Global ratings agency Moody’s says Australia’s housing affordability crisis is worsening, with record-high debt levels exposing borrowers to greater risk of defaults

Many borrowers (particularly investors) are mad, they have exposed themselves to large amounts of debt, just because at a moment in time rates are low, without sufficient consideration for future cost of debt. Rates will rise again. Interest only and investment loans are case in point. Lenders borrowing capacity calculators have changed significantly, making it […]

Loan clampdown helped cool housing market, but investor risks could rise: RBA

This below article was in the Sydney Morning Herald on Oct 13 by Nancy Yeates I believe the following: With the continually changing lending landscape, investors could add fuel to the alleged fire of a property bubble. Whilst I don’t believe property prices have led to any bubble being present, increased exposure to large amounts of […]

first home buyers

This is part 2 to the last post I did, and contradicts to some degree, the last post, you will see a trend in the media, that everyone has an opinion. No opinion is completely wrong or completely right necessarily. One thing that is completely wrong is using Sydney as the benchmark of National affordability […]

Millenials, affordability for property and first home buyers

The below article’s perspective is very interesting, often people like to compare other countries to make a point that the Millenial generation and generation Y’s income and affordability are tough here versus other countries, but this is very one dimensional. You must consider all the information.   Sydney Real Estate Is ‘Cheap,’ And There Is No […]

Interest rates: must read: Property Finance Made Simple

What is in store for borrowers: Anyone with an interest only loan, whether on an investment property or their own home, a high level of debt against a property they own, or any investment loan will start to face climbing interest rates. The risk is obvious, many people have foolishly taken on too much debt, […]

APRA sounds alarm on commercial property risks

Following a recent review, the prudential regulator has today warned that many banks have fallen “well short of expectations” regarding portfolio controls for commercial property.   https://www.smeadviser.com.au/news/64-apra-sounds-alarm-on-commercial-property-risks?utm_source=SME%20Adviser&utm_campaign=10_03_17&utm_medium=email&utm_content=2   Commercial property is a good strategy worth considering. Stay tuned for my new article soon to be published in a business journal, on commercial property

Fractional investing, which allows people to buy slices of real estate without having to stump up hundreds of thousands of dollars

  A NEW breed of property investing in Australia is expanding into other money-making areas, including offshore. Fractional investing, which allows people to buy slices of real estate without having to stump up hundreds of thousands of dollars, is growing rapidly as investors search for ways to benefit from rising property prices.   This may […]

Australian Property and Lending: Avoid Property Marketing Companies

My new book Property Finance Made Simple has taken off, and one of the parts of the earlier chapters is on affordability and tightening of lending in Australia. I wanted to take the opportunity to share with you an article that came across my desk this week on a unique perspective into the impact of […]