Fixed rate demand spikes again in April

May 4, 2014

Fixed rate demand spikes again in April

Posted on Thursday, May 01 2014 at 11:03 AM

With speculation rife the next move by the Reserve Bank of Australia could be an interest rate rise, an increasing number of borrowers are opting to fix their mortgage, according to new data.

Mortgage Choice’s latest home loan approval
figures found fixed rate mortgages accounted for 26.49 per cent of all
mortgages written through April – a modest lift on the month before.

“Last month, fixed rates accounted for 24.22 per
cent of all mortgages written,” Mortgage Choice spokesperson Jessica Darnbrough
said.

“This month, fixed rate demand swung back
towards near record highs as more borrowers opted for this type of mortgage
product.

“Demand for fixed rate mortgages increased in
every state bar Queensland and South Australia. Fixed rate demand was strongest
in New south Wales, with this type of product account for 33.60 per cent of all
loans written within the state throughout April.”

With speculation intensifying that the Reserve
Bank could be set to lift the official cash rate in the coming months, Ms
Darnbrough said it wasn’t surprising to see a small lift in the number of
borrowers choosing to fix their mortgage.

“While variable rates continue to prove more
popular with borrowers, we are starting to see fixed rate demand head back to
levels not seen since last year when all of the lenders were aggressively
competing on price in the fixed rate arena,” she said.

Overall, ongoing discount rates proved the most
popular with borrowers, with this type of product accounting for 43.19 per cent
of all loans written.

Follow us on Twitter.

Was this article helpful? Place a link to it from your website, or share it using the button below.

Recent articles:

Capital gains continue in April

Fixed rate demand spikes again in April

Queensland residential housing worth billion

Aussies stuck on rental roundabout

Sydney rental availability may hit crisis point

Further property price rises predicted

Comments

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/pbg_e2RR2iU/fixed-rate-demand-spikes-again-in-april

Capital gains continue in April

May 2, 2014

Capital gains continue in April

Posted on Friday, May 02 2014 at 10:28 AM

Dwelling values across Australia’s capital cities continued to rise in April – albeit at a more moderate pace in some areas – according to the RP Data-Rismark combined capital city index.

Dwelling values increased 0.3 per cent across all
capital cities according to the index.

The slowdown in the rate of capital growth comes after
a very strong 2.3 per cent month-on-month rise in March and 3.5 per cent
increase over the first quarter of the year.

Melbourne (down 0.5 per cent) and Canberra (down 1.1
per cent) values recorded a fall over the month while growth in dwelling values
across the other capital cities ranged from 0.2 per cent in Perth and Hobart to
2.1 per cent in Adelaide.

Every capital city recorded an increase over the past
three months with the largest capital gains being recorded in Darwin (5.1 per
cent) and Sydney (4.1 per cent).

Since the housing market moved out of its correction
phase at the end of May 2012, dwelling values across the combined capital city index
have increased by a cumulative 16.1 per cent through to the end of April 2014.

According to RP Data’s Tim Lawless, the strong market
conditions have sparked a new round of debate around the sustainability of
recent rates of housing value growth and the impact on affordability for
housing, particularly in Sydney and Melbourne.

“The reduction in the rate of capital gains across the
combined capital cities housing market brings growth back into a more
sustainable range and will be a welcome relief for first home buyers,” Lawless
said.

“A lower rate of capital gains in Sydney and Melbourne
where dwelling values surged 22.5 per cent and 16.4 per cent respectively over
the current growth cycle, may now signal that these markets are moving through
their growth cycle peak. However, we will need to see a few more months of data
before we can establish whether a slowing trend is now evident in these cities.
We have recently seen auction clearance rates move lower in both of these
markets.”

Sydney’s median house price has broken the $800,000
mark for the first time on record. The median house price in Sydney was
recorded at $802,000 over three months ending April 2014, likely reflecting the
increase in housing market activity at the more expensive end of Sydney’s
housing market. Sydney’s median house price is currently 30 per cent higher
than Melbourne and 68 per cent higher than Brisbane.

Follow us on Twitter.

Was this article helpful? Place a link to it from your website, or share it using the button below.

Comments

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/cgqsIsqiUIM/capital-gains-continue-in-april

Prime Sydney development site for sale

Apr 30, 2014

Prime Sydney development site for sale

Posted on Tuesday, March 25 2014 at 3:46 PM

The New South Wales Government is calling for expressions of interest from developers on a four-hectare parcel of commercial land.

The
property at 45 to 61 Waterloo Road, Macquarie Park is situated around 13 kilometres
northwest of the CBD and is considered excess to the governments needs.

Andrew
Constance, NSW Minister for Finance and Services, says government resources should
be redirected elsewhere.

“This
site on Waterloo Road, which is currently managed by Government Property NSW,
has been identified as surplus to government’s requirements and we’re looking
for developers who could make better use of the site.

“Should
the sale go ahead, proceeds will be redirected back to providing essential
services, like education, health or transport for the people of NSW.”

The
State Government says the site is conveniently located opposite Macquarie Park
train station on Waterloo Road, within a short walk to Macquarie Shopping
Centre and is only three blocks from the M2 motorway.

The
property’s sale is part of a larger program of reducing non-performing assets.

“The
NSW Government owns a significant amount of land and we need to be smarter
about how we maximise value for taxpayers and only own assets that support the
delivery of frontline services.”

Constance
says the establishment of the Property Asset Utilisation Taskforce in November
2011 has resulted in a new approach to managing state-owned property.

“This
has made it easier to identify and divest underutilised or surplus properties
and assets, delivering greater efficiencies and savings to government,” he
says.

In
the next 18 months the state’s property agency, Government Property NSW, will
be stepping up activities to identify surplus and underutilised land and work
with government agencies to ensure state-owned land is used more effectively.”

Follow us on Twitter.

Was this article helpful? Place a link to it from your website, or share it using the button below.

Recent articles:

Queensland residential housing worth billion

Aussies stuck on rental roundabout

Sydney rental availability may hit crisis point

Further property price rises predicted

Small housing prices rocket in regional Victoria

WA rents rise strongest

Comments

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/9qsUnPdndOM/prime-sydney-development-site-for-sale

Men vs women – who wears the financial pants?

Apr 27, 2014

Men vs women – who wears the financial pants?

Posted on Friday, March 28 2014 at 10:36 AM

When it comes to controlling the household budget, both men and women think they wear the financial pants.

A Mortgage Choice
Money Survey, which had more than 1000 respondents, showed the
majority of male respondents believe their gender controls the finances, with
76 per cent of them indicating that they dictate how the household money is
spent.

Similarly, 75.7
per cent of the females surveyed believe it’s women who control the finances in
their household.

Mortgage Choice
spokesperson Jessica Darnborough says it’s impossible to say with any surety
which gender actually controls the finances, but it’s clear men and women
handle their finances in very different ways.

“Men tend to save
a larger portion of their regular income, with 32.6 per cent of males
indicating they save between 16 per cent and 30 per cent of their monthly pay,”
she says.

“By comparison,
50.3 per cent of women save less than 15 per cent of their regular income.

“Because of this,
men tend to have more money in their savings account. Of the male respondents,
40 per cent currently have more than $20,000 in their savings account, while
just 27.1 per cent of women have this much money in their account. On the
flipside, more than 42 per cent of women suggest they have less than $5000 in
their savings account in comparison to just 28.9 per cent of males.”

But while men are
seemingly better savers than women, the survey found females keep better track
of their finances.

“Of all the women
surveyed, almost 60 per cent say they track their day-to-day spending on a
regular basis, reviewing their outgoings at least once a week. By comparison, a
significantly smaller portion of men review their outgoings regularly, with 53
per cent tracking their expenses on a weekly basis.”

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/e-Ixtg6f6eE/men-vs-women-who-wears-the-financial-pants

Aussies stuck on rental roundabout

Apr 25, 2014

Aussies stuck on rental roundabout

Posted on Thursday, April 24 2014 at 10:06 AM

The dream of a white picket fence could be a thing of the past with many Australians stuck on the rental roundabout, according to a report released by realestateVIEW.com.au.

The Housing
Sentiment Report – examining the lifestyle preferences and
affordability concerns of buyers and renters – showed one third of tenants have
been in the rental market for five-plus years, with affordability a major
deterrent to entering the market.

The report asked the often “forgotten’ property hunters – renters – what
is preventing them from buying, and revealed:

Half
believe they can’t afford a deposit;
32
per cent believe they can’t afford mortgage payments;
28
per cent say they haven’t bought a property because they can’t afford to buy
where they want to live;
25
per cent think the market is overpriced;
22
per cent believe it’s cheaper to rent;
18
per cent have difficulty obtaining finance;
16
per cent don’t want to be tied down because of a mortgage;
12
per cent have already bought an investment property.

Real
Estate Institute of Victoria (REIV) data shows Melbourne’s median home prices
grew again in the March quarter, taking annual growth to 13.7 per cent and
confirming the strength of the property market.

“A clear
trend is emerging – housing affordability pressures are breeding a nation of
renters,” Petra Sprekos, general manager of realestateVIEW.com.au said.

“The great
Australian dream of home ownership is fading for a significant percentage of
the population either because they feel unable to obtain and manage a mortgage,
or because it’s too expensive to buy into the area they rent in.”

According
to the search data, the top 20 most searched suburbs to rent in Victoria over
the past six months were predominantly inner-city and affluent mid-suburban
areas including Richmond, South Yarra and Hawthorn.

The
current weekly median rent in Richmond is $500 for a two-bedroom unit and $700
for a three-bedroom house. In contrast, the weekly mortgage payment in this
area is around $961 for a median priced unit and $1457 for a median priced
house.

But investing
to get a foot on the property ladder is proving a more viable alternative for
some renters. Of those who have bought investment properties, 44 per cent say
they chose this tactic because they make more money from the rental income
and/or negative gearing benefits. A further 38 per cent say they’re renting
while investing in cheaper properties because they can’t afford to buy in the
area they want to live.

Follow us on Twitter.

Was this article helpful? Place a link to it from your website, or share it using the button below.

Recent articles:

Aussies stuck on rental roundabout

Sydney rental availability may hit crisis point

Further property price rises predicted

Small housing prices rocket in regional Victoria

WA rents rise strongest

Real estate leads business confidence upswing.

Comments

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/t-Q72bMORBM/aussies-stuck-on-rental-roundabout

Sydney rental availability may hit crisis point

Apr 23, 2014

Sydney rental availability may hit crisis point

Posted on Wednesday, April 23 2014 at 11:38 AM

Vacancy rates across Sydney are verging on crisis levels, according to data released by the Real Estate Institute of New South Wales (REINSW). 

The March
2014 REINSW Vacancy Rate Survey saw the numbers of properties for
rent across Sydney drop 0.3 per cent at 1.4 per cent.  

“We haven’t seen vacancy rates right across Sydney this low since
November 2011,” REINSW president Malcolm Gunning said. 

“Sydney is going backwards in regard to properties available for rent. Something
must be done to ensure that there is a greater level of choice for those
seeking to secure a rental property in Australia’s biggest city.  

“Inner Sydney vacancy rates fell 0.2 per cent, the lowest across the
metropolitan area, to 1.3 per cent.

“Middle and outer suburbs declined 0.4 per cent and 0.1 per cent
respectively to 1.6 per cent and 1.5 per cent.  

“We look with interest to the direction new premier Mike Baird will take
in regard to property. His support is essential to ensure that the best and
brightest remain in NSW.

“This can only happen if he identifies the inequities of the current
planning system as well as lack of affordable housing and incentives for first
home buyers.”

In other areas, Newcastle’s vacancy rate was 2.5 per cent, a rise of 0.1
per cent, and the Hunter overall was 3.1 per cent, down 0.1 per cent.

Wollongong’s availability was 2.3 per cent, up from 1.6 per cent, which
influenced the Illawarra’s vacancy rate of 2.1 per cent, up from 1.7 per cent. 

Residential vacancy rates on the mid-north coast were the lowest outside
the Sydney metropolitan area at 1.4 per cent, down 0.3 per cent. The area with
the greatest availability was Coffs Harbour at 3.8 per cent, up 0.8 per cent.  

Albury and Murrumbidgee were at 2.1 per cent, up 0.2 per cent and 0.1
per cent respectively, while New England and the Central West were at 3.5 per
cent up 0.3 per cent and down 0.5 per cent respectively. 

Follow us on Twitter.

Was this article helpful? Place a link to it from your website, or share it using the button below.

Recent articles:

Sydney rental availability may hit crisis point

Further property price rises predicted

Small housing prices rocket in regional Victoria

WA rents rise strongest

Real estate leads business confidence upswing.

Melbourne set to become Australia’s largest city

Comments

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/VfmAlsIqi30/sydney-rental-availability-may-hit-crisis-point