HSBC Winter Home Loans, th of July 2014

Summary of ABS Statistics -In trend terms, there are slight increases across the board in the total value of dwelling finance (0.4%); investment housing commitments (0.5%) and owner occupied housing commitments (0.4%). -There are also increases in the number of owner occupied housing finance (0.1%), construction of dwellings (1.1%) and purchase of established dwellings (0.1%). -Commitments for the purchase of new dwellings fell (-1.3%). -In original terms, first home buyer commitments (as a % of total owner occupied housing finance commitments) fell 0.3% in April (from 12.6%) compared to March. -To download the actual statistical report.statistical report For April 2014 HSBC Winter Home Loans 20142

More Australians being excluded from the housing market -A clear long term trend over the last 12 years has shown that a growing portion of Australian households (from 18 to 16 per cent) are being excluded from the housing market and do not own or intent to own their own home/an investment property.long term trend -A multitude of factors can be attributed to this development including the decline in the number of households intending to purchase, a decrease in the demand for credit, moment easing on house prices and the growth of rental dwellings. HSBC Winter Home Loans June 2014

First home buyers at record low -First home buyer loans have plunged to a record low (which was set last November); while investor loans have grown as first homers continue to lose ground to investors in Australia’s vexing property market.a record low -Part of the significant decrease has been in reaction to state governments scrapping the first home buyer grant for existing dwellings, thus pushing first homers into purchasing newly built homes. -The market is seen to be dominated by investors and upgraders/downsizers. The expectation is that the loan market will remain flat due to the reaction to the federal budget, and generally weaker consumer confidence levels. HSBC Winter Home Loans June 2014

Small banks rule customer satisfaction -A Roy Morgan consumer survey has found that consumer satisfaction with banks is at a record high of 82 per cent (Unchanged between April and May).Roy Morgan -Commonwealth bank and Nab recorded the highest scores with 82 per cent while National Australia Bank reached 80.7 per cent. -What is interesting is that all of the major 4 banks mortgage customers have lower satisfaction levels compared to their non- mortgage customers. -Even more interesting is the fact that almost all smaller banks have a rating higher than the rating of Commonwealth bank (some even getting up to 90%) and building societies rate even higher (up to 94.5%). HSBC Winter Home Loans June 2014

Chinese/Asian investors -Favored investment destinationFavored -Love sinking money into reliable assets like property, and Australia is only second the states as the most profitable place to invest. -Top 1% of the country, investment to bypass regulation in China -Long-term planning for retirement HSBC Winter Home Loans March 2014