Heil houses! Get outta the way. The fasco-housing complex tanks are rolling in, at Domain:
Sydney’s property market is set for a new boom with an undersupply of homes predicted to fuel a spike in house prices.
…CoreLogic’s Asia Pacific research director Tim Lawless said the period of improved housing affordability caused by cheaper house prices was coming to an end.
“If you look at the numbers … we are going to be facing a situation with an undersupply of housing,” Mr Lawless said. “We are already seeing housing prices rise.”
Eliza Owen, a research analyst at Domain, said house prices were likely to rise because developers started work on fewer dwellings during the downturn.
Heil! Meanwhile, everything is on the table for a super review, except one, via The Australian:
Josh Frydenberg has ruled out ever including the family home in the assets test for the age pension on the same day as he unveiled the first major review of the nation’s retirement income system in 30 years.
The inquiry could spark a crackdown on superannuation tax concessions or freeze the compulsory savings rate at 10 per cent, with the government seeking to future-proof the budget from the pressures of an ageing population.
The Treasurer on Friday announced the long-awaited review of the nation’s savings systems that will provide a platform for a generational overhaul of the $2.8 trillion super system and which has the scope to examine the treatment of the family home in the age pension.
Heil! The oligarchs are cheering at the AFR:
The chief executives of real estate companies have said the restrictions on the flow of credit had become “nonsensical” to those who are well placed to borrow, including Mirvac boss Susan Lloyd-Hurwitz who said her own recent property purchase had been ‘torturous’.
Development financier Alceon’s managing director Trevor Loewensohn said the lack of credit and therefore sales meant developers could not get projects off the ground.
Mark Steinert, chief executive of the country’s largest listed property developer Stockland, said the flow of credit into the right areas was key for ensuring the economy started firing again.
Heil! And here comes the “blank cheque”, via useful idiot, Jess Irvine:
During the election campaign, Scott Morrison pledged the Coalition government would help 10,000 first time buyers each year with a 5 per cent deposit by going guarantor on their loans. This would help avoid paying the “lenders mortgage insurance” typically charged to borrowers with less than a 20 per cent deposit.
…The Property Council is pushing for the scheme to be doubled to 20,000 buyers a year for the first two years, with the additional 10,000 places restricted to purchasers of newly-built properties.
But the Grattan Institute’s Brendan Coates told a public hearing on Friday that “it would push up prices, benefiting sellers at the expense of first home-buyers, while increasing the risks of inappropriate lending at costs to both households and government,” he said.as drafted, the Bill provides a blank cheque to the government to expand the size of the scheme in future without parliamentary oversight. Instead, the annual cap on the number of guarantees – 10,000 a year – should be specified in the legislation. This would ensure any policy shift to expand the size of the scheme is subject to parliamentary oversight.”
The executive director of the Australian Housing and Urban Research Institute, Dr Michael Fotheringham, told the committee it was unclear if the scheme would boost home ownership overall. “As currently written, I think it will accelerate people into home ownership, rather than getting more people into home ownership.”
Does anyone remember that quaint “liberal” system we used to have in which the tax-payer was kept separate from private interests to ensure that markets functioned objectively and cleptocracy was illegal to protect the public good?
Heil! It’s congratulations all around as the fasco-housing complex sponsors liar loans back to life. Via Jonathon Mott at UBS:
“Since the royal commission was announced, the banks have significantly increased their level of verification, more questions are asked and more documentation is being requested. We had expected this to lead to an increase in the accuracy of mortgage applications. Unfortunately, this was not the case.
“While asking detailed questions appears to be prudent, it does not appear to be effective as many factually inaccurate mortgages are still working their way through the process.
“We believe the regulators and lenders may need to consider moving away from asking questions to analysing data as Comprehensive Credit Reporting and open banking are rolled out, (and) adopting more rigorous debt-to-income limits in the interim.”
Those that lied included 20% on overstated income, 23% understated debts and 34% understated costs. It remains that case the brokers are much more dodgy than banks at 40% lies versus 27%.
“The mortgage broker industry is wide and diverse, and we believe the vast majority of brokers act with a high degree of integrity to get the best outcome for their customers. However, unfortunately this survey again suggests there is a material portion of the broker industry who are prepared to advise their customers to misrepresent elements of their application to get the mortgage approved.
As we know, Treasurer Josh Recessionberg last week warned that lending standards were too high.
“Common sense dictates that a sensible balance needs to be struck because an unduly restrictive application of these obligations can do as much harm as an overly lax one.”