Its All Down Hill From Here: With Steve Mickenbecker

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/

Mortgage Stress Falls In January

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.

Australia’s Crypto Love Affair…

We discuss the latest Independent Reserve household survey on crypto, which highlights the momentum in Australia with the CEO, Adrian Przelozny.

CONTENTS

0:00 Start
1:42 Awareness
2:31 Adoption
4:20 State Variations
5:30 Age Distribution and Profit
7:30 Amount Invested
10:00 Trust And Confidence
11:15 Future Price Expectations
13:15 COVID Impact
14:20 Gender Divide
16:16 Superannuation and Crypto
18:45 Bitcoin V Ethereum
22:00 CDBC and Crypto
25:38 Close

Go to the Walk The World Universe at https://walktheworld.com.au/

FINAL REMINDER: DFA Live 8pm Tonight – Household Confidence and Yield Mapping

Join us tonight for a live Q&A as we walk though the latest data from our models, and explore financial confidence and property investor yield using our mapping tools.

We will also have our post code stress tool online to answer specific location queries…

The China Syndrome And Housing Prices With Tarric Brooker

Journalist Tarric Brooker and I have our Friday afternoon chat.

Contents
0:00 Start
0:32 Introduction
1:10 The China Factor
7:00 Iron Ore
10:00 Border Opening
12:35 Stimulus
15:30 Labor Positioning

22:30 Home Prices and the Election and K
29:14 Demand Drivers
32:10 First Time Buyers
35:00 Retiring With A Mortgage
39:30 Just Keep Paying The Mortgage
42:00 Economic Realities And Responsible Lending
42:45 Value Narrowed To Financial
46:00 Fear Factor
49:36 The Old New Normal
53:30 Ending

Go to the Walk The World Universe at https://walktheworld.com.au/

Household Financial Confidence On The Improve

We discuss the latest data from our household surveys.

CONTENTS
0:00 Start
0:31 Introduction
1:00 Overall Index
2:10 Property Segments
3:30 By States
4:20 By Age Bands
6:15 Wealth Segments
7:11 Job Security
7:56 Income
8:30 Costs Of Living
9:45 Savings
10:57 Debt
12:40 Net Worth
14:24 Other Indices
18:25 Conclusions
20:09 Outro

Go to the Walk The World Universe at https://walktheworld.com.au/

The Low Rate Syndrome With Steve Mickenbecker

Steve is Canstar’s Group Executive, Financial Services & Chief Commentator. He and I discuss the traps created by low rates, and what households need to consider in reaction to them.

https://www.canstar.com.au/team-members/steve-mickenbecker/

Go to the Walk The World Universe at https://walktheworld.com.au/