An article on Your Investment Property sheds light on the request made by the Real Estate Institute of Australia (REIA) to the government to retain negative gearing. The supply-side pipeline is aided decisively by negative gearing and capital gains tax discounts and this can be marathon help in times of chronic undersupply of houses.
Archives for February 2015
Archives
Banks Respond to RBA’s Rate Cut
Banks are making cuts in variable loan rates, one-year fixed rates and three-year fixed rates, among other things, as a knee-jerk reaction to the Reserve Bank’s decision of a further 25 basis point cut. The banks are borrowing at a lesser cost in the fixed-rate market and they are more than glad to transfer the savings to the customers.
ME Bank has kind of pioneered the rate revision, what with its five-year fixed home loan rates coming down by 120 basis points, three-year rates by 56 points and one-year rate by 20 points.
You can read the original article here.
How to Use Low Interest Rate Climate Best?
In an article for the website Property Update, Kevin Turner talks about a few smart tips to make the most out of the low interest rate scene prevalent in Australia. Official cash rate has come down to a record-low of 2.25%, falling by a further 25 basis points last week. The big four banks have not hesitated any from passing on the benefits in full to the customers.
RBA Goes for Further Rate Cut
No less than 16 third-party lenders have reacted to the latest cash rate cut by the Reserve Bank. An article on The Adviser reports how CUA, Bendigo Bank and Teachers Mutual Bank have fully transferred the rate cut, cutting their interest rates by 25 basis points, too.
Some have gone on to make changes in their fixed loan rates just as well. This frenzy may give birth to- if not already given birth to- one of the strongest borrowers’ market seen in Australia.
You can read the original article here.
Building Approvals Yet to Peak
The optimists have got something to cheer about, what with building approval levels reaching a record high in the year that went by. In fact, for those with their eyes on the numbers, it is the first time that Australia went past the 200,000 mark – reporting 200,814 approvals last year.
NSW Tops Home Loan Market Scene
In an article for the website Property Update, Andrew Wilson puts into focus the rejuvenation of home loan market in capital cities in December 2014. This is a rebound from the drastic results of November 2014.
While many capital cities registered modest growth, South Australia returned figures of 4.5% and NSW topped with 6.6%. Investor activity is only going to strengthen in Sydney from here given the climate of low interest rates.
You can read the original article here.
