What risks does a Labor-elected Government pose to property investors

What risks does a Labor-elected Government pose to property investors

While Bill Shorten could never get his nose in front of Malcolm Turnbull as "better prime minister", the Opposition Leader holds a 39 to 33 per cent lead over new prime minister Scott Morrison.

Shorten is proposing to halve the current 50 per cent capital gains tax discount on investment properties to 25 per cent on all assets purchased after July 1, 2017.

And he will abolish negative gearing on all assets bought after July 1, 2017, other than newly constructed dwellings.

Bank feels pressure to lift rates

Bank feels pressure to lift rates

Sharply higher funding costs yesterday sparked a 2.4 per cent fall in Westpac shares, as market volatility in cash markets crunched the bank's profit margins, adding to pressure on Australia's biggest banks to raise mortgage rates.

Numerous small lenders have already moved to hit borrowers with rate rises, but the major banks that control 75 per cent of the $1.6 trillion mortgage market have not yet moved because of political pressure on the lenders arising from the revelations at the Royal Commission.

Is it time to finally fix your home loan?

Is it time to finally fix your home loan?

With the shadow of the Royal Banking Commission still hanging heavily over the major banks, they don’t really want to give politicians another stick to beat them with but as UBS analyst Jonathan Mott told clients on Monday, “the spread between the bank bill swap rate and the overnight index swap rate was at its highest since the financial crisis. Put another way the “yield curve”, a line that plots fixed interest securities against the length of time they have to run to maturity

What $500,000 buys investors

What $500,000 buys investors

There are plenty of opportunities for sharp-eyed property investors with a lazy $500,000 looking for a home or apartment in most of the capital cities but where are the real bargains? 

Interest Only debts and Rising Borrowing Costs – What does it mean for you?

Interest Only debts and Rising Borrowing Costs – What does it mean for you?

APRA, the Australian Prudential Regulation Authority last year forced the banking sector to limit interest-only (IO) lending to 30% of all new loans, down from 46%. Today borrowers holding some $400 billion in IO loans are facing arguably the tightest lending squeeze in modern history in addition to out of cycle bank increases to interest rates. 

Live where you love and buy where you can afford.

Live where you love and buy where you can afford.

There are few feelings of financial disappointment greater than scrimping and saving(not to mention begging and borrowing) for a deposit only to see the prospects of living where you want, in a style to which you aspire, disappear over the affordability horizon. Various studies have disagreed on whether renting or buying – over the longer term is the better option but what if you could have your cake and eat it too? 

Are the Chinese intent on World Domination or simply a bigger slice of Australia

Are the Chinese intent on World Domination or simply a bigger slice of Australia

Much has been written and broadcast of late suggesting the Chinese are intent on world domination over the next 20 or so years. So much so that tensions between many countries and the Chinese are as strained as they have ever been; snapshot last Tuesday’s concerted effort by the Turnbull government to smooth over strained relations with China. My personal view is the Chinese are very adept at taking advantage of countries, states and private and public corporations experiencing funding pressures to deliver on promises previously made. Take the recent investment by Chinese firm Aqualand in the listed but ailing McGrath real estate business 

So you thought your loan was expensive

So you thought your loan was expensive

So you thought your mortgage rate was expensive. Spare a thought for the big end of town where the companies that develop your next apartment or office are facing stiffer borrowing costs as a consequence of a flight of capital out of the construction sector, due in part to growing perceptions the market is over cooked and a crash in prices, inevitable. Think Grocon, the iconic brand behind such Australian landmarks as Melbourne’s Rialto, the Eureka Tower and Sydney GPO who recently, in an effort to secure funding for its stake in the Barangaroo Central project have recently tied up a $40 million loan with non-bank lender; understood to be Maxcap at an annualized interest rate of 37% that’s about 10 times the cheapest home loan rate today.