Property Prices Show Early Signs Of Recovery
Have property prices hit rock bottom yet?
According to the latest research by CoreLogic, they may very well have – at least in some areas.
Better borrowing conditions, along with fewer properties on the market for buyers, have sprouted the first signs of recovery in key property markets.
For the first time in two years, Sydney and Melbourne recorded an increase in dwelling values – with Sydney up by 0.1% and Melbourne up 0.2% in June.
Preliminary auction clearance rates have also jumped above 60 per cent for four weeks in a row across capital city markets around the country.
It remains to be seen how quickly or strongly prices will bounce back – but with price falls decelerating, or even reversing in areas around the country – the signs for property prices look positive.
Buyers Could Soon See Their Borrowing Capacity Increase By Up To $150,000 Or More
New changes to the lending criteria by the Australian Prudential Regulation Authority (APRA) will increase the borrowing capacity of potential buyers. The changes could mean an increase in borrowing capacity of as much as 14%.
For example, a couple with a combined annual income of $200,000, could be able to borrow an extra $150,000.
These changes will make it easier for more people to achieve buy their first home or next upgrade.
Westpac Forced To Refund 40,000 Home Loan Customers
40,000 Westpac customers were found to have overpaid their interest on their home loans.
A manual processing error left borrowers on interest-only loans, instead of being switched over to principal-and-interest loans.
Westpac’s mistake first came to light in 2017. Around 70% of customers have since been refunded, with Westpac already allocating $281 million for remediation costs
More than 500,000 home owners across Australia could boost the value of their home by up to 30%, and add around 27% to their potential rental income.
Property research company, CoreLogic, identified 583,440 properties in Australia that had enough space on their property to build a granny flat.
Granny flats normally cost less to rent than an apartment – making it a more affordable option for renters. They can be particularly attractive to those looking to rent in more expensive areas.
According to CoreLogic’s Head of Research, Tim Lawless, “Building a granny flat is becoming an increasingly compelling proposition for homeowners in a relatively lacklustre market. Not only can it help to manufacture new capital gains, but it has the potential to generate rental income while meeting demand for more affordable housing