rental standards and limits on rent increases.
Loanscape has today released its Borrowing Capacity Index for Q2/2024. It shows that the borrowing capacities of Australian individuals and families have stabilised after the sharp decline over the past 2 years. Lower income borrowers continue to be disproportionately impacted by interest rate increases: the family income required to qualify for the average size loan in Australia is 35% higher than 2 years ago.