Nobel Finance Sydney – Money Matters Newsfeed

First homebuyers and self-employed borrowers are at risk of falling into mortgage arrears, according to research by Standard & Poor’s (S&P). Figures from the ratings agency revealed that a growing number of borrowers are missing their mortgage payments as a result of rising interest rates. The report found that the number of borrowers who had missed repayment. deadlines climbed 0.19% up to 1.44% in the March quarter. Arrears rates for sub-prime borrowers,
which account. for about 10% of home loans. rose to 12.24%. S&P predicted first homebuyers, who entered the property market when interest rates were historically low, and self-employed borrowers. who are more sensitive to economic conditions, will be the most sensitive to rising rates. The Reserve Bank of Australia (RBA) left the cash rate at 4.3% in its June meeting, as it paused to gauge the global recovery. However, economists are predicting rates will increase to
5% by the end of 2010.

Tags: home loan, interest rates
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Sydney may be the most expensive capital city in Australia, but there are still bargains to be had, a report from RP Data has revealed. Its findings show that Sydney actually had the greatest proportion of total sales priced below the determined level of borrowing power. Almost. 22% of all Sydney house sales were priced below $350,444, although most of these were situated in the outer rims of the city. The next best performer was Canberra, which had 15.3% of house sales below $301.556. The hardest place to find affordable housing was in Perth, which recorded only 11.8% of sales under $324.444. Research analyst Cameron Kusher said: “These results show just how important it is for buyers to do their homework. It can be very valuable for buyers to actually dig a little deeper into data. For an average income earner looking to buy property. more than ever location is becoming the most important attribute. The best prospects for growth in property value and the most desirable locations in which to live are those suburbs which enjoy close proximity
to public transport, retail and social amenity, schools, working nodes, healthcare, public open spaces and major roads.”

Tags: Real Estate
Posted in Buying property, Real Estate | | Comments Off