Lending to Aussie households spiked 3.9% in July, the strongest growth seen since October 2014, according to the Australian Bureau of Statistics (ABS).
The bumper month follows a 1.9% rise in June 2019, suggesting the tide has finally started to turn in the lending market.
“Whoa. Quite the surge in housing credit in July,” remarked CoreLogic’s head of research Tim Lawless, “haven’t seen numbers like this since 2015/16”.
Lending for investors rose 4.7% in July with rises across all states and territories, while lending to owner-occupiers also recorded substantial gains at 5.3%.
Meanwhile, home loans to first home buyers rose 1.3% in July. This is the fourth consecutive month of growth for this segment.
One in 10 consumers have switched credit products in the past year, according to new research, with Millennials and women in particular pouncing on offers from small banks, credit unions and building societies.
The financial landscape is shifting.
Over the past 12 months, 10% of consumers have switched credit providers, according to the Australian Consumer Credit Pulse 2019 report from Equifax, as once-loyal customers increasingly check out what lenders outside the Big Four banks have to offer.
Businesses that put off paying large tax bills for too long may soon find that the Australian Taxation Office (ATO) has notified credit reporting bureaus.
The proposal is part of The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No.1) Bill, which was recently introduced into parliament.
The Bill will provide the ATO with the discretion to disclose to credit reporting bureaus when a business has a debt of $100,000 for 90 days or more. (more…)
Reckon you could scrounge together an extra $50 each week to pay off your mortgage? If so, latest modelling shows the average household with a $400,000 loan could save $46,992 and pay off their home loan four years faster.
This week we’re going to look at the benefits of paying just a little bit more off your mortgage each week.
Now, this is quite a timely subject because the RBA has just delivered back-to-back cash rate cuts, so even if your monthly repayment amount has been reduced, there’s a lot to be gained by sticking to the same amount you’ve been paying over the last few years. (more…)
Great news for home buyers – housing affordability is the best it’s been since 1999, according to new data released by the nation’s peak housing and building body.
That’s right – housing affordability is comparable to the days when the Y2K bug had us fearing for our lives, Nokia Snake was the pinnacle of mobile gaming, and median house prices in Australia ranged between $112,000 (Hobart) to $272,000 (Sydney).
These days, however, median prices range from $420,000 (Hobart) to $840,000 (Sydney).
But here’s where it gets a little interesting.
For a home buyer with an average income purchasing a median-priced dwelling (assuming a 10% deposit), mortgage repayments will consume the smallest proportion of their earnings since 1999, according to the Housing Industry Association (HIA) Affordability Index.
Hang on, how is this possible?
Whenever the Reserve Bank of Australia (RBA) changes the official cash rate we all hear about how it will impact home loans. But it affects many other areas of finance and the economy, which we’ll look into today.
The RBA has cut the official cash rate to a new record low of 1%, just one month after lowering it to 1.25% – which was the first rate cut in almost three years (since August 2016).
Now, whenever this happens we all hear about what it will mean for mortgage-holders.
But it also has a flow-on effect for many other areas of finance, which we’ll look into below.
Backyard cricket pitch not getting much of a workout these days? Sick of your weekends being taken up with mowing and gardening? Installing a granny flat could be a lucrative solution – boosting the value of your home by 30% and adding around 27% to rental income.
That’s according to a combined analysis by CoreLogic and Archistar, which shows more than half a million east coast homeowners have enough free yard space to build a granny flat at least 60sqm in size.
Constructing a two bedroom granny flat would require an initial investment of up to $200,000, while the outlay for a one bedroom dwelling would be approximately $120,000. The full report is here.
‘Are we there yet?’ That seems to be the million dollar question on everyone’s lips. Today we’ll take a look at whether or not the property market is finally starting to stabilise, as well as when we might start seeing some positive changes in the market.
Shhh. Can you hear it?
It’s the sound of optimism breathing its way through the Australian property landscape once more.
Let’s run through what some of the property market’s leading experts and reports have said recently.
We’ve all heard the horror stories about a mechanically-challenged friend buying a car and it turning out to be an absolute lemon.
Well, the truth is that sourcing finance for the car isn’t all too dissimilar. But here are 12 reasons why you won’t end up with a lemon of a loan with us! (more…)
Cash flow is like your daily hit of caffeine. You don’t really notice how important it is for your business until you’ve got to try and operate without it. Today we’ll look at how the recently expanded instant asset write-off initiative can help out in that area.
Budget week is always hectic.
You’re bombarded with dozens of different promises and initiatives – so much so that it’s near impossible to keep track of them all, especially ahead of an impending federal election.
So today we’re going to home in on an initiative that was put into place by the government within 24 hours of the budget being released – the instant asset write-off increase.