The difference between median value and median price

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Understanding the difference between the median sales price and the median value can provide you with useful insights into exactly what is going on in your local property market. The traditional metric is the median sales price. This is the median – or middle – price of all the properties … Read More

Were mortgages more affordable 28 years ago?

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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 … Read More

Why it’s worth cutting mortgage costs via cheaper loan

Amy Mylius says monthly costs on investment loans for her town house and apartment rose by $1300 a month before refinancing.  Amy Mylius has saved more than $1000 a month in loan costs on her two investment properties by switching to a new lender after her repayments crept up by … Read More

Key retail banking product happenings from the past month

Both variable and fixed Home Loan rates are trending down as providers continue to chase owner occupier borrowers. Investor rates have also been easing, even before last week’s announcement by APRA that the investor loan growth limit would be lifted for those lenders that meet its prudential requirements. American Express … Read More

Statement by Philip Lowe, Governor: Monetary Policy Decision

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Date1 May 2018 At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The global economy has strengthened over the past year. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. The Chinese economy continues to grow solidly, … Read More

How Commonwealth Bank got itself into such a mess

The banking royal commission has been full of horror stories. To some extent this is not surprising. Banks undertake millions of transactions per year so it is hardly surprising that there are some shockers in the mix. The Catholic Church and the Returned Services League have provided similar front page news stories … Read More

The many moving parts influencing house prices

Before I dive into where housing is heading, the banking regulator’s analysis of CBA’s vulnerabilities was spot on. In 2010 I posited that while the four oligarchs’ much-lauded diversification into non-core businesses might smooth their return distributions during the good times, it lifted the probability of adverse fat-tail events of the kind NAB experienced in … Read More

8 Financial New Year’s Resolutions For 2018

The beginning of a new year is the most popular time to set goals and make plans, and everyone’s resolution list should include a few financial resolutions. Resolutions, like goals, are best when they’re specific. When you set a resolution or a goal, think of it as picking destinations on … Read More

Westpac shares crumble after poor lending practices conceded in internal documents

Westpac’s share price has nosedived after the release of explosive documents detailing widespread failings in not only the quality and riskiness of its home loans, but the way they are processed. Key points: Westpac shares tumble 4pc after APRA finds it has the worst record of the big banks in … Read More

The untouchables: How the dodgy financial planners kept their jobs

Charging dead people fees, impersonating clients, falsifying signatures. It’s all apparently in a day’s work for unscrupulous members of the $4.6 billion financial planning industry. For the best part of the past week, the Hayne royal commission explored the misdeeds of advisers employed by the big banks and AMP. The testimony was disturbing, and portrayed … Read More

Liquid paper and broken dreams: Homeowners brought to their knees over lending practices

Jason Hannagan had to sell his home and an investment property after a financial lender gave his family a loan they could not afford to repay. Mr Hannagan’s family took out a $590,750 loan from a lender called Pepper Money in 2012. He estimated the family’s monthly income was about … Read More

APRA relaxes investor property loan ‘speed limit’ as boards made more accountable

Despite conceding that risks in the property market remain “heightened”, the key bank regulator will remove the speed limit on investor lending. Key points: APRA is targeting the quality of home loan serviceability, ditching previous investor speed limits Bank boards will be made more accountable for the quality and operation … Read More

Jonathan Munz sells Portsea pile to Russell Knowles for $2.5m profit

Rich Lister Jonathan Munz has made a $2.5 million profit from selling the Portsea house he purchased just two years ago to former rich lister Russell Knowles. Mr Munz, whose estimated $1.1 billion fortune put him 50th on last year’s Rich 200, sold his mansion at 3808 Point Nepean Road for $13.5 million last Monday in … Read More

APRA just relaxed lending quotas for Australian housing investors

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APRA has announced it will remove the 10% annual cap on investor housing credit growth for some lenders. It expects ADIs to develop internal limits on lending at very high debt-to-income levels, and policy limits on maximum debt-to-income levels for individual borrowers. Restrictions on interest-only mortgage lending introduced in March … Read More

Westpac shares slide after UBS flags lending risk concerns

Westpac shares have slumped in midday trade after UBS downgraded the stock this morning. Analysts Jonathon Mott and Rachel Bentvelzen ascribed a target valuation of $26.05 on Westpac (WBC) shares — down from this morning’s opening price of $29.18. Westpac shares fell by more than 4% in afternoon trade before … Read More

How to quickly know how much house you can afford

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Rules of thumb for home affordability There are several easy rough estimates for how much you can spend on a home. Choose a total payment that is close to what you spend now for rent Select your maximum home price at three times your annual income Choose a total housing … Read More

What You Need to Know about Mortgages and Equity

Ah, springtime: when “for sale” signs start popping up with the daffodils and crocuses! Before you call your real estate agent, you might want to read up on some of the more technical aspects of homebuying—like exactly what homeownership can mean for your bottom line. Mortgage basics The majority of families … Read More

Low Rise Medium Density Design Guide

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These are Tools for improving the design of low rise medium density residential development as complying development. A key component to addressing housing affordability and supply is delivering more housing diversity. The low rise Medium Density Housing Code and the Low Rise Medium Density Design Guide address a lack of … Read More

13 WAYS TO START POWERFULLY AS A PROPERTY INVESTOR

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1. Know why you’re investing in property Get clear about your reasons for choosing to invest in property instead of other asset classes such as shares. Most investors know why they want to invest in property but some do it for the wrong reasons, such as trying to keep up … Read More

Key changes to pricing and offers in the last month in Australian consumer banking

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Click here to see a summary of the key changes to pricing and offers in the last month in Australian consumer banking: http://pclmoney.com.au/bnk/bnk_feb.pdf Note that the deposit rates on offer continuing their downward trend Key changes: ANZ’s​ Progress Saver has had its ongoing bonus rate reduced by 10bp to 1.71%. Bankwest​ … Read More

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