New Home Loan Products effect easy home renovating
March 16, 2011 by Tim
Filed under Finance, Renovating, tips
News from the Australian Mortgage 2011 Conference, advises that the innovation in new home improvement loan products in Australia is poor. Given, there are long term loans, over 40 years, in Canada, USA, Japan and China which apply an intergenerational effect. While, Australian home loans are for the much short term like 25 years. Lisa Montgomery, from RESI, notes the poor affordability in Japan and China is assisted by Intergenerational loans. SCB Kelvin Lawrence, told the Conference that, compared to Asian Banks, there was no innovation in the Australian Banking sector. Of course, one can see this two ways, no improvement in easy home renovating loan products or great potential for new home renovation loan products.
I anticipate greater competition for home loans products into the future in Australia. the Bendigo Bank is noting an expectation for lower margins and better products from the banks. Bendigo has some innovative products like a shared loan, pitched for Home builder developers.
Currently, Banks are building up deposits as they move away from the securing loans from the volatile USA debt markets. I fully expect some innovation to be sought given the slower loan markets.
In order to download your free ebook
1 Return to the top of the page, right hand side
2 Enter your name and email
3 Click, on Send me the free ebook
4 Return to your email and download your free ebook.
Latest home Loan rules relaxed for home renovating
March 13, 2011 by Tim
Filed under Finance, property market, Renovating
The local newspapers are reporting that ING Bank has announced an increase in the Loan to Valuation ratio, raising the ratio from 80% to 95% for home renovating loans. Thus opportunity knocks for the aggressive investor or home renovator. Given all the publicity surrounding the government approval of the big banks issuing “Covered Bonds’” being issued by the Australian banks. Covered bonds have been allowed to be 8% of Bank capital, a big increase. This will allow the Banks to borrow heaps more money to back the home renovation loan market. There should be more generous home renovation loan terms and conditions, including lower margins on interest rates.
In New Zealand, the home improvement loan rates have been cut to help rebuild Christchurch! Perhaps Australian government will take note, as to rebuild Queensland will cost many billions. In Japan, after the earthquake and Tsunami, credit has been eased. This must all benefit easy home renovating. Australia now has a slower home sales market, with less new building. This will lead to slower credit growth from the big banks, requiring an easing in credit limits.
In order to download your free ebook
1 Return to the top of the page, right hand side
2 Enter your name and email
3 Click, on Send me the free ebook
4 Return to your email and download your free ebook.
Overseas Investors in Australian property renovations
February 20, 2011 by Tim
Filed under Finance, property market, Renovating
Colliers International, have collated some recent figures on these investors. They show that the prime overseas investors in Queensland, Australia, are Chinese, followed by South Africa,United Kingdom, New Zealand, Japan, Singapore an Russia. Well that’s quite a few overseas investors. I wonder why they find Australia, so attractive? Some prime reasons include a strong economy, high employment, strong migration figures, strong demand from tenants, generally a strong economy. Many home renovating buyers have an affinity for Australia, related to work requirements, visa requirements or students who have been studying in Australia. Or is it the free Libraries and cheap golf club fees? Home renovators can have confidence these buyers under pin the property market. there is a constant argument that Australian property is too dear, but one has to be careful to compare “like with like”. As overseas capitals like Tokyo, New York, London, Paris are much more expensive. There are heaps of local rules to do with historical features, council rules and regulations. Australian homes tend to be larger and have a considerable land component that is not available in Overseas capitals. Australian homes usually ahve more potential for improvement via, easy home renovating.
In order to download your free ebook
1 Return to the top of the page, right hand side
2 Enter your name and email
3 Click, on Send me the free ebook
4 Return to your email and download your free ebook.
Stamp Duty Relief in Victoria
February 20, 2011 by Tim
Filed under Finance, First Home Buyers, Practical Renovation, Renovating
The introduction of a $750M Stamp Duty relief package, in Victoria, for First Home buyers from 1st July, 2011 should prove popular. Initially, a cut of 20% on the Stamp Duty on a new home up to the value of $600,000 is proposed.
The Stamp Duty relief is to expand to a 30% cut by 1/01/2013 and then expand to 50% by 2014.
First Home buyers, might carefully weigh the future Stamp Duty concession{around $3,274 for a $400,00 home} against the likely rise in land values from the new State land tax increases being introduced from 1/07/2011. The Stamp duty relief expands each year, until 2014. I estimate the new land levies could add up to $7,000 to the cost of new land subdivisions. A carbon tax would add an extra $6,000 to the cost of a new home, thus the additional compounding cost is high. First home buyers have been holding off the market over the last year in anticipation of these Stamp Duty cuts. Builders have had to cut their prices and Banks shave their interest margins in response to this weaker demand. The number of first home buyers has fallen to half the prior year figures. reference, H.I.A.
In order to download your free ebook
1 Return to the top of the page, right hand side
2 Enter your name and email
3 Click, on Send me the free ebook
4 Return to your email and download your free ebook.
Re-Regulation of the Banks effect interest rates
February 15, 2011 by Tim
Filed under Finance, property market
Today, the AFR notes the re-regulation of the big banks will impose some costs. It is estimated to cost an extra one hundred points onto Home Loan interest rates. While, this is over an implementation phase in time, these costs are real and considerable. If imposed in a short time this would reduce economic growth. Fortunately, these will be implemented over five years. There are some countervailing efficiencies arriving as well.
Notably, the phasing in, of computer based self application forms: these should shave loan margins by at least 100 points.
The major differences between European and USA banking re-regulation are yet to be worked through. Australia is likely to mimic the UK model, where rising taxes an insurances for risk are the case. The Basle three, accords essentially set the framework for banking laws into the future.The U bank arm of the national bank has been publishing its home loan offer. So the public are learnig about these discount internet direct deals, but people still need help to get through the maze of forms.
In order to download your free ebook
1 Return to the top of the page, right hand side
2 Enter your name and email
3 Click, on Send me the free ebook
4 Return to your email and download your free ebook.
