Rate rises to balance property market
Ray White Chairman Brian White says the prospect of further rate increases by the RBA will prevent the property market from rising too rapidly.
He said the past 12 months had been the most volatile he had experienced in the Australian property industry.
"There's nothing worse than a market getting out of control and the residential market has been remarkably strong over the last four or five months," he said.
"A booming housing market produces very few long-term benefits. Sure, it's great for sales over the short term, but then comes the hangover and the pain."
He ...
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Categories: Finance News. Tags: Gold Coast, Investors, Mortgage Brokers, Property.
Land bargains still available.
People looking to purchase land to build a home should try to North-West Tasmania and Hobart's rural surrounds for land at a bargain price.
The Mersey-Lyell Region and Southern Tasmania have made it on to a list of the five cheapest regional markets in Australia in which to buy residential land.
The Victorian region of Mallee is Australia's cheapest residential land market, with a median lot price of $70,000.
The second cheapest was North-West Tasmania with a median price of $72,500, followed by two regions in South Australia and then Southern Tasmania at mean price of $82,000.
The average residential building ...
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Categories: Finance News. Tags: Mortgage Brokers, Property, Tasmania.
Reduced Grant Leads To Big Drop In First Home Buyers
Business from first home buyers has dropped off dramatically since the Federal Government starting phasing out more generous concessions for people looking to enter the property market, according to leading mortgage broker Loan Market Group.
As part of the Federal Government’s economic stimulus measures, the First Home Owners Grant was doubled to $14,000 for established dwellings and $21,000 for new homes in October last year.
But the package was pared back from September 30 this year with first time buyers entering into new contracts now receiving a total of ...
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Categories: Finance News. Tags: First Home Buyer Grant, Loan Market, Mortage.
Australia’s population set to explode
The Australian Treasury has predicted our population will rise from 22 million to 35 million by 2049.
Treasury Secretary Ken Henry said the major cities would experience the most significant growth.
"On quite reasonable assumptions, we can imagine Sydney and Melbourne growing from four-and-half million and four million people today to cities of almost seven million," he said.
"Brisbane, we think, will more than double in size to be four million people 40 years from now.”
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Source: brokernews.com.au
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Categories: Finance News. Tags: Australian Population, Brisbane Property, Melbourne Property, Sydney Property.
Cleared auction numbers increasing
The total number of cleared real estate auctions has increased in all of Australia’s capital cities except Brisbane during the first two weeks of October.
Figures revealed by RP Data showed Adelaide had the biggest rise, with the number of cleared auctions increasing from 29 in the week to October 4 to 46 in the week ending October 11.
Brisbane’s numbers dropped from 33 to 30 cleared auctions for the same period.
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Source: yourmortgage.com.au
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Categories: Finance News. Tags: Adelaide, Auction, Brisbane, Property.
Can't be too timid: RBA
Reserve Bank governor Glenn Stevens revealed that Australia’s weakest financial period had ‘probably past’ at a function in Perth this morning.
Mr Stevens said monetary policy would be recalibrated to reflect the changing economy.
"If we were prepared to cut rates rapidly, to a very low level, in response to a threat but then were too timid to lessen that stimulus in a timely way when the threat had passed, we would have a bias in our monetary policy framework," Mr Stevens said.
Loan Market Chief Operating Officer Dean Rushton said most economic forecasters expected official rates ...
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Categories: Finance News. Tags: Dean Rushton, Loan Comparison, Loan Market, Variable Interest Rates.
New research: house prices tipped to rise 20 per cent
New research from BIS Schrapnel suggests house prices will climb by almost 20 per cent over the next three years.
This means the average house price will go up by more than $100,000.
An article from The Herald Sun said the report showed house prices rising by 3 per cent this financial year and 8 per cent in each of the following years.
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Categories: Finance News, Property. Tags: Australia, Budget, House Prices, Loan Market, Property.
There is speculation the major banks may increase their rates beyond the official cash rate due to higher funding costs.
According to a report in The Sunday Telegraph, the National Australia Bank revealed that the costs of short term funding will increase by 0.10 and add 0.20 over the next six months.
If these costs are passed on, this will mean an extra $40 per month on a $300,000 mortgage for home owners.
Loan Market Executive Director said mortgage holders should have their finance package reviewed regularly, to see if there are better deals available to suit their current situation.
Options to ...
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Categories: Finance News. Tags: Home Loans, Interest Rates, Loan Market, Mortgage Refinancing, Refinancing.
Major banks should not have passed on entire interest rate rise
Consumer group Choice has spoken out against the major banks, saying they should not have increased their lending rates by the entire 25 basis points after the RBA increase last week.
Choice spokesperson Christopher Zinn said that previously the banks had indicated that the cost of funding was not directly tied to the cash rate.
Mr Zinn said this should have applied when raising rates as well as lowering them.
"The banks really should just have passed on part of this increase in the cash rate and not the full 0.25% if they ...
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Categories: Finance News. Tags: How Much Can I Borrow, Interest Rates, John Kolenda, Loan Market.
Unemployment rate fall may lead to interest rate hike
New figures released by the Australian Bureau of Statistics have revealed the unemployment rate has dropped back to 5.7 percent over September, from 5.8 per cent in the previous month.
The drop took economists by surprise, with most expecting the jobless rate to go up to 6 per cent, as employers hold tight on costs while the economy is in recovery mode.
CommSec chief economist Craig James said the upbeat unemployment figures may prompt the RBA to raise rates by as much as 0.5 per cent at their meeting next month.
Australia’s big four banks, ...
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Categories: Finance News. Tags: Interest Rate, John Kolenda, Loan Market, Unemployment Rate.
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