The number of first home buyers increased by 7.3 per cent during the quarter, a year on year increase of 20.6 per cent compared with the June quarter 2017.    Rental affordability improved with the proportion of income required to meet average rental payments decreasing to 24.1 per cent – or a quarterly decrease of 0.7 percentage points.

Darren Kasehagen, Head of Distribution, Adelaide Bank said: “The number of first home buyers continues to climb and now stands at 20.6% of the market, driven by Victoria and NSW.  31.7% of FHB’s were from Victoria, while 25.5% were from NSW.   The ACT was the only market to experience a decline.  The average loan size to FHB’s nationally has increased to $345,700.

“The total number of new loans for the June quarter, excluding refinancing, increased by 8.3 per cent, but compared to the same quarter last year we have seen an overall decrease of 3.8%.  The average loan size for all borrowers now stands at $409,900, an increase of 3.3% over the quarter or 6.0% year on year.

“Rental affordability has improved everywhere – except the ACT and NT.  The decreases in rental affordability were led by NSW with a drop in rental payments of 1.3% for the quarter, while Queensland has seen the greatest improvement in rents year on year.

“Western Australia retained the crown as the State where rents require the lowest proportion of family income, with just 16.3% needed to meet the median rent, a figure that has remained relatively stable for the past year.

“At Adelaide Bank, we are open for business and looking to help borrowers across all states and territories in all market segments – be they first time buyers, existing customers, owner occupiers or investors.  Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Kasehagen concluded.

Fast Facts: Across the nation

Victoria:

Of the total number of Australian first home buyers that purchased during the June quarter, 9,010 were from Victoria. The number of loans to first home buyers increased by 10.3% for the quarter or 35.5 increased 35.3% year on year. 31.7% of first home buyers now come from Victoria.  Rental affordability improved slightly with a 0.5% decrease for the quarter with 23.3% of income required to meet median rents.

NSW:

The proportion of family income required to meet loan repayments increased by 1.6% to 38.1%. New South Wales remains the least affordable State or Territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the March quarter, 25.5% were from New South Wales. First home buyers now comprise 22.2% of the State’s owner-occupier market. Rental affordability improved for the quarter with a decrease of 1.3.4%. 28.8% of income is now required to meet median rents.

Queensland:

The proportion of income required to meet home loan repayments increased to 28.1%, a 0.6% increase over the quarter. Of all Australian first home buyers 20.4% were from Queensland – an increase of 2.6%.   The proportion of first home buyers in the State’s owner-occupier market was 26.7%. Rental affordability improved with a decrease of 0.9% to 22.2% of income required to meet median rents.

South Australia:

South Australia recorded an improvement in housing affordability with the proportion of income required to meet monthly loan repayments decreasing to 27.0% or 0.2% over the quarter.  In the national breakdown, 5.1% of first home buyers were from South Australia,  while the proportion of first home buyers in the State’s owner-occupier market was 21.1%.  Rental affordability improved by 0.4 percentage points to 22% of income.

Western Australia:

The number of first home buyers in Western Australia increased by 4.8% over the quarter.  13.2% of all Australian first home buyers were from Western Australia. Housing affordability declined with the proportion of income required to meet loan repayments increasing slightly to 23.9%. This was a 0.3 percentage point increase.  Rental affordability remained unchanged at 16.3% of income, a year on year decrease of 0.5%.

Tasmania:

Housing affordability in Tasmania declined with the proportion of income required to meet home loan repayments increasing to 25.4%, an increase of 0.9 percentage points over the quarter or 1.5%.  Rental affordability in Tasmania improved with the proportion of income required to meet median rents decreasing to 27.6%, a 0.5% decrease or 1.5% year on year.  First home buyers in Tasmania increased by 9.0% over the quarter and by 20.5% year on year.

Australian Capital Territory:

Housing affordability in the Australian Capital Territory declined with the proportion of income required to meet home loan repayments increasing to 20.9%, a 1.2% increase over the quarter and an increase of 1.1% year on year. Rental affordability also declined slightly.  The proportion of income required to meet the median rent is now 18.6%, an increase of 0.1% for the quarter or 0.7% year on year.

Northern  Territory:

Housing affordability in the Northern Territory declined with the proportion of income required to meet loan repayments increasing to 21.5% for the quarter or 1.7%.  This was an increase of 1.2 % year on year.     Rental affordability in the Northern Territory declined slightly  with the proportion of income required to meet the median rent increasing to 22.6% or 0.1 percentage points over the quarter. This was a decrease of 0.5% year on year.

The post June Quarter shows declining housing affordability – Better news for renters appeared first on AdviserVoice.

The number of first home buyers decreased by 14.5 per cent during the quarter, but year on year there was actually a 28% increase compared with the March quarter 2017.

Rental affordability declined slightly with the proportion of income required to meet average rental payments increasing to 24.8% or a quarterly increase of 0.3 percentage points.

Darren Kasehagen, Head of Distribution, Adelaide Bank said: “The improvement in housing affordability nationally is to be welcomed and it is great to see that when compared to the corresponding quarter of 2017, the number of first home buyers has increased in all states and territories year on year – and by more than 80% in NSW and the ACT.

“The reduction in the total number of new loans compared to the same quarter last year has the potential to be a continuing trend, and the same could be said for the reduction in the average loan size experienced in the March quarter as overall lending standards improve across the industry making access to credit a little harder.

“At Adelaide Bank, we are open for business and looking to help borrowers across all states and territories in all market segments – be they first time buyers, existing customers, owner occupiers or investors.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Kasehagen concluded.

Fast Facts: Across the nation

Victoria:

Of the total number of Australian first home buyers that purchased during the March quarter, 8,169 were from Victoria. The number of loans to first home buyers decreased by 17.9% for the quarter but increased 35.3% year on year. First home buyers now make up 28.4% of the State’s owner-occupier market. Rental affordability declined slightly with a 0.2% increase for the quarter with 23.8% of income required to meet median rents.

NSW:

The proportion of family income required to meet loan repayments decreased by 1.3% to 36.5%. New South Wales remains the least affordable State or Territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the March quarter, 24.6% were from New South Wales. First home buyers now comprise 22.4% of the State’s owner-occupier market. Rental affordability declined for the quarter with an increase of 0.4%. 30.1% of income is now required to meet median rents.

Queensland:

The proportion of income required to meet home loan repayments decreased to 27.5%, a 0.1% decrease over the quarter. Of all Australian first home buyers 21.3% or 5,639 were from Queensland – a decrease of 14.7%.   The proportion of first home buyers in the State’s owner-occupier market was 26.7%. Rental affordability declined slightly with an increase of 0.4% to 23.1% of income required to meet median rents.

South Australia:

South Australia recorded a decline in housing affordability with the proportion of income required to meet monthly loan repayments increasing to 27.2% or 0.8% over the quarter.  In the national breakdown, 4.9% of first home buyers were from South Australia while the proportion of first home buyers in the State’s owner-occupier market recorded a decrease of 13.7%.  Rental affordability declined by 0.5 percentage points to 22.4% of income.

Western Australia:

The number of first home buyers in Western Australia decreased by 10.5% over the quarter.  13.5% of all Australian first home buyers were from Western Australia. Housing affordability improved with the proportion of income required to meet loan repayments decreasing to 23.6%. This was a 0.3 percentage point decrease.  Rental affordability improved to 16.3% of income, a year on year decrease of 1.3%.

Tasmania:

Housing affordability in Tasmania improved with the proportion of income required to meet home loan repayments decreasing to 24.5%, a decline of 1.2 percentage points over the quarter or 0.9 percentage points year on year. Rental affordability in Tasmania declined with the proportion of income required to meet median rents increasing to 28.1%, a 1.3% increase or 1.5% year on year.  First home buyers in Tasmania decreased by 5.0% over the quarter but year on year recorded a 6.9% increase.

Australian Capital Territory:

Housing affordability in the Australian Capital Territory declined slightly with the proportion of income required to meet home loan repayments increasing to 19.7%, a 0.1% percentage points over the quarter or a decrease of 0.4% compared to the same quarter last year. Rental affordability also declined. The proportion of income required to meet the median rent is now 18.5%, an increase of 0.3% for the quarter or 0.6% year on year.

Northern  Territory:

Housing affordability in the Northern Territory improved with the proportion of income required to meet loan repayments decreasing to 19.8% for the quarter or 1.1 percentage points. This was a decrease of 1.3% year on year.   Rental affordability in the Northern Territory improved with the proportion of income required to meet the median rent decreasing to 22.5% or 0.6 percentage points over the quarter. This was a decrease of 1.2 percentage points year on year.

The post March Quarter shows improved housing affordability appeared first on AdviserVoice.

Bruce Speirs, Executive, Partner Connection, Bendigo and Adelaide Bank said “As part of our continued focus to build on the strength of our Partner Connection business, I am pleased to announce changes of responsibility within the Partner Connection Leadership group and consequently, the Third Party Banking business.

“Damian Percy will transition into the role of Head of Strategic Partnerships, working closely with our Third Party Banking, Leveraged and Portfolio Funding business to continue to build on our strong partnering culture and to broaden our existing partner relationships.  As a result, Darren Kasehagen (as Head of Distribution, Third Party Banking) and Amanda James (Head of Third Party Banking Support) will now take on responsibility for the Third Party Banking business.

“Having lead the Third Party Banking business for many years, Damian has developed a deep understanding of the mortgage industry and will continue to represent the bank in various industry forums, while also providing a perspective on the issues impacting the mortgage market to the Bendigo & Adelaide Bank group. In Darren and Amanda, I am confident that we have the right leadership and Partner experience to continue to build our Third Party Banking business into the future.”  Mr Speirs concluded.

Damian Percy, Head of Strategic Partnerships said: “It has been a great privilege to build and lead our Third Party businesses for so many years – it has long allowed me to indulge my enthusiasm for partnership and my strong belief in the benefits that home ownership brings to individuals, families, and the communities in which they live.

That said, the opportunity to assist in the creation of a strategic partnership model across a broader range of businesses across the Bank is an exciting one, particularly when combined with an extended role around mortgages thought-leadership for the BEN Group and ongoing engagement with the industry that is my great passion.”

Darren Kasehagen, Head of Distribution said “Adelaide Bank remains well positioned to help our partners navigate through the ever changing property market and home lending landscape.

“Over the last 12 months we have repositioned our lending strategy in response to newly imposed regulatory caps and used the opportunity to fine tune our lending platform.  A number of enhancements to our offering, which are currently underway, will make it easier for our partners and customers to do business with us.

“Our simple, easy to understand range of affordable home lending products, combined with an outstanding service offering, will continue to smooth the process as our partners guide customers through the home ownership journey”.

“Amanda and I look forward to continuing Adelaide Bank’s proud tradition of being the partner of choice for third party home lending solutions.”

The post Bendigo & Adelaide Bank: Boost for Partner Connection Leadership and Third Party Banking with new roles announced appeared first on AdviserVoice.

Darren Kasehagen, Head of Business Development at Adelaide Bank said: “A slight increase in housing affordability shouldn’t overshadow the welcome news that the number of first home buyers increased by 14.0% during the quarter. Compared to the corresponding quarter in 2016, the number of first home buyers went up in Queensland, Western Australia, Australian Capital Territory and the Northern Territory, with both territories recording very solid FHB growth of 49.6% and 40.0% respectively.

“The average loan size to first home buyers increased by 1.2% over the June quarter and 0.6% over twelve months to $365,600 with the average loan size to first home buyers decreasing in South Australia, Tasmania and the Australian Capital Territory over the quarter. Year on year, the average loan size to first home buyers increased in New South Wales, Victoria, Queensland and the Northern Territory.

“Over the quarter, the proportion of median family income required to meet rental payments reduced by 0.6 percentage points to 24.3%. This improvement was recorded across all states and territories except in the Australian Capital Territory which was stable. In fact, it costs less on average to meet mortgage payments in Tasmania and the Northern Territory than it does to rent.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Kasehagen concluded.

Fast Fcts

The average loan size to Australian first home buyers is now $386,664, an increase 3.7 per cent over the June quarter or an increase of 4.5% compared to last year. Victoria tops the charts as the State with the largest number of first home buyers, followed closely by Queensland.

Median rents increase slightly

Nationally, the June quarter saw an improvement in rental affordability. The proportion of family income required to meet median rents decreased by 0.6 percentage points to 24.3 per cent.

Across the nation

Victoria: Of the total number of Australian first home buyers that purchased during the June quarter, 6,648 were from Victoria. The number of loans to first home buyers in Victoria increased by 10.0%. In Victoria, first home buyers now make up 21.1% of the State’s owner-occupier market. Rental affordability improved for the quarter with a decrease of 0.7% of income required to meet median rents.

NSW: The proportion of family income required to meet loan repayments is 6.6% higher than the nation’s average. New South Wales remains the least affordable state or territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the June quarter, 18.2% were from New South Wales. First home buyers now make up only 13.0% of the State’s owner-occupier market – the lowest level across the nation. Rental affordability improved for the quarter with a decrease of 0.4 % of income required to meet median rents.

Queensland: The proportion of income required to meet home loan repayments increased to 27.2%, a 0.5 percentage point increase over the quarter. Of all Australian first home buyers over the quarter, 25.4% or 6003 were from Queensland while the proportion of first home buyers in the State’s owner-occupier market was 25.3%. Rental affordability improved slightly for the quarter with a decrease of 0.7% to 23.0% of income required to meet median rents.

South Australia: South Australia recorded a decline in housing affordability with the proportion of income required to meet monthly loan repayments increasing to 26.8%, an increase of 0.6 percentage points over the quarter but a decrease of 0.1 percentage points compared to the June quarter 2016. In the national breakdown, 5.8% of first home buyers were from South Australia while the proportion of first home buyers in the State’s owner-occupier market recorded an increase of 12.6%. Rental affordability improved by 0.7 percentage points.

Western Australia: The number of first home buyers in Western Australia increased by 16.0% over the quarter and by 3.8% compared to the same time last year. 17.5% of all Australian first home buyers were from Western Australia. Housing affordability declined with the proportion of income required to meet loan repayments increasing to 23.6% or 0.2 percentage points over the quarter but a decrease of 0.3 percentage points year on year.

Tasmania: Housing affordability in Tasmania declined with the proportion of income required to meet home loan repayments increasing to 23.9%, an increase of 0.3 percentage points over the quarter and an increase of 0.2 percentage points year on year. Rental affordability in Tasmania improved with the proportion of income required to meet median rents decreasing to 25.8%, a 0.8 percentage point drop over the quarter but an increase of 0.8 percentage points year on year. First home buyers in Tasmania decreased by 3.3% over the quarter and by 17.6% compared to the same quarter last year.

Australian Capital Territory: The number of loans to first home buyers in the Australian Capital Territory increased to 570, an increase of 49.6% over the quarter and an increase of 21.8% compared to the June quarter 2016. Housing affordability in the Australian Capital Territory improved with the proportion of income required to meet home loan repayments decreasing to 19.8%, a 0.3 percentage point drop over the quarter and a decrease of 0.7 percentage points compared to the same quarter last year. Rental affordability remained stable. The proportion of income required to meet the median rent remained at 17.9%.

Northern Territory:
Housing affordability in the Northern Territory improved with the proportion of income required to meet loan repayments decreasing to 20.3% in the June quarter or 0.8 percentage points. This was a decrease of 1.8 percentage points year on year. Rental affordability in the Northern Territory also improved with the proportion of income required to meet the median rent decreasing to 23.1% or 0.6 percentage points over the quarter or a decrease of 2.0 percentage points compared to the June quarter 2016.

The post Housing affordability declines – Better news for renters appeared first on AdviserVoice.