Posted: October 14th, 2013 | Author: Verity Penfold | Filed under: Australian Home Prices | Tags: Australian Home Prices, Australian Property Market, Business News, Home Loan, Mortgage, RBA, Real Estate News, Renovation Planning, Reserve Bank of Australia | Comments Off on Demand Slips for Aussie Home Loans as Buyers Exit the Market
Demand for new home loans by owner-occupiers has slipped backward for the first time this year, first home buyers are deserting the market, official figures show.
The Bureau of Statistics Housing Finance data shows that the number of new mortgages to owner occupiers dropped by 3.9 percent in August to 49,912, seasonally adjusted. The value of loans to property investors held steady.
In the three months to August, the number of loans to owner occupiers for the construction and purchase of new homes rose by 0.3 per cent and was 13.3 per cent higher than the same period in 2012.
This included a 0.2 per cent increase in the number of loans for the construction of a new dwelling during the three months to August, with lending in this segment up 3.6 per cent compared with the same period of 2012. The number of loans for the purchase of new homes was 0.6 per cent higher in the three months to August :: Read the full article »»»»
Posted: February 11th, 2013 | Author: Michael Courtenay | Filed under: Australian Home Prices, Real Estate News | Tags: Australian Property Market, Business News, Home Loan, Mortgage, RBA, Renovation Planning, Reserve Bank of Australia | 1 Comment »
Australia’s Reserve Bank – RBA – figures indicate that Australians are taking out home loans at the slowest annual pace ever recorded, suggesting that the property downturn may be far from over.
Figures from the RBA show total lending to the private sector grew 0.4 per cent in December, with the amount Australians borrowed rising by only 3.6 per cent in 2012. It’s not all doom – though mostly – the RBA data shows housing credit remains the most consistently robust category of borrowing, with a 4.5 per cent rise over the 12 months.
But, that annual housing credit growth rate is the slowest in RBA recorded history, admitedly the figures only go back to 1977.
Home lending growth of 0.3 per cent in December is also one of slowest monthly increases recorded :: Read the full article »»»»
Posted: May 19th, 2012 | Author: Michael Courtenay | Filed under: Business and Economy | Tags: Banks, Business News, Homeloan, Mortgage | Comments Off on Banks Rush to Service Offshore Property Investors
Despite the plight facing banks whose overexposure to property has forced them to write-down billions in losses, Australia’s four largest banks have increased their exposure to commercial property by $3.8 billion in the last six months, according to a report by The Australian Financial Review.
The sharp increase comes as the banks seek to meet growing interest in Australia’s property market from offshore investors at a time when several major global banks, including the Bank of Scotland International and Royal Bank of Scotland, have withdrawn billions from Australia’s property market.
“There has been a big uptick by offshore investors here and a lot of that is being funded by us and the large banks,” CBA head of property Peter Barnes said, according to the AFR. CBRE senior managing director for international investment properties Richard Butler said banks have rushed to capitalise on foreign interest :: Read the full article »»»»
Posted: May 16th, 2012 | Author: Michael Courtenay | Filed under: Mortgage, Renovation Planning, Renovation Tips | Tags: Buying Guide, Investment Property, Mortgage, Renovate to Invest, Renovation Tips | Comments Off on Five Tips To Picking The Right Property to Renovate
Renovating a residential home or investment property is never a risk-free proposition.
Renovating is like opening a can of worms — you can tear down a ricketty old ceiling just to discover disasters like termites or plumbing leaks that eat into your budget and home equity.
Splashing out on a renovation can be less risky when you choose a quality property. It’s often easy to let the emotions guide your purchase – even when your fighting against them.
Keeping a steady head about buying a property can be pretty simple if you follow a few basic rules. Here’s five tips to guide you :: Read the full article »»»»
Posted: May 1st, 2012 | Author: Michael Courtenay | Filed under: Business and Economy, Mortgage | Tags: Interest Rate Cut, Interest Rates, Mortgage, RBA, Reserve Bank Australia | Comments Off on AUSTRALIA: RBA CUTS INTEREST RATE
The Reserve Bank of Australia – RBA -has cut interest rates by 0.5 of a per cent. The 50 basis point fall comes on the back of evidence the economy is begining to labor with weaker-than-expected inflation figures released in late April. Australia’s official interest rate is now 3.75 per cent. The cut is the first significant movement by the RBA since the global financial crisis, the central bank indicated that the size of the cut is related to it’s belief that commercial lenders wouldn’t pass on the full reduction.
“A reduction of 50 basis points in the cash rate was in this instance judged to be necassary… in order to deliver the appropriate level of borrowing rates” RBA govenor Glenn Stevens said in a statement.
The Australian dollar took an immediate dive on the news, instantly dropping half a US cent to a little above $US1.035.
However, the cut is great news for mortgage holders who were earlier this year blindsided with out-of-cycle rate rises by many lenders. If banks pass on the full cut, a .05 percent reduction will save about $95 a month on a mortgage of $300,000. Borrowers will doubtlessly be watching closely to see if financial institutions follow suit. It’s possible that lenders will pass on a smaller proportion of the official drop to their customers.