Australian housing

Credit Availability IS Australia’s House Prices

Steve Johnson

I have a friend who is mildly wealthy but not gainfully employed. He has been a customer of the same bank for the past 40 years. Like me, he doesn’t own a house. Unlike me, he has been thinking about it. Show More

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The Budget Dust Settles

Clime Asset Management

A week after the fanfare of the 2018/19 Budget, we can soberly review some of the information and data that supports its projections. In the body of the Budget papers are a wealth of tables and charts that contain important observations and insights into the Australian economy. We scan through... Show More

3 immediate implications of tighter lending standards

Pete Wargent

In our latest 50-page report for funds and institutional investors, Chemical Change, we’ve conducted a detailed consideration of shifts in mortgage lending standards, and the likely outcomes from these changes. Highlighted below are three immediate implications. Show More

4 reasons why rates will be on hold into 2020

Shane Oliver

While the global economy is seeing its fastest growth in years and the US Federal Reserve has increased rates five times since December 2015 and is on track for more hikes this year, the Reserve Bank of Australia (RBA) has now left interest rates on hold for a record 21... Show More

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Falling Sydney & Melbourne home prices – is this the crash?

Shane Oliver

Australian capital city home prices fell 0.2% in March, their fifth monthly fall in a row. This has brought annual growth down to 0.8% from 11.4% in May last year. Most of the recent weakness relates to Sydney and to a less extent Melbourne. Show More

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Falling house prices and other problems

Elizabeth Moran

FIIG Securities guest contributor, Stephen Koukoulas says for more than two years, the annual underlying inflation rate has been between 1.6 and 1.9 per cent, locked below the RBA 2 to 3 per cent target. Here he talks about what this means, and takes a look at the data on... Show More

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Australian’s love affair with debt – how big is the risk?

Shane Oliver

If Australia has an Achille’s heal it’s the high and still rising level of household debt that has gone hand in hand with the surge in house prices relative to incomes. Whereas several comparable countries have seen their household debt to income ratios pull back a bit since the Global... Show More

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The outlook for Australian house prices

Chris Rands

Over the past 15 years Australian house prices have been on an incredible run, resulting in Australian households becoming some of the most indebted in the world. So what is the economic cost of Australia’s sky high property prices and what could it mean for property prices in 2018? Show More

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Can Australian homeowners handle higher rates?

Livewire Exclusive

The average variable home loan rate in Australia has fallen from 8.3% to 5.1% in the past ten years, enabling households to borrow more and drive house prices higher. Despite higher levels of household debt, Australians’ level of mortgage stress is quite low. But what if interest rates go up?... Show More

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Outlook 2018: A mixed bag for residential housing

Pete Wargent

We should expect to see variations around the country for residential housing in 2018. For example, the Hobart market is extremely tight and there will be ongoing price gains there, and some peri-urban regional markets in New South Wales & Victoria are tracking well. Overall, though, access to credit is... Show More

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Burning down the house

Brett Gillespie

In 1989, I was hired by Bankers Trust as a graduate to work at the Sydney Futures Exchange. I pulled on the colourful jacket and went into the “pits”. It was heady and exciting times, and opportunities presented quickly. Within 6 months, I was trading the biggest book on the... Show More

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Will Australian House Prices Crash?

Shane Oliver

A common narrative on the Australian housing market is that it’s in a giant speculative bubble propelled by tax breaks, low interest rates and “liar loans” that have led to massive mortgage stress and that it’s all about to go bust, bringing down the banks and the economy with it.... Show More

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Australian home size hits 20-year low

CommSec

¾ The average floor size of an Australian home (houses and apartments) has fallen to a 20-year low. Data commissioned by CommSec from the Australian Bureau of Statistics, shows the average new home is 189.8 square metres, down 2.7 per cent over the past year and the smallest since 1997. Show More

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CEO Insights from Ian Narev, John Borghetti and Nick Scali

NAOS Asset Management

“It’s in their [The Telco’s] interest to just flick people to the low speed plans as the lower access charge makes a higher margin for them” Nicholas Demos, CEO, MyRepublic. Below are quotes from the week which in our view detail some of the most important and prominent industry trends... Show More

A better bet than Aussie housing

Nathan Bell

Investing in Australian residential property has been nothing short of a goldmine in recent years. Charlie Munger, Warren Buffett’s business partner, would call it a lollapalooza effect, where several forces, such as low interest rates, the rapid development of the Chinese economy and an influx of foreign buyers, have culminated... Show More