Top 5: Finance & property quotes week commencing 16 February

By the resi financial blog team, 23 February 2015

Top 5: Finance & property quotes week commencing 16 February

While it was a slower week on the property and finance front, much of the discussion circled around housing affordability and rising investment lending. Commentators are noting the risks of high levels of investment lending, but it's still not clear what the outcome of these concerns will be. 

#1. Master Builders Australia voiced their support for Reserve Bank Governor Glenn Stevens, after he asserted that more needs to be done to ensure first home buyer are not forced out of the market. Wilhelm Harnisch​, CEO of Master Builders Australia, pointed out home ownership needs to be an achievable goal for first time buyers.

"The nation has an obligation to ensure that home ownership remains an achievable aspiration for first home buyers," he said.

"To meet this responsibility we must build an adequate supply of new housing to exert downward pressure on house prices and to ensure that the intergenerational home ownership gap does not widen for first home buyers."

#2. A report by the Mortgage & Finance Association of Australia (MFAA) revealed mortgage brokers accounted for the majority of the growth in the mortgage market over 2014, suggesting that Australians are still choosing to receive home loans from brokers.

"The 64.7 per cent contribution to growth indicates that customers continue to select brokers despite a slight drop in share of the marketplace," MFAA chief executive Siobhan Hayden said, according to Broker News.  

#3. The Reserve Bank of Australia released the minutes from its 3 February board meeting, shedding light on the reasons behind their decision to cut the official cash rate by 25 basis points. Board members agreed that investor lending will continue to grow in the coming months.

"Activity and prices in the housing market had continued to be bolstered by the low level of lending rates and strong population growth," the minutes read.

"A range of indicators, including residential building approvals, suggested further growth of dwelling investment in the near term."

#4. The latest market update from CoreLogic RP Data's Property Pulse revealed where Australia's property millionaires are located, while uncovering where home buyers might be able to snap up a bargain. 

"For houses, the $200,000 to $400,000 price bracket accounted for the greatest number of sales in Adelaide and Hobart," the report said. 

"While in Sydney it was the $1 million to $2 million bracket and each remaining city recorded the greatest proportion of house sales between $400,000 and $600,000."

#5. In potentially good news for property owners in South Australia, the government is planning an overhaul of the state's tax system. The Property Council of Australia has welcomed the move and called on the government to abolish stamp duty.

"The Property Council has long campaigned for a comprehensive overhaul of the state's tax system," said Daniel Gannon, SA Executive Director of the Property Council, according to Property Week.

"Any tax reform discussion must start with stamp duty - it's a barrier to investment, growth, economic stimulation and labour mobility and discourages older South Australians from downsizing."

Categories: Property Investment