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 …
The fall in the number of home loan approvals continue to accelerate with a 7.9 percent fall in January, the biggest fall for a decade. This follows a revised 5.1 per cent drop in December. As we highlighted in last month’s post, No ‘pent up’ demand for Mortgage Approvals, it …
For years Real Estate agents have been saying you can’t lose with property. Despite this reassurance, Residex research shows 24% of Sydneysiders who have brought and sold property in the past five years have lost. The average shortfall has been more than $54,000 or in many cases, the value of …
With the onset of an election, the government has seized at data from the Australian Bureau of Statistics showing Australia’s unemployment rate is trending down from 5.5 percent in December to 5.3 percent in January. But while more Australian’s are in work, is the result really as rosy as the …
Demand for mortgages has dropped for the third consecutive month in December, with approvals falling a seasonally adjusted 5.5 per cent according to official ABS data. This follows falls in November of 6.1 per cent and October of 2.85 per cent and brings the quarter fall to 13.74 per cent. …
Large falls in mortgage applications is surfacing among mortgage brokers suggesting not all is well in the housing market. The Loan Market Group has indicated home loan approvals have fallen 40 per cent from its peak in 2009. LMG has recorded its slowest month since January 2006. But falls of …
Data from the Australian Bureau of Statistics (ABS) show the prices for houses in Australia has surged in the December quarter. The weighted average for the eight capital cities increased 5.2% for the quarter, bringing the annual gain to 13.6%, once again outstripping wage growth and inflation. » 6416.0 – …
Only a month after the end of the government’s First Home Owners Boost, and cracks are appearing with both borrowers and lenders caught up in the frenzy. The Sunday Telegraph today reports that almost half of the 135,000 first home buyers coax into the First Home Buyers Boost are struggling …
Sales of existing homes in the United States fell 16.7 per cent in the month of December, the biggest monthly drop in 40 years. American First Home Buyers were eligible for a Tax Credit of up to $8,000 which was due to expire on the 30th November 2009, however Congress …
The rental crisis has ended with property developers flooding the market with apartments they have been unable to sell and renters finding cheaper accommodation with the knowledge times are hard and they are worried about their jobs. The number of vacant properties in Melbourne, Sydney and Brisbane has returned close …
In what has been a shock to brokers, Westpac has written to mortgage brokers informing them RAMS branded products will no longer be distributed to third parties, and only marketed to its 92 franchised stores. The Herald Sun writes “WESTPAC’S funding problems have forced it to shut down a key …
The Commonwealth Bank of Australia’s Wealth Management Provider, Colonial First State has been forced to freeze withdrawals from a $850 million mortgage income fund after an increase in bad debts. Colonial has $2.6 billion in funds invested in mortgages. » Colonial Freezes A$850 Million Mortgage Fund, Herald Says – Bloomberg, …
Today’s ABS figures show a shock plunge in the number of loans taken out by owner-occupiers in November. Loans to owner-occupiers fell 5.6%. While the average economist only forecasted a drop of 2.3%, it should have been expected the winding back of the First Home Buyers Boost would have had …
Yesterday the Australian Prudential Regulation Authority (APRA) released a discussion paper detailing the proposed Financial Claims Scheme (FCS). The paper details procedures ensuring when an Australian Deposit taking Institution (ADI) goes insolvent, there is adequate information to enable depositors to be paid promptly. This includes how end of day balances …
Australians are trying to starve off recession by spending, something which can only end in disaster as the debt continues to pile up. Figures from the Reserve Bank of Australia show Australians now have more household debt than the countries’ GDP. Personal Debt is now 100.4 per cent of Australia’s …
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