Australia’s best and worst performing suburbs of the past 12 months have been revealed. New data shows the hotspots that have completely bucked the national downward price trend and those that have borne the brunt of it.
The figures, released as part of Domain’s June quarter house price report, showed the Ballarat suburb of Mount Pleasant took out the number one growth spot in the country, its median house price having increased by a whopping 26.2 per cent in the 12 months to June this year, while Brisbane’s riverfront haven in the western suburbs, Chelmer, recorded a 25.2 per cent rise in its median house price.
There are 3 Key Indicators providing a compelling argument to support the contention there has never been a better time to refinance your home loan OR take out another one. Let’s consider them.
Historic Low Int Rates
Banks reduce sensitivity rate increasing the amount you can borrow
Home and Unit prices have begun improving
It was only 7 months ago when banks were raising variable and fixed rate home loans by as much as 0.30%; out of sync with official cash rates.
The Australian Prudential Regulation Authority has removed the serviceability buffer that required banks to assess all borrowers against their capacity to repay the loan at 7 per cent.
Under the new rules, banks will merely add 250 basis points to the rate paid in order to assess whether or not the loan is suitable for the borrower.
As interest rates have moved lower and lower, mainstream lenders have begun to offer fixed loans at rates as low as 2.99 per cent but borrowers were still being assessed against their ability to repay at 7 per cent or more than twice the available interest rate. Banks typically add another 25 basis points on top of the APRA hurdles.
Too few people are accountable for the quality of building work, say the professionals who assess the scale of problems.
Brace yourself. Defect inspectors say the hundreds of apartment dwellers who were forced to evacuate three buildings in Sydney are just the beginning.
"All buildings across Australia have defects," says building inspector and facilities manager Lynda Kypriadakis.
On Wednesday, The Sydney Morning Herald revealed residents of 30 "loft" units at 19 Gadigal Avenue in Zetland have been unable to live in their homes for months: forced to leave due to water damage and a faulty fire prevention system.
Self-managed super fund members will next week face a new setback when NAB announces tough new controls on business property lending, despite offices, factories and surgeries being one of the sector's most popular investments.
The $726 billion SMSF sector is facing several challenges amid proposals to reform use of franking credits, restrict lending and impose minimum amounts for assets under management.
Small business is complaining about a new credit crunch as lenders clamp down following the Hayne banking commission
With consumer confidence in brand-new or off-the-plan apartments taking a hit after the Opal Tower crisis in Sydney, many potential purchasers are turning to established apartment blocks as a safer option.
Basically, you want a well-managed building: everything else flows from that. But how do you find this unicorn of an apartment block?
The obvious answer is to avoid the bad ones (duh!)
Low Doc loans have historically been pitched at self- employed borrowers who either hadn’t lodged their tax returns or simply did not wish to supply them. Lenders seeking alternative income verification would rely on an estimate from the borrower of his/her business net profit supported by a letter from their accountant suggesting that estimate was accurate. That form of income reliance is however gradually being replaced due to post Royal Commission “reduced risk appetites” and the need to adhere to more responsible lending guidelines.
Enter the Alt Doc or Near Prime Loans.
The drop out of Chinese buyers from the property market has left a significant hole in one Sydney suburb, causing house prices to plunge by 20 per cent in 2018.
Houses in the suburb of Penshurst, 17 kilometres south of Sydney's CBD, experienced the biggest fall in median price across the city, dropping by 19.7 per cent from $1.32 million to $1.06 million over the 12 months to December – double the 9.9 per cent city-wide fall in prices – according to Domain Group data.
"Penshurst used to benefit from the overflow of Chinese buyers in Hurstville, which is the capital of St George and a major China Town," Ray White selling agent Steve Pentland said.