Effective tomorrow St George will reduce their SMSF LVR from 80% to 70% - this is on the back of them requiring 10% surplus after purchase.
St George have been our main lender of choice due to their offset feature - these changes are going to be make them far less competitive...... unless other lenders follow suit.
the grattan institute is now campaigining for the states to get rid of SD on house transaction and replace with a broadly based land tax
Being sensible policy reform the chances of it happening are low at the moment, but if a property bust does come for a state, they may be forced into action when SD levels drop to the point they're forced to change.
It really does ring alarm bells, why is property going so stupid?
There must be an underlying driver, blind freddy knows it is over priced, so why is the driver still there?
Either we are not seeing the bigger picture, or a lot of cashed up punters see something we don't.
NSW’s strengthening economy and rising levels of migration will ensure Sydney property prices continue growing in the near future, despite persistent rumours of a housing bubble, predicts real estate kingpin John McGrath.
The McGrath Estate Agents founder and chief executive said the current housing boom wouldn’t last, but instead of coming to an abrupt end would gradually come off the boil.
“The boom will end at some point, but that doesn’t mean price growth will end, but rather continue in a more moderate fashion,” Mr McGrath said.
This guy doesn't think so ...
http://www.news.com.au/finance/real...mes-off-the-boil/story-fnd91nhy-1227452541613
This guy doesn't think so ...
http://www.news.com.au/finance/real...mes-off-the-boil/story-fnd91nhy-1227452541613
In my opinion, the idea of a plataeu just doesn't work. If people are losing money every year (negative gearing) and are seeing no capital appreciation, at some point they'll pull the plug...
Not to say that house prices will crash in a spectacular fashion, but there will be a few people selling at a loss at some point.
Here's a left field view of relative values.
In my profession (farrier), the median house price is over 4000 multiples of the average professional fee to shoe a horse here in Brisbane.
In Sydney, its 6500-7000 times, even with higher farrier prices. Other capital are somewhere between the two.
I decided to poll my overseas colleagues on their relative costs. So far the ramge has been 1800 - 2400 times.
Food for thought?
Increasing the GST to 12.5 per cent, expanding its base, and imposing a 0.25 per cent universal land tax would raise enough money to abolish stamp duty and cut the company tax rate to 27 per cent.
The Property Council of Australia said the plan would "increase economic well-being by just over $10 billion per annum" by getting rid of taxes that stymied economic activity.
"We can both grow the economy and raise more revenue if we rely on a better mix of taxes than what we do today," Property Council chief executive Ken Morrison said.
"That means being bold enough to embrace GST reform to abolish a range of inefficient state taxes."
Sydney's median house price has climbed higher than London to top $1 million, Domain Group figures show.
The 22.9 per cent increase in the year to June to $1,000,616 – the quickest pace of gain since at least the late 80s – put the NSW capital above London, where the equivalent was $900,000, but still below New York, where it was $1.5 million, and Paris, where it was about $2 million.
The rise – from $814,285 a year earlier – did nothing to dampen the city's attraction for investors, Domain senior economist Andrew Wilson said.
What did Joe Hockey say? http://www.smh.com.au/federal-polit...job-that-pays-good-money-20150609-ghjqyw.html
LZ 129 Hindenburg anyone?
I made 4k this week, is that good enough?
Mmmmm.....another vested interest wanting the rest of us to pay for them? I suggest increasing stamp duty for properties over $1Ms?
Why?
Why not just increase the stamp duty on gold transactions?
Seems just as silly
Since 1988 the ASX has dropped over 15% 7 times and property prices have declined (by various %) 7 times.
They all happened together, and there was no other 15% drop in ASX or housing decline outside of those 7 times.
I made 4k this week, is that good enough?
It was ANZ Banking Group that kicked off on Thursday the new mortgage repricing cycle, raising the variable interest rate for property investors by 0.27 percentage points. Fierce competitor Commonwealth Bank of Australia moved less than 24 hours later by precisely the same amount. Analysts expect other banks to follow suit.
CBA's earnings will be lifted by 2 to 3 per cent from its move on Friday, while NAB could gain 1 to 2 per cent and Westpac 3 to 4 per cent should they follow suit, according to BOAML's Hill. All up, the big four banks' combined profits would be boosted by almost $800 million
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