Search Results for: first time buyers

Did Abolishing Negative Gearing Push Up Rents? – ABC Fact Check

ABC Fact Check investigates whether abolishing negative gearing in 1985 caused rents to surge. During the period negative gearing was abolished rents notably increased only in Sydney and Perth. Other factors, including high interest rates and the share market boom, were also contributors to rent increases at the time. As property prices continue to rise … Continue reading “Did Abolishing Negative Gearing Push Up Rents? – ABC Fact Check”

Hot Investment Lending – AFG

AFG announced their April 2015 Mortgage Index statistics today. It further confirms the momentum in the investment property sector, in both Sydney and Melbourne. The housing market’s strong 2015 performance continued during April with AFG processing total mortgages of $4,380 million for the month. This compares with $3,674 million in April 2014 and is a record for … Continue reading “Hot Investment Lending – AFG”

Is The Housing Finance Worm Turning?

The ABS Housing Finance data for February 2015 was released today. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.8%. Owner occupied housing commitments rose 1.0% and investment housing commitments rose 0.4%. This is the first time growth in owner occupied loans has exceeded investment loans for … Continue reading “Is The Housing Finance Worm Turning?”

The Problems with Relying on the Bank of Mum and Dad

DFA recently highlighted the rise of the bank of Mum and Dad. In The conversation, there is an article highlighting some of the potential risks, especially with formal bank guarantees. Ask a parent how far they would go to support the financial aspirations of their children, and chances are they will say: “Yes, if I … Continue reading “The Problems with Relying on the Bank of Mum and Dad”

Latest DFA Survey – Other Segments

Today we round out the latest survey results, by updating our other segments. The property as investment bug continues to spread. First, those looking to trade up. Property investment has now overtaken the desire for more space as the main driver to transact. We also see that life style changes and purchase due to job … Continue reading “Latest DFA Survey – Other Segments”

Property Momentum On The Slide

We just updated the DFA household surveys, with data to end November, and there are some interesting transitions in play, which taken together with potential action on foreign buyers, suggests we will see property momentum easing in the next few months. This actually may be a “get out of jail card” for the RBA and … Continue reading “Property Momentum On The Slide”

Foreign Property Purchase Rules To Be Enforced

The report on foreign property buyers is out, and the recommendations are significant, and the Foreign Investment Review Board (FIRB) criticised. The current framework relating to foreign purchases of Australian housing will be retained to encourage investment in new dwellings and increase housing supply. But there are a bunch of recommendations, which cover the bases … Continue reading “Foreign Property Purchase Rules To Be Enforced”

Australian Securitisation Under The Microscope

Today, in a speech by Chris Aylmer, Head of Domestic Markets Department, RBA, we got an interesting summary of recent developments in the market. This is important, because as at June, the Bank held about $25 billion of these assets under repo as part of their liquidity management operations. In addition, at the same forum, … Continue reading “Australian Securitisation Under The Microscope”

Why Mortgage Loans Are Growing Slower Than House Prices

The RBA, in today’s monetary statement discusses the relationship between loan growth and house prices. They conclude that factors including fear of unemployment, low supply, high loan to income ratios and stamp duty are all contributing factors, as well as price hikes themselves. Indicators of conditions in the established housing market, such as housing prices, … Continue reading “Why Mortgage Loans Are Growing Slower Than House Prices”