Ever thought which Australian State has the biggest home loan figures? Let’s compare Home Loans Melbourne, Victoria to other Australian States.

Thirty years ago, the average Australian home loan was around $40,000. Ten years after that, the average Australian home loan figure had increased to around $100,000. Below, you will see an outline of the breakdown of the figures for each state from 1975 to 2015. It’s food for thought!

Take a look and compare Home Loans Melbourne, Victoria to the other Australian States.

Years

Western Australia

Northern Territory

South Australia

Queensland

New South Wales

Victoria

Tasmania

1975

$17,800.00

$21, 600

$18, 300

$16, 700

$18, 600

$16, 200

$15, 900

1985

$34, 800

$50, 300

$42, 100

$37, 500

$46, 600

$40, 900

$30, 100

1995

$90, 800

$99, 100

$75, 800

$93, 600

$114, 500

$85, 700

$70, 200

2005

$187, 500

$192, 900

$165, 400

$213, 500

$262, 300

$209, 000

$153, 300

2015

$343, 000

$340, 900

$280, 900

$320, 700

$454, 200

$387, 600

$236, 400

Comparing Home Loans Melbourne, Victoria to other states, the state of Victoria currently has the second highest home loans figure at $387,600. According to The Sydney Morning Herald, “People in Victoria taking out a loan for a home to live in are, on average, borrowing $61,700 more than a year ago, thanks to surging house prices and record low interest rates.”

If you have any questions or would like to discuss further, please do not hesitate to contact Lending Specialist Melbourne on (03)8805-1800 or email barry@lendingspecialists.com.au

Sources:
http://bit.ly/1M6xqRL
http://bit.ly/1HXSkrw

Many are pointing their fingers at foreign buyers for the increased property prices in Australia. But how does Foreign Investments in Australia really affect the Home Loans in Melbourne and especially contribute to the “Boom” in Housing prices?

Firstly, we must understand that, unlike other countries which have open doors for Foreign Investment, Australia has a regulated approach to foreign investment. This means that foreigners or visa holders from other countries need to apply to the Foreign Investment Review Board (FIRB) for permission to purchase properties in Australia.

But can we really blame foreign investment for the increase of the housing prices in Australia? According to a Research conducted by University of Sydney Professor, Hans Hendrischke, there are doubts regarding the claims that foreign investment is the one causing the proliferation of housing prices. On his research, he indicated that Chinese purchases totaled about 2% of all transactions in 2014. This totality is considered very low to have caused and driven the affordability crisis for Home Loans Melbourne.

How does Foreign Investment help with the crisis? According to the Australian Policy to Foreign Investment, the main objective of this is to increase the supply of new housing, which it is able to accomplish. The wave of property development has shored up the construction industry which was a great help to our economy. Without the support of Foreign Investment, it would not have been possible to build new projects since they were not financially viable for local developers. Foreign Investment has added to the supply of new housing and increased in the supply of rental properties in Home Loans Melbourne.

However, there’s still a long term negative aspect with the current level of Foreign Investments, based on Michael Yardney of Yahoo7 Finance. Lending Specialists is going to share this to our community.

Here are the negative effects of Foreign Investment to Home Loans in Melbourne:

1. Oversupply of apartments particularly in Melbourne and Brisbane. This is a current situation that we experience yet foreign investors still keep on building more houses to supply the demand of their overseas clients.
2. Poor Standard apartments. Due to the increase of the quantity, the rooms are getting smaller and smaller because of lack of space which creates poor quality rooms.
3. Most buildings are owned by investors, instead of the occupants. This creates competition for the tenants.
4. For the years to come, there may be a restraint of the capital and rental growth due to oversupply of properties.

We all should be aware about the financial issues of our community.
If you have any questions or would like to discuss further, please do not hesitate to contact Lending Specialist Melbourne on (03)8805-1800 or email barry@lendingspecialists.com.au

Source:
http://yhoo.it/1OBMWLK

The Changing and Dynamic Property Markets of Australia’s Effects on Mortgage Broker in Melbourne

News has it that the property markets of Sydney and Melbourne are “very toppish”, which means that the housing prices are undergoing a significant change and increase which also causes a great risk to the Australian Banking Sector. Although this causes a threat to the financial stability of Australia and to Mortgage Broker in Melbourne, this also represents “a great moral and intergenerational challenge”, according to Jack Shields of New Matilda.

Despite the ongoing debate about the semantics of a housing bubble, there are still companies who believe that this event can be of use to both the Mortgage Broker in Melbourne and their Clients. While there’s an issue about the disparate growth, it should not be a hindrance to the relationship of between mortgage and lenders and their clients, instead, we should look at it as an opportunity to strengthen our association.

According to Steve Kane, general manager of NAB Broker, “Brokers who can effectively communicate the meaning behind the recent changes in the mortgage market, including out-of cycle rate movements, to their clients, will have a competitive advantage.” As one of the leading Lenders and Mortgage Broker in Melbourne , Lending Specialists agree with Mr Kane, that understanding our changing and dynamic market is the way to provide a better service for our clients.

Educating our clients is one of our ways to strengthen our relationship with them, and we will continue to provide information sessions with other mortgage broker Melbourne companies, the industry bodies and our clients for a deeper understanding and accountability about the duties and responsibilities of a broker in the market. It is written in the Code of Ethics of Professional Lenders Association Network (PLAN) of Australia to Provide Consumers with a high level of confidence and trust in the mortgage broking industry, and thereby raising the profile of business of all Australian Mortgage Brokers and Lending Specialists upholds these values.

Providing additional and necessary information to the industry will allow a better communication with the customers.
If you have any questions or would like to discuss further, please do not hesitate to contact Lending Specialists Melbourne on (03)8805-1800 or email barry@lendingspecialists.com.au

Sources:
http://bit.ly/1LCO8Ic
http://bit.ly/1MUzNIY
http://bit.ly/1Th6ogI
http://bit.ly/1QK1472