Are credit conditions easing?
- Thread starter Shadow
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Congratulations Dazz! You little bewdy!
ah not quite i get the whizz bang annual reports of listed property companies
Lots of juicy information even if its a bit dry.
I like Trichet, I think it is good that he follow the the mandate that is not about economy growth but about stability and inflation. I don't see how the US Japan and other major economy superstimulation is having long lasting effect. The only thing I see as consequence of stimulation is emerging eceonomy inflation, high commodity prices and Gov budget problems. with Weber as Trichet successor ECB economy policies will be even more conservative.
I think someone asked who the next one to be to move their lending standards will be now ANZ has moved.
And the correct answer is: Westpac.
Congratulations to all those that guessed correctly. Westpac now allows new to bank lending at an LVR of 92% instead of 87%. Existing clients can still get 97%.
And the correct answer is: Westpac.
Congratulations to all those that guessed correctly. Westpac now allows new to bank lending at an LVR of 92% instead of 87%. Existing clients can still get 97%.
Hiya
Means they might have some money again...........though that stoopid black box system will still make it tough for many to qualify
ta
rolf
Means they might have some money again...........though that stoopid black box system will still make it tough for many to qualify
ta
rolf
Well Bernanke and Obama came out on the weekend essentially saying they are going to print a trillion+.
Risk-on again, until it isn't.
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I think credit is starting to flow again...albeit only if you have a solid credit rating.
I found out that Adelaide Bank was willing to offer me 97% LVR (LMI capitalised).
To trump this CBA offered my 92% (LMI capitalised)....but their LMI was 70% cheaper then Adelaide.
Decisions..decisions......
I found out that Adelaide Bank was willing to offer me 97% LVR (LMI capitalised).
To trump this CBA offered my 92% (LMI capitalised)....but their LMI was 70% cheaper then Adelaide.
Decisions..decisions......
Yeah that Adelaide Bank product has a few people talking, especially with their 1 year special fixed rate of 6.46%, and the $20K "secured" credit card that doesn't get added in the LVR calcs.
Of course, now that Australian productivity cannot finance its own housing market without foreign help, how far credit is loosened will be determined that much more by private bond vigilantes.
Australia's Bank Bonds Punished on Housing Bubble Concern: Credit Markets
Investors in U.S. dollar-denominated bonds issued by Australian banks are demanding the highest relative yields in a year to own the debt on concern the country’s real estate market is overheating.
A unit of Australia & New Zealand Banking Group Ltd. paid 160 basis points, or 1.6 percentage points, more than Treasuries when it issued $1 billion of five-year notes this month, the widest spread on a benchmark U.S. currency sale by one of Australia’s four biggest lenders since August 2009, according to data compiled by Bloomberg. The cost of credit-default swaps tied to ANZ and its three largest peers jumped about 50 percent in the same period.
Australia's Bank Bonds Punished on Housing Bubble Concern: Credit Markets
Investors in U.S. dollar-denominated bonds issued by Australian banks are demanding the highest relative yields in a year to own the debt on concern the country’s real estate market is overheating.
A unit of Australia & New Zealand Banking Group Ltd. paid 160 basis points, or 1.6 percentage points, more than Treasuries when it issued $1 billion of five-year notes this month, the widest spread on a benchmark U.S. currency sale by one of Australia’s four biggest lenders since August 2009, according to data compiled by Bloomberg. The cost of credit-default swaps tied to ANZ and its three largest peers jumped about 50 percent in the same period.
This is still a very low rate compared to what they pay on AUD?
I assume they have more costs in hedging this being in US$ also otherwise this seems like a pretty risky play for the banks at the moment to carry $US unhedged?
"Lenders back to throwing cash at buyers"
http://www.couriermail.com.au/money/lenders-throwing-cash-at-buyers/story-e6freqoo-1225918973988
http://www.couriermail.com.au/money/lenders-throwing-cash-at-buyers/story-e6freqoo-1225918973988
Does anyone else find this worrying?
In 2006, shortly before the peak of the UK housing market, Northern Rock offered their Together loan of up to 125% of a property's value. Needless to say it didn't end well for those who took up this deal, and it's become symbolic of the excesses of the housing and credit boom.
WOW! 125%?! That is unbelievable. In fact, i actually had to click the hyperlink to confirm is was true. As far as comparisons with what eventuated in the UK property market - i'm not worried. I watched a re-run of Location Location a few nights back where Kirsty said of the buyers, "In the 9 years since they left the UK property prices have more than tripled." Lots of those UK property shows from a few years ago mention incredible year-on-year returns. In my wildest dreams we haven't had that kind of a run here (thank goodness).
Neverthless, I am surprised to see such high LVRs come back (and so quickly). I don't think 105% is good for anyone, but not because of an impending crash.
Didn't end well for Northern Rock either.. one of the first banks to go bust & their shares went to zero after a run on the bank. Australian banks offering over 95% deserve the same fate.
JoeExpat,as you seem to have your fingers on the pulse when it comes to money matters,just a question what do you think the Swiss Banks will raise their lending rates or lower them,the only way i can see is up..willair..
The SNBs attempts to intervene in the francs strength failed miserably and cost it a lot of money, it is highly unlikely they will raise rates, no need to, no boom to cool.
Mortgage rates are around 3% but still a minority buy here (30%), the negatives outweigh the positives. You pay tax on the 'deemed rental' of a property, even when you live there, i.e. tax on money you didn't receive, very strange. Capital growth is also very low, house prices now about where they were in 1993. Also 20% deposit required by law, & buy-to-let unheard of & not allowed for foreigners even when resident, except for some holiday homes.
For prices to triple in a 9 years you need a growth rate of 13% per annum. Australia's not been that strong consistently, but it's had its moments over the past decade.
Furthermore bear in mind that British property prices bottomed out in 1996 or 1997 after the previous market crash in 1989. The average house was something like 2 to 2.5 times the average salary at that time. So there was scope for a significant rise.
This graph shows nominal UK house prices. There's quite a dip during the '90s.
The market as a whole didn't triple, but some towns did.
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