Trending Financial News 23 September 2019

What is a ‘community bank?’

Bendigo and Adelaide Bank has lost its exclusive right to brand itself as a community bank following a ruling in the Federal Court on Friday. Sydney’s Community First Credit Union has won the right to brand itself Community First Bank.

Justice Markovic said: “The words ‘community’ and ‘bank’ convey the meaning of the provision of financial services to a group of people brought together by a common feature, for example geography, occupation or workplace.”

Bendigo bank has previously objected to other credit unions and banks using the word community. G&C Mutual Bank (formerly SGE Credit Union) attempted to register “Australian Community Bank” in 2014.

Are contestants walking off from The Block?

A rumoured walk-off from reality TV program The Block has been averted this week but tensions are still running high. Compere Scott Cam told contestants on Sunday night that they would not be receiving extra funding for their renovation projects, as requested.

“I told you in week one you did not have enough money to finish these houses,” said Scott Cam last night.

“That is the game you are playing. This is the hardest Block ever.

Each couple was given a budget of $250,000. Some couples have as little as $30,000 left with six weeks of the program still to run.

SocietyOne gears up for growth in lending

SocietyOne says there is a low rate of arrears on its loans with about 1.1 per cent of loans over 90 late past due. The second year of a personal loan is when many borrowers get in trouble with their repayments, SocietyOne chief executive Mark Jones told The Australian.

Peer to peer personal loan provider SocietyOne is readying for more growth by launching a managed fund to attract new investors. SocietyOne has loaned over $700 million since opening seven years ago.

Sydney rents falling

The median weekly rent on a house in Sydney has fallen 4.5 per cent over the last 12 months to $676 per week. In Melbourne, the median rent has been steady at about $524.70. Brisbane’s median house rent is up 3.5 per cent over the year to $466.20. In Perth rents have risen $440.40 over 12 months according to SQM Research. SQM’s Louis Christopher said an exodus of renters from Sydney was pushing up prices in Brisbane.

Adelaide median house rent is now $399.40. In Hobart the median rent is $442.90.

Auction season heating up

There were just under 2000 capital city homes taken to auction on Saturday 21 September 2019, up 21 per cent over the week reported CoreLogic.

“Higher volumes returned a preliminary auction clearance rate of 74 per cent, increasing on last week’s final result of 72.8 per cent.

“Volumes remain lower than one year ago; over the same week last year around 400 more properties were taken to auction, although almost half of these failed to sell.”

“The last five weeks has seen houses consistently outperformed units in terms of clearance rate with 74.9 per cent of houses selling at auction this week, while across the unit market a lower 71.2 per cent preliminary clearance rate was recorded.”