Real Estate & Mortgage News in Australia from Propertyshowrooms.com

Australian house prices 'expected to fall in 2012'

Thu, 15 Dec 2011 00:00:00 GMT

The Australian residential real estate market is likely to see price falls of between five and ten per cent next year, it has been claimed.

Professor from the University of Western Sydney Steve Keen told the Sydney Morning Herald people should expect to see the sector decline in 2012.

"The main force that will drive prices down is precisely the same force that drove them up: the acceleration of mortgage debt," he asserted.

His predictions appear to be backed up by the latest data published by ANZ, with The Economy News citing figures from the financial institution that show the Australian property market is slowing down.

The report claims the country's cooling economy will be reflected in the housing market, noting investors remain cautious.

However, the ANZ study did point to a slight increase in the number of first-time buyers entering the market, which David Cannington, a representative for the firm, attributed to improved affordability following interest rate cuts and falling house prices.

Number of Australian mortgages up

Fri, 9 Dec 2011 00:00:00 GMT

The number of mortgages processed in November for those buying property in Australia increased by 18 per cent compared with October.

This is according to mortgage broker AFG, which found that the number pushed through in Victoria climbed by 26.7 per cent - the biggest growth recorded in the country. In addition, Queensland reported hikes of 20.8 per cent and New South Wales saw increases of 16.4 per cent.

In all, real estate investors accounted for nearly two out of every five products sold during the month - the highest amount on record since the AFG Mortgage Index began six years ago.

"We're experiencing the paradox that weaker global economic conditions and lower rates is good news for Australian property buyers - at least for now," general manager of sales and operations Mark Hewitt remarked.

This news comes after the cash rate in Australia was lowered by 25 basis points to 4.25 per cent, which came into force yesterday (December 7th).

Slow growth predicted for Australian housing market

Wed, 6 Apr 2011 00:00:00 GMT

House prices in Australia are forecast to grow by just 0.6 per cent over the course of this year, a survey by National Australia Bank has said.

According to the research, access to credit was the "biggest impediment" stopping people from buying homes and pushing prices up.

Most respondents to the survey expected the strongest growth in values to occur in Western Australia (up 1.1 per cent) and New South Wales and the ACT (up 0.9 per cent). The weakest area is expected to be South Australia and the Northern Territory, with respondents expecting a 0.2 per cent decline in home prices over the next year.

However, while prices are expected to remain fairly stable, investors and agents are more optimistic about the rental market.

They noted that the year will see higher rents, with survey respondents predicting an average 3.5 per cent increase in residential rents.

Western Australia, New South Wales and the ACT were again expected to see the biggest rent rises of 4.6 and 4.3 per cent respectively, while Queensland rents are only tipped to rise 2.5 per cent.

Australia tops Brits' wish list

Tue, 22 Mar 2011 00:00:00 GMT

Demand for property in Australia could be set to rise following the release of the latest search statistics from Rightmove.

The real estate portal revealed that the number of enquiries for real estate down under increased by 114 per cent over the course of the past two months.

Robin Wilson, head of overseas for Rightmove explained that the rise is in line with common trends seen at the start of the year, with Brits dreaming about starting a new life abroad.

"But nothing on this scale before ... people seem to be moving towards wanting more authentic destinations," he added. "I suspect when we review this month's figures searches ... those for Australia may well be up again after a series of TV programmes on relocating there."

However, those looking to buy property in the country may be interested to learn that mortgage delinquencies in Australia rose in the fourth quarter of 2010 and are expected to increase again in the first quarter of 2011.

This is according to research conducted by Fitch Ratings, which noted that more home borrowers were one or two months behind on payments over the course of the quarter.

Oz real estate given a boost

Fri, 10 Sep 2010 00:00:00 GMT

Real estate in Australia has been given a boost by an influx of first-time buyers, with sales jumping 11 per cent in August.

Figures from the Australian Finance Group (AFG), reported by Property Wire, show that buyers are flooding to the market while the Reserve Bank keeps interest rates on hold.

The report also highlighted that there is greater competition between mortgage lenders on price and policy, which is benefiting property investors looking at property in Australia.

"With property prices in many areas having stabilised, and some lenders prepared to lend up to 95 per cent of the property’s value, property is becoming more accessible to first home buyers and more attractive to investors," said Kevin Matthews, executive director for mortgage broker AFG.

Recently, Reuters reported figures from property research firm IPD that highlighted returns from Australian property investments jumped nearly six-fold over the second quarter of the year.

Australia hits mortgage peak

Thu, 3 Dec 2009 00:00:00 GMT

Last month saw a new record set for the average mortgage size in Australia, new data has shown.

The Australian Finance Group (AFG) mortgage index revealed that the mean home loan in the country was AUD367,000 (GBP204,000), up 6.4 per cent since May.

It noted that such a trend has come at a time when investors have shown evidence of regarding Australian property as a good asset to hold, with 33.8 per cent of those taking out mortgages falling into this category in November, up from 24.7 per cent in March.

Regional variations have seen the largest increases coming in the states of Victoria at 12.1 per cent and New South Wales at 10.7 per cent, while in Western Australia the rise was only three per cent and Queensland has seen no change.

The increase in mortgage sizes has come despite the Reserve Bank of Australia embarking on a policy of raising interest rates.

Earlier this week, it raised the cash rate by 0.25 per cent to 3.75 per cent, the third hike of such an amount after the level had been set at three per cent between April and October this year.

Loans for new homes up 10pc: ABS

Wed, 14 Jan 2009 00:00:00 GMT

There is evidence the boost to the first home owners grant has helped to encourage first-time buyers...

Mortgage stress hitting high end of town

Mon, 8 Dec 2008 00:00:00 GMT

Despite a string of recent interest rate cuts, mortgage stress is beginning to take its toll on wealthier Australians, according to leading consultancy firm Deloitte...

Perpetual to retain partial freeze on mortgage funds

Mon, 10 Nov 2008 00:00:00 GMT

Fund manager Perpetual says its partial freeze on its mortgage funds is likely to remain in place for the foreseeable future...

Big four not passing on full rate cut

Wed, 5 Nov 2008 00:00:00 GMT

The major banks have all refused to pass on in full the latest official interest rate cut...

Australia slashes interest rates

Wed, 5 Nov 2008 00:00:00 GMT

The Reserve Bank of Australia has announced a cut of three-quarters of one per cent, taking the cash rate down to 5.25 per cent.

Revealing the decision yesterday, governor of the bank Glenn Stevens said the move had been motivated by signs of slowing economic activity and a high probability that inflation will soon fall.

It is the third cut by the bank in as many months, following a reduction of one per cent last month and by 0.25 per cent in October.

Such moves may help lower mortgage costs for those thinking of investing in property in Australia.

Last week the RP Data-Rismark National Property Values Indices showed that property prices in the country have only dropped by 1.4 per cent in the first nine months of 2008.

Rismark International's managing director Christopher Joye told AAP house prices will "almost certainly rise over the medium to long-term".

Australia property price 'to start rising again'

Tue, 4 Nov 2008 00:00:00 GMT

Australian property has been described as showing resilience in the face of the credit crunch.

In contrast with some countries that have seen large falls in prices, the average home in the country has only seen its value drop by 1.4 per cent in the nine months to the end of September, according to the RP Data-Rismark National Property Values Indices.

Speaking to AAP, Rismark International's managing director Christopher Joye said the market is set to bounce back soon with prices rising, partly due to the increase in housing supply not keeping pace with net immigration.

He commented: "We need to produce 190,000 homes annually but the supply-side is only currently delivering about 145,000 homes per annum."

As a result, Mr Joye concluded, house prices "will almost certainly rise over the medium to long-term".

Those seeking to buy property in Australia may also find mortgages are cheaper than before as the Reserve Bank has cut interest rates by 1.25 per cent since the start of September.

House prices fall 1.8pc: ABS

Mon, 3 Nov 2008 00:00:00 GMT

ABS figures show prices for established homes have fallen an average of 1.8 per cent in the September quarter...

Shares gain ground ahead of interest rate decision

Sun, 2 Nov 2008 00:00:00 GMT

The Australian share market gained ground this morning as investors backed the Reserve Bank of Australia to cut interest rates tomorrow...

Oz property market set to be boosted by expat buyers

Mon, 20 Oct 2008 00:00:00 GMT

Expat Australians could end up boosting the property market down under as they are attracted back home by mortgage rate cuts and the government's $10.4 billion economic package, it is claimed...

Commonwealth Bank cuts home loan rates

Mon, 20 Oct 2008 00:00:00 GMT

The Commonwealth Bank has joined its rivals in cutting its main mortgage rate...

Macquarie winds back mortgage business

Mon, 20 Oct 2008 00:00:00 GMT

Macquarie Bank has continued to wind back its mortgage business...

CBA cuts home loan rates

Mon, 20 Oct 2008 00:00:00 GMT

The Commonwealth Bank has joined its rivals in cutting its main mortgage rate...

Home loan advertising blitz attacked

Sun, 19 Oct 2008 00:00:00 GMT

AN advertising blitz encouraging first home buyers to spend the Federal Government's latest hand-out on their house deposit has been slammed as irresponsible...

ANZ cuts variable interest rates

Fri, 17 Oct 2008 00:00:00 GMT

ANZ has announced it will lower interest rates for variable rate home mortgages by 0.25 of a per cent...

Australia slashes interest rates

Wed, 8 Oct 2008 00:00:00 GMT

The Reserve Bank of Australia has announced it is slashing interest rates by one per cent in a move designed to boost the Australian economy.

Australia's cash rate has been lowered from seven per cent to six per cent, following a 0.25 per cent reduction in September.

In a statement this morning the bank's governor Glenn Stevens said that the recent financial turmoil and the prospect that inflation will weaken significantly in 2009 warranted a "significantly less restrictive stance of monetary policy".

The decisions taken in the last two months represent a notable shift in monetary policy, with the September cut being the first since December 2001, since when the rate had been raised by 0.25 per cent on 12 occasions.

Such a move could help significantly lower the cost of Australian mortgages, something that may interest those thinking of buying property there.

Financial services firm HiFX recently observed that there has been a "seasonal upturn" in the number of Britons looking to buy homes in Australia and New Zealand.

Australian central banker in rate cut call amid half-point speculation

Fri, 3 Oct 2008 00:00:00 GMT

Australia's federal treasurer Wayne Swan has urged high street banks in the country to pass on as much as they can of any rate cut that the Reserve Bank of Australia may make next week.

Commenting amid speculation that the bank may cut rates by as much as half a percentage point next week, Mr Swan said: "I would encourage all of our banks to act as responsibly and as competitively as they possibly can," reports ABC News.

Speaking on the AM show, Mr Swan stopped short of demanding a full passing on of any rate cuts to borrowers, acknowledging that the current situation is "complicated", but said he "won't relent" on his calls for them to do as much as they can.

A large cut in interest rates and a consequent passing on of this cut to mortgage products could make it cheaper for people to invest in property in Australia.

Last month the Reserve Bank announced that it was lowering the cash rate from 7.25 per cent to seven per cent.

Bank tanks after rescue bid falls through

Wed, 10 Sep 2008 00:00:00 GMT

Investment bank Lehman Brothers is on the brink of collapse as a result of the subprime mortgage meltdown in the US...

How to choose an honest financial planner

Thu, 4 Sep 2008 00:00:00 GMT

The sad fact is that most financial planners can't provide you with balanced, impartial and independent financial advice even if they wanted to. That's a scary statement, I know!

In my experience, the people that need financial advice and guidance the most (i.e. people that aren't financially savvy), are the ones that seem to get "sold" the poorest quality advice.

It's almost like some planners take advantage of the fact that these people are easily bamboozled. That's why I am so deeply passionate about the need to increase the level of honesty and integrity in the financial planning industry. Read on to find out more...

Australia trims interest rates

Thu, 4 Sep 2008 00:00:00 GMT

The cost of borrowing in Australia to purchase property may be about to come down as the country has cut interest rates for the first time in seven years.

Following recent falls in the rate of economic growth the Reserve Bank of Australia lowered the official cash rate by 0.25 per cent to seven per cent.

Such a decision was welcomed by the leader of Australia's opposition, Dr Brendan Nelson, who told ABC Radio: "I think all Australians, including myself, who have a mortgage, a business overdraft or a credit card, we all welcome the cut in interest rates."

Britons hoping to buy a house in Australia may also be pleased as this could reduce costs for those looking for a home in the country.

In its statement, the Reserve Bank stated that the decision was made in view of the expectation that inflationary pressures will soon start easing.

Reverse Mortgages: In Retreat in Australia

Mon, 25 Aug 2008 00:00:00 GMT

The reverse-mortgage market is in full retreat in Australia, with the fourth lender this year announcing it is pulling back...

Gearing into property using a self managed super fund

Sat, 23 Aug 2008 00:00:00 GMT

Self Managed Superannuation Funds (SMSF's) have become an increasingly popular choice of superannuation vehicle because they provide a higher degree of control compared with public offer superannuation offered by banks, industry funds and other providers.

This article discusses how trustees of SMSF's can now gear into property following recent changes to superannuation legislation...

Hobart's housing affordability remains low

Fri, 15 Aug 2008 00:00:00 GMT

There is still little joy for people hoping to enter the housing market in Hobart...

RBA warns Fed Govt to stay out of mortgage market

Wed, 13 Aug 2008 00:00:00 GMT

The Reserve Bank is rejecting government attempts to influence the mortgage market...

First Home Buyers Return to Perth’s Market

Mon, 11 Aug 2008 00:00:00 GMT

First home buyers are returning to the Perth market: which is good for everyone including investors...

ANZ keen to reduce rates, but no guarantees

Fri, 8 Aug 2008 00:00:00 GMT

ANZ says it might not reduce interest rates even if the Reserve Bank of Australia (RBA) cuts the official cash rate...

Brother of Aussie Home Loans mogul loses his home

Thu, 7 Aug 2008 00:00:00 GMT

THE casualties of Sydney's property market crunch now include well-connected developers, with the brother of millionaire home lender John Symond forced out of his harbour-front home...

RBA leaves rates unchanged

Tue, 5 Aug 2008 00:00:00 GMT

The Reserve Bank of Australia has decided to leave the official cash interest rate at 7.25 per cent as it continues to monitor the inflation and growth outlook...

RBA signals possible rates cut by years' end

Tue, 5 Aug 2008 00:00:00 GMT

RBAThe Reserve Bank of Australia has signalled the possibility of a cut in official interest rates in the coming months in the face of a rapid economic slowdown...

Bluewater writedown for Lend Lease

Tue, 5 Aug 2008 00:00:00 GMT

Australian property group suffers from a decline in asset values at UK shopping centre and in the UK housing market following tougher bank lending conditions...

Housing crisis? Build a granny flat

Thu, 31 Jul 2008 00:00:00 GMT

The New South Wales Government is hoping a resurgence of the humble granny flat will help ease the housing crisis in Sydney's west...

Australia’s Mining Boom and Property

Wed, 30 Jul 2008 00:00:00 GMT

The Minerals Council of Australia is now predicting that the mining sector will need another 87,000 more workers over the next decade...

Melbourne property prices on the rise again!

Tue, 29 Jul 2008 00:00:00 GMT

The REIV June quarter median prices show moderate growth in the Melbourne housing market over the last quarter. The median house price increased by 4.9% from $430,000 to $451,000.

While this is good news, I know it's not the end of the bad news. We still have some challenging times ahead in property. But I also know that times of uncertainty in any market, and particularly property markets, also create opportunities.

Read on to find out more...

Home sales jump in June

Mon, 28 Jul 2008 00:00:00 GMT

HOME sales grew strongly in June but activity in the first half of 2008 was still weak as borrowers battled high rates, new data shows...

Credit crisis - what can you do to protect yourself?

Thu, 24 Jul 2008 00:00:00 GMT

In this insightful article, originally published by Investors Direct, Tim Riley examines the fallout from the overseas credit crisis and how it is impacting on Aussie borrowers.

Read on to find out how to protect yourself...

How to get the best price in a property slump

Sun, 20 Jul 2008 00:00:00 GMT

NEW data shows that house prices are falling across the country. We look at how you can achieve the best price in these tough times...

Non-bank lenders lose slice of mortgage pie

Fri, 18 Jul 2008 00:00:00 GMT

NON-BANK lenders have seen their share of the home loan market slashed by two-thirds in the past year as the global credit crunch funnelled borrowers back to traditional mortgages...

Commonwealth Bank lifts interest rates

Fri, 11 Jul 2008 00:00:00 GMT

The Commonwealth Bank has announced it is increasing its variable home loan interest rates by 0.14 per cent...

Rate rise gloom smothers housing market

Wed, 9 Jul 2008 00:00:00 GMT

NEW mortgage applications plummeted to the lowest number in nearly 4 years, as high interest rates cooled desire for home ownership...

Forum addresses mortgage stress concerns

Wed, 9 Jul 2008 00:00:00 GMT

Western and south-western Sydney are left heavily exposed when interest rates rise along with the cost of living...

Cash flow or capital gains?

Mon, 7 Jul 2008 00:00:00 GMT

There has been a war going on out there between the two camps of property experts since day one of property investment: Cash Flow vs Capital Gain.

Bill Zheng from Investors Direct gives his thoughts.

To Fix or Not to Fix?

Mon, 7 Jul 2008 00:00:00 GMT

To fix or not to fix ... is that the question?

Pardon my variation on Shakespeare but the impact of the latest increase in interest rates, and what to do about it, is on many of our lips at present.

After meeting on Melbourne Cup Day, the board of the Reserve Bank of Australia announced on 7 November another 0.25% increase in official rates. So is it much ado about nothing or hubble, bubble, toil and trouble? Read on to find out.

Financing your investment shortfall - Ask the Experts

Mon, 7 Jul 2008 00:00:00 GMT

Our popular Ask the Experts segment sees many readers send in queries regarding their investment endeavours. We received a question from Jenny and in this in-depth article, Lee Dittmer and Regina Looi from Investor's Direct provide a detailed response...

"How do people finance so many investment properties and service the shortfall of the loans? Example if a person has 10 properties even with the rental income you would need to service the shortfall for 10 properties."

Check your credit file before the banks do

Mon, 7 Jul 2008 00:00:00 GMT

Before you apply for finance and the lenders look at your credit files, why don't you? This simple advice could save you a lot of trouble down the track. Here's why ...

How do lenders assess you???

Mon, 7 Jul 2008 00:00:00 GMT

There has been considerable media coverage of late dedicated to the US subprime mortgage market and the subsequent "credit crunch" we are witnessing in the world financial markets. The effects of which are being felt by Australian lenders.

With all of this attention on credit, we thought it was a good time to explain to you exactly what it is that Australian lenders look for when assessing you for finance...