REAL ESTATE – AUSTRALIA – RESIDENTIAL

Negative gearing not to blame

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 1-Dec-16

Negative gearing is unfairly blamed for distorting Australia’s residential property market. However, house prices are rising because of record low interest rates. Cheap credit makes property acquisitions attractive to investors. Falling house prices in Perth suggest that property is not necessarily an attractive asset in all circumstances. BIS Shrapnel expects this trend to continue.

CORPORATES
BIS SHRAPNEL PTY LTD, BETASHARES CAPITAL LIMITED

Negative gearing not to blame

roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 26 : 1-Dec-16

Negative gearing is unfairly blamed for distorting Australia’s residential property market. However, house prices are rising because of record low interest rates. Cheap credit makes property acquisitions attractive to investors. Falling house prices in Perth suggest that property is not necessarily an attractive asset in all circumstances. BIS Shrapnel expects this trend to continue.

CORPORATES
BIS SHRAPNEL PTY LTD, BETASHARES CAPITAL LIMITED

Morrison says no to Greens death tax proposal

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Original article by Phillip Coorey
The Australian Financial Review – Page: 7 : 28-Nov-16

Australian Greens leader Richard Di Natale has proposed the introduction of an inheritance tax on residential properties, arguing that it would help to combat housing inequality. However, Treasurer Scott Morrison says the Opposition and the Greens should cease advocating higher taxes and support the Federal Government’s Budget repair measures.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE

Investor home loans on the rise as building approvals hit peak

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Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 11-Nov-16

Lending to residential property investors increased by 4.6 per cent to $A12.4 billion in September 2016, from the previous month. Lending to owners-occupiers, excluding refinancing of existing mortgages, declined slightly to $A13 billion. Jo Masters, a senior economist at the ANZ Bank, says house prices continue to rise, auction clearance rates are high and building approvals are also high, but this trend may not be sustainable.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH SECURITIES LIMITED, AUSTRALIAN CONSTRUCTION INDUSTRY FORUM, HOUSING INDUSTRY ASSOCIATION LIMITED

Shock win ‘will boost local real estate sales’

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Original article by Scott Murdoch
The Australian – Page: 4 : 10-Nov-16

Donald Trump’s US presidential victory is likely to result in an interest rate rise in the US, increasing the likelihood of a cut in Australia’s 1.5 per cent official cash rate. LJ Hooker’s head of research Matthew Tiller says foreign investors will be less willing to invest in US property, and Chinese buyers in particular are likely to switch to Australia.

CORPORATES
LJ HOOKER (AUSTRALIA) PTY LTD, REPUBLICAN PARTY (UNITED STATES), REA GROUP LIMITED – ASX REA, RESERVE BANK OF AUSTRALIA

Banks on S&P negative watch over hot property

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 11 & 15 : 1-Nov-16

Factors such as rising household debt and residential property prices have prompted Standard & Poor’s to downgrade Australia’s economic risk trends. The firm has also downgraded the credit rating outlook of 25 local lenders to "negative". S&P downgraded the major banks’ rating outlooks to "negative" in mid-2016, but it has not yet made any further changes. However, their "AA-" credit ratings could be reviewed, particularly if Australia implements new global regulations regarding bank bailouts.

CORPORATES
STANDARD AND POOR’S CORPORATION, MACQUARIE BANK LIMITED – ASX MBL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, RESERVE BANK OF AUSTRALIA

Land tax plan to reboot market

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Original article by David Crowe, Mark Coultan
The Australian – Page: 1 & 4 : 26-Oct-16

New South Wales Finance Minister Dominic Perrottet has suggested that housing affordability could be improved if states replaced stamp duties with a land tax regime. He argues that phasing out stamp duty would encourage more people to sell their homes, particularly so-called empty nesters. It is estimated that stamp duty revenue in NSW will top $A8.7bn in 2016. However, the land tax proposal has been rejected by several other state treasurers. The issue of housing affordability is also on the Federal Government’s agenda.

CORPORATES
NEW SOUTH WALES. DEPT OF FINANCE, SERVICES AND INNOVATION, NEW SOUTH WALES. THE TREASURY, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE, QUEENSLAND. TREASURY, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN NATIONAL UNIVERSITY, HOUSING INDUSTRY ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, THE CENTRE FOR INDEPENDENT STUDIES LIMITED

Morrison targets cost of housing

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 4 : 24-Oct-16

Federal Treasurer Scott Morrison notes that the proportion of Australians who own their home has fallen from 71 per cent to 67 per cent over the last two decades. However, he will argue in a speech on 24 October 2016 that housing supply is the main factor that is affecting housing affordability. He will also say that a range of other factors rather than the impact of property investors is affecting housing affordability. Morrison will also flag a push for greater co-operation with state governments to make more land available for residential development.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, COUNCIL ON FEDERAL FINANCIAL REGULATION, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Fewer home loans a good thing: APRA

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Original article by Joanna Mather
The Australian Financial Review – Page: 23 : 21-Oct-16

Australian Prudential Regulation Authority chairman Wayne Byres has told a Senate estimates committee that lending standards in the housing finance sector have improved over the last year. He added that APRA’s move to impose stricter lending standards on the industry has also resulted in slower growth in lending to property investors and to marginal borrowers. Treasury secretary John Fraser previously expressed concern about the cost of housing in Australia when he fronted the committee.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY

‘Most obvious bubble on planet’

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Original article by Geoff Winestock, Su-Lin Tan
The Australian Financial Review – Page: 12 : 30-Sep-16

The Reserve Bank of New Zealand has warned about a correction in property prices. A sharp fall in prices is likely to occur because of a high level of household debt, at 163 per cent of disposable income, and an excessive exposure of NZ banks to housing. Mortgage loans constitute around 55 per cent of the banks’ total assets. In Australia, the household debt exceeds 180 per cent of disposable income and mortgages make up 62 per cent of the banks’ assets.

CORPORATES
RESERVE BANK OF NEW ZEALAND, RESERVE BANK OF AUSTRALIA, MARKET ECONOMICS PTY LTD