What is the First Home Loan Deposit Scheme (FHLDS)?
Cameron Leggatt has recently stepped up from General Manager of Frasers Property's Residential team in Queensland, to the role of Executive General Manager, Residential.
There’s been a string of positive news lately for property buyers
I’m not so bullish as to suggest that it spells a recovery in the property market, but three recent developments have certainly helped to make things easier for buyers to start - or continue - their property journey.
The first came about on the heels of last month’s surprising federal election result: no change in Australia’s negative gearing laws. A major confidence boost for investors, the continuation of existing negative gearing policy will likely see investors coming back into the market over coming months, picking up quality stock in areas where rental yields and capital appreciation opportunities abound.
The second bit of good news came a few weeks ago by way of the Australian Prudential Regulation Authority (APRA). Years ago, APRA had introduced a requirement that lenders base their lending calculations on the ability of the borrower to service a mortgage interest rate up to 7%. While a sound policy in an overheated market, the large delta between the headline interest rate today and the artificial 7% floor made it much harder for some borrowers - especially first home buyers - to get into the market. The announcement by APRA to reduce the suggested buffer to only 2.5% from the headline rate is a good balance between pursuing sound lending practices and ensuring appropriate levels of credit are available for homebuyers.
Last, but by no means least, the Reserve Bank yesterday announced a 25 basis points cut to the official interest rate to a record low of 1.25%. Granted, not the greatest of outcomes for savers, the rate cut is good news for borrowers and as of this morning all four of the major banks had passed on some or all of the rate cut saving onto their customers.
While none of these outcomes would likely have a significant impact on their own, together they combine to create conditions that are generally more favourable to property buyers and investors.
Whatever your plans, there are two things we at Frasers Property think you should always keep in mind when making a property decision - quality and resilience. Quality in the build, location, masterplan and services around you. Resilience in the property’s ability to stand the test of time and remain a place where people love to live.
It’s these elements that we’ve kept front of mind for more than 95 years in property. And it’s what continues to drive us as we design and deliver the proud communities of tomorrow.