The figures add weight to the comment by the Reserve Bank last week that housing credit has become ‘unbalanced’
The value of loans to housing investors has surged at twice the rate
of those to homeowners in August, lifting by 0.8%, or $3.7bn, to
$417.1bn.
The figures add weight to the comment by the Reserve Bank of Australia in its financial stability review last week that housing credit has become “unbalanced”.
And they will encourage calls for the RBA to use “macroprudential” tools – rules and regulations – rather than just interest rates to rein in lending and prevent a dangerous boom/bust cycle in the housing market.
The overall amount that Australians owe on mortgages has notched up its fastest annual growth for three and half years. And the rise in investor loan value in the six months to August, 9.9% on an annualised basis, was the fastest since 2007, before the global crisis bit into banks’ ability to lend.
Housing debt rose by $7.7bn or 0.6%, between July and August. That lifted annual growth from 6.5% to 6.7%, its fastest rise since early 2011. Loans to homebuyers rose 0.4%, or $3.7bn, to $918.8bn.
The figures from the RBA on Tuesday don’t include cross-border lending, such as loans made by the offshore branches of Australian banks to buy properties in Australia.
Other measures of credit in the RBA’s figures were more subdued. Credit to businesses, aside from residential property loans, was unchanged in August, with annual growth of 3.2% barely beating consumer prices.
And other lending to households, which includes loans to buy shares as well as traditional consumer spending, was up only 0.2%, with annual growth at 1.1%.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
The figures add weight to the comment by the Reserve Bank of Australia in its financial stability review last week that housing credit has become “unbalanced”.
And they will encourage calls for the RBA to use “macroprudential” tools – rules and regulations – rather than just interest rates to rein in lending and prevent a dangerous boom/bust cycle in the housing market.
The overall amount that Australians owe on mortgages has notched up its fastest annual growth for three and half years. And the rise in investor loan value in the six months to August, 9.9% on an annualised basis, was the fastest since 2007, before the global crisis bit into banks’ ability to lend.
Housing debt rose by $7.7bn or 0.6%, between July and August. That lifted annual growth from 6.5% to 6.7%, its fastest rise since early 2011. Loans to homebuyers rose 0.4%, or $3.7bn, to $918.8bn.
The figures from the RBA on Tuesday don’t include cross-border lending, such as loans made by the offshore branches of Australian banks to buy properties in Australia.
Other measures of credit in the RBA’s figures were more subdued. Credit to businesses, aside from residential property loans, was unchanged in August, with annual growth of 3.2% barely beating consumer prices.
And other lending to households, which includes loans to buy shares as well as traditional consumer spending, was up only 0.2%, with annual growth at 1.1%.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
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