I received this today, think its a good summary, of course you may think otherwise Thoughts??
My main concern is this
APRA introducing macro-prudential controls on lending amounts which could limit investor finance
The Economic climate and potential road blocks
Interest rates are predicted to be very stable this year (ie expect no change) so this is ideal for borrowers to work out holding costs. Our natural population growth and immigration intake will continue to see the population grow and the majority of this increase will be seeking to live in capital cities.
Gradually rising unemployment and low income growth are causing fragility in the economy and will impact consumer confidence this year. Low interest rates have fuelled a substantial rise in investors seeking loans and buying investment properties.
The main challenges for the economy is transitioning away from dependence on mining to other sectors and investing in infrastructure so that the economy can be made more productive. The falling value of the Australian dollar is making our exports more competitive and also creating a win for expats and foreign investors looking to purchase property in Australia. It?s come down from around $0.95 USD last year to around $0.80 today (so this represents a 15% discount factor on the currency front).
The areas of concern for our property market in 2015 include:
? Lower income growth reducing affordability and demand for housing,
? APRA introducing macro-prudential controls on lending amounts which could limit investor finance,
? Restrictions on rules for borrowing for property investment in Self-Managed Super Funds, and
? Media speculation on property bubbles bursting and the fear factor that is perpetuated from this scenario.
MTR
My main concern is this
APRA introducing macro-prudential controls on lending amounts which could limit investor finance
The Economic climate and potential road blocks
Interest rates are predicted to be very stable this year (ie expect no change) so this is ideal for borrowers to work out holding costs. Our natural population growth and immigration intake will continue to see the population grow and the majority of this increase will be seeking to live in capital cities.
Gradually rising unemployment and low income growth are causing fragility in the economy and will impact consumer confidence this year. Low interest rates have fuelled a substantial rise in investors seeking loans and buying investment properties.
The main challenges for the economy is transitioning away from dependence on mining to other sectors and investing in infrastructure so that the economy can be made more productive. The falling value of the Australian dollar is making our exports more competitive and also creating a win for expats and foreign investors looking to purchase property in Australia. It?s come down from around $0.95 USD last year to around $0.80 today (so this represents a 15% discount factor on the currency front).
The areas of concern for our property market in 2015 include:
? Lower income growth reducing affordability and demand for housing,
? APRA introducing macro-prudential controls on lending amounts which could limit investor finance,
? Restrictions on rules for borrowing for property investment in Self-Managed Super Funds, and
? Media speculation on property bubbles bursting and the fear factor that is perpetuated from this scenario.
MTR
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