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Borrowers complain about their fixed rate loans - 23/03/2009
There were more than 5,000 complaints about banks and lenders made to the Banking and Finance Ombudsman in the six months to December, including more than 1,000 in December, which is double the rate recorded from 2007.
The ombudsman established a special website to deal with the high number of complaints from borrowers complaining about their fixed rate home loan. One lender was charging interest rates of 22 per cent or 27 per cent if the borrower defaulted.
Source: Sunday Herald Sun
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Auction results still depressing
The Auction clearance rate continued to slowly improve in Sydney, with almost 69 per cent of properties listed for auction selling on Saturday. There were 129 successful auctions on Saturday in Sydney, about the same as the previous weekend.
In Melbourne there were 71 properties sold at auction for a clearance rate of 68 per cent, which was down on last week's results when 228 properties were sold.
Just two properties were sold at auction in Adelaide on Saturday and nine in Brisbane.
Source: Australian Property Monitors
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Property investors positively gearing
Residential property investors are benefiting from low interest rates and high rents and are being able to positively gear their investments from day one. However investors are often competing with the first home buyers at the bottom end of the property market.
New data released on Friday by property analysts RP Data show that falling house prices and rising rents mean many renters would be better off buying. The median rent for a house in Melbourne went up $50 to $350 in the last year, while the median rent on an apartment went up $40 to $320.
Source: Herald Sun
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Govt encouraging Aussie sub-prime crisis
The federal government is encouraging an Australian version of the US sub-prime crisis with its economic stimulus payments and first home owner grants says a leading economist. The First Home Owner Grant has cost the Government about $200 million, but has inflated property prices by close to $3 billion.
Professor Steve Keen said "the additional $2.8 billion or so has come from increased mortgage debt taken on by those most vulnerable to a serious economic downturn at a time when we can see very clearly that the global recession is coming our way.'' Keen says average home prices are nine time the average wage, compared with seven times in the UK and the US when their property markets crashed.
Gerard Minack, chief economist at Morgan Stanley, said property prices could fall by half in some coastal areas and by 20 per cent in the major cities.
Source: Sunday Telegraph
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Borrowers keeping their repayments high -20/03/2009
The vast majority of home loan borrowers with the nation's two largest lenders have opted to retain their repayments at a higher level than the minimum as interest rates have fallen.
Westpac and Commonwealth Bank, yesterday revealed that between 60 per cent and 70 per cent of their home loan customers had chosen to maintain high repayments despite the dramatic recent cuts in interest rates.
Source: Sydney Morning Herald |
Repossessions up – help available - 20/03/2009
The number of homes being repossessed by lenders is on the rise with all banks reported that the numbers of borrowers getting into trouble with their mortgages is up in recent months. ANZ, National Australia Bank, St George, Suncorp, Westpac and the Commonwealth said while the numbers were up, they were still coming off a historically low base.
St George Bank said that the number of repossessed homes had risen from 115 in January to 132 homes this month, up from an average of 80 up to October last year. All banks said help, including repayment holidays, were available for borrowers in hardship.
Source: Sydney Morning Herald
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