Is COVID-19 leading to a regional housing boom?

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Is COVID-19 leading to a regional housing boom?

Amidst the tumultuous times of the current COVID-19 pandemic, we have seen numerous changes in the economy. Unemployment is at a record high, yet there has been a surge in the property market as people move to take advantage of lowering interest rates.

But rather than looking for properties closer to urban areas, housing market data has indicated that there is a rising demand for properties in regional markets of Australia.

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The first home loan deposit scheme - what happened?

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The first home loan deposit scheme - what happened?

At the start of the year, the Australian Government launched the First Home Loan Deposit Scheme as an initiative to support eligible first home buyers to purchase their first home sooner.

Usually, first home buyers who have not met the 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, however, eligible first home buyers can purchase a modest home as long as they have a deposit of five per cent or higher (this is subject to lenders’ criteria).

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None of the justifications for weakening bank lending standards quite make sense

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None of the justifications for weakening bank lending standards quite make sense

Republished from The Conversation.

The budget plan to scrap Australia’s decade-old responsible lending obligations warrants detailed examination.

It is hard to see how the stated reasons for easing what’s asked of banks and other lenders make much sense, and the timing is strange.

Introduced in 2009, the responsible lending obligations made it illegal to offer credit that was unsuitable for a consumer based on their needs and capacity to make payments.

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How first home loan deposit scheme placements will affect the market

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How first home loan deposit scheme placements will affect the market

Republished from Michael Matusik.

Whilst most of the housing industry applauds another 10,000 new federal government first home loan deposit scheme placements, some of us continue to shake our heads.

How did come to this, when it seems okay to place the top loan threshold for a first home buyer at $950,000!

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Hang our heads!

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Hang our heads!

In most places, today, more money is lent to investors than first home owners. Western Australia and Northern Territory are the two current exceptions. When I started in this business it was rare than investment loan totals exceeded that lent to first home buyers. Something is wrong here if you ask me.

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The brutal truth on housing. Someone has to lose in order for first homebuyers to win

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The brutal truth on housing. Someone has to lose in order for first homebuyers to win

Housing costs are a big problem for young people. Home ownership is falling fast in Australia, especially among the young and poor. Fewer than half of 25-34 year olds own their home today. Home ownership among the poorest 20% of that age group has fallen from 63% in 1981 to 23% today. At this rate almost half of retirees will be renters in 40 years time.

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