The Property Council of Australia has commissioned a Newgate poll that has found Labor’s proposed negative gearing changes will discourage property investors.
Buyers’ agents are saying the asking price for properties stuck on the market long term are being heavily discounted – sometimes by as much as 40 per cent.
Broker group Finsure says if some of the recommendations from the Hayne Royal Commission are brought in it will set the Australian home loan market back 30 years because it will give the banks more power.
Property investors have been popping up back out of the woodwork searching for super-cheap bargains before a possible Labor election win and subsequent negative gearing changes.
Business conditions have remained flat since falling sharply in December according to the recent NAB survey and it has the bank predicting interest rates to be on hold until 2020.
Hobart and the Gold Coast’s property markets are starting to benefit from the price downturn in Melbourne and Sydney.
While the chaos of this week’s banking royal commission final report has attracted most attention in the finance industry, the RBA this week kept interest rates on hold at 1.5 per cent for another month in its first cash rate announcement for the year.
Mortgage brokers are reeling and angry today after the banking royal commission final report put the industry on shaky ground.
Lenders are preparing for a possible interest rate cut from the RBA by letting the discount rate between floating and fixed rates widen by up to 30 per cent.
The final report from the banking Royal Commission is imminent and mortgage brokers and small lenders say if it leads to an overhaul of broker fees it could be bad for borrowers and good for the major banks.
