NSW Newcastle 2021

And you've ruined it for me.

 

I can’t believe that this place just sold in Maryville for $1.34 mill after selling for $845000 in March last year

https://www.domain.com.au/property-profile/74-northumberland-street-maryville-nsw-2293

 

Way out of my league, but have friends who may be interested ... any thought on how much these would go for?

https://www.realestate.com.au/property-unitblock-nsw-merewether-137349074

I'm thinking around $3mil

 

I think it will go more - 3.5-3.8

 

Very possibly - I was thinking that similar units are going for around the $5-55000k ... so x6, with bulk discount, is the 3 mil. But that might just be me being optimistic

 

8 in total, 6x2 beds and 2x1 beds

 

Ah yes - my bad - skimmed it as not in my range, so yes, closer to high $3

 

Crazy house price party might be coming to an end soon. Welcome APRA and macro predential borrowing limits just like 2018/19 when the money dried up.

Josh Frydenberg flags crackdown on home loans

Frydenberg signals home loan crackdown

Treasurer Josh Frydenberg has given backing to regulators to crack down on high-debt home loans to reduce financial risks from record-low interest rates and surging property prices.

Financial regulators are working on plans to potentially clamp down on a jump in high debt-to-income ratios among new borrowers, a trend exacerbated by ultra-low mortgage rates enabling home buyers to borrow larger amounts.

More than one in five home buyers are now borrowing more than six times their incomes, a risk that could be felt if interest rates jump or people lose their jobs.

The number of new residential mortgage loans where debt is at least six times greater than income jumped to 22 per cent of new loans in the June quarter, from 16 per cent a year earlier, according data from the Australian Prudential Regulation Authority.

While regulators will not target house prices or affordability, debt-to-income is a key benchmark they are scrutinising and could apply so-called “macro-prudential” tools to.

Mr Frydenberg told the The Australian Financial Review that low interest rates had contributed to strong growth in housing markets in Australia and overseas.

“A positive feature of this housing cycle compared to that of the last is a higher proportion of first home buyers and owner occupiers entering the market,” he said.

“With Australia’s economy well positioned to strongly recover as restrictions ease, it is important to continually assess the appropriateness of our macro-prudential settings.

“We must be mindful of the balance between credit and income growth to prevent the build-up of future risks in the financial system.

“Lending standards should be monitored closely, and macro-prudential measures should be employed to address incipient risks.

“Options include increasing interest serviceability buffers and instituting portfolio restrictions on debt-to-income and loan-to-value ratios.”

 

Hope so. Prices have gotten ridiculous, even for a seasoned property owner (and holder) like myself

Agent emailed to advise they listed the knockdown at 212 Dunbar St Stockton for $1.15 ... nearly fell of my chair. Granted, one could go double story and gain ocean views, until the corresponding houses on Mitchell decided to do the same and views would be lost again

 

Agree Lizzie. Seems that macroprudential is the main tool they can deploy for the banks to rein in lending and growing risky loans.

It might take quite a few buyers out of the market due to inability to get finance... thats what happened in early 2018 anyway with APRA changing gears and lasted up until after the 2019 election when Bill Shorten wanted to kill negative gearing and change capital gains tax rules etc etc

 

Can you help me up as well? @tomlemke

 

Well didnt take very long APRA to step in and clamping down on the banks... news out today

In a letter to banks today, the Australian Prudential Regulation Authority (APRA) has increased the minimum interest rate buffer on home loan applications from 2.5 to 3 percentage points.

It estimates it will LOWER the "maximum borrowing capacity for the typical borrower by 5 per cent.”

APRA tightens home loan rules, raises interest rate benchmark

 

https://www.domain.com.au/35-henson-avenue-mayfield-east-nsw-2304-2017257971

Just tuned into this auction. Great street but full renovation required on a 380 square meter block, and it just sold for a whopping $1,094,500.

I was a tight ass over 47 Henson Avenue pulling out at $575K at the peak of the pandemic in 2020. Yeah, I'll be crying over in the corner.

 

That is crazy money for that...Well at this point in time.

 

We can cry together ... my regret sells include Cooks Hill for $180k (20 years ago) - Merewether 5/3/2 with ocean views for $1.25m (10 years ago) ... my regret not buyings were 2x 2/1/1 renting for $140/wk units in Dent St, Merewether for $100k (20 years ago but had the money)

As long as we learn - some of us take longer than others - or, at least, pass the lesson on

 

Looks like the housing price party might be coming to an end? Although might take a few months for the current bunch of buyers with existing pre-approvals to find an home and purchase. After they're gone, will the buyer pool dry up as it did in mid-2018 due to inability to secure finance, or owner-occupiers buyers can still get finance but borrowing capacity is 5% less?

APRA forces banks to raise housing assessment rates to counter risks

 

I'm looking forward to it - we reckon we've got one more build in us ... and wouldn't mind picking up another investment before pulling stumps

 

Pretty crazy. Doubt few saw 2 bedders in Mayfield as being a good investment pre-pandemic.

 

I'll hopefully be looking at PPOR replacements in the not-too-distant future, so works for me

 

I saw some, and thought they are crazy too, but your search is more surprised, for example:

36 Summit Street, North Lambton, NSW 2299 - Property Details (realestate.com.au)
2 Gunambi Street, Wallsend, NSW 2287 - Property Details (realestate.com.au)