Mining boom partly blamed for greater mortgage costs and bank lending
Fully two-thirds of Australian home loans are funded by the banks, according to a new report by property investor Chris Morgan.
Mr Morgan, CEO of property trading firm, The Morgan Group said credit conditions were being forced upon Australian homeowners by the boom in mining and the lack of confidence in the Australian property market.
“Credit conditions have dropped significantly in recent quarters and many of the home loan applications are being turned down.
“On top of that, mortgage rates are soaring and people are turning to cheaper and less dependable financing,” Mr Morgan told the ABC.
“This is the key element that’s driving prices up.
“When it comes to this new environment, when the banks are so desperate to get their hands on the property market that banks will always make it as cheap as possible.
“And that’s what’s happening now. It’s been driven by the mining boom. And the property market is being pushed towards that by people looking to sell property and they’re desperate for cheap credit.”
Home prices in Sydney and Melbourne, where the two regions compete for buyers, have been rising while property prices across Australia have been falling as the housing market struggles.
The housing market has collapsed in some parts of Queensland and parts of Victoria while in some parts of Victoria it’s gone completely flat.
But Mr Morgan said this “shocking trend” in the recent past has been driven primaril우리 카지노y by the housing market in Sydney and Melbourne.
“The whole credit crunch is largely a res화천출장샵 화천출장안마ult of the mining boom because, again, the banks aren’t lending to home buyers in NSW and Queensland,” he said.
“If anything, in the la우리카지노계열st quarter of last year there was quite a bit of demand for the construction of property and that’s driven up the cost of housing.
“In Sydney it’s really gone up quite a lot in particular so the credit boom was driving up prices quite a lot more in general, although in that particular region that was also driven by the housing market in Sydney and Melbourne.”
Favourability ratings of some of the Australian banks, including Western Australian’s Westpac and Australian National Bank, are lower than others.
Mr Morgan said the banking sector in Australia is seeing some signs of an improvement in affordability with the financial industry continuing to improve and the Australian Government improving its performance record.
He says the recent Australian government’s announcement to provide free money to borrowers in the housing market is