The Bendigo hikes rates
BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.
The State Government has announced a grant of $50,000 to carry out the review.
The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.
Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.
“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.
“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”
Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.
“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,
“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.
“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”
Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.
“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.
“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”
Bendigo Weekly | Bendigo Weekly | 13-Feb-2012 Tell us what you think of the rate hike
THE Bendigo Bank has lifted its residential variable home loan interest rate by a whopping .15 per cent, higher than ANZ of Wesptac, a week before it unveils its interim profit announcement.
The ANZ and Westpac were chastised for lifting their rates .1 and .06 percentage points in the past few days.
In lifting the interest rate to 7.45 per cent, bank managing director Mike Hirst said current banking margins are not sustainable.
“This is not a popular move, we know that, but it is the right thing to do to restore a proper balance between depositors, borrowers, the bank’s shareholders and our community partners," he said.
"At current funding cost levels that balance is out."
Mr Hirst said independent assessments by UBS1 show that banks are making no money on new mortgages written in the current funding environment.
“It gives banks no incentive to freely lend to borrowers, as we are not covering the risks we’re taking or investment in operations and people we’re making,” he said.
“Banks are currently subsidising mortgages and if you look at the traditional role of a bank this makes no sense and is unsustainable.
“Banks were formed as a means to share wealth. Banks accept cash from people with surplus money (depositors) and lend to people who lack cash (borrowers), but who can add value to it once obtained by building a house or investing in a business and generating growth in the economy. It is critical that this flow of credit continues."
Mr Hirst said banks had a choice to make: adjust the pricing on loans or restrict lending.
He said the latter option would have significant implications for the economy and would not be the right thing to do at this point in time.
“Our bank must return to a pricing position which is sustainable. In doing that we must, of course, remain competitive while reflecting our unique value proposition," he said.
"This approach has always seen us win new business and meet the needs of customers in the communities in which we operate."
The bank will unveil its interim profit result on Monday at 10am.
Tell us what you think by commenting below.
BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.
The State Government has announced a grant of $50,000 to carry out the review.
The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.
Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.
“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.
“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”
Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.
“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,
“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.
“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”
Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.
“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.
“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”
as the effects of an initial change can take months to have an effect and modify behaviour.