Australian Housing

Lending to property investors worse since GFC

Lending for dwellings continues its sustained decline in Australia according to the latest Australian Bureau of Statistics data released Thursday. Across both the owner occupier and investor segments, lending by value is down 20.8 per cent in the past 12 months to May 2019. The decline in more pronounced in

Australian Economy

Australia’s Property Market “Safe as Houses”: Treasurer.

Earlier this week, Australia’s Federal Treasurer Scott Morrison reassured foreign lenders that “Australian housing values, while high, are still ‘real’.” “Safe as houses still broadly means something in Australia,” He went on to say, “The rise in housing values has been driven principally by genuine economic forces of supply and

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Australian Housing

Investor mortgage rates rise on confirmation of housing bubble

Nine banks have today hiked interest rates, out-of-cycle, on regulators confirmation of a housing bubble. On Monday, the Australian Securities and Investments Commission (ASIC) chairman Greg Medcraft remarked “I’ve been saying for a while I thought it was a bubble, other people are catching up now,” The latest Australian Bureau

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Australian Economy

Australian Banks placed on Credit Watch Negative

Credit rating agency Fitch has placed Australia’s banks on a negative credit watch, citing an increase in macro-economic risks stemming from the property asset bubble. Fitch indicated a key risk for the banking system was the banks’ exposure to the overheated property market. Of special concerned is strong increases in

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Australian Economy

Up, up and away. Why are mortgage rates on the rise?

Australia’s property investors and debt slaves were in shock on Friday, when Westpac joined the ranks of smaller banks, significantly hiking mortgage rates out of cycle, on its fixed term loans. Westpac’s five year fixed investment loan will jump 60 basis points or 2.4 times the standard Reserve Bank increase

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Australian Housing

Who will purchase all the apartment defaults?

Australia is facing an unprecedented apartment oversupply as an estimated 230,000 new apartments flood the Melbourne, Sydney and Brisbane markets over the next 24 months. The surge in new apartment building was in an attempt to satisfy the insatiable demand from the foreign Chinese property investor. Under an Australian law

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Australian Economy

Systemic mortgage fraud under investigation

Australia’s unprecedented housing bubble has forced a significant number of mortgage applicants to falsify loan applications, simply to get a foothold in the ever challenging market. A recent UBS survey found mortgage fraud in Australia was rife, with 28 per cent of applicants admitting to falsifying loan documents. Many had

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Australian Economy

More homes left empty as rental yields decline

Negative gearing was intended to create more affordable housing, but as house prices surge, causing rental yields to tumble, more evidence is mounting to the contrary. Research by UNSW’s City Futures Research Centre has found a higher concentration of vacant homes in the inner cities. When it investigated further, it

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Australian Economy

Squatters make WA home

Western Australia’s highest residential vacancy rate in decades has turned the state into a hot spot heaven for squatters. Squatters are finding home in some of the tens of thousand vacant properties sitting idle in WA. Some are changing the locks and threatening landlords. Others are conducting their own renovations

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Australian Economy

Australia’s big 4 banks “almost too big to get sick”

Australia’s banking regulator has expressed “perpetual concern” about the dominance of Australia’s big four banks in the lending market. Charles Littrell, Australian Prudential Regulation Authority (APRA) supervision general manager told a Centre for International Finance and Regulation showcase event on Thursday, “In 1990, the four major banks had 40 per