There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.
Each Saturday morning I like to share some of the ones I’ve read during the week.
The weekend will be over before you know it, so enjoy some weekend reading…and please forward to your friends by clicking the social link buttons.
Borrowing cheaper, but now more difficult
It would seem that home loans have developed a double edge sword, especially when it come to first time borrowers.
An article on RateCity.com.au has reported that whilst interest rates have continued to go down throughout the year, the standard by which borrowers are given loans have only gone up.
Home loan rates continue to drive lower in September with more than 220 rate cuts made in the past week, despite today’s RBA decision to leave interest rates on hold at 1.50 per cent.
Yet new research from RateCity.com.au shows that despite rock-bottom home loan rates, lenders are proving less willing than ever to lend to people with small deposits.
Peter Arnold, data insights director at RateCity.com.au, said the share of home loans available to owner-occupier borrowers with a 5 per cent deposit has fallen by a third in the past 18 months.
“Unless you’ve got substantial savings, the window to get a foot into the housing market is closing,” he said.
“At the start of last year, someone with a 5 per cent deposit had the choice of more than two-thirds of all home loan products in the market.
That’s shrunk to just half of loans and we expect the trend to continue as lenders increasingly favour ‘ideal borrowers’.
“On one hand rates are the cheapest we’ve ever seen, with variable rates from 3.35 per cent. But on the other hand, it’s now more difficult to borrow, as many of the best rates on the market borrowers require a minimum of 20 to 30 per cent deposit.
“It’s particularly hard for first time buyers to get into the market, with many needing six-figure savings, while second- and third-time buyers are cashing in equity to snatch up more properties.
“To buy the average Sydney house at over $1 million, you’ll need a minimum of $200,000 saved to get a foot in the door with a lot of lenders and that’s out of reach for many Australians.”
Find the full article here
The missing piece of the property puzzle + Meth labs causing untold damage
Another great Real Estate Talk show produced by Kevin Turner.
Michael Yardney will explain why investors to a plan, and he gives the 4 best pieces of advice you are likely to hear about formulating a plan.
Garth Brown from Brown and Brown Conveyancers looks at the cost to property investors when there’s a misbehaving tenant.
Cherie Barber we hear about the mistakes she made with her first property and how that lead her to become, as she says, an “accidental renovator”.
Patrick Bright from EPS Property Search answers the question – “what to look for in an investment property”.
Kylie Davis head of Property Marketing with Core Logic discusses the emerging trends that we as consumers will notice if you’re dealing with a real estate agent.
If you don’t already subscribe to this excellent weekly internet based radio show do so now by clicking here.
Jobs ads up 8% over the year
Despite uncertainties surrounding brought on by gloomy newspaper headlines, Australians have something to celebrate.
ANZ: Unemployment to keep falling
Job advertisements continue their long, slow recovery, up by +1.8 per cent in August to be +8 per cent higher over the year.
The trend number of job advertisements has ground gradually higher for the past three years.
This suggests that annual employment growth should track at around 2 per cent – well ahead of the annual rate of population growth – and that the unemployment rate will continue to fall, as it already has from 6.3 per cent to 5.7 per cent.
ANZ reported that this was an encouraging result, consistent with solid employment growth, declining unemployment, and ongoing strength in business conditions.
Read the full article here
Could a name like Trump harm a building’s value?
Donald Trump has certainly build a name for himself, both in business and now in politics.
But whilst he remains in the headlines on a daily basis – could it actually be hurting his business.
As reported in this article for Your Investment Property Magazine the high of the media has meant a low for the brand.
Donald Trump’s name – already a household word for decades – has gained even more currency as the Republican nominee for president.
Indeed, many pundits felt – at least early in the race – that Trump’s presidential run was intended solely to bring in more revenue for his businesses.
But that may not be the effect it’s having.
There are several indicators that Trump’s businesses – or businesses which bear his (oft-licensed) name – may be suffering for it.
According to a recent Washington Post report, “foot traffic to Trump-branded businesses appears to have fallen significantly during the presidential campaign.”
And according to The Wrap, Toronto’s Trump International Hotel – which isn’t even actually owned by Trump – has been blackballed by the upcoming Toronto International Film Festival.
According to the Post report, social app Foursquare – which allows users to “check in” at various businesses – as shown a significant drop in foot traffic to Trump-branded hotels, golf courses and casinos since the presidential race got underway.
In New York City, foot traffic around Trump hotels has plummeted 17% year over year.
Read the full article here
The $6.3 million mansion that could be Prince Harry’s new bachelor pad
It’s a house fit for a royal – and so it should be since a Price is about to move in.
This picturesque mansion is reported by Domain.com.au to be the new home of none other than Price Harry.
Is Prince Harry about to throw down more than $6 million for a stately mansion?
British media believe so, picking that the prince is about to pick up a Norfolk estate, close to the home of his brother, Prince William, and wife, Catherine.
With sprawling grounds, a pool area and large rooms for entertaining, Water Hall looks like the perfect home for the party prince.
The property, with seven bedrooms, a built-in bar and a terrace, comes with a cool price tag: £3.6 million ($A6.3 million).
Britain’s The Sun reported Prince Harry was eyeing up the neighbour-free, riverside property, in the village of Wighton, about 27 kilometres from his brother’s house, and near the Queen’s Sandringham estate.
“Apparently Harry really liked it,” a local resident told the newspaper.
“It’s away from any neighbours, so would be the perfect party pad.”
Water Hall sits on 5.5 acres of gardens, and also has a tennis court and games room, plus a large dining room, perfect for hosting VIPs, like his family.
Real estate agent Savills described the property as an “exceptional” family home “set in a wonderfully peaceful and private position within the Stiffkey Valley”.
The house features “an open plan bespoke kitchen”, plus a sitting room and drawing room.
Click here for the full article