Check out most interesting articles of the week summarised by Michael Yardney over at Property Update here.
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While on the property theme, some good news for homeowners this month.
I've noted here previously how Reserve Bank research has shown the average mortgage buffer to be at remarkably high levels - the equivalent of two full years ahead on repayments, which was an extraordinary finding,
The reason for this is explained here, this phenomenon being largely due to some banks’ systems not automatically changing customer repayment amounts as interest rates have declined (and in many cases households have not actively sought to reduce their repayments).
Research this week from the Commonwealth Bank showed that some 75 percent of mortgage repayments schedules are in a prepayment position. From SBS:
"Low interest rates are helping put home owners ahead on their mortgage repayments, a Commonwealth Bank survey shows.
Home owners are racing ahead on their mortgage repayments thanks to lower interest rates, a survey shows.
Research by the Commonwealth Bank shows half of the lender's home loan customers plan to get ahead on their mortgages by keeping their repayments the same as they were before the latest round of interest rate cuts.
The survey of more than 1,000 home loan customers also found that nearly three quarters were already ahead on their repayments by an average of seven payments.
More than a fifth also plan to use the extra money to help pay off their credit cards and other personal debts.
Some lenders have cut standard variable home loan rates to less than five per cent following the Reserve Bank's surprise interest rate cut in February.
The RBA's cash rate is at a historic low of 2.25 per cent."
Lovely to see.