SMSF data downplays property debt fears

The proportion of self-managed superannuation funds that have borrowed to purchase property has trebled in the past two years, but administration company Heffron SMSF Solutions is adamant that the trend is manageable and not a sign that do-it-yourself funds are over-leveraged. Heffron, which compiled the data from its own client base, said the proportion of […]

Four to a room: Gen X’s nightmare is Gen Y’s adventure

HOUSEMATE wanted: must be clean, lacking in almost all personal boundaries, willing to fork out $170 a week and able to live with up to three others in a single room. To-let notices such as this are peppering real-estate websites, with room shares that were once reserved for low-income university students and backpackers now increasingly […]

Cheap debt, rising business confidence to hit office yields

Rising business confidence and low debt costs are likely to compress yields for core office assets by 100 basis points over the next three years, Colliers International forecasts. A combination of cheap debt, a significant surplus of capital looking to invest, rising business confidence and a lift in the leasing market could push yields below […]

RBA warns on debt as urban market heads for a high

SYDNEY’S housing market is expected to break double-digit price growth this year amid concern from the Reserve Bank of Australia that the nation’s home buyers are taking on too much debt to purchase property. RP Data’s head of research Tim Lawless, citing statistics from the Australian Prudential Regulation Authority, said Australia was a “fairly leveraged” […]

‘Cash was always the question’ for troubled Italian Forum

THE former president of Sydney’s Italian Forum blames lack of financing for the financial collapse of part of the inner-west complex that was put into voluntary administration last month. Administrators SV Partners were recently appointed to the Italian Forum’s Cultural Centre in Leichhardt, following claims of insufficient cashflow. A creditors meeting revealed three secured creditors […]

Woolworths spinoff SCA Property Trust loses $4.4m in debut result

WOOLWORTHS property spin off SCA Property Trust has delivered a net loss for its debut full-year results with its performance over fiscal 2013 largely in line with forecasts, despite a rental shortfall. The company, which counts more than 100,000 Woolworths shareholders as investors, posted a net loss after tax of $4.4 million after non-recurring formation […]

NAB sweetens mortgage offer with $1000 for refinancing

NATIONAL Australia Bank has fired the latest shot in the mortgage war, offering borrowers cash to refinance as the Big Four ready their assault as the property market fires up in spring. NAB, which along with ANZ has been expanding its mortgage book above system rates, said today that it would give $1000 cash to […]

RBA leaves cash rate unchanged at 3% in April

As expected, the Reserve Bank has left the cash rate unchanged at 3% following its monthly monetary policy meeting. All 28 economists polled by Bloomberg ahead of the Easter long weekend tipped the cash rate to remain unchanged. This is the third straight meeting the RBA has left the benchmark interest rate unchanged and at […]

Challenger offers Investa $100m

Challenger has leapt into Investa Property Group’s senior lending syndicate, extending a $100 million credit line to the blue-chip real estate firm that earlier this year pulled off a massive $1.9 billion refinancing deal. The move marks the arrival of the first non-bank lender into Investa’s debt stack, and also expands the corporate loan exposure […]

Investors move on bank reduction

Banks have recently reduced their loan capabilities to meet increasingly strict regulatory requirements. DTZ Group, the London-based real estate advisory firm, has released a statement claiming that since the reduction, investors have been putting more money into real estate debt funds. In the first half of this year, the money investors have set aside for […]

Interest rates lead Meriton to consider borrowing

Meriton, the leading apartment operation founded by billionaire developer Harry Triguboff, has not borrowed to fund a project for 12 years. But that is about to change. Interest rates are dropping ever lower, the development approval process is becoming easier and the banks are keener to fund well-capitalised property groups like Meriton. “I haven’t borrowed […]