Blog

Mortgage trusts: is there a future? - December 2009
It was just over a year ago that Australia's mortgage trust sector experienced a true, good old-fashioned panic run from investors, forcing many well-known fund managers to suspend their funds...

Homeowners may be spared February interest rate rise - December 2009
Homeowners may be spared a rate rise in February after a Reserve Bank official said interest rates are now in a 'normal range'. RBA deputy governor Ric Battellino also defended moves by the retail banks to raise rates by more than the central bank, drawing an angry response from Treasurer Wayne Swan...

Units eclipse sales record in Coomera - December 2009
THE sale of two commercial units in an Upper Coomera industrial hub has set a sales benchmark in the area.
Gold Coast-based development company Condev Constructions sold the industrial units in its Northward Street development last month for an average of $2150/sq m...

$11m sales in building Raptis lost twice - November 2009
MELBOURNE property developer Drapac has racked up more than $11.2 million in strata-title deals in a Surfers Paradise beachside retail and office building. Drapac Management, linked to Michael Drapac, bought the Le Boulevard property late last year for $18.5 million after Raptis Group entity Glennington was placed into receivership...

Rates will rise as economy recovers: RBA - October 2009
Reserve Bank of Australia (RBA) governor Glenn Stevens says it would be a mistake to be "too timid" to raise interest rates in response to a brighter economy. Speaking at a breakfast function in Perth on Thursday, Mr Stevens said the period of greatest weakness in Australia was "probably past" and the risks of really serious economic weakness had "abated"...

Storm adviser didn't care, argues barrister - October 2009
LAWYERS for the Storm Financial liquidators have accused one of the company's former advisers of not caring if the investment advice he provided to a retiring couple was based on inaccurate information...

One in three mortgage enquiries will not fit the current lending criteria, according to Loan Market Group.
The firm's chief operating officer Dean Rushton said tighter lending rules which requires genuine savings contributions of around 5% towards the property purchase was creating major hurdles for new buyers.
He said other loan applicants who passed all the lending criteria were being rejected because they had few assets.
"The major lenders are in a competitive position where they can pick and chose who they want to lend money to and there is little room to move for applicants who do not fit the box," said Rushton. "We are finding that 30 per cent of first time buyers who enquire about housing finance won't even get past first base."
Rushton said buyers had been able to use the boosted First Home Owners Grant as a contributor to their deposit but this had become more difficult since the concession was partly reduced on September 30.
Banks earlier this year reduced their maximum loan to valuation ratio's (LVR's) to as low as 90% in response to the global financial crisis. But Mr Rushton said family equity options were still available to help first home buyers and families entering the residential real estate market

Residential property prices in Australia increased 3.7 per cent in September to a six year high.
The latest figures from Australian Property Monitors (APM) showed that Melbourne is the fastest growing real estate sector with prices rising 6.1 per cent in the third quarter of the year, the fastest quarterly increase since 2003.
The average house price in Melbourne was $487,249, compared with $437,560 in September last year; the city's average house price has now risen 11.4 per cent during the last 12 months.
Hobart is not far behind Melbourne, with prices up 5.4 per cent for the quarter.
APM economist Matthew Bell has warned that the recent jump in property prices may not be sustainable over the longer term because they are currently being underpinned by first home buyers.
According to Mr Bell, the rise in house prices across the nation is being led by the explosive growth in the more expensive suburbs which have seen house prices steadily climb since June.

“House price growth in Australia has come despite massive falls in many developed economies due to the global economic crisis. Low interest rates, generous government grants for new home buyers, relatively low unemployment, and strong population growth have all helped to lift demand for houses,” he said.

House prices soar across the board
17/09/2009

Median houses prices rose in every capital city in the June quarter, as investors flocked back to the market and first home buyers scrambled to buy before the First Home Owners Grant recedes.
In the Real Estate Institute of Australia's (REIA) quarterly report, Darwin recorded the highest increase, a whopping 19% over the last quarter, taking its median house price to 537,093.
Sydney recorded the highest house price, with the medium topping $544,000 - the most expensive of all capital cities. Hobart recorded the lowest median price - $336,000 - while Adelaide prices rose the least at just 1.1%.

"The figures recorded this quarter show evidence of an improving property market," says REIA president David Airey. "Factors contributing to this change are increased investor activity and the revival of the second and third home buyers in