Confidence in Australia’s property market is at its lowest point in more than three years... Out of cycle rate rises due in late 2016...
Property market facing crisis of confidence
Confidence in Australia’s property market is at its lowest point in more than three years as the aftermath of a federal election campaign and restrictive taxation arrangements weigh heavily on the sector.
Released last week, the June edition of the ANZ/Property Council Survey has revealed consumer and industry sentiment around Australian real estate is at its lowest point since December 2013.
The survey takes into account current conditions as well as future predictions to determine the level of confidence around real estate, with a score of 100 on the index considered to be nueatral.
The confidence index came in at 128 from the June survey and while that is still a positive reading, it has dipped three points since the previous survey.
“The uncertainty created by the longest election campaign in half a century, and recent state government decisions to increase property taxes are taking a toll,” Ken Morrison, chief executive of the Property Council of Australia said
Out of cycle rate rises due in late 2016
While numerous major and non-major lenders have announced interest rate cuts this week, a prominent voice in the mortgage broking industry believes the second half of 2016 will see lenders look to hit borrowers in their back pocket.
With the Coalition now announced victorious following a drawn out conclusion to this month’s federal election, 1300HomeLoan managing director John Kolenda believes Australian banks will look to recoup the new costs they are facing by raising interest rates.
“Major lenders have been assessing options to reprice but have delayed making any moves due to the attention put on them by both political parties and awaiting the outcome of the federal election,” Kolenda said.
“The banks need to lift rates in response to rising funding costs and the additional costs they face for the extra compliance and regulatory increase on reserves they had to have in place by the end of June this year,” he said.
“Banks will be eyeing repricing opportunities and look to lift rates out of cycle sometime in the second half of this year now the election is out of the way.”
(Your Investment Property)
Confidence in Australia’s property market is at its lowest point in more than three years as the aftermath of a federal election campaign and restrictive taxation arrangements weigh heavily on the sector.
Released last week, the June edition of the ANZ/Property Council Survey has revealed consumer and industry sentiment around Australian real estate is at its lowest point since December 2013.
The survey takes into account current conditions as well as future predictions to determine the level of confidence around real estate, with a score of 100 on the index considered to be nueatral.
The confidence index came in at 128 from the June survey and while that is still a positive reading, it has dipped three points since the previous survey.
“The uncertainty created by the longest election campaign in half a century, and recent state government decisions to increase property taxes are taking a toll,” Ken Morrison, chief executive of the Property Council of Australia said
Out of cycle rate rises due in late 2016
While numerous major and non-major lenders have announced interest rate cuts this week, a prominent voice in the mortgage broking industry believes the second half of 2016 will see lenders look to hit borrowers in their back pocket.
With the Coalition now announced victorious following a drawn out conclusion to this month’s federal election, 1300HomeLoan managing director John Kolenda believes Australian banks will look to recoup the new costs they are facing by raising interest rates.
“Major lenders have been assessing options to reprice but have delayed making any moves due to the attention put on them by both political parties and awaiting the outcome of the federal election,” Kolenda said.
“The banks need to lift rates in response to rising funding costs and the additional costs they face for the extra compliance and regulatory increase on reserves they had to have in place by the end of June this year,” he said.
“Banks will be eyeing repricing opportunities and look to lift rates out of cycle sometime in the second half of this year now the election is out of the way.”
(Your Investment Property)
