The future of Australian property prices

[nukz]

I was talking about the impending collapse to a colleage at work today and he told me something interesting.

In the Melbourne suburbs of Point Cook where he lives he exlpained to me atleast 15 houses around his that where purchased last year are now back on the market again.

I see it as one of the following:

1/ Mortgage stress and getting out before it gets too hard
2/ Default/foreclosure
3/ Cashing in on market?

Interesting though, i wonder if anybody else has similar story's to this in there area's

 

[MR.]

The other banks must be just letting the CBA take more of the heat as they still have not released their new would be similar loan rates.

Can the government really force lower/cap at $900- or even scrap exit fees on existing mortgages? Or just new ones?

http://money.ninemsn.com.au/article.aspx?id=8120373&rf=true

It might soon get easier for mortgage holders to switch banks, with reports three of Australia's big four banks could scrap exit fees to avoid government intervention.

Wonder which three?

 

[cutz]

Can the government really force lower/cap at $900- or even scrap exit fees on existing mortgages? Or just new ones?

This is a populist move, can the general public see this

Most fees can be negotiated out already, a discount on the advertised rate can be applied.

The banks are providing an excellent service in difficult times, what is the government planning on achieving (other than votes) ?

 

[medicowallet]

I was talking about the impending collapse to a colleage at work today and he told me something interesting.

In the Melbourne suburbs of Point Cook where he lives he exlpained to me atleast 15 houses around his that where purchased last year are now back on the market again.

I see it as one of the following:

1/ Mortgage stress and getting out before it gets too hard
2/ Default/foreclosure
3/ Cashing in on market?

Interesting though, i wonder if anybody else has similar story's to this in there area's

I would not be surprised if they are not owned by australians.

 

[MR.]

This is a populist move, can the general public see this

Most fees can be negotiated out already, a discount on the advertised rate can be applied.

The banks are providing an excellent service in difficult times, what is the government planning on achieving (other than votes) ?

I would question negotiating an exit fee but a rate closer to their competition would be achievable. However, the higher the exit fee the less negotiating power the customer has.

Yes, it's about votes, but will they do anything which will make much of a difference though? If they did anything at all that is? No... All the banks will end up similar and raise their rates anyway.

The CBA sold the most new mortgages when interest rates were low adding fuel to that final property spike and now once all are aboard they are first to put rates up an extra 0.2%

 

[JTLP]

I would question negotiating an exit fee but a rate closer to their competition would be achievable. However, the higher the exit fee the less negotiating power the customer has.

Yes, it's about votes, but will they do anything which will make much of a difference though? If they did anything at all that is? No... All the banks will end up similar and raise their rates anyway.

The CBA sold the most new mortgages when interest rates were low adding fuel to that final property spike and now once all are aboard they are first to put rates up an extra 0.2%

Surely the scrapping of exit fees will just mean an increase in start up costs? Banks aren't stupid/going to let people get away with running for free

 

[MR.]

Surely the scrapping of exit fees will just mean an increase in start up costs? Banks aren't stupid/going to let people get away with running for free

If another bank wanted your business they wouldn't have an excessive start up fee.

Often the exit fee is over looked when a customer takes out a loan because the customer seeks a good interest rate etc.

 

[CamKawa]

Good one Ralph get stuck into them.

Commonwealth Bank customers will lose homes

 

[MR.]

Raw data from the ABS.

Melbourne certainly looks out there on a limb!
Must be time for Perth and Brisbane to catch up!

 

[Uncle Festivus]

The banks have enough resi business, they are chasing business now, so they don't care to chase new resi loans?

Not sure if already posted, but.....and they don't mince their words when it comes to who they think is the problem.....

AFG, Australia’s largest mortgage broker, has called for leadership from Canberra to shake the fear out of a stalling mortgage market as the company reported its worst October mortgage sales for four years. AFG arranged $2.2 billion of mortgages in October – down 17.5% in volume compared to October 2009 and 4.3% lower than last month, which was already subdued.

NSW was the worst affected state, where mortgage sales fell 13.1% month on month. Victoria and WA saw falls of 3.9% and 4.3% respectively, while QLD and SA bucked the trend, with rises of 6.4% and 5%, although on relatively low, September figures.

Commenting on current market conditions, Brett McKeon, Managing Director of AFG says: ‘The idea of holding some sort of commission into banking competition and rate setting is farcical. Everyone knows that the best way to keep rates keen is to promote competition. But by allowing the 5th and 6th largest banks to be taken over by the Big Four, and by structuring the AOFM to benefit only the Big Four, no one has more effectively sabotaged lender competition in Australia than this Government. If it goes ahead with a commission, to avoid self-incrimination the Government will have to restrict the terms of its inquiry so much that its findings will be meaningless.

http://corporate.afgonline.com.au/news/NOV10-MORTGAGEINDEX.html

 

[UBIQUITOUS]

The banks have enough resi business, they are chasing business now, so they don't care to chase new resi loans?

Not sure if already posted, but.....and they don't mince their words when it comes to who they think is the problem.....

http://corporate.afgonline.com.au/news/NOV10-MORTGAGEINDEX.html

Wow, worse than the height of the GFC

Time for another first home owners boost. Hang on, how much money do we have in the coffers?

 

[Verge32]

Hi All,

Ive been keeping a really close eye on property in Oaklands NSW since Coalworks started their work out there a couple of years.

Ive seen land prices go from $5k a block 5 years ago to $40k a block just recently.

Im thinking about freeing up some other property to invest there, as news on the ground is all go go go.

I guess thats the key to property, getting in early.

Having friends out that way, Ive been impressed with how quickly blocks and sold, but apparently there is also a shortage of rentals, so Im thinking a house on a decent sized block might be the go, with room for subdivision so I can at least get some income while I wait.

The only problem appears to be quality of housing available for sale.

Has anyone else had a look at this region?

 

[medicowallet]

Hi All,

Ive been keeping a really close eye on property in Oaklands NSW since Coalworks started their work out there a couple of years.

Ive seen land prices go from $5k a block 5 years ago to $40k a block just recently.

Im thinking about freeing up some other property to invest there, as news on the ground is all go go go.

I guess thats the key to property, getting in early.

Having friends out that way, Ive been impressed with how quickly blocks and sold, but apparently there is also a shortage of rentals, so Im thinking a house on a decent sized block might be the go, with room for subdivision so I can at least get some income while I wait.

The only problem appears to be quality of housing available for sale.

Has anyone else had a look at this region?

Or ramping something up.

Is that allowed on ASF?

 

[cutz]

Or ramping something up.

Is that allowed on ASF?

Hi medicowallet,


I think that guy is on the wrong forum, no one really gives a toss, especially after that spring blowoff we just had.

 

[againsthegrain]

I guess thats the key to property, getting in early.

Missed the boat, or got on just before the last stop?

 

[Julia]

Surely the scrapping of exit fees will just mean an increase in start up costs? Banks aren't stupid/going to let people get away with running for free

Exactly right, JTLP. ABC Radio had an interview a couple of days ago with the spokesperson from the Australian Bankers Assn (or whatever the proper name is). He said that the exit fees simply represent a portion of the set-up costs of establishing a mortgage which the banks choose to postpone charging until they ascertain how long the mortgage runs for.
e.g. he said if a customer decided to withdraw and change banks after just a couple of years, then yes, he would be charged the balance of the set-up fee.
But if the customer let the mortgage run for a substantial amount of its term, then a break free would rarely be applied.

I have no idea. Am simply quoting what I heard.
However, I think any notion by the government or the opposition that they will punish banks by any particular measure is entirely pointless. They will always find a way to extract the fees they need to maintain profitability.

Customers should not be sucked in my politicians' utter hot air.

And I have to add that this whole argument is completely unbalanced in that no credence is being given to all those depositors who are actually benefiting from higher rates.
I'm a bit sick of the endless emphasis that's given to borrowers, while people who have been prudent are not expected to ever reap any benefits.

 

[satanoperca]

:holysheep: someone making sense.

In regards to exit fees, you enter into an agreement you wish to go elsewhere then you should have to pay a price to do so. A contract is a contract, people are so pathetic these days.

Have a good evening and up goes the markets, 5000 here we come.

Cheers

 

[medicowallet]

people are so pathetic these days.


Cheers

The government has created this monster.

They should stay out of the housing market all together. What happened to market forces?

Whenever things look gloomy, they all go crying to the govt to increase homebuyers grants, or to pressure banks.

All the time the developers and builders are lining their pockets with GDP which would be better invested elsewhere.

This is the biggest example of australia squandering its mineral wealth, and government is to blame for this (tax cuts and bribes)

 

[tech/a]

All the time the developers and builders are lining their pockets with GDP which would be better invested elsewhere.

Ahh
I love my industry.

 

[Uncle Festivus]

No such thing as a free lunch? Time to pay the piper.......

offshore borrowings by depository corporations has exploded over the past 20 years, from around $50 billion in 1988 to nearly $700 billion currently.

Currently, depository corporations have around $300 billion of short-term foreign borrowings maturing within 12 months, in addition to another $380 billion of longer-term foreign borrowings outstanding. Other things equal, this $300 billion of short-term foreign borrowings must be refinanced within 12 months just to maintain the current level of credit within the Australian economy (let alone increase it).

The CBA domestic mortgage loan book is full?

The Commonwealth Bank has been building up its domestic mortgage book at an anaemic rate while mounting a fierce argument that the nation has not suffered a housing bubble.

Data from the banking regulator [APRA] suggests that Australia's biggest mortgage lender is increasingly averse to new lending, growing its home loan book at the slowest rate among the major banks.

CBA's total mortgage lending grew by just 0.36 per cent in September -- the same month that chief executive Ralph Norris travelled abroad to assure investors there was no property bubble in Australia.

http://seekingalpha.com/article/235...posed-to-a-sudden-liquidity-shock?source=feed

The $100M bubble bet....

CHRISTOPHER Joye, an Australian property market bull, yesterday offered US guru Jeremy Grantham a $100 million bet on house prices. .Mr Joye, managing director of property research group Rismark International, challenged his equally vocal sparring partner, GMO Capital founder and chief investment strategist Mr Grantham, to put his "money where your mouth is" on the issue of whether Australia really is in a property bubble.
Mr Grantham's downbeat views on Australia's home prices were "sensationalist and spurious", Mr Joye said.
He challenged Mr Grantham to bet the $100m over a three-year term, basing the outcome of the bet on movements in the RP Data-Rismark Australian Capital Cities Dwelling Price Index.

http://www.theaustralian.com.au/bus...100m-housing-bet/story-e6frg8zx-1225948548559