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PROPERTY
nipper
post Posted: Dec 19 2018, 06:09 PM
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Australian Prudential Regulation Authority said on Wednesday it would remove the cap on January 1 after it “led to a marked reduction in the proportion of new interest-only lending, which is now significantly below the 30 per cent threshold”.

APRA introduced the limit in March 2017 amid concerns about a housing bubble. Residential property prices in Australian major cities have since fallen the most in three decades.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 17 2018, 08:32 PM
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In Reply To: triage's post @ Dec 17 2018, 06:26 PM

Indeed .. a transfer of wealth from the locals to the newly arrived.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
triage
post Posted: Dec 17 2018, 06:26 PM
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In Reply To: nipper's post @ Dec 17 2018, 03:23 PM

Could be Canberra's first multistorey cathouse, a new take on serviced apartments. rolleyes.gif Seriously what with the number of nail and eyebrow and massage shops that are filling in all the empty retail space in various shopping centres in the ACT we are probably not that far from going there (though I am constantly amazed by how busy even out of the way nail salons are, not only in Canberra but in rural towns).






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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
nipper
post Posted: Dec 17 2018, 03:23 PM
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In Reply To: triage's post @ Dec 17 2018, 12:55 PM

yes, it was in the Canberra Crimes. It think the corner of Rudd and Moore St in the city. Currently 4 storey bldg, empty apart from the cafe on street level. With the glut of office space in town, premium stuff to come on the market, no demand for B grade 70's and 80's without green credentials, the owners probably have little choice but to differentiate their offering. A race to the bottom, really. It will become a ghetto, though new industries - visa, marriage advisory, etc - will possibly spring up. Plus of course as no-one will own a car nor be able to garage it, bike and share car offerings.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
triage
post Posted: Dec 17 2018, 12:55 PM
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In Reply To: nipper's post @ Dec 17 2018, 09:47 AM

Interesting, nip, thanks for that (is it from the soon-to-be-sold-or-closed-down Canberra Times?). My reaction:

1. they are just mimicking a Hong Kong fad (no doubt attempting to attract Chinese students &/or investors).
2. Those so-called micro-apartments are not so squeezy - micro apartments or nano units in HK come in at about 12 sq metres, that is 60% the size of even the smallest of the units in the Canberra proposal.
3. so sad, even in Honkers the fad of the micro apartment seems to have passed. Since this linked article was published last month one of those Tuen Mun projects mentioned have stopped its marketing campaign after they sold only 3 of the 150 units that they had put on the market.



https://beta.scmp.com/business/article/2175...-last-seen-2016

Also the ANU has said that they have placed a limit on the number of international students they will enroll in future years. What with the thousands of dogbox units coming onto the market in the next couple of years this proposed project could be answering yesterday's problems (a couple of years ago the ANU block booked a whole motel in Lyneham for a year to help alleviate a shortage of student accommodation but since then numerous student residential colleges have been completed).




--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
nipper
post Posted: Dec 17 2018, 09:47 AM
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Posts: 5,380
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QUOTE
....the first of its kind in the ACT and [will] operate as short-term commercial accommodation, with 501 rooms. It would have 362 "micro-apartments" with a range of accommodation options, including share apartments, studios and individual apartments.

Studio apartments are about 20 to 30 square metres in size and larger one-bedroom apartments are about 48 square metres.

Lease terms range from nightly stays through to 12-month leases. Communal areas including a gymnasium, private dining rooms, co-working spaces, cinema rooms, a library and laundry.

A small cafe, a bar and restaurant are also proposed for lower levels.

The application says the development was not subject to the requirements of the multi-housing development code but instead it falls under a commercial accommodation use.
- sounds awful

.....but in the CBD, near ANU, and will likely get up.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  triage  
 


nipper
post Posted: Oct 6 2018, 05:42 PM
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In Reply To: triage's post @ Oct 6 2018, 04:21 PM

well, there ya go. Put it this way, I wouldn't alter it (on principle), so it must have been 'embedded'.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
triage
post Posted: Oct 6 2018, 04:21 PM
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In Reply To: nipper's post @ Oct 6 2018, 11:40 AM

" the duration of the principle and interest mortgage"

Hmm is that an actual cut and paste from the Oz? If so, I'm surprised on two levels: first, that a professional journalist would make such a basic error and secondly that the spellchecker that News Ltd uses even recognises that word (boom, boom).
Also funny question at the end. Surely the key question should be why so many interest only loans were approved in the first place not why are so many of them are now being converted into principal and interest loans. Once interest rates start to trend up and/or property prices begin to trend down it is more prudent and humane to clean out most of the interest only loans sooner rather than later.




--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
nipper
post Posted: Oct 6 2018, 11:40 AM
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Posts: 5,380
Thanks: 1960


QUOTE
UBS has uncovered some startling facts. When asked why borrowers took out an interest only mortgage, 18 per cent responded they “can’t afford to pay P&I” (principle and interest), 11 per cent said they expected house prices to rise and to sell the property before the interest-only period expires and 44 per cent noted it gave them more financial flexibility. One can safely assume some proportion of the 44 per cent were also in the can’t afford P&I camp.

When combined there are a substantial number of borrowers who have taken out an interest- only loan for the wrong reasons.

Moreover, many of these borrowers don’t understand the product they have been sold.

Among owner occupiers only 48 per cent understand their interest-only term expires within five years, which is the maximum term typically offered.

Meanwhile, 18 per cent observed they didn’t know when their term expired and 8 per cent believed their interest-only term lasted more than 15 years.

QUOTE
UBS has ... calculated the step up for investors and owner occupiers with a $600,000 interest-only mortgage moving over to P&I. Depending on the duration of the principle and interest mortgage the step up can be as much as 91 per cent.

In other words, for some borrowers repayments could double. Clearly the majority of this cohort are unprepared or underprepared for the inevitable increases.

What has happened here? And why are all these people being forced on to principle and interest loans?

The answer, in short, is the regulator Australian Prudential Regulation Authority.
ouch
https://www.theaustralian.com.au/business/w...b5fa432c66c937e



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 24 2018, 08:40 AM
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Posts: 5,380
Thanks: 1960


QUOTE
WeWork now occupies more Manhattan office space than any other company, a milestone that reflects booming demand for flexible workspace among legions of small and midsize firms — and, increasingly, larger companies, too.

The co-working company rents 5.3 million square feet (nearly 500,00sq m) in Manhattan. WeWork calculated that a lease it recently signed for 258,344sq ft at Penn Plaza pushed its total past the 5.2 million square feet of space rented or owned by JPMorgan Chase , according to real estate services firm Cushman & Wakefield.

WeWork is one of the biggest and fastest-growing of the “flex space” office providers, a group that also includes Knotel, Industrious Office and IWG.

The New York-based company and similar flex-space operators have made big strides in New York City this year. They accounted for 9.7 per cent of Manhattan’s new leases signed in the first eight months of 2018, compared with only 3.3 per cent in all of 2017, according to real estate services firm CBRE
Wall Street Journal



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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