In property news this week, the messages being received are still somewhat mixed and neutral, despite a second interest rate cut by the RBA.
ABC reported: Number of Australian properties resold at a loss climbs to six-year high
From the article:
Twelve per cent of Australian properties were resold at a loss — compared to what the sellers had paid for them — in the first three months of 2019.
It would be interesting to see what the second quarter of the year yields.
Meanwhile, AFR is urging caution in this very helpful article for investors (both would-be and professional) – Options for dealing with a cooling housing market
In other news, Mark Bouris has singled out the elephant in the room of the Aussie property market on news.com.au, and that’s the lending market. He says, all the positive signs mean nothing if ‘we don’t let banks open their lending taps again’
Full article here: Mark Bouris: The big problem with Australia’s struggling housing property market
It seems somebody was listening because soon after, this news was released.
The Australian Prudential Regulation Authority eased the serviceability buffer by no longer expecting banks to ensure customers could still repay their loan if its interest rate increased to at least 7 per cent from last Friday
The other side of the coin in property this week is that clearance rates are healthy, but it is important to note that the number of property is down:
Auction Clearance Rates Top 60%
Also, don’t forget to check out our latest video on YouTube, where we flashback to the property crash of 2004!
In other news:
Build to rent could shake up real estate but won’t take off without major tax changes
NSW off-the-plan buyers to get better protection under new laws this year
How to get the most out of lower mortgage rates
Have a great week everyone!
