Investor Report July 2015

Broker and Banking News – Home and Investment Loans

In the last month there have been dramatic changes from the regulator APRA across the banking sector, in an attempt to slow investor lending by the banks

APRA (The Australian Prudential Regulation Authority)  is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, as well as general insurance and most of the superannuation industry.

While the RBA (Reserve Bank of Australia) has continued to reduce interest rates for the benefit of the broader economy, this has simultaneously increased demand for owner occupier and investor lending in most states, and driven housing prices higher

What this means –  Banks are introducing different interest rates for owner occupiers than for investors

The other major change is in how the banks assess a customer – ie their ‘borrowing capacity’, especially with regard to how interest rates are buffered, or ‘sensitised’ to allow for future rate rises

Overall this is good news for most owner occupiers, and we are seeing deep discounting of interest rates for higher loan amounts and low LVR’s (loan to valuation ratios)

Investors will be paying a little more for their loans, but rates are still at record low levels and look to be stable for now

Feel free to contact me is you’d like to discuss any of the above, or if you’d like to review any of your current lending and rates

Gary Phillips – Loan Market 

St Vincent’s School Fair

Ray White Elizabeth Bay is proud to once again be the major sponsor of this fantastic local event. The St Vincent’s School Fair will be held on Sunday August 23 from 10am to 3pm so drop by our stall to say hello. A huge variety of food and drinks will be on offer – from devonshire teas and BBQ sausages to a more upmarket option of chicken sandwich and champagne combo. There will be live music and entertainment, plenty of second hand books and clothes, wines, jewellery, jams and preserves, a chocolate wheel and the raffling of a ladies bike. So drop by and enjoy the fun.

Sizzling Spring Market likely after a hot Winter 

If you are thinking of selling in spring, now is the time to contact our helpful sales team on 9331 9600 to make arrangements.  A lack of stock, low interest rates and strong buyer demand are combining to create best selling spring conditions in years. Winter has produced some staggering sales results including our recent auction of a one bedroom apartment in 4 Macleay Street which sold for an astonishing $807,000, almost $100,000 over reserve. Unlike other apartments in the building, it did not have panoramic views but still achieved a building price record.