Australia's housing market staged a comeback in the March quarter as home building activity jumped more than 10 per cent on the back of renewed interest in flats, units and townhouses, figures showed today.
The Australian Bureau of Statistics (ABS) said, on a seasonal basis, the number of new homes and units built were up 10.6 per cent to 39,219 for the quarter.
Over the year, home building was up 4 per cent.
The sharp spike in building activity followed falls in the previous two quarters and occurred ahead of the Reserve Bank of Australia's decision to raise interest rates in May.
The ABS said new private sector housing rose 3.9 per cent to 25,738 for the three months to the end of March.
New private sector other residential building climbed 26.3 per cent to 12,048.
Economists had expected dwelling commencements to have fallen in the March quarter in the aftermath of first quarter gross domestic product (GDP) data.
Commonwealth Bank chief economist Michael Blythe said the strong result indicated the recent slowdown in housing over the last 18 months was shaping up to be one of the mildest on record.
"It's not to say there is another housing boom under way but the housing side of things will not be a huge drag on the economy in the next year," he said.
Thursday, June 22, 2006
Sunday, June 11, 2006
Malaysia fighting online credit card fraud
Although the usage of electronic payment in Malaysia is still low compared with developed countries, it is nonetheless a “fast mover” when responding to online fraud, MasterCard International vice-president for operations and advanced payment products (South-East Asia) David Chan said.
He said Malaysia was among the first countries in the world to migrate to EMV (Europay-MasterCard-Visa) cards in an effort to combat credit card fraud.
“Realising that online fraud can cause huge losses, banks in Malaysia are moving fast to equip themselves with more secure anti-fraud codes and devices.
“The rate of adoption by local banks is fast, judging from its size if compared with developed countries,” he told StarBiz after presenting his paper entitled “Banking Technologies and Cost Effectiveness: Migration to Electronic Payment” yesterday.
He added that online authentication was essential for sustaining continued online payments and banking growth.
Chan said online payments globally currently accounted about 10% of the total US$5tril plus e-payments business. He attributed this enormous figure to the rising e-commerce business worldwide.
He said although online fraud was 20 times higher than total card fraud in the US, nevertheless it had declined with the usage of more secure online fraud codes and devices.
Source: Malaysia Star
He said Malaysia was among the first countries in the world to migrate to EMV (Europay-MasterCard-Visa) cards in an effort to combat credit card fraud.
“Realising that online fraud can cause huge losses, banks in Malaysia are moving fast to equip themselves with more secure anti-fraud codes and devices.
“The rate of adoption by local banks is fast, judging from its size if compared with developed countries,” he told StarBiz after presenting his paper entitled “Banking Technologies and Cost Effectiveness: Migration to Electronic Payment” yesterday.
He added that online authentication was essential for sustaining continued online payments and banking growth.
Chan said online payments globally currently accounted about 10% of the total US$5tril plus e-payments business. He attributed this enormous figure to the rising e-commerce business worldwide.
He said although online fraud was 20 times higher than total card fraud in the US, nevertheless it had declined with the usage of more secure online fraud codes and devices.
Source: Malaysia Star
Korean mortgage rates are set to rise over the next months
Households face heavier interest costs from this month as banks are set to raise mortgage borrowing rates following the Bank of Korea’s (BOK) increase in the key short-term call rate last Thursday.
The interest rates for mortgage loans are expected to keep rising in the months to come as the central bank, in an apparent move to fight growing inflationary pressures, has signaled a further call rate hike.
The rate rise may pressure households to tighten their belts to cover rising interest costs. Banks expect the rise to decrease demand for new loans and thus help stabilize the volatile real estate market.
Last week, Woori Bank, a state-owned lender, raised borrowing rates for its housing collateral loans 0.23 percentage points to 5.29-6.59 percent, immediately after the BOK hiked its call rate by 25 basis points to 4.25 percent. That means a household borrowing 100 million won from Woori should pay 230,000 won more interest annually.
Hana Bank, the country’s fourth-largest lender, also slightly increased its mortgage loan rates. The bank said it plans to raise mortgage loan rates for those owning apartments in volatile areas by 0.5 percentage points, making it clear it will take stronger action to help curb real estate speculation.
Other banks, such as Kookmin and Shinhan, will follow Woori and Hana to increase mortgage loan rates from today.
Banks tend to link mortgage loan rates to the rates of certificates of deposit (CDs). CD rates have risen steadily as the central bank has tightened its monetary policy since late last year, but banks have cut mortgage loan rates to draw more loan-seekers.
``The government’s real estate policymakers see the banks’ mortgage loan policies as fueling property demand and helping destabilize the market,’’ a BOK official said. ``Cooling down the property market has been the top priority of the government’s real estate policy, but banks refused to follow by maintaining low interest rates for mortgage loans.’’
But the situation is a lot different now. If banks raise mortgage loan rates, policymakers believe demand for loans will fall, and this will ultimately help ease the property bubble. However, market watchers point out the rate hikes will give households a greater financial burden and will thus negatively affect the reviving household spending.
According to Barclays Capital, growing household debt has spurred domestic consumption in South Korea. However, as banks are tightening lending policies for mortgage loans, consumer spending may fall, negatively affecting the country’s economic growth, the bank said.
During a meeting with bank CEOs on May 19, BOK Governor Lee Seong-tae said the government’s tighter anti-speculation measures, in place since March 30, are now affecting the borrowing patterns of housing loan seekers. Demand for mortgage loans has remained strong, but the measures will slow the pace of their growth.
Affected by the government’s real estate policy, commercial banks are instead focusing more on corporate client loans. Most banks plan to expand loans to small and medium-sized enterprises (SMEs) in a bid to diversify their income sources.
Source: Korea Times
The interest rates for mortgage loans are expected to keep rising in the months to come as the central bank, in an apparent move to fight growing inflationary pressures, has signaled a further call rate hike.
The rate rise may pressure households to tighten their belts to cover rising interest costs. Banks expect the rise to decrease demand for new loans and thus help stabilize the volatile real estate market.
Last week, Woori Bank, a state-owned lender, raised borrowing rates for its housing collateral loans 0.23 percentage points to 5.29-6.59 percent, immediately after the BOK hiked its call rate by 25 basis points to 4.25 percent. That means a household borrowing 100 million won from Woori should pay 230,000 won more interest annually.
Hana Bank, the country’s fourth-largest lender, also slightly increased its mortgage loan rates. The bank said it plans to raise mortgage loan rates for those owning apartments in volatile areas by 0.5 percentage points, making it clear it will take stronger action to help curb real estate speculation.
Other banks, such as Kookmin and Shinhan, will follow Woori and Hana to increase mortgage loan rates from today.
Banks tend to link mortgage loan rates to the rates of certificates of deposit (CDs). CD rates have risen steadily as the central bank has tightened its monetary policy since late last year, but banks have cut mortgage loan rates to draw more loan-seekers.
``The government’s real estate policymakers see the banks’ mortgage loan policies as fueling property demand and helping destabilize the market,’’ a BOK official said. ``Cooling down the property market has been the top priority of the government’s real estate policy, but banks refused to follow by maintaining low interest rates for mortgage loans.’’
But the situation is a lot different now. If banks raise mortgage loan rates, policymakers believe demand for loans will fall, and this will ultimately help ease the property bubble. However, market watchers point out the rate hikes will give households a greater financial burden and will thus negatively affect the reviving household spending.
According to Barclays Capital, growing household debt has spurred domestic consumption in South Korea. However, as banks are tightening lending policies for mortgage loans, consumer spending may fall, negatively affecting the country’s economic growth, the bank said.
During a meeting with bank CEOs on May 19, BOK Governor Lee Seong-tae said the government’s tighter anti-speculation measures, in place since March 30, are now affecting the borrowing patterns of housing loan seekers. Demand for mortgage loans has remained strong, but the measures will slow the pace of their growth.
Affected by the government’s real estate policy, commercial banks are instead focusing more on corporate client loans. Most banks plan to expand loans to small and medium-sized enterprises (SMEs) in a bid to diversify their income sources.
Source: Korea Times
Saturday, June 10, 2006
Bank's mortgage customers to get money back
Canada's Bank of Montreal will refund a total of $7.1 million, including interest, to about 28,000 mortgage customers who overpaid penalties on certain mortgage pre-payment and early-renewal transactions, the bank announced on Friday.
The bank said it identified an inconsistency between in the way some mortgage contracts explained how interest penalties were calculated and the way the calculations were actually done.
Some customers paid less than their contract called for, but the bank said it would not attempt to recover the funds they should have paid.
Customers who want more information or who believe they may have been affected but who have not received a cheque by June 23, should contact the bank's dedicated customer service line at 1-866-895-3760.
Bank of Montreal shares traded Friday at $61.62, down nine cents, at the Toronto Stock Exchange.
Source: Toronto Star
The bank said it identified an inconsistency between in the way some mortgage contracts explained how interest penalties were calculated and the way the calculations were actually done.
Some customers paid less than their contract called for, but the bank said it would not attempt to recover the funds they should have paid.
Customers who want more information or who believe they may have been affected but who have not received a cheque by June 23, should contact the bank's dedicated customer service line at 1-866-895-3760.
Bank of Montreal shares traded Friday at $61.62, down nine cents, at the Toronto Stock Exchange.
Source: Toronto Star
Study finds most US property executives plan to invest outside US
More than 60% of real estate executives, investors and other experts expect to invest in properties or land outside the U.S. in the next 12 months, according to a new study released this week. The Bryan Cave Real Estate Executives Forecast Survey found 61% of real estate professionals plan to park cash outside the U.S., with the greatest interest being in Mexico and China. The survey, which polled 343 professionals, including public and private real estate company executives, investors, opportunity funds, commercial mortgage bankers, lenders and brokers, showed 15% consider Mexico as a key investment market, while another 15% named China. Other countries of interest included the U.K., Canada and Japan, where 12%, 8% and 8%, respectively, of those surveyed plan to invest in land or property. The results appear to echo the views of a number of real estate executives attending the National Association of Real Estate Investment Trusts investor conference in Manhattan this week. A growing number of real estate investment trusts, such as ProLogis (PLD), Simon Property Group Inc. (SPG), Kimco Realty Corp. (KIM), Public Storage Inc. (PSA), Host Hotels & Resorts Inc. (HST) and Vornado Realty Trust (VNO) have been either expanding or looking to expand outside the U.S. In some cases, such as ProLogis, the expansion is aimed at meeting the needs of tenants who wish to have a global presence. It's "business driven" and "customer driven," allowing the company to leverage its customer relationships and operating platform on a global basis, ProLogis Chief Executive Jeff Schwartz said. Public Storage's decision to acquire rival Shurgard Storage Centers Inc. (SHU) will move the company into the global arena, thanks to Shurgard's well-established international platform. For others, such as Vornado, it's a chance to make selective opportunistic investments in markets where returns may be higher than those in the U.S. However, President Mike Fascitelli said his company is starting small and using joint venture partners. "We made a total investment of $25 million in India, and we'd like to invest more there," Fascitelli said. "While international is something we aspire to and look at, I think it's going to be small initially unless we find a distressed opportunity." Many see opportunity in China but are cautious about making big investments there. "There's so much capital chasing deals there," Simon Property Chief Executive David Simon said. "I think you're going to see a number of high-profile mistakes." He speculates some will wind up building or acquiring properties that wind up being bad investments. Host Hotels Chief Executive Chris Nassetta concurs he sees opportunity in Asia but said the lack of transparency and glut of capital chasing after deals is making him cautious. "We're going to be there over the next five years, but we're going to be really, really cautious because of the transparency issues, particularly in China," Nassetta said. "There are more crains in China right now than anywhere else in the world," which could lead to overbuilding problems. If this happens, there could be opportunistic ways to enter the market. Sam Zell, chairman of Equity Office Properties Trust (EOP), Equity Residential (EQR) and Equity Lifestyle Properties Inc. (ELS), said he sees the biggest growth in real estate over the next 10 years coming overseas. "Growth and opportunity is going to be much more focused outside the U.S. than it is here," as countries adopt REIT structures and real estate securitization. "Brazil, Mexico, Russia, China and India will produce five times as much real estate in the next 10 years as will be done in the U.S.," Zell said. But Zell said he has no interest in expanding his publicly traded REITs over there, as he doesn't believe the tax structures and other factors would benefit U.S. REITs. Instead, Zell said he is seeking out international investment through his private entities. The Bryan Cave survey, which was conducted between March 15 and March 27, also asked respondents about the domestic real estate market. The study found 63% believe the U.S. real estate market will strengthen in the next 12 months, 47% think it will stay the same, and 35% believe it will weaken.
Source: Market Watch
Source: Market Watch
London home buyers require a savings ethic
London first time home buyers saving for a deposit may not achieve their goal before 2012, when infaltion, house price increases and wages are considered.
With house price inflation continuing to grow, aspiring homeowners must save for longer to put down the deposit for their first home, data from the Co-operative Bank reveals.
Presuming the current inflation rate of 3.6 per cent per year remains stable, first time buyers saving £307.50 per month, half the current average mortgage repayment, would be saving for six years and two months for the ten per cent deposit of £25,183 required in London by 2012.
David Newman, director of marketing at Co-operative Bank, said: "This data reveals the problems new home buyers face in what is clearly for many a marathon rather than a sprint when running up a decent deposit."
Aspiring first time buyers must get into the savings habit quickly and take some advice "sooner rather than later", Mr Newman continued.
"There are many alternatives available to help first time buyers onto the property ladder, from no deposit or low deposit mortgages, to parental guarantor schemes and packages for graduates."
The findings come as F&C asset management claims that indebtedness in the UK is at record levels, with money being cycled into different types of products rather than saved.
With house price inflation continuing to grow, aspiring homeowners must save for longer to put down the deposit for their first home, data from the Co-operative Bank reveals.
Presuming the current inflation rate of 3.6 per cent per year remains stable, first time buyers saving £307.50 per month, half the current average mortgage repayment, would be saving for six years and two months for the ten per cent deposit of £25,183 required in London by 2012.
David Newman, director of marketing at Co-operative Bank, said: "This data reveals the problems new home buyers face in what is clearly for many a marathon rather than a sprint when running up a decent deposit."
Aspiring first time buyers must get into the savings habit quickly and take some advice "sooner rather than later", Mr Newman continued.
"There are many alternatives available to help first time buyers onto the property ladder, from no deposit or low deposit mortgages, to parental guarantor schemes and packages for graduates."
The findings come as F&C asset management claims that indebtedness in the UK is at record levels, with money being cycled into different types of products rather than saved.
Personal finance: House finance up, leasing finance down
House purchases up 0.8 percentFrom: AAP June 09, 2006 TOTAL personal finance commitments rose 1.0 per cent in April, seasonally adjusted, to $6.865 billion compared with an unrevised $6.799 billion in March, the Australian Bureau of Statistics said today.
Total commercial finance, seasonally adjusted, fell 21.1 per cent in April to $27.411 billion from an downwardly revised $34.722 billion in March.The purchase of dwellings by individuals for rent and resale rose by 0.8 per cent, adjusted.
Lease finance fell 3.5 per cent in April, to $537 million compared with a downwardly revised $557 million in March.
Source: AAP
Total commercial finance, seasonally adjusted, fell 21.1 per cent in April to $27.411 billion from an downwardly revised $34.722 billion in March.The purchase of dwellings by individuals for rent and resale rose by 0.8 per cent, adjusted.
Lease finance fell 3.5 per cent in April, to $537 million compared with a downwardly revised $557 million in March.
Source: AAP
UK mortgage rates stay put for tenth month straight
The Bank of England has kept interest rates at 4.5 per cent for the tenth consecutive month.
Amid signs of economic growth and fears of growing inflation, economic analysts have warned that the bank may increase rates in a month's time.
Frances Walker, a spokesperson for Consumer Credit Counselling Service advised first time buyers and aspiring homeowners that although a potential rise in interest rates would not have an immediate effect, people will "have to plan to find more money to repay their mortgages and if your mortgage goes up you'll have to think how you can manage".
"If you have a fixed-rate mortgage, which most people have, it won't have any impact on you in the short-term," Ms Walker continued.
First time buyers who are not on a fixed-rate mortgage and are repaying on a debt management plan would have to pay more for their mortgage and reduce the amount of unsecured debt they repay.A spokesperson for Citizen's Advice said first time buyers with variable mortgages would feel the impact of a rise in interest rates most, with the anticipated 0.25 per cent increase leading to a £40 or £50 rise in monthly repayments.
"But some people may be speculating if there is a rise in interest rates that potentially might lead to an increase in mortgage arrears or possibly repossessions," the spokesperson continued.
Amid signs of economic growth and fears of growing inflation, economic analysts have warned that the bank may increase rates in a month's time.
Frances Walker, a spokesperson for Consumer Credit Counselling Service advised first time buyers and aspiring homeowners that although a potential rise in interest rates would not have an immediate effect, people will "have to plan to find more money to repay their mortgages and if your mortgage goes up you'll have to think how you can manage".
"If you have a fixed-rate mortgage, which most people have, it won't have any impact on you in the short-term," Ms Walker continued.
First time buyers who are not on a fixed-rate mortgage and are repaying on a debt management plan would have to pay more for their mortgage and reduce the amount of unsecured debt they repay.A spokesperson for Citizen's Advice said first time buyers with variable mortgages would feel the impact of a rise in interest rates most, with the anticipated 0.25 per cent increase leading to a £40 or £50 rise in monthly repayments.
"But some people may be speculating if there is a rise in interest rates that potentially might lead to an increase in mortgage arrears or possibly repossessions," the spokesperson continued.
Home mortgage and home equity loan changes pose a risk
Rapid change in the home mortgage and home equity lending industry raises fundamental issues about fairness and levels of risk, Federal Reserve Governor Mark Olson said on Wednesday.
Olson did not address the outlook for the U.S. economy or interest rates in comments to a Federal Reserve Board public hearing on the home equity market.
The Chicago hearing will be the first of four to be staged over the next month, and Olson noted it has been four years since the Fed last held such hearings.
"In those four years it is hard to believe so much change has taken place in the industry," he said.
The growth in nontraditional loan products such as adjustable rate mortgages "certainly is the most significant change that has taken place in the marketplace and it has raised some real issues," Olson said.
The central banker said the rise of the secondary mortgage market has created a "voracious appetite" for loan products and that "it is not clear we have the same checks and balances, and that underwriting is done as carefully."
The fundamental asymmetry of knowledge between mortgage lender and recipient also creates "a real responsibility for mortgage lenders not to be abusive of that process," he said.
"Every time I have sat down to close my own mortgage loan I have felt at a disadvantage in terms of my understanding; so I can imagine what a first time buyer must feel," Olson said.
Source: Reuters
Olson did not address the outlook for the U.S. economy or interest rates in comments to a Federal Reserve Board public hearing on the home equity market.
The Chicago hearing will be the first of four to be staged over the next month, and Olson noted it has been four years since the Fed last held such hearings.
"In those four years it is hard to believe so much change has taken place in the industry," he said.
The growth in nontraditional loan products such as adjustable rate mortgages "certainly is the most significant change that has taken place in the marketplace and it has raised some real issues," Olson said.
The central banker said the rise of the secondary mortgage market has created a "voracious appetite" for loan products and that "it is not clear we have the same checks and balances, and that underwriting is done as carefully."
The fundamental asymmetry of knowledge between mortgage lender and recipient also creates "a real responsibility for mortgage lenders not to be abusive of that process," he said.
"Every time I have sat down to close my own mortgage loan I have felt at a disadvantage in terms of my understanding; so I can imagine what a first time buyer must feel," Olson said.
Source: Reuters
First time buyers are flat out winners
Flats from £130,000? Susan Emmett spots a bargain development in the South East Kennet Island is attracting first-time buyers with its contemporary architecture. It would have scored higher if the houses on the development were as well designed as the flats
Finding a home that first-time buyers can afford gives a whole new meaning to the term househunting. As property prices are well beyond the reach of most aspiring homeowners, this is no ordinary search.
In London and the South East the average home costs about £165,000, and though the number of homes being built is increasing, 70 per cent of all new homes are now priced at more than £150,000. It is no surprise, then, that when the Kennet Island development in Reading went on sale, most of the available homes sold almost instantly. Buyers camped out overnight to snap up flats that started at £130,000. All that remains of the first 41 homes put on the market are four three-bedroom, three-storey houses with a £265,000-plus price tag.
The £200 million scheme by St James Homes is huge and will even include a set of lakes for wildlife. Once finished, Kennet Island will have 850 flats and houses, as well as shops and cafés around a central square. It is all happening on the ultimate brownfield site: the former sewage works along the A33 relief road that links Reading to the M4. Set on the edge of Whitley, the area is known for its large spreads of council housing and problems with vandalism and antisocial behaviour. But do not let that put you off. Though Kennet Island is Reading’s largest single-site development, it is also part of a much bigger picture. The so-called A33 corridor in the southwest of town is a new neighbourhood in the making. Other builders are putting up pubs, restaurants, a four-star hotel with a gym and loads of new offices. There are plans for a private hospital. Near by are two large retail parks, where you will find a Morrisons supermarket, PC World and a B&Q. Madejski Stadium, home to Reading Football Club, is also a neighbour.
The scheme has proved a magnet to first-time buyers, who have been priced out of towns along the M4, and some investors aiming to let the homes to students at Reading University. In response to the early demand, the next batch of properties to be put on the market in the next few weeks will all be flats.
In the long term, however, the aim is to create a mixed communtiy with properties of all shapes and sizes. One-bedroom flats cost between £130,000 and £165,000; two-bedders fetch between £160,000 and £195,000. Two- bedroom houses will cost between £195,000 and £220,000; a three-bedroom will sell from £265,000; and a four-bedroom house will start at £275,000.
All the homes have a contemporary feel. The flats are eye-catching and the design includes wood and white render on the balconies to add interest. But the houses tend to be lacklustre, offering nothing but the price to excite the buyer.
St James, which was born out of a joint venture between Thames Water and the Berkeley Group in 1997, promises high quality at an affordable price. Gerry McCormack, of St James, which usually operates at the top of the market, speaks of applying “the same principles we use in our luxury housing”. But don’t get too excited by the glossy marketing. By this he means that the development pays attention to detail and includes good-quality fittings, but not an expanse of parquet flooring or indoor swimming pools.
You do, however, get a few extras that are not normally included in the sales price at new developments, such as household appliances. The other bonus is that even the smallest one-bedroom flat tends to be a little larger than starter homes offered by competitors. Barratt’s iPads, launched with much fanfare earlier this year, are just 380 sq ft, compared with the 519 sq ft for a one-bedder at Kennet Island.
The real attraction is the location and the potential capital growth. In a competitive market, successful developers must have an edge. St James is offering these properties at keen prices in the hope of creating a buzz and attracting enough people to build a new community. This will enable the builder to charge more for future homes on the site. It will also mean that those who get in early are likely to reap decent returns in the long term.
In the short term, however, buyers will have to put up with living in a building site. The scheme is huge and will not be finished for about ten years. If you cannot put up with builders for a decade, there are more pleasant parts of town to choose.
Source: The Times
Finding a home that first-time buyers can afford gives a whole new meaning to the term househunting. As property prices are well beyond the reach of most aspiring homeowners, this is no ordinary search.
In London and the South East the average home costs about £165,000, and though the number of homes being built is increasing, 70 per cent of all new homes are now priced at more than £150,000. It is no surprise, then, that when the Kennet Island development in Reading went on sale, most of the available homes sold almost instantly. Buyers camped out overnight to snap up flats that started at £130,000. All that remains of the first 41 homes put on the market are four three-bedroom, three-storey houses with a £265,000-plus price tag.
The £200 million scheme by St James Homes is huge and will even include a set of lakes for wildlife. Once finished, Kennet Island will have 850 flats and houses, as well as shops and cafés around a central square. It is all happening on the ultimate brownfield site: the former sewage works along the A33 relief road that links Reading to the M4. Set on the edge of Whitley, the area is known for its large spreads of council housing and problems with vandalism and antisocial behaviour. But do not let that put you off. Though Kennet Island is Reading’s largest single-site development, it is also part of a much bigger picture. The so-called A33 corridor in the southwest of town is a new neighbourhood in the making. Other builders are putting up pubs, restaurants, a four-star hotel with a gym and loads of new offices. There are plans for a private hospital. Near by are two large retail parks, where you will find a Morrisons supermarket, PC World and a B&Q. Madejski Stadium, home to Reading Football Club, is also a neighbour.
The scheme has proved a magnet to first-time buyers, who have been priced out of towns along the M4, and some investors aiming to let the homes to students at Reading University. In response to the early demand, the next batch of properties to be put on the market in the next few weeks will all be flats.
In the long term, however, the aim is to create a mixed communtiy with properties of all shapes and sizes. One-bedroom flats cost between £130,000 and £165,000; two-bedders fetch between £160,000 and £195,000. Two- bedroom houses will cost between £195,000 and £220,000; a three-bedroom will sell from £265,000; and a four-bedroom house will start at £275,000.
All the homes have a contemporary feel. The flats are eye-catching and the design includes wood and white render on the balconies to add interest. But the houses tend to be lacklustre, offering nothing but the price to excite the buyer.
St James, which was born out of a joint venture between Thames Water and the Berkeley Group in 1997, promises high quality at an affordable price. Gerry McCormack, of St James, which usually operates at the top of the market, speaks of applying “the same principles we use in our luxury housing”. But don’t get too excited by the glossy marketing. By this he means that the development pays attention to detail and includes good-quality fittings, but not an expanse of parquet flooring or indoor swimming pools.
You do, however, get a few extras that are not normally included in the sales price at new developments, such as household appliances. The other bonus is that even the smallest one-bedroom flat tends to be a little larger than starter homes offered by competitors. Barratt’s iPads, launched with much fanfare earlier this year, are just 380 sq ft, compared with the 519 sq ft for a one-bedder at Kennet Island.
The real attraction is the location and the potential capital growth. In a competitive market, successful developers must have an edge. St James is offering these properties at keen prices in the hope of creating a buzz and attracting enough people to build a new community. This will enable the builder to charge more for future homes on the site. It will also mean that those who get in early are likely to reap decent returns in the long term.
In the short term, however, buyers will have to put up with living in a building site. The scheme is huge and will not be finished for about ten years. If you cannot put up with builders for a decade, there are more pleasant parts of town to choose.
Source: The Times
Friday, June 09, 2006
US Hud reforms aim to reduce closing and settlement fees
WASHINGTON, June 8 - The U.S. Housing and Urban Development Secretary Alphonso Jackson said on Thursday he expected to finalize long-awaited reforms to mortgage settlement regulations by the end of the summer.
Jackson, speaking to reporters after a speech to a home ownership conference, said the reforms would be submitted in a proposed rule that would still be subject to congressional and industry comment.
The action would end a more than two-year hiatus in HUD's efforts to reform regulations under the 1974 Real Estate Settlement Procedures Act, or RESPA, which governs all U.S. home purchases.
Jackson declined to discuss the contents of the proposed rule.
"I think we have taken the input -- the good and the bad -- and we've tried to put it in that rule," he said. "I think the bulk of the industry groups and Congress will be pleased with what we've come out with."
Jackson in March 2004 withdrew a proposal made by his predecessor, Mel Martinez, to launch reforms intended to give buyers more clarity on their actual mortgage settlement costs, which often are criticized as confusing and surprisingly high when consumers get to the closing table.
Americans spend more than $55 billion a year on closing costs and fees that can boost the cost of buying a home by thousands of dollars. Changing the way these fees are determined and disclosed has been a contentious issue for the mortgage and settlement services industry.
Among reforms in the last RESPA proposal, made in 2002, were proposed changes to HUD's good faith estimate settlement cost disclosures, changes to the way lender payments to brokers are recorded and disclosed, and changes to allow mortgages and settlement services to be "bundled" into guaranteed-cost packages
Jackson withdrew the proposal in order to hold a series of round-table discussions with industry group.
Brian Levy, general counsel for Shelter Mortgage Inc. In Milwaukee and president of the Real Estate Services Providers Council, a trade group representing mortgage and services firms such as title insurers, said meaningful changes will still be problematic because stakeholders in the home buying industry have too many diverging interests.
He said changes in industry practices, including guaranteed-cost alternatives to packaging of services, have made the need for reform less urgent.
"The perceived consumer abuses in the marketplace have been largely addressed by predatory lending legislation that wasn't on the radar when RESPA first got targeted for reform," Levy said.
Source: Reuters
Jackson, speaking to reporters after a speech to a home ownership conference, said the reforms would be submitted in a proposed rule that would still be subject to congressional and industry comment.
The action would end a more than two-year hiatus in HUD's efforts to reform regulations under the 1974 Real Estate Settlement Procedures Act, or RESPA, which governs all U.S. home purchases.
Jackson declined to discuss the contents of the proposed rule.
"I think we have taken the input -- the good and the bad -- and we've tried to put it in that rule," he said. "I think the bulk of the industry groups and Congress will be pleased with what we've come out with."
Jackson in March 2004 withdrew a proposal made by his predecessor, Mel Martinez, to launch reforms intended to give buyers more clarity on their actual mortgage settlement costs, which often are criticized as confusing and surprisingly high when consumers get to the closing table.
Americans spend more than $55 billion a year on closing costs and fees that can boost the cost of buying a home by thousands of dollars. Changing the way these fees are determined and disclosed has been a contentious issue for the mortgage and settlement services industry.
Among reforms in the last RESPA proposal, made in 2002, were proposed changes to HUD's good faith estimate settlement cost disclosures, changes to the way lender payments to brokers are recorded and disclosed, and changes to allow mortgages and settlement services to be "bundled" into guaranteed-cost packages
Jackson withdrew the proposal in order to hold a series of round-table discussions with industry group.
Brian Levy, general counsel for Shelter Mortgage Inc. In Milwaukee and president of the Real Estate Services Providers Council, a trade group representing mortgage and services firms such as title insurers, said meaningful changes will still be problematic because stakeholders in the home buying industry have too many diverging interests.
He said changes in industry practices, including guaranteed-cost alternatives to packaging of services, have made the need for reform less urgent.
"The perceived consumer abuses in the marketplace have been largely addressed by predatory lending legislation that wasn't on the radar when RESPA first got targeted for reform," Levy said.
Source: Reuters
Australia's average mortgage is now $300,000
The average Australian Mortgage is now over $300,000, according tpo the latest figures released by Australian Finance Group, which reveal that the average new Australian mortgage broke through the $300,000 mark in May 06. The average new mortgage in May was $301,000; up from $264,000 in May 05, This represents an 11% increase in the past 12 months.
Driving the trend is Western Australia, where the average new mortgage rose to $319,000 - a 35% rise over the past year. AFG, the nation's largest mortgage broker, also recorded its biggest ever proportion of mortgages advanced to investors in WA, where 48% of new loans were for investment purposes. Queensland figures also showed strong increases, with the average mortgage in that state sitting on $297,000, up from $243,000 in May 05. Other states showed less dramatic increases, with NSW shifting from $367,000 in May 05 to $371,000 in May 06. Victoria showed an upward trend from $248,000 last year to the current figure of $276,000.
The report also showed that for the first time, more than 20% of new borrowers are choosing fixed interest rate mortgages. This trend is not surprising as borrowers brace themselves against possible future rate hikes. Overall, however, it appears that May's interest rate rise has had little impact on the nation's mortgage market.
"We had our best month ever in May, so there's no sign at all that the rate rise has had an impact on our business," said Malcolm Watkins, executive director of AFG. "While the $300,000 may not be a definitive figure, it's strongly indicative of what the market is doing, especially with the continuing resource boom driving WA."
Driving the trend is Western Australia, where the average new mortgage rose to $319,000 - a 35% rise over the past year. AFG, the nation's largest mortgage broker, also recorded its biggest ever proportion of mortgages advanced to investors in WA, where 48% of new loans were for investment purposes. Queensland figures also showed strong increases, with the average mortgage in that state sitting on $297,000, up from $243,000 in May 05. Other states showed less dramatic increases, with NSW shifting from $367,000 in May 05 to $371,000 in May 06. Victoria showed an upward trend from $248,000 last year to the current figure of $276,000.
The report also showed that for the first time, more than 20% of new borrowers are choosing fixed interest rate mortgages. This trend is not surprising as borrowers brace themselves against possible future rate hikes. Overall, however, it appears that May's interest rate rise has had little impact on the nation's mortgage market.
"We had our best month ever in May, so there's no sign at all that the rate rise has had an impact on our business," said Malcolm Watkins, executive director of AFG. "While the $300,000 may not be a definitive figure, it's strongly indicative of what the market is doing, especially with the continuing resource boom driving WA."
Mortgage rates fall on weak employment figures
Mortgage rates in the US fell as a weaker-than-expected employment report helped ease concerns about inflation.
Mortgage lender Freddie Mac reported that rates on 30-year, fixed-rate mortgages averaged 6.62%, down from 6.67% last week, the highest level in nearly four years.
Rates on 15-year, fixed-rate mortgages fell this week to 6.23% from 6.26%. Rates on one-year adjustable-rate mortgages declined to 5.63% from 5.68% and five-year adjustable-rate mortgages dropped to 6.2% from 6.26%.
The rates do not include add-on fees known as points.
Source: Associated Press
Mortgage lender Freddie Mac reported that rates on 30-year, fixed-rate mortgages averaged 6.62%, down from 6.67% last week, the highest level in nearly four years.
Rates on 15-year, fixed-rate mortgages fell this week to 6.23% from 6.26%. Rates on one-year adjustable-rate mortgages declined to 5.63% from 5.68% and five-year adjustable-rate mortgages dropped to 6.2% from 6.26%.
The rates do not include add-on fees known as points.
Source: Associated Press
Wednesday, June 07, 2006
Mortgage Fraud Sting catches Atlanta woman a second time
An Atlanta woman out on bond for mortgage fraud charges has been arrested again after getting caught in a second mortgage fraud sting.
The U.S. Attorney's Office reported late June 5 the May 30 arrest of Lanmasha Weslanda Mixon-Hampton of Atlanta in connection with an FBI sting involving a co-conspirator from her prior mortgage fraud case and the interstate transportation of stolen travelers checks, fraudulent credit cards and false identifications.
Mixon-Hampton was previously arrested at the closing table on Feb. 17 in an FBI mortgage fraud sting where the stolen identity of a disabled retiree was used in at attempt to obtain a million-dollar refinance loan for 940 Glengate Place in Atlanta, where Mixon-Hampton then resided. Mixon-Hampton was released on bond and indicted for the mortgage fraud and aggravated identity theft on March 14.
"The sting operations that resulted in both arrests of this defendant are examples of the tools now used by law enforcement to fight identify theft and mortgage fraud schemes that continue to adversely effect Atlanta citizens and their neighborhoods," said U.S. Attorney David E. Nahmias. "Such proactive initiative by law enforcement is one of the reasons that Georgia's mortgage fraud national ranking has recently decreased from number one to number three."
A criminal complaint charges Mixon-Hampton with mail and wire fraud, interstate transportation of stolen goods and commission of these offenses while on release for mortgage fraud offenses. Mixon-Hampton allegedly caused $50,000 worth of stolen American Express Travelers Cheques to be sent to her in Atlanta from Hawaii, which she then attempted to negotiate using a false identity and forwarded the remainder to Florida for sale and negotiation. Mixon-Hampton was arrested in an FBI sting on May 30, when cash "proceeds" from the stolen checks and the fraudulent credit card she had ordered were delivered to her, while she was on bond on the earlier mortgage fraud charges.
After appearing before U.S. Magistrate Judge Linda T. Walker on June 5, Mixon-Hampton was ordered to be detained without bond.
The U.S. Attorney's Office reported late June 5 the May 30 arrest of Lanmasha Weslanda Mixon-Hampton of Atlanta in connection with an FBI sting involving a co-conspirator from her prior mortgage fraud case and the interstate transportation of stolen travelers checks, fraudulent credit cards and false identifications.
Mixon-Hampton was previously arrested at the closing table on Feb. 17 in an FBI mortgage fraud sting where the stolen identity of a disabled retiree was used in at attempt to obtain a million-dollar refinance loan for 940 Glengate Place in Atlanta, where Mixon-Hampton then resided. Mixon-Hampton was released on bond and indicted for the mortgage fraud and aggravated identity theft on March 14.
"The sting operations that resulted in both arrests of this defendant are examples of the tools now used by law enforcement to fight identify theft and mortgage fraud schemes that continue to adversely effect Atlanta citizens and their neighborhoods," said U.S. Attorney David E. Nahmias. "Such proactive initiative by law enforcement is one of the reasons that Georgia's mortgage fraud national ranking has recently decreased from number one to number three."
A criminal complaint charges Mixon-Hampton with mail and wire fraud, interstate transportation of stolen goods and commission of these offenses while on release for mortgage fraud offenses. Mixon-Hampton allegedly caused $50,000 worth of stolen American Express Travelers Cheques to be sent to her in Atlanta from Hawaii, which she then attempted to negotiate using a false identity and forwarded the remainder to Florida for sale and negotiation. Mixon-Hampton was arrested in an FBI sting on May 30, when cash "proceeds" from the stolen checks and the fraudulent credit card she had ordered were delivered to her, while she was on bond on the earlier mortgage fraud charges.
After appearing before U.S. Magistrate Judge Linda T. Walker on June 5, Mixon-Hampton was ordered to be detained without bond.
Source: Atlanta Business Chronicle
Sydney mortgage broker charged
Sydney mortgage broker Mr Adrian Camilleri has been charged with managing a corporation while being banned from doing so, the corporate watchdog says.
Adrian Camilleri was charged with five counts of managing a company while disqualified, the Australian Securities and Investments Commission [ASIC] said today. It said the charges against Mr Camilleri, from Westmead in Sydney's northwest, related to five companies, includingExpress Loans and Finance Pty Limited.
Express Loans and Finance was a mortgage broking business, while the other companies were used to purchase investment properties.
Between February 2003 and July 2003, Mr Camilleri made decisions that affected a substantial part of the businesses connected to the five companies, ASIC alleged.
At the time Mr Camilleri was an undischarged bankrupt and was, therefore, disqualified from managing companies, it said.
The charges follow an ASIC investigation. The matter will next be heard in Downing Centre Local Court on June 20.
Adrian Camilleri was charged with five counts of managing a company while disqualified, the Australian Securities and Investments Commission [ASIC] said today. It said the charges against Mr Camilleri, from Westmead in Sydney's northwest, related to five companies, includingExpress Loans and Finance Pty Limited.
Express Loans and Finance was a mortgage broking business, while the other companies were used to purchase investment properties.
Between February 2003 and July 2003, Mr Camilleri made decisions that affected a substantial part of the businesses connected to the five companies, ASIC alleged.
At the time Mr Camilleri was an undischarged bankrupt and was, therefore, disqualified from managing companies, it said.
The charges follow an ASIC investigation. The matter will next be heard in Downing Centre Local Court on June 20.
Irish pay third of their income on their mortgage
First time buyers spending third of income on mortgage.
Couples buying their first home spend up to a third of their income on a mortgage, a survey showed today.
According to a new Affordability Index by EBS Building Society and DKM Economic Consultants average monthly repayments begin at over €1,300 and top €1,700 in some parts of Dublin.
Nationally mortgages cost on average 27% of earnings while those in the capital will be hit harder by the continued property boom spending 32% of what they make.
The figures show a 3% jump on last year.
Dara Deering, EBS head of mortgages, said: “First time buyers make up a very important segment of the overall mortgage market and are expected to contribute €8.5bn to the market this year.
“With rising property prices and interest rates, affordability is the key issue for many first time buyers.”
Ms Deering also warned that house price growth is impacting on affordability and said EBS expected to see stronger than forecasted growth this year.
She said: “Future affordability should be a key factor in the choice of a mortgage and lenders need to take a responsible approach to affordability and encourage consumers to consider the impact of possible interest rate rises in the future.”
EBS financiers noted mortgage rates have been on an upward path since December last year with further increases in the pipeline over the remainder of the year.
And they said the Index demonstrates the adverse impact on net mortgage repayments, which will be particularly difficult for first-time buyer couples with every 0.25% increase in rates resulting in a monthly €14 rise or €168 a year for every €100,000 borrowed.
Annette Hughes, director of DKM Economic Consultants, said the Index can be seen as an indication of a couple’s mortgage-paying commitments in the early years, each on average earnings.
“Affordability is the most important barometer as to whether the property market is reaching saturation point. The general consensus is that we will see further interest rate increases over the remainder of 2006,” she said.
“While the amount of any individual increase may not impact significantly on borrowers, combined increases in mortgage rates over the next 18 months could have a significant impact on housing affordability.”
The EBS said it expects 47,000 first time buyers will take out a mortgage this year with the average price nationally at the moment at €292,000 and €388,000 in Dublin.
Source: Ireland Online
Couples buying their first home spend up to a third of their income on a mortgage, a survey showed today.
According to a new Affordability Index by EBS Building Society and DKM Economic Consultants average monthly repayments begin at over €1,300 and top €1,700 in some parts of Dublin.
Nationally mortgages cost on average 27% of earnings while those in the capital will be hit harder by the continued property boom spending 32% of what they make.
The figures show a 3% jump on last year.
Dara Deering, EBS head of mortgages, said: “First time buyers make up a very important segment of the overall mortgage market and are expected to contribute €8.5bn to the market this year.
“With rising property prices and interest rates, affordability is the key issue for many first time buyers.”
Ms Deering also warned that house price growth is impacting on affordability and said EBS expected to see stronger than forecasted growth this year.
She said: “Future affordability should be a key factor in the choice of a mortgage and lenders need to take a responsible approach to affordability and encourage consumers to consider the impact of possible interest rate rises in the future.”
EBS financiers noted mortgage rates have been on an upward path since December last year with further increases in the pipeline over the remainder of the year.
And they said the Index demonstrates the adverse impact on net mortgage repayments, which will be particularly difficult for first-time buyer couples with every 0.25% increase in rates resulting in a monthly €14 rise or €168 a year for every €100,000 borrowed.
Annette Hughes, director of DKM Economic Consultants, said the Index can be seen as an indication of a couple’s mortgage-paying commitments in the early years, each on average earnings.
“Affordability is the most important barometer as to whether the property market is reaching saturation point. The general consensus is that we will see further interest rate increases over the remainder of 2006,” she said.
“While the amount of any individual increase may not impact significantly on borrowers, combined increases in mortgage rates over the next 18 months could have a significant impact on housing affordability.”
The EBS said it expects 47,000 first time buyers will take out a mortgage this year with the average price nationally at the moment at €292,000 and €388,000 in Dublin.
Source: Ireland Online
Reserve Bank of Australia leaves rates unchanged
The Reserve Bank of Australia has left official interest rates unchanged at 5.75 per cent.
The central bank lifted interest rates by 25 basis points to 5.75 per cent last month.
Economists were unanimous in their expectation that interest rates would not be changed following the RBA's board meeting yesterday.
Commsec chief equities economist Craig James said rates were rising around the world.
He said the Reserve Bank would continue to look for any inflation signals in the domestic economy.
"They'll be looking at growth overall in the economy, wages pressures particularly. If wages are starting to creep up that may lead businesses to pass that through in terms of higher prices," he told Sky News.
"The rising price of crude oil puts upward pressure on the headline rate of inflation, and if that starts to get passed through to generalised price measures, then again the Reserve Bank is concerned."
Economists and the Federal Government will now turn their attention to the March national account figures due out today.
Analysts are tipping a quarterly increase of around 0.7 per cent, which would give Australia annual GDP growth of 2.7 per cent.
Macquarie Bank economist Daniel McCormack said it was too soon to expect another rate hike from the central bank.
"The RBA would like to sit back and assess the impact of the May hike before they decide whether another move is necessary," he said.
There has been no post-hike data yet released so the bank is is wait-and-see mode, he said.
However, Mr McCormack said markets are pricing in a chance of another move over the second half of this year.
"We expect the earliest window for a move is August after the next CPI [inflation] release in late July but we don't expect any move before then," he said.
Westpac senior economist Anthony Thompson said the decision was no surprise.
"The market was unanimous in expecting the rates would be left on hold after the surprise move in May," he said.
"We think clearly the bank will want to give some time to see the full effect of the May increase before contemplating their future direction."
Westpac expects interest rates will be left on hold for the rest of the year.
The central bank lifted interest rates by 25 basis points to 5.75 per cent last month.
Economists were unanimous in their expectation that interest rates would not be changed following the RBA's board meeting yesterday.
Commsec chief equities economist Craig James said rates were rising around the world.
He said the Reserve Bank would continue to look for any inflation signals in the domestic economy.
"They'll be looking at growth overall in the economy, wages pressures particularly. If wages are starting to creep up that may lead businesses to pass that through in terms of higher prices," he told Sky News.
"The rising price of crude oil puts upward pressure on the headline rate of inflation, and if that starts to get passed through to generalised price measures, then again the Reserve Bank is concerned."
Economists and the Federal Government will now turn their attention to the March national account figures due out today.
Analysts are tipping a quarterly increase of around 0.7 per cent, which would give Australia annual GDP growth of 2.7 per cent.
Macquarie Bank economist Daniel McCormack said it was too soon to expect another rate hike from the central bank.
"The RBA would like to sit back and assess the impact of the May hike before they decide whether another move is necessary," he said.
There has been no post-hike data yet released so the bank is is wait-and-see mode, he said.
However, Mr McCormack said markets are pricing in a chance of another move over the second half of this year.
"We expect the earliest window for a move is August after the next CPI [inflation] release in late July but we don't expect any move before then," he said.
Westpac senior economist Anthony Thompson said the decision was no surprise.
"The market was unanimous in expecting the rates would be left on hold after the surprise move in May," he said.
"We think clearly the bank will want to give some time to see the full effect of the May increase before contemplating their future direction."
Westpac expects interest rates will be left on hold for the rest of the year.
Source: AAP
Bank account fees are being flattened
Bank customers can save on transaction account fees providing they read the fine print.
Turned off by the high cost of a la carte banking services, account holders are switching to "all-you-can-eat" accounts. These come at a modest fixed price no matter how often you transact.
However, Nick Coates, the senior policy officer with the Australian Consumers Association, says: "Four or five dollars a month doesn't sound like much, but you need to read the fine print to assess whether these accounts suit you,"
When the Commonwealth Bank unveiled its Streamline e-Access and Streamline Unlimited accounts recently, it became the last major bank to add flat-fee transaction accounts to its product mix.
Streamline e-Access is a transaction account with unlimited electronic transactions including CBA ATMs, self-service telephone banking, NetBank and Eftpos for $4 a month.
Streamline Unlimited gives unlimited electronic transactions coupled with unlimited branch and agency withdrawals, cheques written and assisted telephone banking for $6 a month.
Denise Orrock, the general manager of researcher InfoChoice, says CBA had in the past shown a reluctance to introduce this style of account because of the workload involved in moving customers to new accounts.
"Saying that, the ANZ has been very successful with its own accounts in the all-you-can-eat space for quite a number of years," he says, "[and] it's rare that any initiative that achieves a degree of success is not adopted by the balance of the banking powers."
However, even CBA admits that consumer resistance to rising fees played as much a part as competitive pressures. A recent Nielsen Media Research survey showed CBA had the lowest customer satisfaction rating - in a year when satisfaction with banks overall had sunk to a three-year low.
Michael Cameron, CBA's group executive of retail banking services, says the two new flat-fee accounts complement other initiatives designed to woo disgruntled customers, including the introduction of a low-rate credit card and the removal of "everyday" transaction fees on NetBank.
"We have heard our customers loud and clear when it comes to fees and services," he says. "There will be a significant benefit to customers by providing them with the ability to reduce the transaction account fees that they pay."
Such accounts mean customers no longer have to ration their transactions and worry about costs each time they key in their PIN. However, some transactions are excluded or limited.
Turned off by the high cost of a la carte banking services, account holders are switching to "all-you-can-eat" accounts. These come at a modest fixed price no matter how often you transact.
However, Nick Coates, the senior policy officer with the Australian Consumers Association, says: "Four or five dollars a month doesn't sound like much, but you need to read the fine print to assess whether these accounts suit you,"
When the Commonwealth Bank unveiled its Streamline e-Access and Streamline Unlimited accounts recently, it became the last major bank to add flat-fee transaction accounts to its product mix.
Streamline e-Access is a transaction account with unlimited electronic transactions including CBA ATMs, self-service telephone banking, NetBank and Eftpos for $4 a month.
Streamline Unlimited gives unlimited electronic transactions coupled with unlimited branch and agency withdrawals, cheques written and assisted telephone banking for $6 a month.
Denise Orrock, the general manager of researcher InfoChoice, says CBA had in the past shown a reluctance to introduce this style of account because of the workload involved in moving customers to new accounts.
"Saying that, the ANZ has been very successful with its own accounts in the all-you-can-eat space for quite a number of years," he says, "[and] it's rare that any initiative that achieves a degree of success is not adopted by the balance of the banking powers."
However, even CBA admits that consumer resistance to rising fees played as much a part as competitive pressures. A recent Nielsen Media Research survey showed CBA had the lowest customer satisfaction rating - in a year when satisfaction with banks overall had sunk to a three-year low.
Michael Cameron, CBA's group executive of retail banking services, says the two new flat-fee accounts complement other initiatives designed to woo disgruntled customers, including the introduction of a low-rate credit card and the removal of "everyday" transaction fees on NetBank.
"We have heard our customers loud and clear when it comes to fees and services," he says. "There will be a significant benefit to customers by providing them with the ability to reduce the transaction account fees that they pay."
Such accounts mean customers no longer have to ration their transactions and worry about costs each time they key in their PIN. However, some transactions are excluded or limited.
Source, The Age , Denise Cullen
Thursday, June 01, 2006
Its been a couple of years since Sydney house prices fell in the face of rising home prices and increased mortgage rates and oversupply in the residential property investment sector especially in Sydney but also in Melbourne.
But the dramatic commodity price rises that were fuelled by China's increased demand for raw materials, were in turn many feel, fuelled by heavy US consumer spending.
Should this spending dry up or even moderate, then the turbulence seen in Commodity stocks my turn into a significant fall in demand and prices. This in turn could have a marked effect in house prices in the Major cities. Its worth noting that because of recent investments in infrastructure in many mining regions in Australia that those home prices have risen monumentally over the last 12 months, doubling in price in some areas a demand outstripped supply. These rises could be in jeopardy. If you are thinking of joining in on the mining town investment rush it might be better to wait and see a settled trend in commodity prices first.
But the dramatic commodity price rises that were fuelled by China's increased demand for raw materials, were in turn many feel, fuelled by heavy US consumer spending.
Should this spending dry up or even moderate, then the turbulence seen in Commodity stocks my turn into a significant fall in demand and prices. This in turn could have a marked effect in house prices in the Major cities. Its worth noting that because of recent investments in infrastructure in many mining regions in Australia that those home prices have risen monumentally over the last 12 months, doubling in price in some areas a demand outstripped supply. These rises could be in jeopardy. If you are thinking of joining in on the mining town investment rush it might be better to wait and see a settled trend in commodity prices first.
Most people think that buying a home is the biggest single decision they will ever make. Whilst this is true, we believe that acquiring a mortgage loan is the biggest investment that you will make, because the total cost of the mortgage financing can be several times the cost of the home, especially once interest and fees and charges are added!
So its only understandable that you will want all the mortgage finance information at your fingertips, before you make the big decision to buy a property and which way to buy is best for you. In any case most people still like to do the mortgage shopping themselves, especially in the early days when they might feel that they are not in a position to qualify for a mortgage yet due any number of reasons, including a bad credit history.
If you are at the home loan information gathering stage then you might find the information on the Mr Mortgage blog invaluable, and you may want to save this page to your favourites now, so you’ll have it to refer to often.
You may find this information particularly helpful, as you can get a deeper appreciation of mortgage products or services of this growing and diversified industry, before you engage the mortgage lender or Mortgage Broker on a personal level. So you’ll feel more in control of the process and will know what you want and how to achieve it through those home loan products and serves.
Let’s face it, you need lots of information to make an informed mortgage decision, right?
As you read more about us and our Community you will begin to discover that Mr Mortgage is constantly providing new information and more mortgage opportunities for you that could change your mind about mortgages and the mortgage broker industry and steer you to make that big finance decision to own property.
So its only understandable that you will want all the mortgage finance information at your fingertips, before you make the big decision to buy a property and which way to buy is best for you. In any case most people still like to do the mortgage shopping themselves, especially in the early days when they might feel that they are not in a position to qualify for a mortgage yet due any number of reasons, including a bad credit history.
If you are at the home loan information gathering stage then you might find the information on the Mr Mortgage blog invaluable, and you may want to save this page to your favourites now, so you’ll have it to refer to often.
You may find this information particularly helpful, as you can get a deeper appreciation of mortgage products or services of this growing and diversified industry, before you engage the mortgage lender or Mortgage Broker on a personal level. So you’ll feel more in control of the process and will know what you want and how to achieve it through those home loan products and serves.
Let’s face it, you need lots of information to make an informed mortgage decision, right?
As you read more about us and our Community you will begin to discover that Mr Mortgage is constantly providing new information and more mortgage opportunities for you that could change your mind about mortgages and the mortgage broker industry and steer you to make that big finance decision to own property.
Mortgage Shopper™ was launched today by Rick Adlam [Mr Mortgage] to allow home buyers and homeowners seeking finance to get more mortgage related information before they meet their local community mortgage broker , bank or non bank mortgage lender.
Most home owners and home buyers don't view themselves as a "mortgage shopper", yet that's exactly what most of are when we search for finance information on home loans, mortgage refinancing and debt consolidation loans.
Are you searching for information to make an informed mortgage decision? Are you a person who likes to “do it yourself”? Or perhaps you’d love the luxury of delegating that mind-numbing chore to a mortgage professional, someone to help you decide and handle any credit issues and the mortgage paperwork for you?
As you read more about us and our Community you will begin to discover that Mortgage Shopper™ is like no other, because we are constantly providing new home loan info and more mortgage opportunities for you that will give you a better understanding of the mortgage process so you can get the best mortgage loan at the lowest mortagge interest rate possible for you credit rating and situation.
Most home owners and home buyers don't view themselves as a "mortgage shopper", yet that's exactly what most of are when we search for finance information on home loans, mortgage refinancing and debt consolidation loans.
Are you searching for information to make an informed mortgage decision? Are you a person who likes to “do it yourself”? Or perhaps you’d love the luxury of delegating that mind-numbing chore to a mortgage professional, someone to help you decide and handle any credit issues and the mortgage paperwork for you?
As you read more about us and our Community you will begin to discover that Mortgage Shopper™ is like no other, because we are constantly providing new home loan info and more mortgage opportunities for you that will give you a better understanding of the mortgage process so you can get the best mortgage loan at the lowest mortagge interest rate possible for you credit rating and situation.
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