me too - noticed this trend a while back.
Boom times return?
- Thread starter Ausprop
- Start date
me too - noticed this trend a while back.
Here are their records (predicted vs actual):
http://www.bis.com.au/verve/_resources/Residential_Property_Prospects_Forecast_Record.pdf
Don't look very close with their guesstimates at all.
http://www.bis.com.au/verve/_resources/Residential_Property_Prospects_Forecast_Record.pdf
Don't look very close with their guesstimates at all.
If the forecasting company was so accurate, it wouldn't be telling you the forecasts.
The newspapers that quote their latest predictions could at least point out how their previous predictions have performed.
http://propellresearch.wordpress.co...house-price-index-points-to-improving-prices/
A drop in median can simply mean that higher end houses stopped selling while lower end houses continued to do so.
From what I hear this would support that view; not many high end houses selling in our area for one example.
This is not surprising; as the pool of buyers and sellers at the higher end is much smaller, and you still need to have the lending criteria to buy, and be wanting to buy. In this current climate there is a lot of neg sentiment, so many will sit on the cheque book .
There would also be a smaller pool of those in recent years due to the Banks' lending goalposts being moved further away from many.
It is harder to purchase higher-valued properties because any loan against them are considered 'jumbo' loans, which correspondingly leads to a lower LVR that makes it harder to obtain finance for even if income is strong.
Is this true?
I rerceived newsletter from NO Fuss. Is the below true?
In February this year the ABS housing finance figures showed that the value of lending for investment housing rose by 4.4% to $6.9 billion, seasonally adjusted. This is marginally above the annual average of $6.6 billion and an increase of 6.6% over February 2011. Encouraging signs for investors include:
1. The number and choice of properties available for sale;
2. The stagnant property values in most states which may lead to well-priced opportunities;
3. Falling interest rates; and4. High rental yields.
Research by RP Data shows that
• The amount of housing stock available for sale is currently 7.7% higher than at the same time last year and 35% higher than the five year average.
• The volume of house and unit sales is both lower than the same time last year and lower than the five year average.
• Private sector housing credit has increased by just 5.3% over the 12 months to April 2012, remaining at historic low levels.
In addition the rental yields are showing positive signs of improvement due to rental price growth and low rental vacancy rates. The latter is of course influenced by Australia’s housing
under-supply issue. All in all now may be a good opportunity for new investors to enter the market. Of course there are some key factorsthat prospective investors should be
aware of.
1. The necessity to do the proper research regarding the property, i.e., type, location, etc. It is essential to invest in a property that is well located and highly sought after by renters.
Ideally, it will be in close proximity to amenities such as shops, public transport, schools and have appealing features such as off-street parking.
2. Due diligence with reference to finance, tax and legal ramifications. It is a good idea to consult a professional such as an accountant and/or financial planner before embarking on an
investment strategy.
3. Importance of putting the correct financial package in place. There are a number of factors to consider when deciding on the type of loan structure. It has to take into account your current finances and life-style as well as future investment goals and changing life-style options. Prospective investors should also be aware that lenders generally have
different criteria when assessing an investment loan as opposed to an owner-occupied home loan. The main difference revolves around the Loan to
Valuation Ratio (LVR) which is generally lower for an investment loan. This means that either the investor has to have sufficient equity in another property or a cash deposit.
It will be prudent for borrowers who are venturing into the investment market to consult a mortgage professional to gain a greater understanding of their particular financial position and may be even get a pre-approval to give them greater flexibility when shopping for a property.
Written by No Fuss Mortgage Co
I rerceived newsletter from NO Fuss. Is the below true?
In February this year the ABS housing finance figures showed that the value of lending for investment housing rose by 4.4% to $6.9 billion, seasonally adjusted. This is marginally above the annual average of $6.6 billion and an increase of 6.6% over February 2011. Encouraging signs for investors include:
1. The number and choice of properties available for sale;
2. The stagnant property values in most states which may lead to well-priced opportunities;
3. Falling interest rates; and4. High rental yields.
Research by RP Data shows that
• The amount of housing stock available for sale is currently 7.7% higher than at the same time last year and 35% higher than the five year average.
• The volume of house and unit sales is both lower than the same time last year and lower than the five year average.
• Private sector housing credit has increased by just 5.3% over the 12 months to April 2012, remaining at historic low levels.
In addition the rental yields are showing positive signs of improvement due to rental price growth and low rental vacancy rates. The latter is of course influenced by Australia’s housing
under-supply issue. All in all now may be a good opportunity for new investors to enter the market. Of course there are some key factorsthat prospective investors should be
aware of.
1. The necessity to do the proper research regarding the property, i.e., type, location, etc. It is essential to invest in a property that is well located and highly sought after by renters.
Ideally, it will be in close proximity to amenities such as shops, public transport, schools and have appealing features such as off-street parking.
2. Due diligence with reference to finance, tax and legal ramifications. It is a good idea to consult a professional such as an accountant and/or financial planner before embarking on an
investment strategy.
3. Importance of putting the correct financial package in place. There are a number of factors to consider when deciding on the type of loan structure. It has to take into account your current finances and life-style as well as future investment goals and changing life-style options. Prospective investors should also be aware that lenders generally have
different criteria when assessing an investment loan as opposed to an owner-occupied home loan. The main difference revolves around the Loan to
Valuation Ratio (LVR) which is generally lower for an investment loan. This means that either the investor has to have sufficient equity in another property or a cash deposit.
It will be prudent for borrowers who are venturing into the investment market to consult a mortgage professional to gain a greater understanding of their particular financial position and may be even get a pre-approval to give them greater flexibility when shopping for a property.
Written by No Fuss Mortgage Co
There you go; even more hurdles to make a drop in the median more likely, more skewed and pretty much inaccurate..
what a great idea.
the Pilbara are screaming for workers, but we should all go where the work isnt.
I know media is not a good place to get accurate information at times but am seeing a definate change in the positive vs. negative battle in real estate related news like:
http://www.perthnow.com.au/business/wa-real-estate-bust-is-over/story-e6frg2ru-1226419803501
A lot more positive stories starting to emerge which may indicate a change in mentality.
http://www.perthnow.com.au/business/wa-real-estate-bust-is-over/story-e6frg2ru-1226419803501
A lot more positive stories starting to emerge which may indicate a change in mentality.