While the Reserve Bank has dropped interest rates, APRA (Australian Prudential Regulation Authority) is trying to cool Sydney’s housing market by scrutinizing banks’ lending policies for investment purposes. This has led to many lending policy changes by the major four banks in the last few weeks, specifically in regards to investment lending, including changes to the LVR (Loan to Valuation Ratio), SMSF (Self-Managed Super Fund) lending and types of acceptable income.
This is one of the most common questions I am asked. And yes, they certainly are. One bedroom apartments are gaining in popularity, largely due to the increase in Gen Y numbers renting, the question is what constitutes the right one-bedroom apartment as an investment property?
There are a number of essential factors that make an apartment appealing to Gen Ys and it is this formula that we concentrate on perfecting at Calla Property.
Have you ever thought about writing down your essential tips for life to hand down to your kids, to help them on their way?
I mean, not just about the ‘meaning of life’, but more the practical side of life. How they can build themselves a secure financial foundation that will set them up for a very comfortable life!
Well, we at Calla Property have started that list for you and we are really happy to share it.
What does this mean for Sydney’s already over-inflated property market?
Two weeks ago, we met with a young couple who live and work in Sydney and want to buy their first home in Sydney. They’ve been married for a few years and plan to start a family in the next year or two. After months of going to auctions in Sydney and being forced out of the bidding they started to look elsewhere and entertained the idea of buying in the Central Coast region. They had a bad experience with a property shark in Gosford and came very close to buying a property well over-valued. They came to see us, frustrated yet hopeful we could find them a good property in Sydney that they could live in. Sadly, we weren’t able to help them and yesterday’s news of the RBA cutting the cash rate is just more bad news for them. Even with a deposit of $110K they will not be able to get into the Sydney home market.