Home 
In the News/Media
In the News/Media In the News/Media
Record mortgage stress ahead of rate cut
Friday, 05 September 2008
Australian property prices may have softened in 2008, but housing is no cheaper as affordability reaches record lows, and NSW & QLD appears to be the hardest hit.
A June 2008 report released by Real Estate Institute of Australia (REIA) found that Australian households need 39.8% of the family income to meet mortgage repayments, the highest figure recorded in the 22 years REIA has been collecting the data. Mortgage stress is considered to occur when over 30% of income is allocated to loan repayments, and with NSW and QLD at levels of 42.6% and 41% respectively and all other states with the exception of NT & ACT above 30% Australians are stretched. Economic uncertainty and high interest rates caused the deterioration in housing affordability in the June quarter. Announcements of interest rate cuts by the Reserve Bank of Australia will bring some relief for stressed out homeowners.
New home sales drop in July
Monday, 01 September 2008
Perhaps it's no surprise that house sales have dropped, after all, high mortgage rates are deterring many from purchasing. Builders are really feeling the fall and unless there's a rate cut soon, the building industry could be heading for job losses.There's been a substantial drop in residential construction and the imminent rate cut by the RBA seems to be needed sooner rather than later.
Housing weakness may impact rate cut
Monday, 01 September 2008
Spending seems to have slowed at least in the housing market where interest rate rises appear to have settled some of the eagerness to build and buy property. Builders are feeling the pinch and likewise the economy has started to feel it too. If the trend continues it’s good news for some with interest rates set to be cut by Christmas to help boost the economy.
The year of living anxiously
Monday, 01 September 2008
There’s speculation about the impact that one or two potential interest rate cuts will have on housing affordability. No one knows. Some say it will encourage investors back into the market, whilst others believe that housing will remain an out of reach dream for many. Maybe it’s time to adjust expectations?
Read full articleGovt cuts PDS red tape
Thursday, 24 July 2008
The introduction of First Home Saver Accounts (FHSAs) is set to change the financial services industry, bringing with them a new, reformed Product Disclosure Statement (PDS) intended to be short, clear and concise – a giant step from many current superannuation PDS that are commonly over 100 pages.
As promised by the government, the new PDS could be as short as 4 pages, although it’s hard to believe how. The First Home Saver PDS will be monitored before the idea spreads to the rest of the financial services industry.
More...
Results 1 - 9 of 32
*We will not spam you or pass your email address onto any third parties.
View our privacy policy.
