Damien Zanin

"First Homebuyer Boom To Ripple through Mid Range Properties"

The current boom in the lower end of the housing market will filter through to the more expensive properties over the next three to six months, according to the Real Estate Institute of NSW (REINSW).

Steve Martin, REINSW president, said that the heightened first homebuyer activity fuelled by the recent government incentives has underpinned the NSW residential property market and will continue to do so.

"Early signs in 2009 of a strong return to the residential market by buyers will definitely continue as we head towards the end of the financial year," he said.
"The Federal Government's stimulus package combined with the lowest interest rates since the sixties have re-energised the market. What we are seeing now as a direct result of interest rates and the rental accommodation shortage is that investors are coming back into the market place. With interest rates likely to fall, we will see the mums and dads and private investors playing a significant role in our residential recovery."

Martin also predicted a rosy outlook for the commercial property sector due to the lower interest rates and favourable foreign exchange rates.

Source: Your Mortgage Magazine: 26/03/2009

"Mortgage Rates To Hit All Time Low of 4.5% cash rates to fall to 1.5%"

The currently low mortgage rates are expected to fall even further due to the slowing economy.

Shane Oliver, chief economist with AMP Capital Investors, said he expects the Reserve Bank of Australia (RBA) to bring the cash rates down all the way to 1.5%.

"We were looking at a low of 2.25% but now I think rates are going to go down even lower, to 1.5%. Assuming the banks will pass this rate cut in full, this would bring down the standard variable rate to 4.15%."

However, Oliver said that a full pass through is highly unlikely and he's expecting the banks to pass on 80% of the rate cut, as they have done in the past. This would then bring the mortgage rate down to 4.5% - an all-time low.

"This is a big improvement in affordability. However, buyers have to be cautious and borrow conservatively so that they won't face the risk of being unable to meet their repayments when interest rate eventually rises again."

Both ANZ and Westpac are forecasting the RBA to cut interest rates by 0.25% to 3.0% when it meets on 7 April.

Source: Your Mortgage Magazine: 19/03/2009

" First Homebuyer Boom Fuels Mortgage Recovery"

Undeterred by the looming recession and threat of rising unemployment, first homebuyers led the strong recovery in mortgage sales in February, according to a new report.

Mortgage broker Australian Finance Group recorded a 40% jump in mortgage sales in the month of February after total sales volume dropped 26% in January from one year earlier. AFG sold a total of $2.6bn of mortgages - the highest volume since November 2007.

As with the national trend, the AFG Index also showed a majority of buyers were entering the property ownership market for the first time.

Progressively increasing from a low of 10.6% in April 2008, first-time buyers accounted for 26.1% of national mortgage sales for AFG. The leading area for first homebuyers was NSW, accounting for about 34.5% of all mortgages sold by the company, followed by Victoria at 26.8% and Western Australia at 15.6%.

Source: Your Mortgage Magazine: 12/03/2009

" In Sydney, Its Cheaper To Buy Then Rent"

Despite having its reputation as one of the most expensive cities to live in, Sydney has more affordable properties compared to the other capital cities in the country.

A report by RP Data showed that 18 suburbs in the Sydney area are more affordable for buying a property than renting. This compares with just one suburb each for Darwin, Adelaide and Perth. Melbourne and Queensland have only two suburbs each that are cheaper to buy than rent while Canberra boasts four suburbs.

Homebuyers in Sydney's Rose Hill save $504 per month by owning their home. In Dysart, Qld, homebuyers are better off by $613 while renters converting to homeownership in Baynton, WA, would see their expenses drop by a massive $3,788 per month. 

RP Data's research director Tim Lawless noted that during 2008 Australia experienced some fundamental shifts in its property market where property values fell, interest rates dropped to a 45-year low and weekly rents increased dramatically.

" Investors, First Home Buyers, Flock Into Sydney Property Market"

The long-awaited return of Sydney investors appears to have finally arrived, as shown by the rising number of available rental properties in some parts of the city.

The latest data from the Real Estate Institute of NSW (REINSW) revealed that the percentage of available properties in Sydney suburbs 25km or more from the CBD has jumped significantly.

"At last, it seems we are seeing some return to the market by investors, at least in the key population belt of Sydney," said REINSW Steve Martin.

He said many tenants are also taking advantage of the First Home Owner Grant boosting which is freeing up some rental stock.

Martin pointed out the percentage of available properties 25km or more from the CBD has jumped to its highest level since August 2007, up 0.3% to 1.7%. This is more than double that recorded in May 2008 when available properties in outer Sydney hit their lowest level for some years at 0.8%.

Source: Your Mortgage Magazine: 26/02/2008

"Housing Most Affordable Since 2004"

Buying a home in Australia has not been this easy in years, especially for first homebuyers, according to a recent industry report.

Sinking property prices, dramatically lowered interest rates and expanded government incentives have made now the most affordable time to buy a home in the past five years, according to the Housing Industry Association (HIA).

The HIA's first homebuyer affordability index shows that in the December quarter alone the average home loan repayment dropped by 26% to reach just above $2,000 per month. More specifically, the average monthly payment was $740 less than in the previous quarter.

"The improvement in housing affordability means those on a more modest income can now contemplate a home of their own," said HIA chief executive Chris Lamont.
Lamont noted that, based on the HIA economic modelling, 135,000 households have come out of mortgage stress since December 2008.

Source Your Mortgage Magazine: 12/02/2009

"Lowest Interest Rate In 45 Years To Kickstart Investor Activity"

The 1% rate cut, delivered by the Reserve Bank of Australia on 3 February and passed on fully by the major banks, will lure investors back into the property market, according to an expert.

Craig James, chief equities economist with CommSec, said the unprecedented rate cuts over the past five months translate to a massive improvement in cash flow for those who own a property, making property an attractive investment option.

"Since September, interest rate repayments on a $300,000 mortgage have fallen by over $8,800 a year, effectively representing a 15% pay increase for someone on the average wage. In after-tax terms, the boost is even greater, equivalent to an 18.5% lift in disposable income," he said.

The overall improvement in yields is also becoming appealing. The latest data from the Australian Bureau of Statistics showed rents rising by 8% over the past year - the fastest pace in 19 years.

Source: Your Mortgage Magazine 05/02/2009

"Lending Is About Ticking All The Boxes"

John was first referred to my service by another client of mine, Josie. He was looking to purchase another property, but this time with his partner Patricia.

 

When I was first talking with John and Patricia I thought to myself, 'this looks pretty straight forward', however as I asked a few more important questions I realised there were a couple of problems to solve.

 

Basically, lending is about ticking all the boxes, and if one of the boxes doesn't get ticked, it hurts your application. I'm not going to go into the problem itself, but after working on their situation for the best part of a day, I found a solution, allowing their new purchase to happen.

 

Who's the next person you know that would love to buy a property, that may have a little problem they need solving?

 

I'd love to help them.

 

Damien Zanin

Your Personal Mortgage Consultant- Lending By Referral

" Property Prices, Rents to Soar By Second Half Of 2009"

With predictions of a looming economic recession and escalating unemployment rates, many property buyers are scared of venturing into the property market even as interest rates fall to record lows and bargains begin to emerge.

However, the current buying opportunity may end sooner than you think when the property market recovers towards the end of this year, according to a property expert.

Malcolm Reid, a property developer and a former economist for the Reserve Bank of Australia and the Australian Post Office, said that, after a sluggish performance in the beginning of the year, property prices will rise again, significantly.

"As an economist who follows many economic sources each month in the USA, UK and Australia and all the property issues in Australia, I am completely convinced that the second half of 2009 will see an enormous rise in most residential rents and prices after a mild low in the first half. As usual, it will take all but the hardened property investors and respected property forecasters by surprise," he said.
 

Source: Your Mortgage Magazine: 22/01/2009

"Fixed Rate Loans Jump 78%"

The low fixed-rate loans offered by some lenders are enticing a growing number of borrowers to lock their rates in - according to a new report.

The Australian Finance Group Mortgage Index revealed that the proportion of fixed rates rebounded from an all-time low of 3.2% to 5.7% in December 2008 - a rise of 78%. This is the first monthly increase since February 2008 according to the mortgage broker.

The data also showed a marked improvement in mortgage sales with the December figure exceeding expectations after volume climbed by 11% compared to 12 months ago. AFG attributed the solid increase to the continued robust demand from first homebuyers and strong activity among owners looking to refinance. First-time buyers accounted for 21.2% of all mortgage sold by AFG while 37% of borrowers were refinancing. Investors also got into the action pushing the overall number to 28%, up from 27.6% in the previous month.

Source Your Mortgage Magazine: 14/01/2009