Positive Start in 2020 for Property Markets in WA and QLD

Last year, I predicted that the property markets in Western Australia and Queensland would start to rebound and the latest real estate figures confirm this prediction.

Corelogic figures for January 2020 reveal encouraging results for Western Australian and Queensland property owners.

In Perth, housing values are now recovering from a slump lasting five-and-a-half years, as dwelling values edged 0.1% higher over the month of January 2020.

Perth dwelling values posted their first rise over a rolling quarter (+0.4%) since a brief period of growth in May 2018.

Brisbane property prices are also on the rise with CoreLogic figures showing that property valus in Brisbane jumped 0.5% durng January 2020 and by 2% over the last quarter.

While both Sydney and Melbourne continue to lead property price growth rates in Australia with property values in these cities rising by 1.1% and 1.2% respectively during the last month. DEPPRO predicts that both the Queensland and Western Australian property markets will perfrom strongly during the coming year.

This is because of a resurgence in the mining sector which traditionally has a major influence on these two major resource based economies.

The direct impact of massive new investment on the housing sector in these states is being evidenced in regional mining towns such as Karratha in Western Australia.

For example, property figures for the resource's town of Karratha in Western Australia show that it scored the nation's biggest price hike in a single year, with median prices rising from $331,000 to $420,000.

During the mining town's peak in 2014 houses the median house price in Karratha eclipsed that of Australia's largest city, Sydney with dwellings selling for more than $800,000.

Three years later with falling commodity prices the cost of a house fell to $270,000.

However, property prices are now in recovery mode and with a raft of new Pilbara resources projects expected to come online soon creating more than 35,000 new jobs, this could further boost the Karratha property market.

As a result of this resurgence in the resources sector, DEPPRO expects property investors to become more active in major mining towns both in Western Australia and Queensland during 2020.

This trend is already underway with DEPPRO recording a rising number of tax depreciation reports being undertaken for new clients in these regional towns over the past three months.

MyState Update on the First Home Loan Deposit Scheme

As you know, MyState Bank is one of the Non Major Banks participating in the FHLDS. We started taking applications for credit pre approval on 20 January and from 1 February, began processing scheme applications.

Brokers have embraced this great opportunity to get their customers into their first home sooner. Our team, from BRM's to Credit and Lending Support are committed to helping as many brokers and their customers as possible. We have already reserved over 170 scheme places in the last few days. We've added resources in Hobart to manage this extra flow and maintain turnaround times to a reasonable level.

A central hub for brokers to learn about the scheme criteria and check if their customers are eligible is the scheme page on our Broker Portal. There are links there to the NHFIC resources, as well as process guidelines along with the documents and checklists needed for submission.

We have stepped up our Broker communication to twice weekly, Wednesday and Sunday.

The key messages have been:

  • File quality - submitting the application with all of the mandatory items for both credit assessment and scheme application.
  • Credit policies - for example, as part of our genuine savings policy, customers may receive non-refundable funds as their 5% deposit if they can provide satisfactory rental conduct
  • Timeframes - the stages from loan submission and scheme application through to settlement

We are including Q&As to address the questions coming in, such as; Australian citizen's vs residents, Military personnel not having Medicare numbers, De-Facto definition, NOA for below threshold customers and more.

I'll be in touch next week with a further update. Meanwhile, thank you for the support so far from your team in making the MyState scheme information and documents available to your brokers. If you feel there is more my team or I can do to assist, please do not hesitate to let me know.


Best Regards, Paul

Paul Herbert
Head of Home Lending Distribution
0414 933 252
137 Harrington St, Hobart, Tasmania, 7000
Paul.Herbert@MyState.com.au

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Australian Military Bank Proudly Supporting the FHLDS

Australian Military Bank are proud to be supporting the Australian Government's First Home Loan Deposit Scheme; enabling eligible first home buyers to enter the property market sooner. The First Home Loan Deposit Scheme will support up to 10,000 loans each financial year with Australian Military Bank currently offering loans under the Scheme. As offers are limited, it's time for your eligible clients to apply!
What is the Scheme?

The Scheme is a new initiative to support eligible first home buyers purchase a home sooner without having to pay lender's mortgage insurance (LMI). Eligible applicants will receive a limited guarantee from the Australian Government to purchase their first home with a deposit of as little as 5%.

Find out more

Reserve a spot for your client today!

If your client has met eligibility requirements as per the 'Am I eligible for the First Home Loan Deposit Scheme' questionnaire, reserve their spot today via the reservation form.

Please note, the number of available home loans under the Scheme are limited to 10,000 per financial year.

Reservation Form

Other Home Buying Assistance Grants and Concessions?
Defence Home Ownership Assistance Scheme (DHOAS)

DHOAS assists current and former Australian Defence Force (ADF) members and their families to achieve home ownership. DHOAS is administered by the Department of Veterans' Affairs on behalf of the Department of Defence.
The Scheme is aimed at improving ADF recruitment and retention. The longer you serve in the ADF, the more entitlement you accrue under DHOAS and the longer you can receive assistance.
To be eligible, you must have served within the last two years of applying for DHOAS, completed a qualifying period of service and accrued a service credit.
You will need to take out a DHOAS home loan and meet the Scheme conditions, including occupancy requirements, to receive the monthly subsidy payments.
For more information, visit: dhoas.gov.au

First Home Owner Grant

If you're starting out, you might qualify for a First Home Owner Grant (FHOG). Rules and conditions vary for each state and territory and can change from time to time. To find out more, visit: firsthome.gov.au

Stamp duty concessions

If you're buying your first house, you may also qualify for stamp duty concessions (depending on the state/territory).

For more information please contact:
Anup Munankarmi
P: (02) 9240 4146
M: 0427 543 808
Brokers E: brokers@australianmilitarybank.com.au

Want to make a difference? Your Last Chance to Register!

By playing a game of golf, you'll help us raise much needed funds for research into Melanoma and Motor Neurone Disease - these have both impacted a couple of our fellow brokers and their families.

The Vow Social Golf Club event will include breakfast, an Ambrose round of golf, lunch and presentations.

We would love you to come along and enjoy the day. Join as a single player or get a team of four together.

$165 includes the green fees, catering and 18 holes of golf.

To register click on the link below or contact one of the VSGC members:

James Aitchison: j.aitchison@premiumbroker.com.au

Gary Fowler: gary@contourfinance.com.au

Please note that this is your last chance to register! Come have a nice feed, play some golf and have some conversations. Do not miss out!

Where: St Michaels Golf Club, Jennifer St, Little Bay
When: 24th February 2020
Time: 8:00am

See you on the green!

Benefits Available to Key Workers

I trust that you had a great break over the Christmas period. As you know Teachers Mutual Bank Limited is very keen to assist "Key Workers" with their financial needs and we have some special polices that assist in that endeavour.

Who is a "Key Worker"

The following are "Key Workers":

  • Ambulance Officers.
  • Paramedics.
  • Police Officers.
  • Firefightes.
  • Nurses.
  • Midwives.
  • Teachers, University Lecturers

Policy Enhancements for "Key Workers"

  • LVR's of up to 95% inclusive of LMI are available for "Key Workers" for Owner Occupied Loans (* note available for the Classic Home Loan).
  • LVR's of up to 95% inclusive of LMI for Construction Loans including for First Home Buyers.
  • Maximum Loan Term of 35 years for First Home Buyers if at least one borrow is aged up to 35 years of age.
  • 100% of regular casual employment is used for servicing purposes ( minimum of three months employment).
  • 100% of regular overtime is used for servicing purposes for Essential Service workers (Teachers and Lecturers restricted to 80% of overtime).
  • 100% of regular shift allowances is used for servicing purposes.

Niches available to all borrows eligible to deal with Teachers Mutual Bank brands:

  • 100% offset available on all fixed rate loans - owner occupied fixed rate P&I rates start from 2.98% ( 1-3 year term).
  • 80% LVR available for Company Share and Stratum Title properties.
  • Apartments with 35 sqm of floor space can used as security - smaller may be considered.
  • Properties up to 40 hectares in size and non-income producing Hobby Farms considered as security.
  • No auto declines - applications are not credit scored and are looked by an assessor.
  • We have a Delegated Underwriting Authority with Genworth as such the vast majority of LMI deals are signed off under our policy.
  • Loans to Australian Citizen (must be PAYG) working overseas can be considered (conditions apply).

I look forward to hearing from you regarding any loan scenarios or policy questions that you may have.

Regards

Christopher Vouk

Broker Development Manager

T: 1300 862 265 M: 0428 059 716 W: tmbank.com.au
PO Box 23015, Docklands VIC 8012

Liberty Commercial Enhancements

Hi Team VOW,

I hope each of you are doing very well.

Liberty are very excited to announce some enhancements to our Commercial product range which I am hoping that you can share with each of your networks to help get the message out.

If you could also mention that anyone not accredited can contact me and I'll take care of getting them accredited.

  • LVR's up to 80% for Commercial Full Doc and Commercial SMSF
  • LVRS up to 70% for Commercial No Doc /Boost /Asset Lend & Low Doc (accountants declaration or BAS/bank statements)
  • Rates starting from 4.90%
  • Redraw available for Full Doc and Low Doc
  • Terms up to 30 years, I/O up to 5 years, no annual review or revaluation of security - We pay 0.75% up front and 0.35% trail and with no clawback.

Thanks for your support and if you have any questions please let me know.

Cheers
Gab