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PROPERTY INVESTORS NOW BEING TREATED AS MORTGAGE LEPERS AS INVESTOR LENDING PLUNGES BY OVER $35 BILLION

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The severe credit squeeze now being imposed on property investors throughout Australia has cost over $35 billion in new finance that could have housed more than 125,000 tenants
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PROPERTY INVESTORS NOW BEING TREATED AS MORTGAGE LEPERS AS INVESTOR LENDING PLUNGES BY OVER $35 BILLION

 

The severe credit squeeze now being imposed on property investors throughout Australia has cost over $35 billion in new finance that could have housed more than 125,000 tenants according to Kevin Young, President of Property Club, Australia’s largest independent property investment group.

Mr Young said that ridiculously tighter lending rules being imposed on banks by the Australian Prudential Regulation Authority (APRA) combined with higher interest rates has meant that lending to property investors has significantly dropped since early 2022.

“Most tenants would never have heard of APRA but this bureaucratic government organisation has helped orchestrate one of the biggest rental crises in Australia’s history.

“For the past eight years they have waged a war on Australian property investors that have resulted in thousands fleeing the rental market while many more thousands are now unable to enter the property investment market because of outrageous lending requirements they are imposing on bank lending to property investors.

Kevin Young, President of Property Club.

Kevin Young, President of Property Club.

“The net result property investors are being treated like mortgage lepers and lending to property investors slumped from $11 billion per month in early before interest rates started to rise to an average of around $9 billion per month since that peak – a loss of more than $2 billion on average per month in property investment lending since May 2022.

“Over this period more than $35 billion in property investment lending has effectively been sucked out of the Australian economy that could have purchased over 50,000 homes that would have provided homes for more than 125,000 tenants.

“This $35 billion in lost property investment lending is more than three times the taxpayer funded $10 billion the Federal Government has promised for social housing over the next four-year period” he said.

Henry Croaker, Principal of Australian Mortgage Intelligence said that APRA increased the minimum serviceability buffer interest rate to be used by the banks from 2.5 per cent to 3.0 per cent during 2021.

“Back then during a time of record low interest rates this increased serviceability buffer interest rate had little impact on the property investment lending market.

“However, when interest rates started to rise last year and now with 13 interest rate rises in 18 months, this increased buffer rate has meant that a large number of property investors are not qualifying for investment loans.

The credit squeeze now being imposed on property investors throughout Australia has cost over $35 billion, treating them as Mortgage lepers.

The credit squeeze now being imposed on property investors throughout Australia has cost over $35 billion, treating them as Mortgage lepers.

“As result, our company has the borrowing capacity of investors falling from a peak of 7 times their annual income to now a low of 4 times their annual income.” he said.

Kevin Young added that this increased buffer rate was just one of several disastrous decisions APRA had made in regard to property investors since 2015.

“In 2015 they basically abolished interest only loans for investors in Australia that saw hundreds of thousands of investors exit the property market since that time because they could not afford principal and interest payments. This single move sent a huge shock wave through the property investment community that comprises mainly mum and dad investors.

“To highlight the stupidity of this move in Perth that is experiencing the worst rental crisis in Australia it is no surprise to learn that more than 19,000 exited the WA property market over the past year.

“There needs to be a root and branch reform of APRA as soon as possible so we can boost private sector investment in housing. This is the only way we will solve the rental crisis in Australia.” he said.

 

For more real estate news, click here.

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LISMORE MAYOR ELECTED NEW CHAIR OF REGIONAL CITIES NSW

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LISMORE MAYOR ELECTED NEW CHAIR OF REGIONAL CITIES NSW
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LISMORE MAYOR ELECTED NEW CHAIR OF REGIONAL CITIES NSW

Regional Cities New South Wales (RCNSW) has elected a new Chair and Deputy Chair for a two-year term.

Lismore City Council Mayor, Cr Steve Krieg was elected as Chair and Cr Russell Webb, Mayor of Tamworth Regional Council, was re-elected Deputy Chair at a board meeting in Sydney yesterday.

Steve Krieg

Steve Krieg the new Chair of NSW Regional Cities

The new leadership will lead the organisation post-NSW local government elections, which took place in September.

Cr Krieg said he was proud to lead Regional Cities New South Wales as it advocated for a fair share of investment and population growth to ensure regional cities continued to thrive.

“Regional Cities New South Wales is an important advocate for its members and has a proven track record as a valuable partner for the State Government,” Cr Krieg said.

“I am passionate about the work of Regional Cities NSW. Our members are a similar size and are facing similar issues. Together, we are stronger.

“We have much work to do as we are on the frontline of change in New South Wales. This includes growing populations, energy transition and climate impacts.

“Our cities are also highly liveable and we know regional living is on the minds of many Sydneysiders. We want our cities to retain their liveability as new residents continue to make the move.

“As chair, I will be a strong voice for our member cities as we meet these opportunities.”

Cr Webb retained his position as Deputy Chair.

“I’m very happy to be reappointed as Deputy Chair,” Cr Webb said. “It has been fantastic working with Mayors, General Managers and CEOs of Regional Cities New South Wales.”

“Cr Krieg will lead us in the right direction and I am looking forward to working in partnership as we continue to build our strong network of relationships in Macquarie Street,” Cr Webb said.

Cr Krieg also noted the work of Cr Mathew Dickerson, who stepped down as Chair after the New South Wales local government elections.

“Cr Dickerson has left a great legacy as I take the reins of Regional Cities NSW,” Cr Krieg said.

“Cr Dickerson has led us through the many challenges we have encountered over the past few years, particularly as our members faced natural disasters, housing availability and growing skills shortages.

“Regional cities have received key support in these areas due to his leadership and advocacy. There is still much to do, but the impacts in these areas have been meaningful for our communities,” Cr Krieg concluded.

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Detectives release CCTV appeal following ram raids and arsons of Northern NSW tobacconists

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Detectives release CCTV appeal following ram raids and arsons of Northern NSW tobacconists

PLEASE NOTE: CCTV vision of the ram raids vehicle of interest is available via Hightail – https://spaces.hightail.com/receive/RhBnymtkWg

© State of NSW (NSW Police Force). For editorial use only. No sublicensing of any NSW Police Force supplied image or footage allowed on a standalone basis without the express written consent of NSW Police Force. NSW Police Force attribution notice and logo to be retained on all copies of supplied images or footage with the moral rights to no false attribution and of integrity in all its images and footage asserted.

Financial Crime Squad detectives have released CCTV as they appeal for information following the ram raid and arson of two tobacconists in Northern NSW.

About 4.30am on Sunday 22 September 2024, police were called to a tobacconist on Minjungbal Drive, Tweed Heads South, following reports of a crash.

Officers attached to Tweed/Byron Police District arrived to find a Toyota Corolla sedan, believed to have been stolen from Queensland, driven into a tobacconist, before two unknown males entered the business destroying several displays and stealing large amounts of cigarettes.

A crime scene was established, and police commenced an investigation into the incident.

A month later, about 2.40am on Tuesday 22 October, police were called to the same tobacconist, following reports a car had driven into a neighbouring business.

Police arrived to find a MG SUV had driven into the store – as bollards had been placed in front of the tobacconist – before two unknown men poured fuel inside the business and fled without setting it alight.

A crime scene was established, and police commenced an investigation into the incident.

About 3.30am the next day (Wednesday 23 October 2024), emergency services were called to River Street in Ballina, following reports of a building fire.

On arrival, officers attached to Richmond Police District located a silver Mercedes sedan inside the shopfront of a tobacconist, well alight.

Police were told the sedan drove into the business before the vehicle caught fire, with the occupants of the vehicle leaving the scene prior to police arrival.

Fire and Rescue NSW attended and extinguished the blaze; however, the building was extensively damaged.

Surrounding units were evacuated and two other vehicles were damaged by the blaze.

No injuries have been reported as a result of the incident.

A crime scene has been established and an investigation into the incident has commenced.

Following initial investigations linking all three incidents, detectives attached to State Crime Command’s Financial Crime Squad’s Arson Unit commenced Strike Force Albany to investigate the incidents.

As part of investigations, strike force detectives have released CCTV of the two ram raids at the Tweed Heads South tobacconist.

Detectives are also hoping to speak to the driver and passengers of a dark coloured sedan seen leaving the scene of the second ram raid.

Anyone with information about any of the incidents are urged to contact police or Crime Stoppers on 1800 333 000.

Anyone with information that may assist investigators is urged to contact Crime Stoppers: 1800 333 000 or https://nsw.crimestoppers.com.au. Information is treated in strict confidence. The public is reminded not to report information via NSW Police social media pages.

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NSW SES Reflects on Storm Response and Urges Preparedness

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NSW SES Reflects on Storm Response and Urges Preparedness

As the recent storms impacting the Northern Rivers, Clarence Valley, and Coffs Coast regions briefly subside, the NSW State Emergency Service (SES) is taking a moment to acknowledge the tireless efforts of its volunteers who have responded to over 159 storm-related incidents since Sunday.

The severe weather, which struck on Sunday through Wednesday evenings, left widespread damage across communities including Federal, Tweed Heads, Grafton, Coorabell, Richmond Hill, and Lismore. The majority of incidents involved fallen trees, blocked roads, and property damage, creating significant safety hazards.

Proactive Storm Preparation Urged

With clear weather providing a temporary reprieve, Superintendent Scott McLennan encourages residents to use this time to prepare for further storms expected today and next week.

“Check your gutters and drains for leaves, branches, or debris that could block water flow and exacerbate flooding during the next storm,” Superintendent McLennan advised.

He stressed the importance of vigilance, noting that saturated catchments could lead to flash flooding even with light rain.

“We are still in a volatile weather pattern, and taking precautions now can significantly reduce risks to homes and properties,” he added.

Motorist Warnings

The SES also issued a stern warning to drivers about the dangers of navigating flooded roads.

“We’ve seen vehicles speeding through flooded causeways, which is not only dangerous but also risks becoming stranded or causing further damage to roads,” Superintendent McLennan said.

Motorists are urged to exercise caution and avoid flooded areas entirely to protect themselves and others.

Stay Prepared

Residents and visitors are reminded to:

  • Clear gutters and drains of debris.
  • Secure outdoor items that could become projectiles in strong winds.
  • Monitor local weather updates and SES warnings.
  • Avoid driving through floodwaters under any circumstances.

The NSW SES remains on alert and ready to assist communities as the region navigates this challenging weather period. For emergency help in floods and storms, call 132 500.

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