It is my contention that similar provisions should be available to banks and mortgage brokers. Often, the way you assess an application for a borrower with a net worth of $2,000 compared to a borrower with $20 million will vary. Making this distinction allows lenders to apply a more common-sense approach. However, unfortunately, no such…
High price growth often motivates investors to buy properties in the expectation that the growth will continue or even escalate, so are investors about to jump on board and turn this boom into a price bubble? Although the number of investors in the property market is growing, the percentage of investors buying property is around…
The ATO recently revealed the top 10 highest paying jobs in the country as well as how much “ordinary” Australians are earning. Interestingly the medical profession took out the top three spots. Surgeons earned an average of over $394,000 a year, followed by anesthetists bringing in $386,000 a year and internal medicine specialists earning $…
Well…whatever happened to the “Cliff”? Despite relentless predictions of higher unemployment rates to follow the end of Jobkeeper in March, Australia’s jobless rate continues to defy the “experts”. The ABS reports that the national unemployment rate seasonally adjusted plunged to just 5.1% over May and is now lower than the pre-covid rate of 5.2%. Employment…
We can expect interest-only (IO) lending to increase over the year ahead as investors come back into the market. Despite this, with more and more IO loans continuing to expire the stock of IO loans outstanding continues to decline. By March 2021 only 14 per cent of the outstanding housing loan stock by value was…
The fear of missing out is one of our most powerful survival instincts, but in our modern societies often leads to seemingly irrational behaviour. Remember those crazy supermarket scenes early last year as people stampeded and fought each other to buy a few rolls of toilet paper? More recently it’s been happening in the property…
The proportion of landlords negatively gearing rental properties has fallen below 60 per cent for the first time on record, reflecting a decline in interest rates. Of course, negative gearing isn’t an investment strategy – it’s just a reflection of your funding and cash flow at a particular time. New data published by the Australian…
Nation housing loans increased again over April thanks to the ongoing revival in investor activity that has clearly consolidated over recent months. The ABS reports that the total value of residential lending over April seasonally adjusted set yet another record at $36.1bn, an increase of 2.8% over the month and the sixth consecutive increase inactivity….
Sydney homeowners could earn more than double the average annual wage by the end of the year if economists’ house price predictions come true. Corelogic’s latest home value index showed Australia’s property boom continues to roll-on while housing values lifting another 2.2% in May alone. Home values grew stronger in May than they did in April…
Why Australian GDP has reached the pre-pandemic level so promptly? Do we have any reasons to be optimistic about future economic growth? These questions have been recently answered by Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP in his recent Insight. The recovery has slowed but continues The March…
