This week, Treasurer Josh Frydenburg, announced changes to lending rules designed to make it easier to get a loan. Treasurer Frydenburg announced the removal of many Responsible Lending obligations that have forced banks to pore over loan applicants’ living expenses and then decline a loan because a would-be borrower was perceived to spend too much money on the gym or …
Closer to the city? Prices down. The Burbs & beyond? Prices up
A two-speed market is developing for both rentals and owner-occupied properties Research from Corelogic showed that rents have fallen by as much as 10 per cent in certain inner locations since the onset of Covid-19, but that locations some distance from the CBD have enjoyed rental growth. With poor rental returns, it’s difficult to see investors making a bee-line for …
Property to rise instead of fall?
Author – Graeme Salt What happens if the so-called fiscal cliff does not exist? What happens if those who had a mortgage repayment holiday due to Covid-19 can actually recommence making loan repayments? Given that Australia’s property market has held up pretty well, many economists are now softening their predictions on the property market; predicting modest falls due to the …
Why the Reserve Bank is making sure your home loan rate is ultra-low
Once-upon-a-time we used to watch the Reserve Bank like a hawk; if it cut the cash rate, we would just wait for our bank to pass the rate cut on (or not) Now the Reserve Bank is doing something completely different to keep home loan rates down (some as low as 1.99 per cent). The Reserve Bank has offered the …
Aussies now spending in suburban locations
Covid-19 has changed our spending patterns and will have a profound impact on our investments. With so many of us now working from home, in suburban locations, the clever money is in the burbs rather than the CBD. SGS Economics estimates that around $400m in spending on incidentals such as coffees, lunches and alcohol has been diverted from the Sydney …
How Covid-19 Transformed the Property Market
‘Life will never be the same again.’ Its been said non-stop since Coronavirus, but there is no doubt it has accelerated long overdue changes in the property market. Across the board, property-related professions are adapting and thriving despite the virus. Over the weekend, 73 per cent of Australia’s capital city auctions were successful, according to CoreLogic. Of these, Melbourne achieved …
Australia’s Top 10 Oversupply Areas
Covid-19 has turned property demand such that new research maps ‘Danger Zones’ in the propertly market. COVID-19 has led to an immediate (if perhaps temporary) shift outwards in the demand for housing, such that experts have identified two risks property owners face. In some location there is now the risk of negative equity (where a house is worth less than …
Will the bank force you to sell your home?
800,000 borrowers have deferred loan repayments in response to the economic fallout from the COVID-19 pandemic. JobKeeper payments are set to reduce in September and by the end of March 2021, mortgage repayment holidays must stop. What happens to borrowers then? Already one ANZ exec has said foreclosures could a reality for those unable to make repayments. Crunch time is …
First home buyers could save over $70k in government assistance
All levels of government are pulling out the stops to boost the housing market and particularly lend a hand to first home buyers. There’s now a wide range of government grants and stamp duty concessions that are available to first home buyers – potentially saving you thousands of dollars. The table below summarises the grants and concessions for which you …
First-time owners save $10k with special loan
A national lender has slashed its charges to first home buyers who wish to borrow up to 85 per cent of a property – potentially saving themselves up to $10,540. Normally, when borrowers need more than 80 per cent of property value, banks require them to pay Lenders Mortgage Insurance (LMI). However, in this instance, the lender is effectively waiving LMI …