Australian banks could survive an economic contraction the size of the 1990s recession, the Australian Prudential Regulation Authority (APRA) has revealed. According to reports, APRA chairman John Laker ordered a stress test to be conducted to determine what would happen if there was a three? year deterioration in global economic conditions. The
Reserve Bank of Australia and New Zealand’s central bank also took part in the examination. Laker told The Australian Financial Review the results showed Australian banks had the capital resources to weather such a contraction. In fact, none of the 20 banks tested would have failed or even fallen below the minimum amount of top?rated assets on their balance sheets. However, he warned banks not to get complacent and take part in the high-risk activities that caused the economic downturn overseas.
Consistently high clearance rates and positive data from the Australian Bureau of Statistics (ABS) are pointing towards a consolidation in the housing market.
ABS figures released last week show that finance commitments, excluding refinancing, were at their highest level for the past 18 months.
Real Estate Institute of Australia (REIA) President David Airey the ABS figures were a strong sign of a healthy property market ahead.
“Other positive signs are the increasing level of investors in the market and the first signs that the influence of the first home owner grant boost is beginning to abate,” he said.
The value of investment housing commitments rose again in June, following increases in each of the previous three months, the number of first home buyer commitments as a percentage of the total also declined, according to the ABS.
Now could be the time to put more value into your property.
According to local real estates agents, the most common renovation that gives the most value to a property is the kitchen and bathroom. A few dollars spent in these areas can really make a difference in valuation for lending purposes or for re-sale value. Most buy – reno – sell investors also focus on giving the home extra features like built-in cupboards.
Some trade businesses , like Emporio Kitchens, have caught onto this trend and offer a one stop shop to take care of the electical, plaster & plumbing if required, for inquiries made on their website. Take advantage of their no obligation free quote service, what have you got to lose ? You might be surprised what a few dollars spent on key areas can do to the value of your home or investment property.
By Cory Boatright
I was reading more about deficiency questions with short sales and I thought I would elaborate a little on the subject. When you get a lender to accept a short sale the amount of debt forgiven becomes a taxable event.
Example: Homeowner owes $250,000 on a house. The lender accepts $170,000 for it. The homeowner is responsible for paying taxes on the $80,000 forgiven amount.
First thing that is important to realize is this.
Not ALL states have the option to file/collect on a deficiency judgment You may want to do some studying or contact a Real Estate attorney to find out which states have the ability to file/collect on a deficiency judgment.
Second is this. The homeowner is typically facing this REGARDLESS of your involvement. For a better understanding of a deficiency judgment let’s define it. {continued}
by David E. Williams
Earning profits from real estate investing is a time-tested and popular method. Many rich and famous people have made and continue to make millions in real estate. However, not every one can mobilize the level of capital needed for these investments. If so, how can people like you and me with more modest means get into real estate investment business? Fortunately, there is way to do this. Foreclosures, especially government foreclosures, are a good source of properties that are affordable and in which you can invest.
Sometimes, when a foreclosure action is taken, the government takes possession of that property. It is now their property, with which they can do whatever they wish. So before doing an investment in government foreclosures one must be familiar with HUD homes. HUD is an acronym that represents the Department of Housing and Urban Development, a United States government agency. {continued}
by Jacob Daniel
Buying foreclosures can be extremely profitable for real estate investors. It means that you need to be aware of local laws and how they may affect the ownership of a property. Buying below market value with no money down is easy, you just need to know how to do it. You can usually purchase a foreclosure for no more than 75% of retail price.
Homeowners usually face foreclosure on their properties for failing to pay their mortgage payments. Because the homeowner has been delinquent their mortgage, they are now in a position to entertain offers by investors. Depending on your state, the lender will issue this notice when the homeowner has been 3 months delinquent on the mortgage payments. In order to buy during this period, you first have to make a deal with the homeowner. Buying a pre-foreclosure means dealing and working out an agreement with a homeowner, attempting to buy the property from them before it has been foreclosed on. {continued}
