Wednesday, May 30, 2018
Facebook & Real Estate: Why The Portals Are Worried
Facebook & Real Estate: Why The Portals Are Worried: The real estate industry has always had a love hate relationship with the portals. http://www.facebook.com/pages/LJ-Gilland-Real-Estate-Pty-Ltd/169194919788253 http://www.ljgrealestate.com.au
Friday, May 25, 2018
Wednesday, May 23, 2018
Tuesday, May 22, 2018
22-5-2018 琳达和卡洛斯自豪地在3/95贝里街，春山布里斯班作为合同。 这是我们第二次出售这家酒店，并自豪地成为其物业经理。 我们出售折扣佣金。 我们很乐意管理您的布里斯班投资物业。http://ljgrealestate.com.au/property/3-95-berry-street-spring-hill-qld-4000/
Linda and Carlos proudly present 3/95 Berry Street, Spring Hill Brisbane as under contract. This is the second time we have sold this property and proudly been its property manager. We sell for discounted commission. We would love to manage your Brisbane investment property. http://ljgrealestate.com.au/property/3-95-berry-street-spring-hill-qld-4000/
Wednesday, May 16, 2018
Tuesday, May 15, 2018
Investors spooked while home loans arrears drop
Home loan demand from investors has dropped by 9 per cent, the largest monthly percentage decline since 2015, new data has revealed. According to new Housing Finance data from the Australian Bureau of Statics (ABS), investor loan demand dropped by $1.07 billion (9 per cent) when seasonally adjusted between February and March 2018, the largest monthly percentage drop since September 2015. According to RateCity money editor Sally Tindall, investors have been deterred by the slowdown in the housing market.
"The falls in property prices in Sydney and Melbourne have investors spooked," Ms Tindall said. "Nothing sends investment lending off a cliff quite like a drop in property prices." However, Ms Tindall claimed that the Australian Prudential Regulation Authority's (APRA) removal of the 10 per cent cap on investor lending growth would reinvigorate investor activity. "If history is anything to go by, they won't be out for long. APRA has lifted the cap on investor lending and we've already seen a marked drop in investor interest rates," the money editor added. "Once the market smooths out, you can be sure investors will be back doing the Saturday real estate rounds." Demand from owner-occupiers also declined, falling by 2 per cent ($405 million) over the same period. The ABS data found that, in total, 53,017 home loans were approved in March, down by 2.2 per cent from February, falling for the fourth consecutive month in a row.
The overall value of housing approval also declined, dropping by 4.4 per cent to $31.9 billion, largely spurred by a 9 per cent drop in the value of investor loans ($10.9 billion), with the value of owner-occupied mortgages also falling, dropping by 1.9 per cent to $21 billion.
Home loan arrears fell across Australia during the month of February, after we saw a rise in January.
The Standard & Poor's Performance Index (SPIN) for Australian prime mortgages decreased to 1.16% from 1.30%, according to a report by S&P Ratings.
The report titled RMBS Arrears Statistics: Australia, said that arrears are a lagging indicator, meaning these improvements partly reflect stronger jobs growth nationwide. This includes resource-oriented states, where arrears declined year on year in February to 1.53% from 1.65% in Queensland and to 2.27% from 2.32% in Western Australia.
Monday, May 14, 2018
MONEY & MARKETS
Job losses, weaker household spending and downside pressure on house prices: JP Morgan evaluates what Australia's Banking Royal Commission could bring
MAY 15, 2018
• Australia’s Banking Royal Commission is yet to have a broader impact on the Australian economy.
• New research from JP Morgan suggests it could lead to job losses in the finance sector, slower home loan growth, downside pressure on house prices and weaker household consumption, at least in the near-term.
• Longer-term, the bank says the Royal Commission will likely deliver more positives than negatives for the Australian economy.
iStock
Australia’s Banking Royal Commission is yet to have a broader impact on the Australian economy.
New research from JP Morgan suggests it could lead to job losses in the finance sector, slower home loan growth, downside pressure on house prices and weaker household consumption, at least in the near-term.
Longer-term, the bank says the Royal Commission will likely deliver more positives than negatives for the Australian economy.
Even in its infancy, Australia’s Banking Royal Commission has already left its mark.
Stock prices for some Australian financial firms have fallen sharply, several high profile finance executives have resigned and there’s now some evidence emerging to suggest its having an impact on home loan lending from banks.
And there’s likely to be further fallout to come based on what’s been seen so far.
However, to date, it’s not really had too much of an impact on the broader Australian economy with the exception of the housing market. And even then, it’s impact has been limited so far.
But will it remain that way for the economy?
No one is really sure how it will all play out, but JP Morgan’s Australian economics team, headed by Sally Auld, thinks the Banking Royal Commission will likely have a lasting impact, suggesting it will potentially lead to slower credit growth, job losses in the finance sector, slower household consumption and further declines in house prices.
“There are three main channels through which we think the implications of the Royal Commission may play out,” JP Morgan says.
“The first, and perhaps most obvious, is via tighter lending standards and slower credit growth.
Some of this has been enforced by the regulator, and some of it has been self-imposed as banks attempt to realign lending practices with responsible lending principles.
“Even in a relatively benign scenario, this would slow credit growth, cap house price appreciation and slow consumption growth.”
And, given the likelihood that the Royal Commission will lead to lenders simplifying their business models, it says growth, and as a result employment, across the finance sector is unlikely to maintain the growth rates seen in prior years.
“It is probably not too controversial to expect that aside from some changes to banking,” it says, specifically noting that the mortgage broking industry “will come under pressure”.
JP Morgan
“The finance and real estate sectors now represent 12% of GDP. Together, these sectors have been growing above their long-term trend, so some consolidation seems likely.
“We think employment in these industries could contract by 8% from peak to trough, about the same percentage decline seen at the height of the financial crisis.”
Given evidence seen at the time of the global financial crisis in Sydney and Melbourne, Australia’s finance capitals, that would not only have a negative impact on those geographic-specific economies, but also the broader Australian economy given their influence.
This table from JP Morgan shows the number of Australians currently employed in the finance and housing sectors.
JP Morgan
Adding to downside risks for household consumption, the largest part of the Australian economy at a little under 60%, JP Morgan says the tailwinds from higher house prices enjoyed by households in recent years could quickly turn to headwinds depending on the scale of house price falls.
“The culprit is more likely to be housing assets, rather than retail holdings of bank stocks,” it says.
“Housing assets represent around 55% of total household wealth. The path of house prices in the adjustment to lower credit growth will effectively determine whether the first order impact of the adjustment is felt through the banks and financial stability or through consumption.
“Our assumption is that the adjustment comes via the latter.”
Household spending, in other words.
JP Morgan
While JP Morgan believes the fallout from the Royal Commission creates near-term downside risks for the Australian economy, in the longer-run, it thinks it will leave Australia’s finance and household sectors, as well as the broader economy, on a stronger footing than is currently the case.
“There are some longer-term positives to consider,” it says.
“First, household balance sheet metrics should improve. All else equal, this should reduce the inherent vulnerability of the system to downturns.
“Second, average loan quality and loan-to-income characteristics will improve for the banks.
“Third, banks will be forced to transition away from mortgage lending towards more business lending.”
All else being equal, JP Morgan says this should be positive for the longer-term investment and productivity outlook in Australia.
Round three of the Royal Commission will begin on May 21, focusing on lending practices to small and medium-sized enterprises.
Friday, May 11, 2018
Thursday, May 10, 2018
Wednesday, May 9, 2018
Federal Budget 2018: Property owners sitting on vacant land targeted in budget measures
Federal Budget 2018: Property owners sitting on vacant land targeted in budget measures
http://www.facebook.com/pages/LJ-Gilland-Real-Estate-Pty-Ltd/169194919788253
http://www.ljgrealestate.com.au
http://www.facebook.com/pages/LJ-Gilland-Real-Estate-Pty-Ltd/169194919788253
http://www.ljgrealestate.com.au
Tuesday, May 1, 2018
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