Higher auction prices linked to sunshine

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AAP| 11 November 2017 https://au.finance.yahoo.com/news/higher-auction-prices-linked-sunshine-163130080.html Sunny days can boost auction prices by more than $11,000, according to new research showing a link between the weather and how much buyers are willing to pay. The sale price of more than 800,000 Sydney properties between 2000-2014 was compared with corresponding weather data from the Bureau of Meteorology in the University of Technology …

Prospects look great for Melbourne apartments

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Mortgage Professional Australia| 5 November 2017 http://www.mpamagazine.com.au/sections/data/prospects-look-great-for-melbourne-apartments-243302.aspx Prospects are looking favourable for Melbourne’s inner city apartment market, with a record number of completions expected this year, according to JLL’s Australia Melbourne Apartment Market Commentary 3Q17. Despite the high number of expected apartment completions, vacancies are falling and rents and prices are rising, reflecting strong underlying demand from Victoria’s growing population. …

The moment ‘houses’ became buildings to live in again

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Rob Burgess| The New Daily| 9 November 2017 http://thenewdaily.com.au/money/property/2017/11/09/house-prices-housing-finance/ Around the time Donald Trump was claiming victory in last year’s presidential election, something shifted within the Australian housing market. While one doesn’t explain the other, the two events are not unconnected – the Trump electoral shock brought raised forecasts for global inflation, and therefore rising interest rates that will eventually impact any …

Interest rates: ANZ joins NAB in predicting the RBA will raise twice next year

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Stephen Letts| ABC| 21 September 2017 http://mobile.abc.net.au/news/2017-09-20/anz-joins-nab-in-predicting-the-next-rba-move-will-be-up/8964804?section=business The ANZ has become the second big bank in a week to forecast the Reserve Bank will turn hawkish and raise rates twice next year. Key points: RBA can’t keep real interest rates negative if growth and inflation picks up as expected argues ANZ Market already dramatically pulled forward expectations of a second …

Sydney, Melbourne property markets holding up ‘stronger than we thought’, says ANZ

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Clancy Yeates| Sydney Morning Herald| 28 September 2017 http://www.smh.com.au/business/banking-and-finance/sydney-melbourne-property-markets-holding-up-stronger-than-we-thought-says-anz-20170927-gyq8m5.html Sydney and Melbourne’s housing markets are performing more strongly than expected partly because of the large number of migrants flocking to the country’s two biggest cities, a senior ANZ Bank executive says. The banking giant this week put tough new restrictions on lending for apartments in Brisbane and Perth, but excluded the Sydney and Melbourne markets, …

How to use your equity gains to buy the investment property you want

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Vanessa de Groot| Domain| 11 August 2017 https://www.domain.com.au/news/how-to-use-your-equity-gains-to-buy-the-investment-property-you-want-20170811-gxuff7/ Since the start of the current growth cycle in the middle of 2012, many property owners have seen the value of their property skyrocket, so much so that some have almost become millionaires in the space of just a few years. Over this time median prices in Sydney and Melbourne have risen …

Nearly half of Sydney and Melbourne property owners have seen their investment double in value

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David Scutt| Business Insider| 29 September 2017 https://www.businessinsider.com.au/nearly-half-of-sydneys-property-owners-have-seen-their-investment-double-in-value-2017-9 In an era of record-low interest rates and high population growth, it’s been a good time to be a home owner in Australia lately, particularly in the nation’s southeastern corner. Property prices in many locations have skyrocketed, creating an immense amount of paper wealth. Nothing quite demonstrates just how well some owners …

UBS thinks Australians have borrowed billions for housing without realising they’re interest-only loans

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Sam Jacobs| Business Insider| 6 October 2017 http://www.msn.com/en-au/money/homeandproperty/ubs-thinks-australians-have-borrowed-billions-for-housing-without-realising-theyre-interest-only-loans/ar-AAsSmDj?li=AA54Gb&ocid=spartanntp The UBS banking team has highlighted another potential red flag in Australian housing, interest-only loans, and more specifically, the number of borrowers who don’t actually know they have one. The latest note follows their “Liar Loans” research about inaccurate mortgage applications, which was based on a survey of 907 mortgagees around Australia. …

The Problem with Property Doomsayers

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Jessica Irvine| Sydney Morning Heralds| 27 August 2017 http://www.smh.com.au/business/the-economy/the-problem-with-property-doomsayers-20170826-gy4r4q.html The team at ABC’s Four Corners assembled a thrilling package about the Australian property boom last Monday. It came replete with forecast of the “perfect storm” for property and an inevitable popping of the property “bubble”. It’s true that the biggest threat to the housing market is the extent to which naive …

It looks like interventions to curb investor heat in Australia’s property market are working

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David Scutt| Business Insider| 29 August 2017 https://www.businessinsider.com.au/apra-investor-lending-measures-review-2017-8 Earlier this year APRA, Australia’s banking regulator, announced further measures to control building financial risks in the Australian property market, limiting the proportion of new interest-only lending to 30% of total new residential mortgage lending. On a top of a 10% annual cap on investor credit growth that was first introduced in …