Owner Occupier versus Investor

In Australia, growth in housing credit has remained steady during 2017; slower growth in lending to investors has been offset by stronger growth in lending to owner-occupiers. While growth in housing lending by the major banks has slowed over 2017, growth in housing lending by smaller lenders has increased.

This partly reflected the response of the major banks to the measures introduced by the Australian Prudential Regulation Authority (APRA) earlier in the year in relation to interest-only lending, which makes up a larger share of lending by major banks than by other lenders. Loan approvals for new dwellings had continued to increase over 2017.

Average lending rates were estimated to have increased slightly over 2017, reflecting higher interest rates for investors and borrowers with interest-only loans. The average interest rate on new variable-rate loans is estimated to be around 30 basis points below that of investment loans.

When did you last review your financial circumstances and ensure you are taking advantage of the best lending structure and interest rates?

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Coffee with Kiril – Episode 13: Property affordability, a global issue

Property affordability, a global issue

To view other Coffee with Kiril episodes and other Strategic Investor Group videos – please visit our YouTube channel

The Reserve Bank Update

The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent during the meeting held on September 5th, as widely expected. Policymakers said the Australian economy is expected to pick up gradually over the coming year, supported by improving outlook of non-mining investment, while inflation is estimated to rise as the economy strengthens.

Employment growth has been stronger over recent months and has increased in all states.

Wage growth remains low. This is likely to continue for a while yet, although stronger conditions in the labour market should see some lift in wages growth over time.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Reserve Bank Board judged that holding the stance of monetary policy unchanged at the last meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Are your financial circumstances positioned to take advantage of current sound economic conditions?

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Coffee with Kiril – Episode 12: Thinking of buying before Auction? Then you need to know this

Thinking of buying before Auction? Then you need to know this

To view other Coffee with Kiril episodes and other Strategic Investor Group videos – please visit our YouTube channel

Business Lending Conditions

Competition among lenders appears especially acute in the commercial property loan market. Financiers are becoming more and more selective in choosing who they deal with, and within what markets they are prepared to lend.

Business lending conditions continue to create challenges along with demand for credit.

It is extremely important to understand which financiers are prepared to lend in your chosen market, and under what terms and conditions.

Recent changes to financier appetite is a direct response to perceived risks associated to individual market segments. Despite the recent targeted adjustments, banks remain vigilant in ensuring that their risk appetite and lending practices are appropriate: risks in residential property development and other commercial property markets continue to build.

Now is the time to review your banking relationship and ensure your financier is keen to support your business in the short, medium and long term.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Australia’s Record Low Interest Rates

The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent during the meeting held on September 5th, as widely expected. Policymakers said the Australian economy is expected to pick up gradually over the coming year, supported by improving outlook of non-mining investment, while inflation is estimated to rise as the economy strengthens.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Reserve Bank Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

There is no better time to take stock of your financial position and structure your current debt to take advantage of the low-interest rate environment.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Take flight with Strategic Investor Group!

Help us help others by entering in this draw to win an opportunity of a lifetime. Here at Strategic Investor Group, we are holding a raffle to raise $5000 for the Wesley Mission by offering up a chance to take flight and participate in the AMP Foundation Big Zipper.

For every $10 you donate your name will be entered once and you’ll become one step closer to soaring above circular Quay in October. The winner will be drawn the 16th of October at 5pm.

To donate to this great cause and for your chance to win, please CLICK HERE … it might just be you who is propelled through the air!

Good Luck and Thank you!