Strong competition amidst lenders and an environment of low cash rate have together brought borrower demand towards previously unscaled peaks. An article on the website rebonline.com.au states that AFG, a premier mortgage broking company, has already crossed the $4 billion mark in home loans for the month of October.
The exact figure of $4.057 billion is 12% higher than $3.62 billion recorded in the month of September.
NSW’s home loan figures have increased by 10.9%- this is higher in terms of percentage increase when compared to Western Australia but is lower than South Australia’s percentage hike.
Another trend worth noting is the impact of grant withdrawal for First Home buyers. It has resulted in distinctly lesser applications from First Home buyers.
You can read the original article here.
If the value of your home shoots up from $500,000 to $550,000 and the rent you ask for it remains the same, what gets eroded in the process is called rental yield. You know the grind. Cameron Kusher for the property Update suggests that gross rental yields in capital cities are expected to fall further in near future with home value growth decidedly outperforming rental growth.
Michael Yardney, while writing an article for the Property Update, talks about a few things we have already heard but the perspective is fresh and the article quite engaging nonetheless. According to him, we have just hit the expansionary stage of the property cycle and this will cause a ripple effect. To explain, property prices will grow in the inner suburbs and slowly but steadily capital growth will move outwards, ending in the growth of the outer suburbs.
