Monday, April 22, 2013

Home Loan Numbers Boost Because Of Low Interest Rates

As investors and home owners are taking advantage of low interest rates, Australia’s housing sector is in the uncertain stages of a upturn.

The first monthly ascend since September last year is only the number of home loans taken out in February rose 2 per cent.

That’s in spite of the percentage of loans granted to first home buyers falling to its lowest point in nine years.

The lowest level since June 2004 is the 14.4 per cent were first home buyers of those who took out home loans in February.

The rise in approvals was a sign low interest rates were providing a boost for the housing sector said St George senior economist Jo Heffernan.

“We are expecting to see some further pick up from here, but we would need to see a few more months’ data to confirm a pick-up was underway,” she said.

According to property research firm RP Data Home prices rose 2.8 per cent in the March quarter while building approvals for new homes rose 3.1 per cent in February, says the Australian Bureau of Statistics.

Housing is one of numerous underperforming divisions the Reserve Bank of Australia is including on to progress during 2013 to facilitate counterbalance a projected hold up in mining investment.

The RBA reduce the cash rate 1.25 percentage points in 2012, conveying it to its present low level of three per cent.

But at the same time as builders welcomed February’s enhancement in home loans, they said more desired to be done to motivate growth in housing construction.

“The concern is today’s figure could be another in the volatile series of rises and falls witnessed over the past year,” Master Builders Australia chief economist Peter Jones said.

“The Reserve Bank must continue to act by cutting interest rates and ensuring
a sustained building industry recovery can take place and boost the non-mining economy,” Mr Jones said.

Investors were driving the nascent recovery in the sector said CommSec chief
economist Craig James.

But he said the continued fall in first home buyers was concerning.

Since October the percentage of loans taken out by first home buyers has been falling when New South Wales and Queensland discontinued providing out first home owner grants to people buying established properties.

“Perhaps the state governments need to rethink about the way that the incentives are provided so they can provide some assistance to the market,” Mr James said.

Bu Ms Heffernan expects first home owner numbers to improve as 2013 rolls on.
“It (the weakness) has continued longer than we would have expected following those state government changes,” she said.

“But at some point you would expect to see that turn.”

Thursday, April 18, 2013

Why buy second grade when you can buy new: Benefits of buying new

There’s nothing quite like the feeling of something new, they say however does that imply anything when buying a new home?

There will always be that particular rush that you can feel when buying something new, whether it be new clothes, a new car or even a new house.

This is exactly why it isn’t a surprise and can easily be understood why purchasing a newly constructed home or investment property is a trendy buying pick for many Australians.

Buying new requires fewer upfront costs; this is just one of the most titillating features of buying new.

Several unanticipated costs, such as maintenance fees or repair bills, for instance, can immediately consume into the money you intend to put aside by purchasing an existing dwelling.

What is more, and basically the very apparent reason to buy something new is, newly built properties traditionally carry a warranty of several years so if it happens to run into problems with your new purchase, the warranty can save you.

A new home can without doubt be an intelligent pick if you are in the market for an investment property.

Contemporary building standards can mean a greener, more sustainable investment aside from the new look and design that will certainly appeal to potential tenants.

In addition take into account that new utilities and appliances, for example bathroom, kitchens and heating can be a massive draw card for tenants and should be measured when you come to bargain the weekly lease.

Lastly, don’t neglect the depreciation and taxation benefits allied with buying an investment property over and above the government incentives that can go along with purchasing a new home to live in.

Benefits are most of the time at their peak when a property is brand new.

But you must take note that new and older properties mutually have their pros and cons and whether a new asset is right for you is eventually down to your precise state of affairs. If unsure, seeking for professional advice would be an excellent subsequently decison.

If a new property does fit your financial and investment strategy, though, the benefits should be considerable.

Tread with caution: There is much compensation to buying a new property compare to an existing dwelling, but remember that regarding all property-related decisions, vigilance is necessary.

To lessen risks, think about the following prior to making a purchase:

•Capital growth is NOT guaranteed, whether you purchase a new or an older property.

•Research is essential. Be absolutely certain to do your homework on the property market and purchase in an area that is more likely to offer growth potential.

•Know with whom you’re dealing. Unfortunately, there are several stories of
developers who go bust during a development or turn out not to be professional operators. Take note of the developer’s history and speak to family and friends regarding developers they have used in the past.

Tuesday, April 2, 2013

Loan Fraud Connected To Drug Houses

Police allege, a scoundrel home loan broker get hold of more than $17 million of fraudulent loans for clients, several of whom utilized the money to purchase marijuana grow houses.

Studies and investigations are ongoing into Kieu Thi Thanh Huynh, who has permitted more than $100 million in loans in the precedent seven years, and her clients. The 43-year-old Kim Huynh has been accused with 93 counts of getting hold of financial benefit by dishonesty or decemption, constructing phony documents and exploiting counterfeit documents.

An additional 30 people were charged with one count all of taking financial advantage by deception, creating counterfeit documents and using false documents as fraction of the police operation code named Squid.

Persons charged are of Vietnamese origin and array from youngest as 21 to 68 years old. They were under arrest between February 25 and March 8.

On May 24, the alleged scammers have been bailed to appear at the Melbourne
Magistrates Court for a committal mention.

A police spokeswoman said there may be more arrests.

”Inquiries are continuing in relation to a number of associates who investigators allege also purchased homes using false documents and gained financial advantage by deception.”

On February 25 police carried out five search warrants at three houses in St Albans, Sunshine and Sunshine North, seizing computers, financial documents, phones and jewelry.

Grow houses purchased with loans purportedly attained by Ms Huynh were exposed at some stage in Operation Taxa, which has concluded in millions of dollars value of marijuana and possessions being detained from dozens of houses, mostly in Melbourne’s north-west.

Police will charge loan documents associated to Ms Huynh were found in some of the houses.

All are involved in the investigation such as officers from the Criminal Proceeds Squad and E-Crime Squad, along with forensic accountants,.

Grow houses raided during Operation Taxa had mostly been linked to Vietnamese crime families, who were increasingly buying houses in new residential estates in Melbourne’s outer suburbs as opposed to renting them, Fairfax Media reported last year.

The trend had shown the increased financial clout of marijuana traffickers, police said at the time.

Head of the Criminal Proceeds Squad Detective Senior Sergeant Andrew Kerr said the squad had seized $25.2 million worth of property linked to marijuana in 2012, an increase of about $700,000 compared with the previous year.

He said the squad had detected that a significant amount of money was being sent overseas by those involved in the marijuana trade in Victoria. ”This is money that is being sent overseas by people that would appear to have no legitimate sources of income in Australia.

”A lot of these people are on Centrelink benefits, yet somehow managed to send
significant amounts of money overseas. How is that happening? And why is that happening?”

This kind of frauds that should be taken more seriously not only it is a fraud itself but it stepped a notch as they have been doing marijuana and who knows some other drugs.
Fraud prevention is clearly need to be improved.

Fraud Prevention Against Mortgage

The distraught state of the national housing market, combined with high unemployment, has shaped a lush environment for deceitful fraudsters looking for a chance to take advantage of frantic homeowners. Several homeowners who go with loan modification or foreclosure “rescue” companies for assistance in the end discover that they have been scammed. An up-and-coming inclination in latest months engages mortgage aid relief scams. These scams intent homeowners by means of promising to save them from foreclosure, or maybe get them a reverse mortgage or at least lower their
mortgage payments. This is all in exchange for an advance or monthly fee. But as expected many of these homeowners never get the relief they have been promised.

These scams utilize a range of effortless strategies to spot their financially-distressed sufferers. Various scammers trace troubled borrowers from published foreclosure notices or other publicly-available sources. But others anticipate on mass-marketing modus operandi such as flyers, radio, television and Internet advertising to entice in distressed borrowers. Still others misleadingly propose an association with a government agency to hastily get the conviction of unsuspecting victims.

The Consumer Protection Branch in the Justice Department’s Civil Division is
committed to prosecuting these criminals and bringing justice to their victims because this fraud is so subtle, and looks for victims on folks who are at their most defenseless point. But persons are really number one as potential victims in the fight in opposition to mortgage fraud. Fraud prevention and scam watch id their goal. You can protect yourself from mortgage fraud by keeping the following fraud prevention tips in mind:

If their promises seem too good to be true, they usually are. Be cautious of those that get in touch with you by means of advertising such as flyers, radio/television or the Internet with guaranteeing to adjust the conditions of your mortgage.

Be apprehensive of loan alteration services that necessitate signing a contract or paying an up-front or monthly fee. Advance fees are normally forbidden by law. Loan counseling and modification services are usually offered free from your lender and/or a Department of Housing and Urban Development (HUD) counseling center. Contact toll-free 24 hour hotline to immediately speak to an expert advisor.

In no way you should convey title of your property, do mortgage payments to someone with no less than your lender, or discontinue making mortgage payments in general .These are definite habits to put your financial investment at risk.

Cautiously examine the names, seals, logos and representations completed by
mortgage rescue companies. They may perhaps be intentionally intended to trick borrowers into not doubting a connection with a government agency exists. The point of this is to swindle borrowers into thinking they are at liberty to the advantage of a government program rather than consigning to a loan that is an obligation to be repaid.
A government agency will by no means necessitate advance fees, or pledge a precise outcome.

Most scammers doing reverse mortgage loans are in reality want to drop off other financial products on borrowers. Be alert to keep away from brokers that would like you to get hold of a loan in order to purchase other products such as long-term care insurance, annuities, or other investments.