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State Bank of India hikes Interest Rates on Home Loans
Home loans from public sector State Bank of India would be dearer as the lender has decided to hike interest rates by 50 basis points on all credit linked to prime lending rates. Raising the interest rate by 0.5 per cent on all loans such as flats or home loans and auto loans which are linked to PLR. The revision in PLR came after SBI raised its PLR from 12.25 per cent to 12.75 per cent last week following Reserve Bank’s increasing its key short-term lending rate to banks and the mandatory cash deposits that banks need to keep with the apex bank (CRR) by 0.5 per cent each. Referring to the impact on bank’s profit margins. SBI had earlier announced to hike interest rate on fixed deposit rates by up to 75 basis points effective from June 30. State Bank of India in which government has about 60 per cent stake is targeting 40 per cent growth in non-interest income in 2008-09, compared to 28 per cent last fiscal. The bank had lowered its PLR twice in February to 12.25 per cent but decided to raise by 50 basis points last week.
Cheerio guys!
Spanish house price inflation outpaces other countries
The rate of growth in the Spanish property market is continuing to outpace many other European countries, according to a new report.
Although price inflation was slowing down across much of the continent, prices in Spain continued to grow at a strong rate.
Figures showed that during the last year, the price of property in Spain increased by five per cent.
This rate of house price inflation is much higher than in many other European countries, suggesting that overseas investors hoping for capital appreciation could still profit from the Spanish market.
During the same period, prices in the Republic of Ireland rose by just 0.9 per cent.
In addition, there was also a fall in the flats average price increases in Denmark, Switzerland, the Netherlands and France.
The study concurs with recent research by Halifax, which found that growth in the Spanish property market had outpaced other countries in the eurozone since 2002.
Cheers buddies! Keep it going!
Malaga is chosen by Britons
Higher than average property prices are not deterring Britons from investing in Malaga, according to experts.
Although prices were typically more than a quarter above the national average, the Spanish province remained popular with British investors.
The average price of property in the region was £210,997 - 26 per cent above the national average of £168,112.
However, other regions were said to still offer potential flats bargains to overseas investors, such as Cordoba, Albacete and Jaen.
The site stated that although the population had doubled in the last ten years, the island still had average property values of £155,860.
According to NatWest International, the good climate and close proximity of Spain to Britain are two of the main reasons for the country's popularity among investors and holidaymakers.
Cheers!
Spanish airports set for expansion
Two major airports in Spain are set to be expanded, potentially boosting the country's property market and tourist industry.
The Spanish government has approved plans to extend the operating hours at San Javier Airport in Murcia, as well as the use of another runway.
However, flats in the immediate area will have to be soundproofed before the work is completed in order to reduce the noise for people living nearby.
Meanwhile, a new runway is set to be built at Malaga Airport, which is already having a new terminal building constructed.
The runway is set to be completed within two years, prompting experts at Homes Worldwide to predict that Malaga could be an investment hotspot in 2010.
Cheers mates!
Posco gets clearance for billion dollar steel plant
Posco, Asia’s top steel producer got clearance from India’s top court on Friday for a $12 billion plant in Orissa. The plant to be built by Posco, in the resource-rich eastern coastal state of Orissa would be the biggest foreign direct investment in India since it launched market reforms in 1991.
The case was seen as controversial as it pitted farmers’ interests against growing industrial development. The plant, which aims to create 18,000 jobs in a poverty-ridden part of the country over the next decade, had stirred violent protests by farmers objecting to loss of their land.
We are deeply connected with the mountain… our sacred place. It is home to our god Niyamraja. The ruling has no bearing on our struggle. We’ll continue our fight against Posco. We’ll never give up our land, said Abhoy Sahu, head of the group spearheading the protests against the steel project. London-based Survival International director Stephen Corry called the ruling a devastating blow to all of India’s tribal peoples.
The government has been keen to draw foreign and domestic investment to create job-generating industries. But the shift from agriculture has stirred big debates and often violent local opposition as many projects encroach on farm or tribal land. This case was seen as an important test of tribal and environmental rights against industrialization.
Remember mates, flats 4 fun!
The Australian mortgage monster
The combination of the highest relative property values in the world with the highest official interest rates naturally produce high home loan repayments.
Just how high and how painful is now becoming more than obvious. Anecdotal reports of rising repossessions and a huge increase in forced sales are now spreading from so-called blue collar suburbs to properties in the $1 million to $5 million valuation range.
Mortgage stress is spreading across all cities, suburbs and demographics.
Overgeared families are obviously the most vulnerable but wealthier Australians are now being caught as they liquidate assets to meet margin calls on highly leveraged share portfolios caught in the equities downturn.
The latest research from Fujitsu Consulting claims more than 900,000 Australians will suffer mortgage stress by September, 400,000 of those will be in severe stress and 80,000 could lose their flats because they can't meet the loan repayments.
Severe stress is defined as being unable to meet repayments without refinancing, with many having to put repayments on their credit card.
They are sobering figures. Yet probably the scariest finding from the Fujitsu report is that once someone is in severe stress there is a 20 per cent chance of being forced to sell the property and there is only a 50 per cent chance of getting out of mortgage stress altogether.
Cheeeeeers!
1 in 4 Brits want Spanish property
Spain is still one of the most popular overseas property markets among Britons, a new poll has found.
14 per cent of those who were thinking of buying a second home abroad had considered the Spanish market.
Meanwhile, more than a quarter of those who already had a second property abroad were found to own a home in Spain.
Most of these were bought for investment purposes, although the study showed that some were using it as part of their retirement plan.
Most buyers have a simple desire to enjoy spending time in holiday flats in a country that offers an excellent climate and attractive lifestyle.
The Costa Blanca and the Costa del Sol are the two most popular parts of Spain with British buyers.
Cheers Brits!