How high will the RBA’s cash rate get and how quickly? That’s one of the questions at the forefront of many people in the property development’s minds. With five consecutive rate hikes totalling 225bps, the RBA has moved at an unprecedented and record pace to combat spiralling inflation. RBA governor, Philip Lowe, now expects inflation […]
APRA Guideline ConfirmedFurther to the APRA Media release on 21 May 2019, it has now been confirmed that its “guidance on residential mortgage lending will no longer expect them [ADIs] to assess home loan applications using a minimum interest rate of at least 7 per cent… Instead, ADIs will be able to review and set their own minimum interest rate floor for use in serviceability assessments and utilised…
APRA proposes amending guidance on mortgage lending
The Australian Prudential Regulatory Authority (APRA) has announced that the 7% sensitised interest rate for new home loans is under review. APRA introduced the serviceability requirement for Authorised Deposit Taking Institutions (ADIs) in December 2014 requiring that all new home loans…
With the negative media surrounding property prices, we analyse if now is a good time to invest in first mortgage real estate funds. Moody’s Analytics expects property prices to fall by 11.4% in Melbourne and 9.3% in Sydney throughout 2019. However, a slow recovery is expected in 2020, further improving in 2021. The current fall…
JLL has released their Brisbane Housing Market report which illustrates that the Brisbane market will continue to stabilise throughout 2019 and into 2020. Supply has fallen subdued and is expected to remain so for several years. Apartment supply has peaked with detached and semi-detached dwellings…
JLL has released their Sydney Housing Market report which details that the Sydney market will continue to face headwinds in the near term. Supply is forecast to remain well below that of recent years with a sharp decline in apartment approvals of nearly 50% and a decline in house and semi-detached…
JLL has released their Melbourne Housing Market report which details that the Melbourne market will continue to face both a decline in sales volumes and capital values despite Victoria continuing to outperform national growth in several key areas. Supply is forecast to remain limited…