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Buy a house in Brisbane using bitcoins?

Digital dollars  ‘bitcoins’ can be used to buy just about anything – even houses, it seems.

Brisbane Investor,Bitcoins, Bitcoin Property purchase, Real Estate Brisbane, Mortgage Broker Brisbane, Brisbane property market, housing sales, Housing market

The bitcoin has gained a foothold in one of the hottest business sectors in the world: Manhattan real estate. But are we ready to accept bitcoins as payment for property in Brisbane?

Bond New York, a Manhattan-based real estate broker, has started accepting the digital currency for real estate transactions, the New York Post reports .

Bond New York believes it is one of the first real estate brokerage firms in the US to accept bitcoin.

“Real estate brokerage is a service industry,” said Noah Freedman, a co-founder of Bond New York.

“Our job is to make real estate transactions easy for our customers. Bitcoins are just another mechanism to help people facilitate transactions.”

Several larger real estate brokers are not sold on the idea and have no plans to set up bitcoin accounts any time soon.

“We don’t accept them, and we have no plans to accept them,” Pam Liebman, CEO of the Corcoran Group, said Friday. “We prefer the American dollar.”

“Bitcoins could be here today and gone tomorrow,” Ms Liebman explained.

“How do you trade them? What happens if people decide not to accept them anymore?”

Howard Lorber, President and CEO of Vector Group and chairman of Douglas Elliman, a Vector subsidiary that is the largest real estate brokerage in the New York area, agreed.

“We’ve never had anyone ask to use them, and we wouldn’t accept them,” Mr Lorber said.

While bitcoins trade on a few small exchanges, Mr Lorber said that one of the main problems is that there is no government “to step in and take care of problems” when they arise.

BITCOINS AS PAYMENT FOR AUSSIE HOMES?

Last month a Perth Hills home was listed for $1.4 million requesting bitcoin payment only. The sale would make the property the first in Australia to be sold for digital dollars.

But even bitcoin enthusiasts are shocked by the offer, as the value of the currency fluctuates wildly.

The price of a single unit, which can be traded in online exchanges or “mined” through powerful computers that crack complex algorithms, has surged tenfold since the start of the year, hitting a high of more than $1000 late last year before falling heavily.

Bret Treasure of the Australian Web Industry Association and a board member of Bitcoin Australia, believes it’s the first bitcoin house sale in Australia.

“The seller obviously believes the value is going to appreciate because to mine that much bitcoin you would need a bloody supercomputer,” he said.

Mr Treasure’s son, Leo, 28, last year took out a $20,000 loan to buy bitcoins.

He now owns “a bit over 1000” bitcoins, worth about $750,000.

He is also importing Australia’s first bitcoin kiosks, which will allow people to exchange cash for bitcoin.

UWA Winthrop Professor of Economics Ken Clements said the bitcoin’s long-term viability would be determined by its rate of inflation.

“It’s uncertain what their supply is going to be in the future, so it’s uncertain what their value is going to be,” he said.

WHAT IS BITCOIN?

Bitcoin is a decentralised digital currency launched in 2009 by a programmer who goes under the pseudonym Satoshi Nakamoto. It can be exchanged through a peer-to-peer network without the need for a financial institution.

WHO ISSUES BITCOINS?

Bitcoins are not issued from a central bank in the same way as dollars are printed. Instead, the currency is awarded to users of Bitcoin software, known as miners. The miners use computers to perform complex calculations which are needed to confirm Bitcoin transactions.

HOW DO YOU BUY BITCOINS?

Bitcoins can be bought from currency exchanges for those who don’t have computer hardware to mine for the currency. These exchanges allow users to buy and sell bitcoins for other real world currencies.

WHAT ARE THEY WORTH?

Fuelled by speculators, the value of Bitcoin fluctuates wildly. In late November the price surged to more than $1000 (AUS) per Bitcoin, more than 10 times its value at the start of the year. As of Friday, a single Bitcoin cost about $750.

WHERE CAN YOU SPEND THEM?

Bitcoin can be used for private transactions between users, but many businesses are also adopting the currency.

 

Original article published at www.news.com.au  by Jennifer Gould Keil, News Limited Network 7/1/2014

Finance

Investors Lead Home Loan Rush

Home Loan

Property investor lending in January has risen by 10.5 per cent, lifting the overall value of home loans to $28.7 billion in the month—an increase of 43 per cent on 2020.

The surge in the latest Australian Bureau of Statistics figures occurred across all states and territories, with the exception of the Northern Territory, to be 44.3 per cent higher year on year, the largest annual growth on record since 2003.

Owner-occupier lending for homes rose 10.9 per cent in January, 52.3 per cent higher than in January 2020, with first home buyers increasing by 9.6 per cent to be at the highest level since May 2009, mirroring the similar uptake following the global financial crisis and the introduction of the first home-owner grant.

Investor lending for housing lifted by 9.4 per cent, capping a 22.7 per cent rise across the last twelve months and revealing a renewed appetite in new loan applications.

The lift marks the the largest rise in new loan commitments for investor housing since September 2016.

The number of first home buyer loan commitments for investment purposes accounted for 4.4 per cent of all first home buyer commitments.

The HomeBuilder program, which offers grants of $25,000 to help construct or renovate a property, is also contributing to an increasingly febrile market.

 Home Loan

▲ The value of loans for alterations and additions in the three month to January 2021 is 40.8 per cent higher than the same time the previous year.

“Since the HomeBuilder grant was introduced in June 2020, there have been record rises in the value of construction loan commitments,” ABS head of finance Katherine Keenan said.

“Loan applications made late in 2020—prior to the reduction of the HomeBuilder grant on 1 January 2021—contributed to the strong rise in January’s construction loan commitments of 15.7 per cent.”

The value of new loan commitments to owner occupiers rose 10.9 per cent, the largest monthly increase since August 2020.

Owner-occupier first home buyer loan commitments accounted for 36.5 per cent of all owner occupier commitments.

Despite 6.5 million Victorians being put through two lockdowns in the lead up to January, the value of new loan commitments to investors also rose 12.9 per cent in the state across the month.

ANZ economist Adelaide Timbrell said Victoria has continued to play catch-up after its lockdown, with its total new lending moving from 15.2 per cent year on year in December to 29.7 per cent year on year in January.

“Government support is adding to the momentum of housing lending, with stamp duty concessions in Victoria, the first home owner deposit scheme and other first home owner concessions all reducing the initial cost of home purchases.

“Low rates—including an outlook of continued low borrowing costs—are fuelling the housing market more than other parts of the economy,” Timbrell said.

Loans to owner-occupiers for the construction of a new dwelling in the three months to January 2021 compared to the same time last year has tripled in Western Australia, up 221.7 per cent and more than doubled in Queensland to 164.9 per cent.

The Northern Territory recorded a 160.3 per cent boost while Tasmania and Victoria also recorded spikes of around 100 per cent.

HIA economist Angela Lillicrap said investors were now returning but remained more active in the market for established dwellings.

“The value of lending to investors increased by 17.6 per cent in the three months to January 2021 from the previous quarter.

“Low interest rates, rising house prices, higher savings and a demographic shift in demand towards detached housing and regional areas should ensure ongoing demand,” Lillicrap said.

National house prices grew slightly by 0.9 per cent in January to surpassed pre-Covid levels by 1 per cent, and be 0.7 per cent higher than the previous September 2017 peak.

 

Article Source: theurbandeveloper.com

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Finance

2020 saw 6,777 interest rate cuts across Australia’s home loan institutions

From 1 January to 31 December there were 6,777 cuts to home loans, with an average cut of -0.30%, according to Canstar’s database.

It recorded:

  • 880 cuts to variable rates for owner occupiers, with an average cut of -0.21%
  • 2,455 cuts to fixed rates for owner occupiers, with an average cut of -0.33%
  • 764 cuts to variable rates for investors, with an average cut of -0.21%
  • 2,678 cuts to fixed rates for investors, with an average cut of -0.32%

Over the same period there were 535 home loan rate increases, with an average increase of 0.20%.

On 1st January 2020 the average variable rate for owner occupiers paying principal and interest was 3.73% (80% LVR). Today that rate is 3.32% The lowest variable rate was 2.69% and it is now 1.99% (80% LVR) or 1.77% (60% LVR).

On the 1st January 2020 the average 3-year fixed rate for owner occupiers paying principal and interest was 3.15%. Today the average 3-year fixed rate is 2.30%. The lowest 3-year fixed rate was 2.69% and it is now 1.89%.

Australia's home loan institutions

Savings interest rates

From 1 January to 31 December Canstar recorded:

  • 529 cuts to savings, with an average cut of -0.18%
  • 262 cuts to regular savings accounts, with an average cut of -0.19%
  • 267 cuts to bonus savings accounts, with an average cut of -0.17%

On 1st January 2020 the average regular savings account rate was 1.12%. Today that rate is 0.43%. The maximum rate was 2.65% and it is now 1.75% (available for 4-months).

On 1st January 2020 the average bonus savings account rate was 1.47%, now just 0.75%. The maximum rate was 2.25% and it is now 1.35%.

 

Article Source: www.urban.com.au

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Finance

Home-buyer confidence at an all-time high

Home-buyers

More than two-thirds of respondents in a recent survey believe that the conditions are right to purchase a home – a level of confidence not seen since the onset of the pandemic.

Finder’s latest consumer sentiment survey, which involved a nationally representative sample of more than 20,300 respondents, found that 67% of Australians feel that now is a suitable time get on the property ladder, up from 42% last April.

This marked the first time that home-buying optimism has reached this level since the financial comparison site started tracking the metric in May 2019.

Confidence was highest in Adelaide, where 77% of those polled thought now is the right time to buy a home. This was followed by Melbourne’s 70%, Brisbane’s 69%, Perth’s 67%, and Sydney’s 59%. Numbers were not available for Canberra, Darwin, and Hobart.

Those expecting house prices in their areas to “significantly increase” also hit an all-time high of 19%, climbing from just 5% in September last year.

Meanwhile, respondents who anticipate property values to “somewhat increase” rose to 44% from a low of 18% back in April.

Graham Cooke, insights manager at Finder, said that the recent spike home-buyer optimism was a good indication of economic recovery.

“This rebound in buyer confidence is indicative of increased economic activity over the past few months, along with an optimistic outlook for 2021,” he said. “Not only did the Australian government do a better job than most at restricting the spread of COVID-19, but federal and state economic support measures helped prop up the property market.”

Cooke said that property prices in every capital city, expect for Melbourne, have reached a higher level compared to the same time last year, adding that he expected “this trajectory to continue,” especially with 86% of economists in a separate Finders survey predicting a full recovery of national house values this year.

However, Cooke advised prospective buyers to carefully consider the pros and cons “before taking the plunge in the current market.”

“Low interest rates and government assistance packages like the First Home Loan Deposit Scheme put buyers in a strong position. The potential removal of stamp duty in NSW will be another boon for buyers and may spread to other states,” he said. “If you’re thinking about dipping your toe in the market this year, make sure you have a strong credit history, and shop around before signing up for a home loan.”

 

Article Source: www.brokernews.com.au

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