Commercial property is representing an attractive option for buyers, according to the Real Estate Buyers Association of Australia (REBAA).

Commercial property is representing an attractive option for buyers, according to the Real Estate Buyers Association of Australia (REBAA).Michael Ramsay of Michael Ramsay Property, the Victorian representative of the REBAA, said he had observed an increase in interest in commercial property in Melbourne.“Becoming more common is the enquiry for commercial property,” Mr Ramsay said.

According to Mr Ramsay, capital growth on commercial properties in Melbourne was nearing a parallel with residential property.Leases of five to 10 years and mandatory annual rent increases of three to four per cent were also adding to the attractiveness of commercial property as an investment choice, he said.Peter Kearns, general manager of commercial lender Think Tank, said he expected activity in commercial lending to gather pace in the weeks ahead.

“We saw a bit of a pickup in July but that faded away in August, probably as a result of the election and also being a generally quieter time,” he said.“Once we know the result of the election we should see activity levels increase.”While commercial lending policies had tightened in line with the global financial crisis and are unlikely to return to pre-GFC conditions, Mr Kearns said there were no significant barriers to securing commercial funding.

“Generally speaking, if there aren’t any serious blemishes, you can certainly get deals through.”

(By: Kate Miller – The Adviser, Friday, 27 August 2010)

ANZ, NAB and Suncorp have dropped their fixed mortgage rates off the back of similar moves by other lenders this month.

ANZ, NAB and Suncorp have dropped their fixed mortgage rates off the back of similar moves by other lenders this month.Suncorp Bank made the biggest cut, dropping the rate on its two and three year fixed rate mortgages, as well as its three year fixed in advance mortgages by up to 0.25 per cent.

Suncorp’s home loan rates are now 7.09 per cent for two years and 7.19 per cent for three years fixed.Suncorp’s executive manager, personal lending, Paul Evans said the changes were purely a reflection of recent movement in the underlying short and mid-term market cost of funds.Meanwhile, Homeside cut its rates on its fixed and low doc mortgages by up to 0.24 per cent.From today, Homeside’s interest rates are 6.84 per cent for one year, 7.09 per cent for two years and 6.95 per cent for three years fixed.

ANZ also trimmed its rates, cutting up to 0.15 per cent from fixed rate and low doc standard mortgages.ANZ’s interest rates are 6.84 per cent for one year, 7.09 per cent for two years and 7.20 per cent for three years fixed.The moves follow Aussie and ING DIRECT who earlier this month reduced the rates on their fixed mortgage products.

(By: Belinda Luc, Friday, 27 August 2010 )

The spring selling season is off to a slow start but market conditions appear to bode well for would-be buyers.According to RP Data, property buyers are likely to remain on the sidelines of the market until the outcome of last weekend’s federal election is revealed.

“We do expect to see improvement in the coming weeks as the spring selling season grows nearer and more certainty returns to the political environment,” the data provider commented yesterday.Property listing numbers were mounting, pointing to difficult selling conditions, RP Data said, but this should mean increased buying power for buyers.Total advertised property listings increased by 1.0 per cent over the last week with total listings now 5.3 per cent above the 12 month average level.

Furthermore, prices are expected to remain stable throughout the months ahead.“The results [of the RP Data/Rismark Home Value Index] for June showed the market was relatively flat (-0.2 per cent) and over the month of June home values fell by -0.8 per cent,” the analyst said.“For the remainder of the year we are expecting fairly flat levels of growth.”

(By: Staff Reporter, Friday, 27 August 2010)

Making headlines today, Westpac says it has no intention of lifting its lending rates out of sync with Reserve Bank movements.

According to The Daily Telegraph, Westpac CEO Gail Kelly said the bank was currently “comfortable” with its home loan rates in spite of the increasingly challenging lending environment.

Ms Kelly’s comments came as Westpac handed down its third quarter results, with the bank announcing cash earnings of $1.4 billion for the quarter.Despite this, Ms Kelly commented that funding costs were growing and the operating environment remained challenging.

“The Australian economy is robust but conditions in Europe and signs of slowing growth in the US continue to create global uncertainty,” she said.“In these circumstances we believe it is prudent to maintain our very strong capital levels and provisioning coverage.”

According to the daily Westpac’s net interest margin has contracted to 2.17 per cent, down from 2.19 per cent in the March quarter and 2.4 per cent one year ago.

(Source: The Adviser, Tuesday, 24 August 2010 )

Investors could be faced with higher tax bills on the horizon, as land values rise across the country.

The Australian Financial Review reports that new figures from the NSW Valuer General, not yet released, will show that top-end values in the housing market are experiencing a surge.

NSW Valuer General Philip Western told the AFR that “the top end is starting to recover”.

“During the global financial crisis we saw properties being unloaded due to financial stress. That has eased off and there is some life coming back into the market. We expect that to continue.”

Across the Sydney area, Western said lower-to-medium residential priced dwellings had also shown positive growth. However, Western said the Victorian market was less volatile than others.

Sydney suburbs such as Woollahra managed a 3% increase in median residential values in the year to July, while Mount Druitt in Sydney’s west  experienced a 7% spike.

(By: BN , 24 Aug 2010)