Fund Investment 👌☕️📖

Fund Investment 👌☕️📖

Consulting – Investment & Finance 🖋☕️📈📊😎

Consulting – Investment & Finance 🖋☕️📈📊😎

Monday Morning Business 👌☕️☕️😎😎

Monday Morning Business 👌☕️☕️😎😎

Population boom: QLD the nation’s new interstate migration capital !

Population boom: QLD the nation’s new interstate migration capital !

IMG_3206

QUEENSLAND has overtaken Victoria to become the nation’s interstate migration capital, but it’s not for our beautiful weather and glorious beaches. Here are the reasons so many people are relocating to the Sunshine State.

QUEENSLAND has overtaken Victoria to become the nation’s interstate migration capital, with new-found economic optimism and a resilient housing market luring an influx of southerners north.

Queensland recorded a net interstate migration gain of 24,000 people during the period, with the population increasing overall by 1.7 per cent or 83,300 to 4.9 million.

Victoria was the next most popular among interstate movers, with a net gain of 15,100.

ABS demography director Anthony Grubb said it was the first time in four years that Queensland had overtaken Victoria in terms of net interstate movement.

“Before that, Queensland was the biggest gainer for 20 years, excepting a brief period in 2011 when Western Australia overtook it,” Mr Grubb said.

“The most common move between states was from New South Wales to Queensland with 52,000 people making the move north.

“The next most common move was in the opposite direction with 36,900 people moving from Queensland to New South Wales.”

Experts say Queensland’s improving economy, standard of living and relatively affordable housing market are driving the surge in interstate migration.

“I think what’s happened is that with house prices in NSW becoming unaffordable for many at a time where southeast Queensland markets haven’t moved much, people are starting to think there’s better value in Queensland,” AMP Capital chief economist Shane Oliver said.

“People in Sydney are saying it’s too crowded, too expensive and they’re looking elsewhere — and Queensland has benefited from that.”

Mr Oliver said employment in the state had increased by 1.9 per cent in the past 12 months, which meant there were more jobs available.

“The Queensland economy had been held back by the end of mining investment boom but that drag is starting to fade,” he said.

capi_ab557aa16c55846877f4040454d334e2_91769f1bfef8a4f5c117b3e98e186a71

A recovery in Queensland’s mining sector is helping to boost economic growth.

SQM Research managing director Louis Christopher agrees.

“There are more southerners moving from Sydney and Melbourne to southeast Queensland to take advantage of the standard of living and better housing affordability — both on the buyer front and the rental front,” Mr Christopher said.

“Why this is happening now, as opposed to five years ago, is because job creation has increased in the Brisbane and the southeast Queensland economy.”

Realestate.com.au chief economist Nerida Conisbee said many homeowners in Melbourne and Sydney were recognising the value in the Brisbane property market and seeing it as a good time to buy.

“Brisbane has been fairly flat over the last few years and we know the economy is doing better and there has been a return in mining and engineering roles, so it’s quite different to what we’re seeing in Sydney and Melbourne, where it makes sense for people to hold out until things calm down,” Ms Conisbee said.

“Brisbane is now looking more positive than last year, so if you are looking to get into the market, I think now is a good time.”

Australia’s population grew by 380,700 in the 12 month period to 24.9 million, with 62 per cent of the growth attributed to net overseas migration.

 

Originally published as Queensland the nation’s biggest drawcard

NAB, Westpac raise interest rates for property investors

National Australia Bank has hiked interest rates for property investors, the latest in a series of recent pricing increases by major lenders to offset pressure on profits.

NAB (NAB), the third biggest home lender by market share, today said variable rates for new and existing investors would rise by 15 basis points, effective Monday December 12, increasing the cost to 5.55 per cent. In contrast, owner-occupiers will continue to pay 5.25 per cent.

88cb31a3be99da76ad1bece2c5eaa578

Westpac today also raised interest-only rates for investors and owner-occupiers by 8 basis points, citing the need to maintain “prudent lending practices”.

NAB chief operating officer Antony Cahill said the bank didn’t make the decision “lightly”, having to balance the needs of customers and shareholders in an “increasingly challenging environment”.

“A low-rate environment poses considerable challenges to all lenders, and we must respond to what is happening in the economy and the market,” he said.

The repricing of rates for existing customers will boost profits from NAB’s $100 billion of investment loans on its books. The bank also has $135bn of mortgages to owner-occupiers, according to the regulator’s most recent data.

It marks the biggest rate repricing by the big banks since holding back half the August cash rate cut. It also follows the industry’s hiking of investor loans mid-last year in an attempt to comply with the regulator’s cap on lending to landlords.

While the 10 per cent annual growth cap worked to slow lending to investors, demand has been recently picking up again. According to the Reserve Bank, system-wide annual investor credit growth bottomed at a seven year low of 4.6 per cent in August, before steadily rising to 5.3 per cent in October.

NAB’s move comes ahead of the RBA’s final board meeting of the year tomorrow, which is widely expected to result in the official cash rate being held at 1.5 per cent.

Despite the cash rate being on hold since August and greater political scrutiny on the industry, banks have recently been raising various home loan products to offset rising funding costs, slowing credit growth, hot competition and regulatory changes.

Last week, Commonwealth Bank raised a range of fixed mortgage rates, following similar moves by Westpac. NAB’s online subsidiary UBank also lifted variable home loan rates by 10 basis points, while junior lender ME also raised rates for new customers by up to 15 basis points.

Martin Crabb, head of research at broker Shaw and Partners, told clients today it wasn’t surprising banks were hiking fixed rates.

“Funding costs are soaring,” he said.

Mr Cahill said the banks’ recently reported lower net interest margins “particularly in home lending, and they remain under pressure”. He said the bank took account of a range of factors, when adjusting rates including being required to have more “stable” funding such as deposits, elevated overall funding costs, regulatory requirements and the “competitive pressures at play”.

The big four banks’ combined profits eased 2.5 per cent last year to $29.6bn. Profitability metrics — such as return on equity and net interest margins — also decreased.

“We will continue to regularly review our products and pricing, and make decisions that enable us to achieve a balance for all stakeholders – borrowers wanting to buy a home or grow their business, depositors and investors seeking a return on their investment, and our shareholders who rely on our dividends,” said Mr Cahill.

Westpac chief of consumer banking, George Frazis, said standard principal and interest mortgages were priced at a lower interest rate because they encouraged customers to pay down the loans, reducing the bank’s capital requirements.

1463344915817

“We believe it is necessary to slightly increase the price differential between interest-only and principal and interest home loans. We are encouraging customers, where appropriate, to move to the lower principal and interest home loan at no additional cost until March 31,” he said.

Article By: Michael Bennet / Reporter

Source: http://www.theaustralian.com.au/business/financial-services/