I discuss the announced housing policies from the two major parties with Steve Mickenbecker from Canstar. Are they worth the paper they are written on?
Steve Mickenbecker is in Canstar’s Group Executive Team, bringing more than 30 years of experience in the Australian financial services industry. As a financial commentator for Canstar, Steve enjoys sharing his expertise across topics such as home loans, superannuation, insurance, mortgages, banking, credit cards, investment, budgeting, money management and more.
The fact is the RBA has been off the pace in terms of forecasts, and strategy, and as a result they are not lifting rates into a slowing economy to try to tackle inflation which they partly created.
In addition, the latest Statement on Monetary Policy shows real wages are set to decline over the next couple of years, while overall growth will decline, despite a (artificially) low unemployment rate.
Time for a proper review of the RBA – how do we make the Governor and his team more accountable. Being embarrassed is not enough!
Go to the Walk The World Universe at https://walktheworld.com.au/
I caught up with Peter Marshall from comparison site Mozo.
He has been working in the Australian banking and finance industry for over 20 years and oversees Mozo’s extensive product database. He is regularly sought out for his expert commentary and analysis on banking and interest rates trends by print, radio and TV media.
Today we discuss the prospect of higher mortgage rates ahead and what people can do to prepare.
The latest analysis of the financial aggregates data from the RBA and APRA to end March 2022. We also look at the latest price trend data. Looks like things are slipping.
Go to the Walk The World Universe at https://walktheworld.com.au/
In this week’s market review we look at the action around the world, starting in the US, Europe Asia and Australia, and looking at Gold, Oil and Crypto in passing.
The news is not good, for those believing in a return to Bull markets, supported by a Fed Put. Actually, with inflation running hard, Central Banks will lift rates, and as yet markets are not fully pricing the risks of this change. Why would they, as there are many who profit from transaction, any transactions, so of course they are talking their book. Hope that the Fed can lift rates to counter persistently high inflation without tipping the US economy into a recession are fading, further fraying market sentiment.
CONTENTS
0:00 Start 00:15 Introduction 1:00 Earning Season 1:50 Sentiment Surveys 2:54 US Growth and PCE 5:57 US Markets 9:20 Monetary Policy 12:50 Oil 13:15 Gold 16:10 Silver 18:20 UK Home Values 21:08 Europe 22:27 Asia 25:35 Australia 28:25 Crypto 30:29 Conclusion And Close
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Those following my channel will know of the modelling which shows the strong link between credit availability and home prices. We know that when credit is tight, and the rate of change in credit is negative, home prices fall. And we are seeing this in spades now in New Zealand.
So today I want to explore some markers in New Zealand, and why property will fall further and faster.
Go to the Walk The World Universe at https://walktheworld.com.au/
The rental situation is getting worse across the country driven by the pandemic-induced shrinkage in average household size as people demanded more space. This has effectively reduced the number of homes available to rent.
Plus many investors are lifting rentals to try to turn unprofitable investments positive (especially as capital gains on many apartments remains a pipe-dream).
CoreLogic reported that rents across Australia continue to explode, surging by 8.7% nationally and by 10.7% across the combined regions in the year to March 2022.
With rental growth (2.6%) outperforming value growth (2.4%) over the three months to March, national dwelling yields have recorded a one basis point rise since December (3.22%) and two basis points since reaching a new record low of 3.21% in January and February. Despite the recent rise, national rental yields are still 32 basis points below the yield recorded this time last year (3.55%).
But BTR is another fake ‘affordability’ policy as a new report in The AFR suggests recent Australian BTR projects charging a 20% premium on traditional rentals.
Its frankly a mess, with long standing consequences for households across the country. Its shameful.
Go to the Walk The World Universe at https://walktheworld.com.au/
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Edwin visited me in the DFA studio today for our weekly property chat. We discussed the political ball game around property, news from China about migration to Australia, and how to react to the latest market information.
Is there a path to higher home prices ahead?
Go to the Walk The World Universe at https://walktheworld.com.au/
