Our commentary on issues important to home owners, investors and borrowers
Earlier this year, the Australian Securities and Investments Commission (ASIC) warned that the design and sale of consumer credit insurance (CCI) had “consistently failed consumers”.
It has also commenced enforcement action against several lenders, called for customer remediation, and warned CCI vendors to adhere to new rules or cease selling it altogether.
Read MoreIn most places, today, more money is lent to investors than first home owners. Western Australia and Northern Territory are the two current exceptions. When I started in this business it was rare than investment loan totals exceeded that lent to first home buyers. Something is wrong here if you ask me.
Read MoreHousing costs are a big problem for young people. Home ownership is falling fast in Australia, especially among the young and poor. Fewer than half of 25-34 year olds own their home today. Home ownership among the poorest 20% of that age group has fallen from 63% in 1981 to 23% today. At this rate almost half of retirees will be renters in 40 years time.
Read MoreWhen we move to a new house, especially if it’s a big move such as from city to country or from one country to another, the process of moving inevitably changes us. For a start, we are now a newcomer and the “locals” will speak of us that way.
Read MoreAs property prices in Sydney have soared so have the revenues flowing to the State government as it rakes in record levels of tax revenue through the stamp duty on property transfers. This stamp duty, approximately 4% of each property transfer, is a significant impost which increases the savings threshold for first home buyers and acts as a brake on mobility in the property market.
Read MoreSeparate research by National Shelter, and the City Futures Research Centre demonstrate the magnitude of the housing affordability problem for low income households. The authors conclude that housing affordability problems are multidimensional and extend beyond the capital cities. They argue that we need to bolster the economic and social capital of the regions so that they offer greater opportunity to the vulnerable households who have gravitated there.
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.