In what will be another blow to Rudd policy, the number of victims of the First Home Owners (Vendors) Boost is starting to mount. The Sydney’s Sunday Telegraph has published a story today of several first home owners from Sydney’s southwest where falling prices have resulted in negative equity, and …
The Australian Bureau of Statistics has released their quarterly update to its House Price Index today, showing Australian houses surged an unsustainable 20.0 percent across the eight capital cities in the year to March. This was the largest yearly increase since this index was first created. Melbourne lead the race …
According to Edward Chancellor, author of the book titled Crunch Time for Credit (2005) and a member of US Investment Firm GMO’s asset allocation team, Australia is in the midst of an unsustainable housing bubble that could burst at any time. It’s hard to argue with these claims when reports …
Insurance companies have backed away from the new Home Warranty Insurance Scheme in NSW saying it is not worth their while to insure builders who go broke or are sued for faulty work. This has forced the NSW State Government to take over polices from the 1st July. When Beechwood …
According to The Economist, Australian housing is now 56.1% overvalued based on the long run average of price to rent ratios. The price to rent ratio is seen as similar to that of the PE (price/earnings) ratio used to value shares. Australia is in 1st position on the leader board …
The federal government has no idea how many Australian properties are being snapped up by foreign buyers. According to the Sydney Morning Herald, a government analyst confirmed that no data has been kept on purchases since the administrative changes to the foreign investment laws opening up the flood gates to …
According to data released from the Real Estate Institute of Victoria, the Melbourne median house price fell two percent in the March quarter. This comes amid claims the market was glowing white [hot]. On Tuesday this week, the Sydney Morning Herald said buyers were retreating from the Melbourne property market …
Official figures out today from the Australian Bureau of Statistics show home loan approvals fell 1.8% in February, the fifth consecutive fall. This has prompted some economists to forecast house asset price falls in the next coming months. According to the Sydney Morning Herald, Matt Robinson, an economist from Moody’s …
The Adelaide Advertiser today published figures from the Valuer-General showing the medium house price in Adelaide is now $405,000. The Advertiser expresses concern of its sustainability, writing “Property owners have benefited from the 243 per cent increase in housing prices over the past 10 years, but those seeking to enter …
The Reserve Bank of Australia has today raised the official cash rate from 4 per cent to 4.25 per cent and says there is more to come. In a media release following the rise, the RBA said “Interest rates to most borrowers nonetheless have been somewhat lower than average. The …
Housing Minister, Tanya Plibersek indicated in a interview with the 7:30 report, that one of the objectives of the First Home Owners Boost was to keep the construction sector strong. According to Plibersek, the construction sector accounts for about 9% of employment in Australia. But as predicted, when the government …
Any doubt Australia was not experiencing an ever accelerating housing bubble was squashed yesterday, when RP Data – Rismark released house price data for February. In Darwin, Residential Property (Units & Houses) increased 19.7% for the year to February 2010. This was closely followed by Melbourne (19.3%), Canberra (14.7%), Sydney …
In a press release issued by the Real Estate Institute of Australia (REIA), REIA president, Mr David Airey said he was stunned to hear RBA Governor Glenn Stevens tell Channel 7 Sunrise viewers that “property was no longer the easy path to prosperity”. In substantiating his claims that property can …
Glenn Stevens, Governor of the RBA made his strongest indication the reserve bank is worried by Australia’s surging property bubble in a prerecorded interview on Channel 7’s Sunrise. He said “I think it is a mistake to assume that a, you know, riskless, easy, guaranteed way to prosperity is just …
In his speech on Friday to the ACI2010 49th World Congress, Reserve Bank of Australia Governor, Glenn Stevens used the analogy that the global financial system had suffered a near death experience and is now beginning to recover gradually. “The global financial system is gradually recovering its poise, after a …
With mortgage approvals in Australia falling of a cliff, and Real Estate agents reporting such a strong property market at a time when the market is flooded with near record levels of listings, one has to ask who is buying? Mortgage approvals in Australia are down 21 percent from its …
Figures from the Australian Taxation Office shows Australian Residential Property Investors collectively raked up losses totaling $8.6 billion dollars, in a bid to avoid $4 billion in Tax. The $8.6 billion dollar loss is a increase of 35 per cent over the previous year with Queensland and NSW attributing to …
For many off the plan property investors, this year is turning into a nightmare. Many investors have brought apartments off the plan before their buildings and apartments have been built. They lay down a deposit and pay the remainder on settlement when the keys are handed over, sometimes as much …
Sydney has recorded a record 2860 houses and units up for Auction this month, double the 1400 listings in March last year. Under the weight of these extra listings, the clearance rate in the Northern Beaches has plunged from 60 per cent last month to just 30% so far this …
Following a “comprehensive” risk assessment of the Commonwealth Bank’s $270 billion home mortgage book, the CBA has decided to restrict lending to potentially risky property investors by reducing the LVR to 80 per cent for investment home loans, effective from March 20th. The changes will require residential property investors to …
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