Saturday, February 26, 2011

Loan Landscape Is Being Redrawn As CBA Ups Ante

The Commonwealth Bank has launched a cut-price home loan without fees in a bombshell for Australia's banking sector as the mortgage wars boil over.

In the biggest salvo yet to be fired in the bitter stoush, the CBA has unveiled the loan vowing to charge "no bank fees at all" including the controversial exit fees soon to be outlawed.

With an interest rate of 7.24 per cent, the home loan is priced significantly below the standard variable rates offered by all the other majors.

The bank, Australia's biggest home lender with a $290 billion mortgage book, said the product was unheralded in Australia and intensified competition in an "already competitive" market.

Industry experts said it was the most tangible sign yet that competitive tensions were stretching to breaking point and that the banks were moving beyond promotional gimmicks in their battle for custom.

One industry source said it signalled that the CBA was not prepared to surrender any more market share to smaller rivals National Australia Bank and ANZ.

"The empire strikes back," he said.

NAB unleashed the war two weeks ago with an offer to pay the exit fees for home loan customers who switched from Westpac and the CBA.

A week later, Westpac retaliated with an offer to pay switching fees for any business customers that joined the bank, while the CBA waved $1200 cash in front of NAB customers willing to jump ship.

Among the major banks, NAB is market leader for traditional standard-variable home loans with an interest rate of 7.67 per cent, while Westpac is the most expensive at 7.86 per cent.

ANZ charges 7.8 per cent, while the CBA's traditional loan is priced at 7.81 per cent.

But the new CBA home loan threatens to redraw the competitive landscape.

It has no monthly or annual fees and no late payment charges, but customers cannot split the loan locking in part of the loaned amount at a separate rate for a fixed term.

Customers with a traditional standard-variable mortgage at CBA will pay no fees to change to the new home loan.

A home buyer with a $300,000 mortgage on a standard CBA home loan would save more than $110 every month in interest payments alone by changing to the product.

CBA retail chief Ross McEwan said the fee-free loan had been in development for months and had not been unleashed because of NAB's aggressive bid to poach customers.

But the launch had been brought forward "a couple of weeks", Mr McEwan said.

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Wednesday, February 16, 2011

Market Update :: Big Price Reductions



41 Jubilee Street, Greenslopes is a must see. A huge four bedroom home on 809m2.
The sellers are serious about moving this and have priced accordingly.
Now asking for Offers Over $950,000 

This one is full of charm and character. Great original features with an update including a quality kitchen and bathroom. 632m2 block allow for plenty of renovation and expansion.
70 Thomas Street, Greenslopes

The size will get you in here. One of the larger two bedroom units you are going to find.
2/28 Dickenson Street, Carina
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Sneak Peek :: 3 Bedroom Character Home In Greenslopes

57 Peach Street Street, Greenslopes
$625,000

It's almost ready to hit the market but here is your first chance to see this great Greenslopes home.

The house has a great feel with a formal lounge, separate dining area all leading out to a fabulous, private rear deck.

The last cottage we had for sale around the corner (123 Ridge Street) was highly sought after and this one is even better!

I strongly recommend an inspection this Saturday, 19 February from 2:40-3.

Matt Jones 0424 149 026















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Thursday, February 10, 2011

Houses To Buy In Greenslopes


Inner City Living Done Right
123 Ridge Street, Greenslopes
$549,000
First inspection Saturday, 12 February at 11am
This 3 bedroom cottage has been tastefully renovated and represents great inner city living with a traditional feel inside and a new entertaining area outside offering views to the city.

The home has been restored throughout. Character features including VJ walls and ceilings, fretwork and French doors have been retained. The wide pine floor boards have been polished. A new kitchen and bathroom have been added. Reverse cycle air-conditioning has been installed in the living room.

French doors open from the kitchen to an entertainers deck. This will be the location for the next "watch the fireworks" party.


Location Buying :: Big 632m2 Block
70 Thomas Street, Greenslopes
Offers Over $650,000
http://www.realestate.com.au/property-house-qld-greenslopes-107132717

The charm and character runs through this Queenslander, with bay window, VJ walls and high VJ ceilings, wide timber floor boards and more. All the hard restoration work has been done inside, including a new kitchen and bathroom. A few finishing touches can complete the transformation.

Utilise the larger block size (632m2 with 15m frontage) and build in under to add more bedrooms and rumpus, etc like many of the surrounding homes. And this is the spot to do it, surrounded by amenities you simply can’t overcapitalize. Just 5km to the city. Access to the city or beyond is so easy via South-East Freeway or Clem7. Public transport is a breeze with Greenslopes Busway Station within walking distance. Greenslopes Hospital is just around the corner.
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Wednesday, February 9, 2011

Market Update

SOLD
3/16 Regina Street, Greenslopes
2 bedroom unit
Sold $320,000




UNDER CONTRACT THIS WEEK
21 Jubilee Street, Greenslopes
5 bedroom house
Asking $725,000
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Why Now Is A Good Time To Buy Your First Investment Property

There's no better time to pick up the real estate classifieds and begin browsing for your first property investment, as a perfect storm of stagnant house prices, a glut of vendors and relatively low interest rates pave the way for plenty of bargains.

If you’ve been thinking of taking the plunge and becoming a property investor, then 2011 is the ideal time to enter the market, says property expert Chris Gray, CEO of Empire.

Gray, a qualified accountant, buyers’ agent and mortgage broker, says the combination of relatively low interest rates with the long-term potential for strong yields and capital gains presents the ideal conditions for property buyers looking to get into the market.

“If you have the finances to buy, 2011 will provide some great opportunities to buy that first investment property,” explains Gray.

“For those fixated on getting a bargain, there is a feeling that 2011 will be more of a buyer’s market. This is because the heat has come off a very buoyant start to 2010. Keep in mind that a cooling off doesn’t necessarily mean prices will fall – it just means that buyers are going to pay more reasonable prices, rather than frenzied record prices. Prices may go down more in low demand areas, but these areas will not give the same long-term results as the blue chip suburbs where there is higher demand and less supply.”

According to Gray, buying median priced properties located close to the CBD is the smartest way to achieve long-term wealth.

“The best strategy for anyone looking to buy their first investment property is to buy blue chip, median-priced properties in areas where there is always demand,” he says.

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