Category: News

Latest CPI figures spell good news for homebuyers

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline The Consumer Price Index (CPI) rose 0.4% in the March quarter of 2018, according to the latest figures from the Australian Bureau of Statistics (ABS). This follows a marginal rise of 0.6% in the December quarter of 2017.
“The CPI rose 1.9 per cent through the year to the March quarter 2018, having increased 1.9 per cent through the year to the December quarter 2017,” the ABS said.
“While the annual CPI rose 1.9 per cent, most East Coast cities have continued to experience annual inflation above 2.0 per cent, due in part to the strength in prices related to Housing and Food,” said Bruce Hockman, chief economist for the ABS. “Softer economic conditions in Darwin and Perth have resulted in annual inflation remaining subdued at 1.1 and 0.9 per cent respectively.”
The latest CPI figures spell good news for homebuyers and renters, as it sugge..

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First-home buyer activity rebounds

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline Borrowing among first-home buyers has rebounded over the past year, due in part to relaxed investor activity and attractive incentives in New South Wales and Victoria, according to Cameron Kusher, head of research at CoreLogic.
“The Australian Bureau of Statistics’ (ABS) housing finance data includes data on first-home buyer housing finance commitments, specifically for owner-occupiers,” Kusher said. “Over recent years, first-home buyer activity has generally been tracking below average, however, each state and territory offers some level of incentive to first-home buyers including grants and tax concessions.
“Over recent years, some states and territories have increasingly offered stamp duty reductions for buyers with these going live last year in NSW and VIC. As a result of these incentives and a slowdown in investor demand, activity f..

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Property News Update: 27th April 2018

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline What's made the news this week?
Watch (or listen) as Kieran and Kevin catch up to discuss the stories that grabbed their attention this week.

1. Why property price growth in big capital cities is becoming more about international drivers
The International Monetary Fund said property prices in cities like Sydney and Melbourne are becoming more and more influenced by overseas factors rather than domestic elements… READ MORE
2. A Tanzanian schoolboy is looking to change how we build houses
Edgar Tarimo has just won the Tanzanian schoolboy has accepted the 2017 Children’s Climate Prize for his scheme recycling plastics to build permanent homes. Edgar gained his education via a school set up by Australian teacher Australian teacher Gemma Sisia… READ MORE
3. Calls for councils to get tougher on short-stay accommodation like Air Bnb
R..

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Dwelling values are now lower in most capitals

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline In inflation adjusted terms, dwelling values are now lower in most capital cities, with the exception of Hobart, according to the latest Property Pulse report from CoreLogic, which analysed the March quarter consumer price index (CPI) data.
CPI, which measures inflation, increased by 0.4% over the March quarter and was now 1.9% higher year-on-year. “With the release of this data, it is also possible to look at inflation-adjusted or real changes in dwelling values across the capital cities. When looking at these figures, the inflation adjustment means that value growth is lower,” CoreLogic said.
National dwelling values fell by 1% and were 0.7% lower over the past 12 months. Hobart was the only capital where real values increased over the quarter (+3%), with Sydney recording the biggest quarterly decline (-2.2%).
Over the past 12 months,..

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Were mortgages more affordable 28 years ago?

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline The Property Investment Professionals of Australia (PIPA) has just released analysis arguing that mortgages are more affordable now than they were in 1990.
Peter Koulizos, chairman of PIPA, said those who say property has grown less affordable with time haven’t studied the numbers properly.
“Many commentators use just two indicators to measure housing affordability – income and house prices,” Koulizos said. “This is a good measure to indicate how expensive housing is, but if you want to analyse affordability, you must also consider mortgage repayments.”
PIPA examined annual figures from a variety of sources, including the Australian Bureau of Statistics (ABS) and National Australia Bank (NAB). The advisory body looked at the average size of a home loan, the standard variable rate, principal-and-interest repayments, and the average annua..

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Investors benefit after APRA scraps cap

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline Investors are set to benefit after the Australian Prudential Regulation Authority (APRA) announced plans to remove the investor loan growth benchmark, which it had previously set at 10 per cent in 2014.
The 10 per cent benchmark on investor loan growth was a temporary measure, said APRA Chairman Wayne Byres, and was introduced as part of a range of actions to reduce higher risk lending and improve practices.
In the four years since the cap was introduced, Byres said authorised deposit-taking institutions (ADIs) had taken steps to improve the quality of lending, raise standards and increase capital resilience.
“The temporary benchmark on investor loan growth has served its purpose. Lending growth has moderated, standards have been lifted and oversight has improved,” he said.
“However, the environment remains one of heightened risk and t..

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NSW government needs to reform stamp duty brackets

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline The New South Wales government needs to correct its antiquated stamp duty brackets, according to the Real Estate Institute of New South Wales (REINSW).
Leanne Pilkington, president of the REINSW, said the industry body has continuously lobbied the state government in an effort to persuade them to address the punishing effects of stamp duty bracket creep.
“To date, government has chosen to ignore the damage these outdated tax rates are causing,” Pilkington said. “By doing nothing the government is simply profiteering at the expense of the consumer.
“The current NSW transfer duty brackets (other than the top bracket for residential land over $3 million) have been in place for more than 30 years. The Second Reading to the 1986 Bill, which on enactment increased NSW transfer duty rates and introduced the current base thresholds, included th..

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Auction activity across the combined capitals remains stable

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline Auction activity across the combined capitals remained relatively steady in the week ending April 22, according to CoreLogic’s latest Property Market Indicator Summary.
A total of 1,746 homes were taken to market, returning a success rate of 63.1%. This was a substantial increase from last week’s final clearance rate, which saw the lowest weighted average result thus far this year at 61.7% (1,915 auctions).
Melbourne saw a total of 905 auctions take place over the week ending April 22, returning a 63.8% preliminary clearance rate, which was slightly higher than the 62.4% during the previous week when 873 auctions were held.
In Sydney, the number of homes taken to auction fell to 551. The lower volumes returned a higher week-on-week clearance rate, with 66.4% of properties reportedly selling. This was a significant increase from the pre..

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Minimising the impact of short-term rentals

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline The growing popularity of short-term holiday rentals has taken many Australian local councils off guard, according to Reuben Schwarz, co-founder of BnbGuard, a service which monitors unauthorised subletting on investment properties.
“What was once a few homes every now and then is now every-other-home every-other-night in many Australian coastal shires, as both professionals and local residents capitalise on the phenomenon,” Schwarz said.
The surge in the number of tourists in many popular holiday hot spots is transforming communities—and not always for the better. Many residents may be forced to move to quieter areas if too many rowdy tourists descend on short-term rentals, leaving the towns “empty husks full of tourists but nothing else,” Schwarz said.
There’s also the potential economic impact. Hotels and other hospitality businesse..

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AMP could face several shareholder class actions

Latest news: Nominations open for Property Investors Awards VIC government unveils planning reforms Capital city dwelling values continue to decline Financial services giant AMP could be facing a series of class actions after its head of financial advice acknowledged during the Royal Commission that the company had repeatedly misled the Australian Securities and Investments Commission (ASIC) about charging customers for advice they never received.
AMP’s first casualty was its CEO, Craig Meller, who stepped down on Friday. His fall from grace has been unusually rapid, given that AMP only started giving evidence last Monday.
Eyebrows were raised when AMP’s head of financial advice, Anthony Ragan, admitted that his company had lost count of the number of times it had lied to ASIC, adding that it had been charging customers for nearly a decade for advice that was never delivered.
The company has lost $1bn in shareholder value since early March.
Meller’s resignation was accompanied by ..

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