Good Morning and Happy Monday!
Well what week! As we run out into the last month of Winter.
With a pretty huge change in NSW with stamp duty removed on new homes up to $800k for first home buyers (previously it was $650K) including vacant land up to $400k. In the hope, I think to provide further stimulus to a declining construction sector. The ABS (Australian Bureau of Statistics) releasing data late last week around a forth consecutive drop in dwelling approvals. These figures could also be skewed by the fact that some lenders are, for want of a better term hopeless in getting anything done at the moment.
There is hope on the horizon here with both Westpac and NAB announcing the reintroduction of new jobs to be created with onshore processing. We can only hope that ANZ take note of this and do the same given that they are probably the worst at processing right now with anywhere up to 34 day to pick up a file to be assessed after initial vetting that can take at least that long.
The prudential regulator APRA also came out late last week with advice for the bank to halve their dividends to shareholders to ensure their resilience in an uncertain economy.
As banks continue their continual adjustment on policy in uncertain times, I noted in the week past that several lenders not allow the use of their medico waiver policy or restricting the LVR to 85%.
LMI waivers have been a staple for many lenders when considering lending to medico’s, accountant’s, solicitors and several others with the usual policy being up to 90% LVR would see clients in these fields be LMI free.
No major or noticeable changes in rates this week. ING, Bankwest and Macquarie still proving that you can get things done quickly in these crazy times.
Interestingly enough I read an article about the countries strongest performing real estate sector noting that luxury residential property prices were on the rise.
I hope you all have a smashing week out there. I am always here to help if you want to workshop a scenario or get me to run a property report.
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
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