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Australia's banking regulator just removed a rule that's played a crucial part in the housing downturn

January 4, 2019

Finance Property and Investment News Pros & Cons Strategy

The Australian banking regulator will remove restrictions on interest-only mortgage lending for some Australian banks from January 1 next year. APRA says macroprudential restrictions have “helped to reduce the risks associated with the high level of household indebtedness, subdued household income growth, low interest rates and strong competitive pressure”. It warned banks to “maintain prudent […]

APRA investor crackdown behind drop-off in apartment approvals

July 23, 2018

Finance Property and Investment News

A significant drop-off in apartments in the construction pipeline has dragged down the number of buildings approved across the country in February, according to the latest data from the Australian Bureau of Statistics. And experts predicted the trend would continue as more developers delay starting projects while tighter lending standards for investors coincide with a deluge of apartments […]

Wayne Byres’ surprise: APRA declares mortgage crackdown ‘largely done’

July 17, 2018

Finance Property and Investment News Strategy

The regulatory clampdown on Australia’s heavily-scrutinised banks is now “largely done”, according to overseer Wayne Byres, who has declared “the heavy lifting on lending standards” has been completed. The chief of the Australia Prudential Regulation Authority said there was more “good housekeeping to do”, but any further tightening is expected to be “at the margin” as […]

Own a rental property? Know your tax deductions

July 10, 2018

Finance Strategy Taxation

In Domain’s A Guide to Maximising Rental Property Returns we gain greater insights into taxation policies that directly affect property investors managing rental properties from Paul Drum, Head of Policy at CPA Australia. Following are some helpful top-line tax pointers for property investors – but you should also seek accredited professional advice that takes your personal financial circumstances into […]

What is conditional approval?

July 4, 2018

Finance Property and Investment News Strategy

Conditional approval can be the first step in getting a home loan organised. It takes you further along in your journey towards finding the perfect property to buy. If you’re looking for the perfect home and you’re like most people, you’ll be relying on a home loan to pay at least some of the cost. […]

How long does a mortgage take to pay off?

July 4, 2018

Finance Interest Rates Property and Investment News Strategy

When you sign up for a home loan, you usually sign up to a term of 25 or 30 years. But does it really take that long to pay off a mortgage? And, if not, what tactics can you use to pay yours off sooner? The starting point: A mortgage repayment calculator While many people […]

'Rent-vesting' not all it's cracked up to be

July 2, 2018

Central Coast Region Finance New South Wales Property and Investment News Pros & Cons Strategy

If you are a renter and a landlord at the same time, you’re a “rent-vestor”. It’s often touted as the best of both worlds, allowing you to live where you want in a rental property, while someone else pays off the mortgage on your investment property. But perhaps it’s not all that it’s cracked up […]

Property prices drop for ninth straight month, as regional markets outpace the capitals

July 2, 2018

Finance Property and Investment News Strategy

Housing prices have slipped for many Australian capital cities in the past quarter, as tighter lending conditions and falling investment levels continue to affect the market. Home prices fell 0.2 per cent in June on a national basis, which marks the ninth consecutive month-on-month drop, according to the latest report from property industry analysts CoreLogic. […]

Sydney units to bear the brunt as housing market turns

June 26, 2018

Finance New South Wales Property and Investment News

According to the company’s Residential Property Prospects 2018 to 2021 report, a number of factors are increasingly weighing on the residential market. Banks have continued to tighten the screws on investors, reducing their borrowing capacity. In addition, record new dwelling completions have seen markets either tip into oversupply (or remain in oversupply) or significantly erode any market […]

The laws hitting property investors in the hip pocket

June 12, 2018

Finance New South Wales Property and Investment News

This year’s federal budget has been relatively low-key when it comes to housing, as the furor around housing affordability has quietened down and house prices plateau across the country. The main change coming out of last week’s budget that could impact investors is a new focus on those denying deductions associated with holding vacant land where the land […]

RBA leaves interest rates on hold again at record low

June 12, 2018

Finance Property and Investment News

In its monthly monetary policy meeting today, the Reserve Bank of Australia decided to keep interest rates on hold for a record 20th time, with the official cash rate remaining at 1.5%. Despite some predictions last year that rates would finally rise in 2018 – with some economists even predicting two rate hikes this year – financial […]

Interest-only mortgage holders face $7,000 a year hit: RBA

April 24, 2018

Finance Interest Rates Property and Investment News Strategy Taxation

  Borrowers with a typical interest-only home loan face a $7,000 jump in their annual mortgage costs when their interest-only period ends and they are forced to start paying back principal, the Reserve Bank says. With almost $500 billion in interest-only mortgages set to expire in the next four years, RBA assistant governor Christopher Kent on […]

Housing affordability problem pushes up rent prices on Sydney's fringes: Domain Rental Report

April 19, 2018

Finance Overseas Investor Property and Investment News Pros & Cons Strategy

Sydney’s ongoing housing affordability issue has pushed up asking rents on the outskirts of Sydney as tenants look to get more bang for their buck, swapping inner-city apartments for houses in suburbia. While the cost of renting a house in some parts of Sydney hasn’t changed at all in the past year, rentals in far […]

Two homes for the price of one: Is building a duplex a good investment or double the trouble?

April 17, 2018

Depreciation Dual Occupancy Finance New South Wales Overseas Investment Positive Gearing Property and Investment News Pros & Cons Strategy

Everyone loves a great deal, which is why home builders may be tempted by the idea of getting two homes for the price of one. Although it costs more to build a duplex than a single freestanding house, it’s usually cheaper than building two houses, and because both dwellings are on the same block, the land costs […]

Rates For Interest-Only Loans Continue To Drop

March 23, 2018

Finance Property and Investment News Strategy

Lenders have successfully met the macroprudential limits set by the Australian Prudential Regulation Authority (APRA) in March 2017, halving the category in the December quarter. APRA’s December Quarterly ADI Property Exposures statistics, released last Tuesday, shows that interest-only loans have fallen to 15.22% of new lending, compared to 36.26% in the three months to March […]

Regional Markets Are Experiencing Superior Total Returns To Those In The Capital Cities

March 15, 2018

Corelogic Finance Property and Investment News Strategy

The CoreLogic total returns index measures the change in values and the rental return to determine the total gross returns from residential property.  The total returns index is valuable for investors as it shows the expectation of returns much like the ASX 200 Accumulation Index provides insights into the total returns (ie change in the […]