This is an edited version of a live discussion about the findings from our surveys and models as we look at the latest in mortgage, rental, investor and overall financial stress across Australia. We will have our post code engine online so you can suggest specific post codes to examine.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
https://digitalfinanceanalytics.com/blog/dfa-one-to-one/ for our One to One Service.
Please consider supporting our work via Patreon: https://www.patreon.com/DigitalFinanceAnalytics
In this show we look at a recent NSW survey on financial stress, discuss the RBA Governor’s recent comments about people having to sell their homes, and lay the foundation for our upcoming Tuesday live show (8pm Sydney) by looking at the latest from our surveys and modelling. The point to make is, there are important definitional and analytic differences, which the MSM gloss over, but which makes a huge difference to the true story about households financial status.
And mark you diary for for my live show where you can ask for a specific post code data point and ask a question live.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Those following the DFA channel will know we have been tracking the rise of mortgage stress in recent times, as the higher interest rates and prices bite while real incomes stalled. I have been listing some of those post codes, like Liverpool in Sydney or DonnyBrook in Melbourrne, where we have been measuring cash flow pressures on households building.
Of course, the banks have been extending and pretending, offering households the chance to extend the term of their loan, or go interest only for a period. Initially people who were over committed reached for this lifeline, but as the recent ASIC report said, this often just put off taking hard decisions about selling up while you can. Many households are making this call now, and I expect property listings to rise in the months ahead as a result.
However, up to now the number of mortgagee sales has been very low, first because of the extend and pretend strategy, second because some households do decide to sell before they are forced to and thanks to recent price rises get to replay the bank and move on. But eventually the mortgagee sales worm will turn, as interest rates stay higher for longer and as lenders, especially from the Non-Bank sector get tough.
But now we are seeing this discussed in the press, with Realestate.com.au reporting Millions of dollars worth of Aussie homes have been seized for mortgagee sales from McMansions to townhouses and inner city apartments as data shows 100 suburbs in trouble.
However, I think more accountability should be taken by the RBA for its poor monetary policy decisions, the government for pumping migration and lenders for lending way too much and the industry for frankly telling porkies. But at the end of the day, it is individual households who are caught in the vice, and are having to make hard decisions about their financial futures.
We will be releasing the next edition of our stress analysis in a few days, look out for that, but already I can see that the tax cuts and Government handouts are only providing limited short-term relief for some, so I effect more defaults in the months ahead.
I hate to be proved right on this, but I think I will be!
This is the final party of my July Financial Pressure analysis, where we answer specific questions from our audience.
First part here: https://youtu.be/eRM8alMOi4g Second part here: https://youtu.be/sCW1_91LDQo
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
In a follow-up to my recent post about the impact of financial stress on households (after the recent Government largesse), today we do a deep dive into the mapping of mortgage, rental, investor and overall financial stress, together with the latest data on defaults and investor returns for Australian post code. We centre our analysis on the main unban areas across the country.
My earlier show on stress is here: https://youtu.be/eRM8alMOi4g which includes my ideas about how to respond to financial pressures.
I plan to make a third show about specific post code analysis, so if you want data on a specific code, drop it in the comments below over the next few days.
Details of my one to one service are here: https://digitalfinanceanalytics.com/blog/dfa-one-to-one/
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
Today we look at the real impact of the recent Government support initiatives for households, as we update our models to the end of July, and adjust the tax bands, income changes, extra cost of living support and other initiates from both state and federal governments.
Actually, while there were some improvements, not all households benefitted equally, so we look at the data at a state, segment and post code level, to see who befitted the most.
On Tuesday 13th August we will run a live show on this topic and do an even deeper post code dive.
When I landed in Australia in 1995, I was immediately struck by the concept of a “fair-go” being right at the heart of the Australian psyche. But more recently it appeared to me that this was becoming something of a myth, as inequality and poverty started to expand and impinge on people who previously were able to get on, buy and house, and enjoy the Australian dream.
The Productivity Commission just released a research paper titled “Fairly equal? Economic mobility in Australia” and make the point that Inequality is a serious concern when people at the bottom of the income distribution cannot meet their basic needs or where they experience the stress of economic insecurity. And inequality is a serious concern when it limits people’s future opportunities. The countries with the highest inequality are also the countries with the lowest intergenerational mobility, with children from poor families more likely to be poor themselves.
The truth is the fair-go ideal is dissipating, and people are becoming less mobile economically speaking. Those with wealth in the family will enjoy the benefits, but a larger proportion of people are stuck in a poverty rut, and have few ways to escape. Bye-Bye Fair Go Australia.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
This is the second post relating to our household stress analysis for June 2024, in which we answer specific viewer requests for deep dive analysis at a post code level. Specifically we covered:
We update our modelling to the end of June 2024, examining the latest in mortgage, rental, investment and financial stress across Australia.
While the upcoming tax cuts and energy support may assist, the truth is about half of households are under sever pressure, and with rates expected to be higher for longer, its time for people to consider tactics to improv their cash flow.
You can subscribe to the DFA data set via Patreon, https://www.patreon.com/DigitalFinanceAnalytics
You can find out more about our One to One service here: https://digitalfinanceanalytics.com/blog/dfa-one-to-one/
If you want me to include a specific post code in one of my future shows, put the details in the comments and I will try to include it.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Struggling homeowners are increasingly hitting the pricey reset button on their loans in the hope of dragging down their monthly repayments. It’s adding years to the length of their loans and potentially hundreds of thousands of dollars in interest costs.
A recent Finder.com.au survey revealed one in eight mortgage holders polled revealed they had extended their home loan to lower their repayments over the last year.
In a trend described as “borrowers stuck in mortgage quicksand”, about half of those who had extended their loans had added more than five years to the life of the debt.
This would result in much higher interest costs over the lifetime of the loan, despite cheaper monthly repayment bills in the short-term, Finder revealed.
“Even a small increase in the length of a loan term can add up to big differences in interest over the life of a home loan.”
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
