Rising interest rates are expected to boost the apartment sector, as higher mortgage costs encourage buyers to accelerate the push into cheaper units, developers and investors say.as more people are priced out of the market for standalone homes and find their borrowing power “dramatically” reduced because of higher mortgage rates, JLL’s senior director of research, Leigh Warner, said.
“I expect to see more buyers choosing apartments after such a huge rise in house prices since the start of COVID-19,” Mr Sunito said. The 2.9 per cent month-on-month rise in new investment lending outstripped the 1.6 per cent total increase in home loans and was greater than the 0.9 per cent gain in new owner-occupier lending, which rose to $21.6 billion.
“The national average new mortgage size has surged 17 per cent over the past year, rising to near $600,000. We are likely at the peak in average loan size, with monthly house price growth now having turned negative in the key markets of Sydney and Melbourne.”“Investor loan growth has an endogenous relationship with price growth, with loan growth increasing as house prices increase,” Mr Stinson said.
Yea, technically speaking... that's not a lie.
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The risk of ‘liar loans’: Can overstretched borrowers cope with higher interest rates?Analysis: Millions of Australians have pushed the envelope on mortgage applications to get a foothold in the housing market. Now they face the threat of higher interest rates | clancyyeates clancyyeates May God continue to bless you Julie_fx_trader, I never believe it's going to work out because I have lost alot in different places I Know one day they will face the judgement. I really appreciate Julie_fx_trader clancyyeates The greatest economic catastrophe since the Great Depression was only 10yrs ago and was caused by “liar” loans, otherwise known as subprime loans. This can’t be a serious issue surely?! I’m gobsmacked. This obviously was never taken seriously in Oz clancyyeates
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'The new normal': Higher mortgage repayments will keep hitting home owners in 2022, analyst saysThe Reserve Bank's 25-basis point increase is just the first of many on the horizon, and Queensland homeowners need to brace for higher home loan repayments over the next 18 months, a leading property analyst says. Interest rates were never going to stay at emergency levels. THAT is completely normal. It's nothing new. Have you figured it out yet? The RBA and the Government serve the rich and powerful. They're not doing it for you! People paying off mortgages take the fall to keep inflation low. 💩🇺🇦🇦🇫 JusticeForRefugees BringThemHere LetThemStay Everyone knows this already, the good thing is we had no interest rate rises for over a decade let's talk about that ABC. 🤔
Source: abcnews - 🏆 5. / 83 Read more »