Virtual auctions is the new norm

“Notwithstanding the current support packages in place, standard responsible lending practices means that borrowers won’t be metaphorically cast out into the street post-September,” he said.  “Lenders are required to offer assistance to borrowers suffering from financial hardship any day of any week, even before the generous support currently being offered during the coronavirus crisis.” The buyer’s agent explained that it usually meant borrowers could apply for reduced repayments or interest-only loan terms for up to a further year. This means that in the short-term, as government support subsides, borrowers might struggle for a few months but would still be unlikely to be forced to sell. “Lenders have been compassionate with borrowers during the crisis, and that is likely to continue given the highly unusual financial circumstances at present,” Mr Ossitt said. “Also, there has been some indication that just because borrowers opted for a mortgage repayment pause, it didn’t mean they were financially struggling. “Rather, it seems that a significant proportion did so proactively to bolster their cash flow in case they experienced financial stress from the crisis.”  At the moment, the number of listings and buyers have fallen to the same degree, which has underpinned property prices,” Mr Ossitt said.  Read full article at: x Buyers warned against waiting for the dip Buyers have been warned that waiting for an impending market drop over the next three months could leave them disappointed. www.smartpropertyinvestment.com.au

A new COVID-19 Code of Conduct compendium aims to offer clarity to SME landlords and tenants experiencing financial hardship. “The compendium explains how the code is applied by each state and territory government and offers guidance for landlords and tenants in each jurisdiction to assist them in navigating these differences. The compendium will be updated as any remaining jurisdictions move to pass regulations dealing with the code,” a statement provided by Minters explained. “We believe landlords are genuinely trying to apply a spirit of good faith approach and look after their SME tenants, but they are challenged by complexities that arise due to the differences in how the various states and territories have separately legislated the code,” Ms Briggs said. While the code aims to balance the interests of landlords and tenants, Ms Briggs said each state and territory has been tasked to legislate as appropriate, creating uncertainty as regulations are applied in slightly different ways.  “The code allows for protections to apply during the pandemic period and recovery, but the recovery period has not been defined by the federal government, and the pandemic period and any recovery period has been inconsistently applied by the states/territories,” she said. In conclusion, MinterEllison hopes the compendium will assist landlords and tenants navigate their position “in the spirit in which the code was introduced”. “The pathway through uncertainty is mutual trust between the parties and a focus on good-faith principles,” said Ms Briggs. Source: x Clarity sought for commercial landlords and SME te... A new COVID-19 Code of Conduct compendium aims to offer clarity to SME landlords and tenants experiencing financial hardship. www.smartpropertyinvestment.com.au

As predicted, the Reserve Bank of Australia decided to hold the official cash rate at a record low of 0.25% at its June meeting on Tuesday. In a statement, RBA governor, Philip Lowe, said “the global economy is experiencing a severe downturn as countries seek to contain the coronavirus." “For its part, the RBA will maintain its expansionary settings until progress is being made towards full employment and we are confident that inflation will be sustainably within the 2–3 per cent target band. The Central Bank’s decision to hold the official cash rate comes despite other global markets adopting negative rates in the aftermath of the COVID-19 crisis including Sweden, Denmark, Europe (ECB), Switzerland and Japan. “The RBA appears to now be firmly focused on imploring the Federal Government to provide additional fiscal stimulus to aid the recovery.” It’s a good time for mortgage holders to plan their own recovery It’s clear Australia is at the start of a long road to recovery, which mortgage holders should take advantage of to get ahead of their finances, said Sam Boer, chief executive of Smartline mortgage brokers.  “Now is a great time for consumers to get their own economic recovery plan into place and it starts by reviewing your mortgage and speaking with your personal mortgage adviser about all the low rate offers and incentives that are currently available,” Mr Boer said. SOURCE: x RBA Holds Cash Rate As Attention Turns To Virus Re... As predicted, the Reserve Bank of Australia decided to hold the official cash rate at a record low of 0.25% at its June meeting on Tuesday. www.realestate.com.au

Stamp duty would be gradually replaced by an annual land tax and home buyers could "opt in" to a new property system or receive a credit for past duties, under reform options for the NSW and Victorian governments. Former Telstra boss David Thodey is due to deliver his Federal Financial Relations report to NSW Treasurer Dominic Perrottet this week. The need for tax reform and abolishing stamp duty, which discourages people from moving closer to jobs and is a barrier to home ownership. Read full article at: x www.afr.com

New-home buyers could be given a $50,000 handout under a proposal by the Property Council of Australia. The Property Council’s plan Buyers of newly built homes would get a $50,000 ‘New Home Boost’ from the federal government; Broad-based tax reforms including the axing of state Stamp Duty taxes; The GST widened in the medium term to include fresh food, health, and education; And a “Welcome to Australia” immigration campaign to drive growth Graham Wolfe from Housing Industry Association says it’s a “very important” move. “We are at a very, very critical stage right now,” he said. Taxes and charges currently account for up to 50 per cent of a new home’s cost. New home sales have also fallen 23 per cent since the lockdown began. On top of that, a third of current projects have been cancelled. Get full info at: x CASH INJECTION: Homebuyers could be given $50,000 ... Buyers would also get big savings on taxes, which can account for up to 50 per cent of a new home’s cost. 7news.com.au

Treasurer Josh Frydenberg is preparing to unveil a mammoth new homebuyers scheme that will be available for all Australians – not just first-time buyers. “This will be across the board – not just for first homebuyers – as the government looks to prevent a 30 to 50 per cent drop in residential construction,” Clennell said on Sky News. The government fears a collapse in residential construction activity will damage housing supply and put pressure on affordability in the mid- to long-term. Construction is also a major pillar of the national economy, with economists warning it’s set to take a massive hit due to COVID-19. “We said we've got an open mind on grants and as recently as yesterday we put an idea on the table to lift the cap on the loan deposit scheme to try and incentivise new builds as well,” Dr Chalmers added. Source: x The government will this week unveil new homebuyer... The next phase of government stimulus designed to revive the economy in the wake of the coronavirus crisis will focus on housing construction, it’s been reported. www.news.com.au