Our commentary on issues important to home owners, investors and borrowers
Republished from The Conversation.
In tax as in many endeavours, it’s easy to work out how things should be; harder to work out how to get there.
In NSW, Treasurer Dominic Perrottet wants to replace the one-off stamp duty on real estate transactions with an annual land tax.
In the long run, this one single reform could produce the biggest possible gains of any tax reform, state or federal.
Read MoreOn December 1, 2020, with almost all state borders reopening, the real estate rebound is expected to continue. While experts predicted doom and gloom for the market throughout this unprecedented year, it seems that nothing can stop the real estate juggernaut as 2020 draws to a close.
ABS data shows that owner-occupier lending has now hit an all-time high. Westpac Chief Economist Bill Evans also predicts that the market will consolidate its losses between April and June 2021, with the market tipped to accelerate and expected increases of around 15% over the remainder of next year.
Read MoreAmidst 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.
Read MoreAt 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).
Read MoreRepublished 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.
Read MoreRepublished from MPA.
After a difficult year in which businesses have been forced to close and Australians encouraged to stay inside, it’s no surprise that Australia’s GDP has suffered. At the start of September, figures from the ABS confirmed that GDP had dropped consecutively for two quarters, putting the country into a recession.
The three months to June saw the largest quarterly fall since records began in 1959, with a 7% decrease in GDP. The biggest drop recorded before this was just 2% in 1974. This June quarter decline followed a 0.3% drop in the March quarter, when the country first felt the impacts of travel and social restrictions. Spending on services declined 17.6%, with falls in transport services and operation of vehicles and hotels, cafes and restaurants.
Read MoreLoanscape is your information resource about lending and property.
Loanscape has today released its Borrowing Capacity Index for Q3/2024. It shows that the borrowing capacities of Australian individuals and families have started to recover after the sharp decline over the past 2 years. Lower income borrowers continue to be disproportionately impacted by interest rate increases: the family income required to qualify for the average size loan in Australia is 37% higher than 2 years ago.
Loanscape has today released its Borrowing Capacity Index for Q2/2024. It shows that the borrowing capacities of Australian individuals and families have stabilised after the sharp decline over the past 2 years. Lower income borrowers continue to be disproportionately impacted by interest rate increases: the family income required to qualify for the average size loan in Australia is 35% higher than 2 years ago.
Combined dwelling values have re-accelerated across the nation in February, with all mainland capitals soaring in value. It probably comes as no surprise that Perth claimed the top spot by gaining a whopping 1.8% for the month
Loanscape has today released its Borrowing Capacity Index for Q1/2024. It shows that the borrowing capacities of Australian individuals and families continue to decline. The more modest decline in the size of average loans being taken confirms that lower income borrowers are being disproportionately impacted by interest rate hikes: the family income required to qualify for the average loan in Australia is now 32% higher than 18 months ago.
The end of the year is fast approaching, with most capitals experiencing a strong recovery on dwelling values from the downturn that culminated at the start of 2023.
The recovery is mainly due to an influx of immigration and constricted supply, which the Government is trying to remedy with its ambitious goal of building 1.2 million homes by 2029 through HAFF.
Loanscape has today released its Borrowing Capacity Index for Q4/2024. It confirms the forecast trend that borrowing capacities of Australian individuals and families are recovering from their low levels which coincided with the last of the recent increases to borrowing rates initiated by the Reserve Bank of Australia.