Melbourne dominating building and population growth

Melbourne dominating building and population growth

Melbourne had the strongest market for building and population growth throughout 2018, according to the latest Housing Industry Association (HIA) Population & Residential Building Hotspots report.

What is a ‘Hotspot’?

A ‘Hotspot’ is an area with at least $150 million worth of residential building approved during the 2016/17 financial year, and a rate of population growth that is faster than the national average.

National Top 20 Building and Population Hotspots

Statistical Area

 

State / Territory

Residential Building Approved, 2016/17 ($’000)

Annual Population Growth Rate (%)

1. Mickleham – Yuroke

VIC

222,872

35.3

2. Pimpama

QLD

352,035

30.8

3. Cranbourne East

VIC

638,571

27.4

4. Cobbitty – Leppington

NSW

610,382

21.9

5. Riverstone – Marsden Park

NSW

736,224

21.1

6. Wollert

VIC

173,239

20.8

7. Docklands

VIC

199,734

14.7

8. Beaconsfield – Officer

VIC

256,005

13.4

9. Point Cook – East

VIC

169,300

12.8

10. Truganina

VIC

202,036

11.9

11. Melbourne

VIC

622,251

11.2

12. Coomera

QLD

173,540

10.3

13. Cranbourne West

VIC

171,594

9.2

14. Melton South

VIC

161,037

9.1

15. Tarneit

VIC

299,838

9.0

16. South Brisbane

QLD

154,000

8.8

17. Springfield Lakes

QLD

184,943

8.7

18. Arncliffe – Bardwell Valley

NSW

513,026

8.6

19. Southbank

VIC

417,688

8.6

20. Homebush Bay – Silverwater

NSW

358,252

8.0

Source: HIA.com.au

This top 20 list of building growth areas shows that:

  • 12 of the Top 20 Hotspots are located in Victoria;
  • NSW contains 4 of the national Top 20;
  • Four of the country’s top Hotspots are in Queensland.

HIA’s Senior Economist, Shane Garrett stated that Melbourne “dominated this year’s HIA Hotspots Report, with 12 of Australia’s Top 20 building growth areas all located around Victoria’s capital”.

“The Mickleham-Yuroke area of Melbourne is Australia’s number one Hotspot, with population growth of 35.3 per cent during 2016/17 and $222.9 million in building approvals. 

“With a large volume of work still to be commenced, no downturn evident in approvals, and population growth still exceeding 2 per cent, Melbourne and its surrounding areas are likely to produce many Hotspots for building activity going into 2019. 

“Pimpana on the Gold Coast slipped to second place this year with Melbourne’s Cranbourne East area in third position nationally. 

“The remarkable performance of Melbourne in this year’s Hotspots report demonstrates how well the circle of job creation, population growth and new home building can boost an economy. 

“A number of Sydney’s Western and South Western suburbs are also on the move. From Leppington to Parramatta and Blacktown, the large pipeline of new housing will attract significant population growth. 

“In Queensland, the South Eastern corner is the focus of activity. Population growth in the South East has accelerated over the past year, indicating that Queensland is starting to see solid employment gains. 

“Coomera is also a regular on the Hotspots list, joined by South Brisbane where the apartment boom has resulted in significant approvals and population growth. 

“Even in those parts of the country that are experiencing challenging economic conditions, there are some bright spots on the local housing map. We have identified Hotspots in all states and territories which are underpinned by robust levels of new home building and increases in population,” concluded Shane Garrett.

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What are the features of home loans for expats from Westpac?

If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

How is interest charged on a reverse mortgage from IMB Bank?

An IMB Bank reverse mortgage allows you to borrow against your home equity. You can draw down the loan amount as a lump sum, regular income stream, line of credit or a combination. The interest can either be fixed or variable. To understand the current rates, you can check the lender’s website.

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The interest is added to the loan amount and it is compounded. It means you’ll pay interest on the interest you accrue. Therefore, the longer you have the loan, the higher is the interest and the amount you’ll have to repay.

How to use the ME Bank reverse mortgage calculator?

You can access the equity in your home to help you fund your needs during your senior years. A ME Bank reverse mortgage allows you to tap into the equity you’ve built up in your home while you continue living in your house. You can also use the funds to pay for your move to a retirement home and repay the loan when you sell the property.

Generally, if you’re 60 years old, you can borrow up to 15 per cent of the property value. If you are older than 75 years, the amount you can access increases to up to 30 per cent. You can use a reverse mortgage calculator to know how much you can borrow.

To take out a ME Bank reverse mortgage, you’ll need to provide information like your age, type of property – house or an apartment, postcode, and the estimated market value of the property. The loan to value ratio (LVR) is calculated based on your age and the property’s value.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
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  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

Remaining loan term

The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

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There are a number of ways people use a Macquarie Bank reverse mortgage. Below are some reasons borrowers tend to release their home’s equity via a reverse mortgage:

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While there are no limitations on how you can use a Macquarie reverse mortgage loan, a reverse mortgage is not right for all borrowers. Reverse mortgages compound the interest, which means you end up paying interest on your interest. They can also affect your entitlement to things like the pension It’s important to think carefully, read up and speak with your family before you apply for a reverse mortgage.

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A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

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If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

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Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.