Planning to pay off your 25 year home loan in under 5 years? If it sounds too good to be true – maybe it is.

The Australian Securities and Investments Commission is cracking down on lenders who are misleading customers with false advertisement options for paying off their home loan. These lenders may have breached consumer credit laws and clearly set unrealistic expectations that can harm the customer’s financial well-being. Customers are advised to consult a licensed financial planner to provide them with the realistically attainable loan options rather than relying on these types of advertisements.

Read more about this on the Broker News website.

 
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Sydney continues to lead all capital cities in property price as it increased by 2.7% for the 3rd quarter of the year, according to the Australian Bureau of Statistics.

Property prices have also increased by 1% in Melbourne, Brisbane, Adelaide and Hobart. Overall, national house prices have increased by 1.5%. Sydney’s housing market recorded the strongest performance 12 months to September, recording a staggering 14.6% increase, followed by Melbourne and Brisbane, at 6.9% and 6.7% respectively.

The strong performance in the property market was attributed to high investor activity, with finance from investors increasing by 25.4% for 12 months to September. Meanwhile, owner – occupied finance comprised a measly 1.8% for the same period.

Read more about this on the Age website.

 
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Auctions in Queensland are set to go through perhaps one of the most drastic – and illogical changes in legislation.

Price guides has been used to align buyers expectations with properties sold at auctions. Starting December of this year, it will be deemed illegal for real estate agents to provide a price guide, or at the very least, discuss prices of properties – both auctioned and even prices of surrounding homes. This legislation is supported by the Real Estate Institute of Queensland.

Read more about this on the Property Observer website.

 
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The Capital city median house price increased by 1.1% for the month of October, reaching a staggering record high of $681,640, according to ANZ research.

Melbourne and Sydney median house prices increased by 2.2% and 1.2% respectively and were pointed out as the main reasons for the price jump. All other capital cities increased less than 1% or dropped in value. Sydney leads all capital cities with a median house value of $868,866, while Hobart has the cheapest, at a value of $340,461.

Read more about this on the Property Observer website.

 
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A recent survey of 1,000 young adults by the ME Bank shows growing skepticism on home ownership for Australians aged 18 – 29, with 26% believing that can never afford buying a home.

Of all the adults surveyed, 18% believe that owning a home in current market conditions is unattainable. Despite these dismal results, 20% of the young adults surveyed are feeling a sense of urgency, as they are finding ways to increase their savings. Overall, 51% of respondents believe that house prices will surge further, with 40% expecting it to remain steady. Only 9% believe that house prices will fall.

Read more about this on the Adviser website.

 
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Are you supposed to believe the new property hotspots advertised in the market, or is there a need for you to investigate and tread carefully?

Property hotspots are indeed areas where properties do well, but it often benefits the people selling the property more than the actual buyer.  Property values are at their peak price, but this doesn’t mean that rents will follow suit. Relying on hotspots can increase the risk of being unable to recover the premium through rental income.

Rather than relying on hotspots, it is best to investigate areas with solid properties – even in lesser desired areas. They have the potential of bringing in more people as they are more affordable and will increase in value as people move in. Also consider looking at planned projects – such as new amenities as this is a key factor in driving up demand.

Read more about this on the Your Investment Property website.

 
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Labor senator Sam Dastyari has urged banks not to turn a blind eye with the rise of Bitcoin, the digital currency that is headed to change transactions in the future.

74 banks and organizations such as the Reserve Bank of Australia, ANZ Banking Group, Commonwealth Bank of Australia, National Australia Bank and Westpac have been approached by the inquiry committee to provide feedback as to how Bitcoins can be controlled, as online transactions with the digital currency have remained unregulated across the globe.

Banks have been highly cautious, and at times, confused with how to treat digital currencies. The National Australia Bank has kept distance from Bitcoins, saying they were too risky, with other banks still yet to make a stand on digital currencies.

Because of its popularity, Bitcoin values have surged to as much as $US 1,000 a unit, compared to around $US 1.00 just two years ago.

Read more about this on the Sydney Morning Herald website.

 
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First Home Buyers are slowly losing hold of the property market as it posted a record low share of 11.8%, according to the Australian Bureau of Statistics.

Here are 5 facts about the current situation of First Home Buyers in the country:

First Home Buyers financed loans have dropped by 10% in August at 6,055 compared to the previous month’6,718.
First Home Buyer numbers have remained unchanged for the past decade, despite increases in Median Price and lesser concessions.
First Home Buyers are having a hard time as the First Home Owners Grant has gone through several changes, the most important of which is adding a cap depending on the value of the property. In 2004, First Home Owners Grant was uncapped.
If predictions are correct and the interest rates increase next year, repayment for a $300,000 home loan is expected to increase by $300 every month.
Median house prices have ballooned by 72% over the past decade.

Read more about this on the Property Observer website.

 
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Investors share on the loan market have increased to 40.6% for August, well above the average of 30.9% for the past 23 years, clear signs that the insatiable appetite for property are far from satisfied.

Refinanced owner occupied home loans have also increased to a record high 49.7%, well above the long term average of 36.5%. Despite these numbers, home lending for investors has actually slowed down, rising just 6% in 6 months, compared to a 21% increase 6 months before. Home buyers are clearly outgunned as lending dropped by 4% in the past 6 months, as opposed to a 9% gain 6 months prior.

Despite the Reserve Bank’s warning on the glaring disparity between home buyers and investors, the building industry has remained as one of the most optimistic sectors in the economy as the mining boom starts to fade.

Read more about this on the Australian website.

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Investors are often encouraged to research and analyze market trends before they dive into property, but little do we know that overanalyzing and failing to buy when the time is right has been pointed out as a dilemma that affects new property investors called analysis paralysis.

There are several questions that you should be ready to answer when you are investing. Once these questions have been fulfilled you should then decide whether you want to buy, or move on to the next property.

Am I financially prepared? Am I confident in the area? Have I done my research and am I confident with my decision? Investing in property is a matter of researching and appropriate action. For individuals that fear making a wrong decision, it may be a good time for you to seek help from a financial planner who will provide you with the appropriate guidance.

Read more about this on the Property Observer website.

 
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