Archive For May 13, 2015

REVEALED: The RBA’s internal concerns about the property market

REVEALED: The RBA’s internal concerns about the property market

The RBA has today released details, under freedom of information, showing exactly why staffers are concerned about investor lending in the home loan market. They have two primary concerns: Macroeconomic and Concentration risks. Here’s what Kylie Stewart and Vanessa Rayner wrote about these risks in a document marked “Highly Restricted” on September 26 2014. The…

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STRENGTHENING THE FOREIGN INVESTMENT FRAMEWORK

Changes to Australia’s foreign investment framework will strengthen the rules for residential real estate and agricultural investments. There are six key elements to the reforms, which take effect on 1 December 2015 unless otherwise stated: Compliance and enforcement of the foreign investment rules will be strengthened by transferring all residential real estate functions to the…

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Rate cut ‘dangerous’ for property market

Industry leaders have warned that the Reserve Bank’s decision to lower the official cash rate will have serious ramifications for the housing market. The chairman of mortgage broker Loan Market, Sam White, said the rate cut could accelerate the introduction of stronger macro-prudential measures in a bid to slow the Sydney property market. “Today’s rate…

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Is the Sydney housing bubble complicating efforts to stimulate growth?

The Sydney property boom and interest rate impacting Australian home buyers. According to an article in the Financial Times, a sustained property market boom in major Australian cities partly fuelled a flood of foreign money, which is pricing first-time buyers out of the market — and causing problems for policy makers and the country’s central…

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Government strengthens the foreign investment framework

Government strengthens the foreign investment framework Joint media release with the Hon Tony Abbott MP Prime Minister 2 May 2015 The Commonwealth Government is taking action to strengthen the integrity of the foreign investment framework. Foreign investment is integral to Australia’s economy and we welcome all investment that is not contrary to our national interest. After extensive consultations…

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Record low rates will make Australia’s hottest property markets even hotter

Record low rates will make Australia’s hottest property markets even hotter

Record low rates will make Australia’s hottest property markets even hotter PHOTO: Glenn Stevens thinks the Australian Prudential Regulation Authority can handle it. (Paul Miller: AAP) At a time when house prices in Sydney and Melbourne are already rocketing, investors have been given another incentive to plough their cash into real estate. Let’s hope our…

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Statement by Glenn Stevens, Governor: Monetary Policy Decision – cash rate

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.0 per cent, effective 6 May 2015. The global economy is expanding at a moderate pace, but commodity prices have declined over the past year, in some cases sharply. These trends appear largely to reflect increased supply, including from…

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