Real estate agents are defending the commissions they take from property sales as new figures show nearly a quarter of New Zealand home sellers are shunning their services.
Commission rates in New Zealand generally range from about 2 to 4 per cent – a gain for agents of about $6100 to $12,200 on the average $305,000 property.
Last year, 23.7 per cent of the 137,005 residential sales in New Zealand were made without a real estate agent.
The average house price in New Zealand hit a record high of $305,000 in April last year, but price growth is slowing.
Wanting to hold on to their capital gain, New Zealanders are selling their homes privately, negating real estate agents' commission.
Christchurch couple David and Rachael Houston have decided to sell their Halswell family home by advertising in the newspaper, rather than using an agent.
David Houston, a lawyer, said selling their $500,000 home privately would save them about $20,000 in agent's fees and commission.
They have so far spent only $70 on one advertisement and report plenty of interest.
Houston said that while there were some good agents, the huge increase in commission that agents were getting – just because house prices had gone up – was difficult to justify. He said private sales were a great option for those sellers confident enough to go it alone.
"There's some people out there who should absolutely use a real estate agent as they could get themselves into a lot of trouble," Houston said.
"If you've got the confidence to back yourself, there's no reason why you shouldn't try to sell it yourself for a couple of hundred dollars of ads."
Thousands of Kiwis are also wired for sales via the internet, with many listing their homes on the online auction site Trade Me. The site lists properties for just $49.95, which includes 20 photos.
Another popular sales option is a marketing company, which for a fee of about $400 to $500 will advertise a property but leave the negotiations up to the buyer and seller.
Ali Clarke, the managing director of HomeSell, which offers marketing services to real estate buyers and sellers, said more homeowners were selling privately to avoid paying commission and to have more control over their sale.
Clarke said that with present house prices, the commission could end up being thousands of dollars, and many homeowners saw that as a lost opportunity for other investments.
Friday, June 09, 2006
UK House prices to rise 7%
First time home buyers in the UK may struggle to find affordable homes over the coming months as house prices are set to increase by seven per cent, predictions indicate.
The forecast from the Council of Mortgage lenders (CML) is more than triple the two per cent inflation expected at the start of the year.Lending is also likely to be more buoyant for those looking for a mortgage, reaching £310 billion rather than the £285 billion previously forecast.
Jim Cunningham, CML senior economist, said: "The immediate signs are that demand will remain robust over the next few months."
However, the CML expects that the strength of the housing market will cause interest rate rises, with interest forecast at 4.75 per cent at the end of the year.
The increases would be "likely to result in a modest fall in the level of transactions in the second half of this year", Mr Cunningham continued.
First time buyers should remain aware that higher interest rates may cause more people to fall behind with mortgage repayments, leading to more repossessions, according to CML predictions.
The trend of decreasing transactions predicted for the second half of the year was expected to continue into 2007.
For first time buyers, prospects look bright in 2008 when lower inflation may see interest rates reduce.
The forecast from the Council of Mortgage lenders (CML) is more than triple the two per cent inflation expected at the start of the year.Lending is also likely to be more buoyant for those looking for a mortgage, reaching £310 billion rather than the £285 billion previously forecast.
Jim Cunningham, CML senior economist, said: "The immediate signs are that demand will remain robust over the next few months."
However, the CML expects that the strength of the housing market will cause interest rate rises, with interest forecast at 4.75 per cent at the end of the year.
The increases would be "likely to result in a modest fall in the level of transactions in the second half of this year", Mr Cunningham continued.
First time buyers should remain aware that higher interest rates may cause more people to fall behind with mortgage repayments, leading to more repossessions, according to CML predictions.
The trend of decreasing transactions predicted for the second half of the year was expected to continue into 2007.
For first time buyers, prospects look bright in 2008 when lower inflation may see interest rates reduce.
First time home buyers ignore mortgage rate increase
Recent RBA induced mortgage rate increases are unlikely to stop first-home buyers from entering the housing market, with finance-boosting tax cuts helping to cushion the blow, according to analysts.
While last month's rate rise came as a surprise to many, it is not expected to significantly dent the confidence of prospective home buyers, with conditions continuing to prove favourable.Housing finance figures published earlier this week by the Australian Bureau of Statistics (ABS) showed the proportion of all home loans taken out by first home buyers rose to a four-year high of 19.1 per cent in April, from 18.4 per cent in March.
CommSec chief equities economist Craig James said while the latest rate rise would have scared some potential buyers off and caused others to redo their sums, for most it should not have had too much of an impact.
"In May, people would have weighed up the fact that rates have gone up, but there is also a tax cut coming through," he said.
"So in terms of servicing the debt, most probably it would have worked out as pretty much line-ball.
Advertisement:"I think we're going to see first home buyers as a proportion of the market continue to edge a little bit higher, holding in the order of 19 to 20 per cent of the market."In early May, the Reserve Bank of Australia lifted the cash rate by a quarter per cent to 5.75 per cent.
Recent stronger-than-expected data had led to renewed talk of another rate rise this year, but Mr James said potential first-home buyers would again do their sums.
"They'll factor in a quarter per cent rate hike, and provided that's affordable, then clearly their plans won't change," he said.
House prices in most capital cities had flattened out, income levels were rising and the jobs market was strong, meaning improved affordability and access to the housing market, he said.
The Mortgage Industry Association of Australia (MIAA) said the May rate rise was unlikely to have much of an effect on new home buyers when taken in context.
"In some areas of Australia we're seeing the pressure on housing prices dropping a bit, so that's making housing a little bit more affordable," MIAA chief executive Phil Naylor said.
"Especially with those tax cuts brought into the mix, provided people divert that into their mortgages rather than elsewhere, that should counteract any impact of the interest rate increase."
The trend in the proportion of all home loans taken out by first home buyers had been gradually rising in the few months to April and was likely to lift further, Mr Naylor said.
"It might bounce down a little bit if the impact of the interest rate increase comes in, but we think the trend will still continue upwards over the longer term," he said.
Source: News Corp
While last month's rate rise came as a surprise to many, it is not expected to significantly dent the confidence of prospective home buyers, with conditions continuing to prove favourable.Housing finance figures published earlier this week by the Australian Bureau of Statistics (ABS) showed the proportion of all home loans taken out by first home buyers rose to a four-year high of 19.1 per cent in April, from 18.4 per cent in March.
CommSec chief equities economist Craig James said while the latest rate rise would have scared some potential buyers off and caused others to redo their sums, for most it should not have had too much of an impact.
"In May, people would have weighed up the fact that rates have gone up, but there is also a tax cut coming through," he said.
"So in terms of servicing the debt, most probably it would have worked out as pretty much line-ball.
Advertisement:"I think we're going to see first home buyers as a proportion of the market continue to edge a little bit higher, holding in the order of 19 to 20 per cent of the market."In early May, the Reserve Bank of Australia lifted the cash rate by a quarter per cent to 5.75 per cent.
Recent stronger-than-expected data had led to renewed talk of another rate rise this year, but Mr James said potential first-home buyers would again do their sums.
"They'll factor in a quarter per cent rate hike, and provided that's affordable, then clearly their plans won't change," he said.
House prices in most capital cities had flattened out, income levels were rising and the jobs market was strong, meaning improved affordability and access to the housing market, he said.
The Mortgage Industry Association of Australia (MIAA) said the May rate rise was unlikely to have much of an effect on new home buyers when taken in context.
"In some areas of Australia we're seeing the pressure on housing prices dropping a bit, so that's making housing a little bit more affordable," MIAA chief executive Phil Naylor said.
"Especially with those tax cuts brought into the mix, provided people divert that into their mortgages rather than elsewhere, that should counteract any impact of the interest rate increase."
The trend in the proportion of all home loans taken out by first home buyers had been gradually rising in the few months to April and was likely to lift further, Mr Naylor said.
"It might bounce down a little bit if the impact of the interest rate increase comes in, but we think the trend will still continue upwards over the longer term," he said.
Source: News Corp
Home mortgage lending changes in non traditional loan products
Rapid change in the home mortgage and home equity lending industry raises fundamental issues about fairness and levels of risk, Federal Reserve Governor Mark Olson said on Wednesday.
Olson did not address the outlook for the U.S. economy or interest rates in comments to a Federal Reserve Board public hearing on the home equity market.
The Chicago hearing will be the first of four to be staged over the next month, and Olson noted it has been four years since the Fed last held such hearings.
"In those four years it is hard to believe so much change has taken place in the industry," he said.
The growth in non-traditional loan products such as adjustable rate mortgages "certainly is the most significant change that has taken place in the marketplace and it has raised some real issues," Olson said.
The central banker said the rise of the secondary mortgage market has created a "voracious appetite" for loan products and that "it is not clear we have the same checks and balances, and that underwriting is done as carefully."
The fundamental asymmetry of knowledge between mortgage lender and recipient also creates "a real responsibility for mortgage lenders not to be abusive of that process," he said.
"Every time I have sat down to close my own mortgage loan I have felt at a disadvantage in terms of my understanding; so I can imagine what a first time buyer must feel," Olson said.
Source: Reuters
Olson did not address the outlook for the U.S. economy or interest rates in comments to a Federal Reserve Board public hearing on the home equity market.
The Chicago hearing will be the first of four to be staged over the next month, and Olson noted it has been four years since the Fed last held such hearings.
"In those four years it is hard to believe so much change has taken place in the industry," he said.
The growth in non-traditional loan products such as adjustable rate mortgages "certainly is the most significant change that has taken place in the marketplace and it has raised some real issues," Olson said.
The central banker said the rise of the secondary mortgage market has created a "voracious appetite" for loan products and that "it is not clear we have the same checks and balances, and that underwriting is done as carefully."
The fundamental asymmetry of knowledge between mortgage lender and recipient also creates "a real responsibility for mortgage lenders not to be abusive of that process," he said.
"Every time I have sat down to close my own mortgage loan I have felt at a disadvantage in terms of my understanding; so I can imagine what a first time buyer must feel," Olson said.
Source: Reuters
US Mortgage foreclosure rate ramps up following job losses.
US home foreclosures on home mortgages are on the way up.
Nationally, foreclosures are up 38 percent, higher than in any quarter of last year, property tracker RealtyTrac Inc. said. The numbers are even grimmer in the Midwest. Michigan and Ohio, battered by automotive-related job losses, together recorded 45,000 mortgages entering some stage of foreclosure in the first quarter.
Those are increases of 91 percent and 39 percent, respectively, compared with last year's fourth quarter.
There are many reasons for the growing number of defaults, and there are suggestions that the foreclosure trend may soon worsen.
Layoffs attributable to corporate downsizings, health care issues, increasing debt levels and rising interest rates all are factors.
In addition, a growing number of homeowners are relying on adjustable-rate mortgages, catching some people by surprise when their monthly payment rises.
Significantly, some of those ARMs were offered with an initial three-year to five-year period in which the rate was fixed.
At the end of that period, the mortgages will be reset at prevailing rates, potentially upending borrowers because interest rates have been rising.
For many such people, that moment is approaching.
"The increases we've been seeing in foreclosures don't even reflect the worst-case scenario that could happen when the $2.7 trillion in adjustable-rate mortgages are reset over the next 18 months," said Rick Sharga, vice president of marketing at RealtyTrac.
Another factor is the impact of rising property values.
And in some cases people stretched to qualify for a mortgage only to be undone by higher utility and gasoline costs.
"During the refinancing boom people found themselves qualified for homes they might not have qualified for if the interest rates were higher," said Jeff Metcalf, chief executive of Record Information Services Inc., a Kaneville, Ill.-based collector of market data.
Losing jobs can and has triggered mortgage defaults.
Consider Archie Tolar, who said he once earned about $3,000 a month as a salesman at a suburban Chevrolet dealership.
Since losing his job in 2002, Tolar has struggled to make ends meet, relying mostly on $400 a month in disability payments.
"To go from $3,000 a month to $400 doesn't even cover the mortgage," the Harvey, Ill., resident said. ABN Amro Mortgage Group Inc. filed a mortgage foreclosure against him in April.
Although the numbers are higher, they are below where they have been during recessionary periods, said Alexis McGee, president of Foreclosures.com, another property tracker.
"It's a big jump, but from very, very low numbers on a historic basis," McGee said.
Source: Chicago Tribunal
Nationally, foreclosures are up 38 percent, higher than in any quarter of last year, property tracker RealtyTrac Inc. said. The numbers are even grimmer in the Midwest. Michigan and Ohio, battered by automotive-related job losses, together recorded 45,000 mortgages entering some stage of foreclosure in the first quarter.
Those are increases of 91 percent and 39 percent, respectively, compared with last year's fourth quarter.
There are many reasons for the growing number of defaults, and there are suggestions that the foreclosure trend may soon worsen.
Layoffs attributable to corporate downsizings, health care issues, increasing debt levels and rising interest rates all are factors.
In addition, a growing number of homeowners are relying on adjustable-rate mortgages, catching some people by surprise when their monthly payment rises.
Significantly, some of those ARMs were offered with an initial three-year to five-year period in which the rate was fixed.
At the end of that period, the mortgages will be reset at prevailing rates, potentially upending borrowers because interest rates have been rising.
For many such people, that moment is approaching.
"The increases we've been seeing in foreclosures don't even reflect the worst-case scenario that could happen when the $2.7 trillion in adjustable-rate mortgages are reset over the next 18 months," said Rick Sharga, vice president of marketing at RealtyTrac.
Another factor is the impact of rising property values.
And in some cases people stretched to qualify for a mortgage only to be undone by higher utility and gasoline costs.
"During the refinancing boom people found themselves qualified for homes they might not have qualified for if the interest rates were higher," said Jeff Metcalf, chief executive of Record Information Services Inc., a Kaneville, Ill.-based collector of market data.
Losing jobs can and has triggered mortgage defaults.
Consider Archie Tolar, who said he once earned about $3,000 a month as a salesman at a suburban Chevrolet dealership.
Since losing his job in 2002, Tolar has struggled to make ends meet, relying mostly on $400 a month in disability payments.
"To go from $3,000 a month to $400 doesn't even cover the mortgage," the Harvey, Ill., resident said. ABN Amro Mortgage Group Inc. filed a mortgage foreclosure against him in April.
Although the numbers are higher, they are below where they have been during recessionary periods, said Alexis McGee, president of Foreclosures.com, another property tracker.
"It's a big jump, but from very, very low numbers on a historic basis," McGee said.
Source: Chicago Tribunal
Slower home market opens the door for investors
The Mortgage Bankers Association reports that a growing number of homeowners are having a tough time making their mortgage payments, and rising interest rates are making refinances and quick sales difficult. Investors who specialize in foreclosures thrive in this climate, posting ads in poor neighborhoods with promises of speedy cash sales or weeding through court filings to locate distressed homeowners. While some investors offer enough money for homeowners to pay off the mortgage and pocket the difference, others persuade cash-strapped homeowners to sign over the title, remain in the home as a tenant, and possibly repurchase the property at a later date. However, some experts urge homeowners to obtain advice from a financial counselor or seek help from their lender instead, as some of these transactions result in the homeowner being evicted after signing the property over to the investor. Legislation has either been passed or is under consideration in several states--including Illinois--that would force foreclosure rescue companies to clearly disclose the terms of the deal and give homeowners a certain number of days to back out.
Source: Wall Street Journal
Source: Wall Street Journal
$300K is now the average mortgage
Figures released by Australian Finance Group (AFG) reveal that the average new Australian mortgage broke through the $300,000 mark in May 06. The average new mortgage in May was $301,000; up from $264,000 in May 05. This represents an 11% increase in the past 12 months.
Driving the trend is Western Australia, where the average new mortgage rose to $319,000 - a 35% rise over the past year. AFG, the nation's largest mortgage broker, also recorded its biggest ever proportion of mortgages advanced to investors in WA, where 48% of new loans were for investment purposes.
Queensland figures also showed strong increases, with the average mortgage in that state sitting on $297,000, up from $243,000 in May 05.
Other states showed less dramatic increases, with NSW shifting from $367,000 in May 05 to $371,000 in May 06.
Victoria showed an upward trend from $248,000 last year to the current figure of $276,000.
The report also showed that for the first time, more than 20% of new borrowers are choosing fixed interest rate mortgages. This trend is not surprising as borrowers brace themselves against possible future rate hikes.
Overall, however, it appears that May's interest rate rise has had little impact on the nation's mortgage market.
"We had our best month ever in May, so there's no sign at all that the rate rise has had an impact on our business," said Malcolm Watkins, executive director of AFG. "While the $300,000 may not be a definitive figure, it's strongly indicative of what the market is doing, especially with the continuing resource boom driving WA."
Driving the trend is Western Australia, where the average new mortgage rose to $319,000 - a 35% rise over the past year. AFG, the nation's largest mortgage broker, also recorded its biggest ever proportion of mortgages advanced to investors in WA, where 48% of new loans were for investment purposes.
Queensland figures also showed strong increases, with the average mortgage in that state sitting on $297,000, up from $243,000 in May 05.
Other states showed less dramatic increases, with NSW shifting from $367,000 in May 05 to $371,000 in May 06.
Victoria showed an upward trend from $248,000 last year to the current figure of $276,000.
The report also showed that for the first time, more than 20% of new borrowers are choosing fixed interest rate mortgages. This trend is not surprising as borrowers brace themselves against possible future rate hikes.
Overall, however, it appears that May's interest rate rise has had little impact on the nation's mortgage market.
"We had our best month ever in May, so there's no sign at all that the rate rise has had an impact on our business," said Malcolm Watkins, executive director of AFG. "While the $300,000 may not be a definitive figure, it's strongly indicative of what the market is doing, especially with the continuing resource boom driving WA."
Wednesday, June 07, 2006
Home loan approvals down in ACT as first home buyers re-enter the housing market
The slowdown in the housing sector has been further confirmed, with figures showing a drop in home loans before the Reserve Bank last lifted interest rates.
The Australian Bureau of Statistics said the number of mortgage approvals fell 0.5 per cent to 59,459 during April. There was a 1.6-per-cent drop in home loans for the construction of dwellings, ahead of the May interest rate rise.
The Reserve Bank board is meeting today for the first time since that rise.
Home loans numbers for the purchase of new homes increased 0.7 per cent.
But mortgage loans for the purchase of established homes dropped 0.5 per cent, falling to 52,254.
The fall in mortgage loans was steepest in the ACT, where home loans were down 14.8 per cent (following a 31.7 per cent increase in March).
Mortgage home loans rose 6.6 per cent in Tasmania, 4 per cent in Western Australia, 2 per cent in NSW, 1 per cent in the Northern Territory and 0.6 per cent in Queensland.
However, mortgage approvals were down only 0.1 per cent in Victoria and the home loan market stayed steady in South Australia.
The Australian Bureau of Statistics said the number of mortgage approvals fell 0.5 per cent to 59,459 during April. There was a 1.6-per-cent drop in home loans for the construction of dwellings, ahead of the May interest rate rise.
The Reserve Bank board is meeting today for the first time since that rise.
Home loans numbers for the purchase of new homes increased 0.7 per cent.
But mortgage loans for the purchase of established homes dropped 0.5 per cent, falling to 52,254.
The fall in mortgage loans was steepest in the ACT, where home loans were down 14.8 per cent (following a 31.7 per cent increase in March).
Mortgage home loans rose 6.6 per cent in Tasmania, 4 per cent in Western Australia, 2 per cent in NSW, 1 per cent in the Northern Territory and 0.6 per cent in Queensland.
However, mortgage approvals were down only 0.1 per cent in Victoria and the home loan market stayed steady in South Australia.
National Australia Bank lead credit rate increases
The major banks and credit unions have increased credit card interest rates by up to four times the Reserve Bank's official rate rise, according to source research firm Cannex.
National Australia Bank passed on larger than official rate increases to its customers since the official rate rise.
On May 15, it raised its rates on gold rewards cards by 0.85 percentage points - more than three times the 0.25 percentage point rate rise on May 3.
Rates on other NAB cards, including standard Visa and Mastercards, were increased by 0.34 percentage points.
The country's big credit unions managed to get their rate rises in place in April before the RBA move, raising the rate on the national MyCard Mastercard by 1 percentage point.
St George, Westpac, ANZ and Commonwealth Bank have only introduced rate increases of 25 basis points in line with the official rate rise.
The news is better for Queensland consumers after Suncorp slashed 1.95 percentage points from the rate of its Suncorp Clear Options Standard Visa card on May 15. Bank of Queensland was in line with the RBA rise, but raised two of its products by only 20 basis points.
Australian Consumers' Association senior policy officer Nick Coates says those institutions raising rates above the official ones are "price gouging".
"We believe that when there is an official increase of one quarter per cent the banks and other card issuers should not be allowed to make higher increases," he says.
"This behaviour suggests that some banks are using credit card customers to claw back revenue they lost as a result of the RBA's recent clampdown on bank interchange fees."
NAB head of cards Andrew Maitland defended the rate rises on gold cardholders, asserting in a statement emailed to The Courier-Mail that rival products marketed by ANZ and Commonwealth Bank carried higher rates.
NAB spokeswoman Kerrina Lawrence says different percentage increases were passed on to cardholders depending on the competitive position of each product in the market.
"It takes into account the RBA's rate rise and NAB's competitive position," she says.
CUSCAL, which represents 85 per cent of Australian credit unions, yesterday distanced itself from the decision to raise rates on credit cards marketed by its members.
The head of public affairs at CUSCAL, Julie Sheather, says the move to increase rates was made by Citibank which is the official issuer of the MyCard product marketed by credit unions.
Since acquiring the CUSCAL credit card business in May 2004, Citibank has assumed control over interest rate decisions.
The ACA's Mr Coates queries the size of the rate hikes on credit union Mastercards.
"We would like to think that alternative financial institutions bring greater competition to the marketplace because they need to be able to break down some of the pricing structures existing between the banks."
The higher-than-expected rate increases come as banks' reputations are again under pressure.
Nielsen Media researches rolling survey says the average satisfaction reading for the four major banks slumped by 3 percentage points in the March quarter alone -- and higher fees and charges were to blame.
The average satisfaction reading for the four major banks has now fallen to its lowest in three years.
According to the Neilsen reputation survey, ANZ was the worst performer in the March quarter, falling 5.1 percentage points to a reading of 82.3 per cent.
In terms of poor performance for the quarter, it was followed by Westpac (which fell 3 percentage points to 77.8 per cent), Commonwealth Bank (down 2.8 percentage points to 72 per cent) and National Australia Bank (down 1.3 percentage points to 77.8 per cent).
National Australia Bank passed on larger than official rate increases to its customers since the official rate rise.
On May 15, it raised its rates on gold rewards cards by 0.85 percentage points - more than three times the 0.25 percentage point rate rise on May 3.
Rates on other NAB cards, including standard Visa and Mastercards, were increased by 0.34 percentage points.
The country's big credit unions managed to get their rate rises in place in April before the RBA move, raising the rate on the national MyCard Mastercard by 1 percentage point.
St George, Westpac, ANZ and Commonwealth Bank have only introduced rate increases of 25 basis points in line with the official rate rise.
The news is better for Queensland consumers after Suncorp slashed 1.95 percentage points from the rate of its Suncorp Clear Options Standard Visa card on May 15. Bank of Queensland was in line with the RBA rise, but raised two of its products by only 20 basis points.
Australian Consumers' Association senior policy officer Nick Coates says those institutions raising rates above the official ones are "price gouging".
"We believe that when there is an official increase of one quarter per cent the banks and other card issuers should not be allowed to make higher increases," he says.
"This behaviour suggests that some banks are using credit card customers to claw back revenue they lost as a result of the RBA's recent clampdown on bank interchange fees."
NAB head of cards Andrew Maitland defended the rate rises on gold cardholders, asserting in a statement emailed to The Courier-Mail that rival products marketed by ANZ and Commonwealth Bank carried higher rates.
NAB spokeswoman Kerrina Lawrence says different percentage increases were passed on to cardholders depending on the competitive position of each product in the market.
"It takes into account the RBA's rate rise and NAB's competitive position," she says.
CUSCAL, which represents 85 per cent of Australian credit unions, yesterday distanced itself from the decision to raise rates on credit cards marketed by its members.
The head of public affairs at CUSCAL, Julie Sheather, says the move to increase rates was made by Citibank which is the official issuer of the MyCard product marketed by credit unions.
Since acquiring the CUSCAL credit card business in May 2004, Citibank has assumed control over interest rate decisions.
The ACA's Mr Coates queries the size of the rate hikes on credit union Mastercards.
"We would like to think that alternative financial institutions bring greater competition to the marketplace because they need to be able to break down some of the pricing structures existing between the banks."
The higher-than-expected rate increases come as banks' reputations are again under pressure.
Nielsen Media researches rolling survey says the average satisfaction reading for the four major banks slumped by 3 percentage points in the March quarter alone -- and higher fees and charges were to blame.
The average satisfaction reading for the four major banks has now fallen to its lowest in three years.
According to the Neilsen reputation survey, ANZ was the worst performer in the March quarter, falling 5.1 percentage points to a reading of 82.3 per cent.
In terms of poor performance for the quarter, it was followed by Westpac (which fell 3 percentage points to 77.8 per cent), Commonwealth Bank (down 2.8 percentage points to 72 per cent) and National Australia Bank (down 1.3 percentage points to 77.8 per cent).
Tuesday, June 06, 2006
Y Generation buy into the Australian Dream
The Y generation buy into the Australian dream of home ownership Mortgage Shoppers in the Y generation [18 to 28] want to own their own home. And they want a house with a backyard more than they want a low maintenance apartment or townhouse. The notion that this generation are a surly bunch of lazy, free-loading spongers may be true for some, but a growing number want to leave the family home, where many enjoy rent free and even board free accommodation with Mum and Dad, for the independence and wealth creation of home ownership.In fact many are having to do what there parents had to do. Get a steady, well paying job, spend less, and buy in the less desirable end of town to get a foothold in the property market, and then move up as their incomes and equity in their home move upward.Property is certainly not as affordable as it was in times gone by, but with a savings plan, good money management and a solid work ethic, home ownership is still an achievable dream for the Y generation.
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