The Reserve Bank of Australia will need the Australian Prudential Regulation Authority to reign in home lending once again, or lift interest rates, or do both to avert a dangerous housing bubble, says housing expert Louis Christopher in his newly released Christopher’s Housing Boom and Bust Report 2017.
Under one scenario house prices in Sydney could rise up to 16 percent, the other scenario shows prices could rise as high as 18 percent.
The capital city average forecast is for dwelling prices to rise 6 percent to 10 percent.
The forecasts assume a stable interest rate environment, a stable exchange rate and no further home lending restrictions by APRA.
If lending rates are cut again by the RBA, Sydney and Melbourne prices could rise by up to 18 percent for the year as forecasted by SQM’s “Scenario 2 outlook”.
Louis Christopher’s Housing Boom and Bust Report this year also has a full breakdown of every postcode in the country covering current market statistics and its inaugural postcode investor ratings.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
I note every scenario has APRA taking more action, but I doubt they will take any action that isn't already priced into the market. eg. 7% stress tests on loans.
RBA is calling the end of the commodities down turn, wonder what that will mean for QLD and WA? In the past this has put a damper on Sydney prices.
How do you borrow and lend without breaching the religious restrictions? Does the system make it 'stronger'?
I went to the trouble of becoming Sharia accredited some years ago.
The difference is that instead of paying a repayment that covers the loan interest plus a portion for loan reduction, the clients of Sharia finance pay a rent, which invariably was higher than our usury loans. Sharia "rents" move up and down according to the cost of the finance (interest rates)
I had some Muslim clients who had asked for Sharia loans because they were devout. I couldn't in good conscience sell them finance that was more expensive than a normal loan without explaining the choices available, and when they saw the comparisons they had a change of faith. Not exactly a conversion to Catholicism but a change nevertheless.
Take risks - if you win you will become wealthy, if you lose you will become wise
The Reserve Bank of Australia will need the Australian Prudential Regulation Authority to reign in home lending once again, or lift interest rates, or do both to avert a dangerous housing bubble, says housing expert Louis Christopher in his newly released Christopher’s Housing Boom and Bust Report 2017.
Under one scenario house prices in Sydney could rise up to 16 percent, the other scenario shows prices could rise as high as 18 percent.
The capital city average forecast is for dwelling prices to rise 6 percent to 10 percent.
The forecasts assume a stable interest rate environment, a stable exchange rate and no further home lending restrictions by APRA.
If lending rates are cut again by the RBA, Sydney and Melbourne prices could rise by up to 18 percent for the year as forecasted by SQM’s “Scenario 2 outlook”.
Louis Christopher’s Housing Boom and Bust Report this year also has a full breakdown of every postcode in the country covering current market statistics and its inaugural postcode investor ratings.
wtf, a day ago you were sniping at LC for their dodgy stats, now you want to use their stats to cite a new boom.
You really are a bit all over the place here.
Rufus
7 Nov 2016, 08:56 PM
I went to the trouble of becoming Sharia accredited some years ago.
The difference is that instead of paying a repayment that covers the loan interest plus a portion for loan reduction, the clients of Sharia finance pay a rent, which invariably was higher than our usury loans. Sharia "rents" move up and down according to the cost of the finance (interest rates)
I had some Muslim clients who had asked for Sharia loans because they were devout. I couldn't in good conscience sell them finance that was more expensive than a normal loan without explaining the choices available, and when they saw the comparisons they had a change of faith. Not exactly a conversion to Catholicism but a change nevertheless.
fair enough.... we have a couple of Muslim's working along side me at work and their devotion varies as much as the next religious person... sometimes worth paying a premium, other times worth relaxing the rules.
I went to the trouble of becoming Sharia accredited some years ago.
The difference is that instead of paying a repayment that covers the loan interest plus a portion for loan reduction, the clients of Sharia finance pay a rent, which invariably was higher than our usury loans. Sharia "rents" move up and down according to the cost of the finance (interest rates)
I had some Muslim clients who had asked for Sharia loans because they were devout. I couldn't in good conscience sell them finance that was more expensive than a normal loan without explaining the choices available, and when they saw the comparisons they had a change of faith. Not exactly a conversion to Catholicism but a change nevertheless.
So the difference here is just a bottle of liquid paper.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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