Steve Mickenbecker is Canstar’s Group Executive, Financial Services & Chief Commentator. https://www.canstar.com.au/
With more than 30 years of experience in the Australian financial services industry Steve enjoys sharing his expertise across topics such as home loans, superannuation, insurance, mortgages, banking, credit cards, investment, budgeting, money management and more.
CONTENTS
0:00 Start 0:32 Introduction 1:22 Latest Household Surveys 5:15 Retail 6:30 Low Low Rates 16:28 Buy Now Pay Later – UK Report 23:00 Customer Protections 24:40 Financial Education – The Spending Problem 32:40 Conclusions
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest in my series of Friday afternoon discussions with journalist Tarric Brooker – who is @AvidCommentator on Twitter.
CONTENTS 0:00 Start 0:34 Introduction 1:20 RBA Statement 7:50 Removal of Stimulus 10:30 Regulation of Buy Now Pay Later 13:15 Retail Economy 15:59 Farming – No Pickers, Tourism, Job Mix 19:50 Silence from Labor 25:00 Election soon? 27:15 Biden And policy change 31:30 ScoMo and The Back Bench 35:00 Conclusion and Outtro
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest edition of our finance and property news digest with a distinctively Australian flavour.
CONTENTS 0:00 Start 0:34 Introduction 0:44 RBA On Property Prices 4:00 Retail Trade Figures 7:24 Home Ownership Pipe Dream 14:30 Over-reliance On Property 18:40 University Jobs Are Going 22:10 US Jobless Claims 26:30 UK Negative Rates And Bank Of England 29:20 Conclusions and Outtro
Go to the Walk The World Universe at https://walktheworld.com.au/
Economist John Adams and Analyst Martin North looks at the growing pool of debt as a result of Government and RBA policy. Given the high levels of household debt already in place, what are the implications?
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest results from our household surveys reveals that by the end of January 2021, overall levels of mortgage stress dropped below 40%, to 39.5% – still well above the level prior to the virus hitting.
This is a consequence of lower mortgage rates following the RBA cash rate cuts, liquidity support and quantitative easing, plus less impact from the virus on lock-downs and employment. That said, whilst many households have grown their savings buffers, a considerable number remain close to the edge, in cash-flow terms. More than 1.4 million mortgaged households remain under pressure
Across the states, mortgage stress fell significantly in VIC, but remains highest in TAS. Rental stress is still elevated, with NSW and ACT having the most significant issues, while property investor stress in also highest in ACT and NSW, thanks to falling returns from rents, and rising vacancy rates in some areas. As a result many property investors are considering selling into the autumn market rise.
Levels of stress vary across our household segments, with many living on the urban fringe in the high-growth corridors still under pressure. A considerable number of more affluent households, often holding multiple investment properties are also under pressure. Young Growing Families, which include many First Time Buyers remain stretched, with overall Financial Stress (an aggregate of mortgage, rental and investor stress) are the most stressed.
Looking at specific post codes – mortgage stress is highest (by count of households) in Narre Warren 3805, Cambelltown (2560) and Tapping/Wanneroo (6065). All high growth corridors.
Rental stress is highest in central Melbourne (3000), Cambelltown (2560) and Liverpool (2170). Much of the pressure is from high-rise occupants, as well as in the high growth corridors.
Property investor stress is highest in Surfers Paradise (4217) where tourism is well down, Central Melbourne (3000) and Northern Beaches (2099).
Finally, overall financial stress, our aggregate measure is highest in Cambelltown (2560), Liverpool (2170), Toowoomba (4350) and Central Melbourne (3000).
We discussed this data in detail on our live show last night.
We also updated our scenarios, reflecting the more positive economic news – though retain alternatives where the virus remains less contained. The path of the virus, and its control is clearly directly linked with economic performance and the trajectory of mortgage stress, and home prices ahead.
Join us tonight for our latest live show. You can ask a question via the YouTube Chat, as we examine the latest data, scenarios, and the RBA statement. We will also have our post code data base on line, plus our mapping software. Should be fun!
We discuss the current Senate inquiry into the proposed changes to responsible lending regulation. Submissions will close on the 3rd February, so its not too late to make a submission, to protect the rights of consumers.
