Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Join our live show tonight at 8pm (Sydney Time) as I discuss the latest property trends with Mortgage Broker and Elephant In The Room Podcast co-host Chris Bates, from wealthful.com.au.
We will be looking at the current trends, and consider the dynamics ahead, as rates and listings look set to rise. What are buyers and sellers thinking? And what of the recent Housing Affordability Report?
You can ask a question live via the YouTube chat feature.
My weekly chat with Edwin Almeida, in which we discuss the fallout from the floods, how China is pulling its horns in, what property prices are doing, and we are introduced to three cockerels which Edwin has adopted.
https://www.ribbonproperty.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
Those with long memories will recall the passage of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry which reported in 2019. The inquiry heard evidence from many individuals as well as from industry representatives, which highlighted egregious behaviour, misaligned incentives and outright deception. The final report made a number of recommendations, many of which have not been implemented, or have been severely diluted. The industry played the long game, and the Government has walked back and watered down most of the reforms. No wonder Justice Hayne refused to shake Treasurer Frydenberg’s hand in that infamous photo, even then the writing was on the wall.
One recommendation in the The final report for the Royal Commission was that “changes in brokers’ remuneration should be made over a period of two or three years, by first prohibiting lenders from paying trail commission to mortgage brokers in respect of new loans, then prohibiting lenders from paying other commissions to mortgage brokers”.
In its official response to the royal commission in 2019, the Labor Party had originally proposed banning trail commissions paid to mortgage brokers and capping upfront commissions at 1.1 per cent. However, both sides of the political spectrum have confirmed that they would not be looking to change broker remuneration, after Labor MP Stephen Jones told The Adviser last month that his party would not seek to change it.
Now, following a meeting with members of industry last week, assistant treasurer Michael Sukkar MP has revealed that the federal government will not proceed with the broker remuneration review this year, after acknowledging that the broker commission structure is not problematic.
While the Morrison government had initially said in its official response to the final report in 2019 that it would ban trail commission payments for new mortgages from 1 July 2020, the Treasurer Josh Frydenberg had suggested to Momentum Media that the role of upfront and trail commissions would instead be reviewed in the “back half” of the year. It is this review that has now been dropped.
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.
My Friday afternoon chat with Tarric Brooker got philosophical today as we pick apart the events of the week. A number of critical issues are in play which have some potential negative impacts.
Tarric is @AvidCommentator on Twitter. His slides are at https://t.co/v1IVtBzRua
Go to the Walk The World Universe at https://walktheworld.com.au/
More melding from the Government relating to housing, which is not aimed at tackling the real issue, but simply trying to make a positive headline. That triggered a rant from me on the stupidity of the current situation.
Go to the Walk The World Universe at https://walktheworld.com.au/
Join us for an interactive discussion tonight, as we explore the current economic and political landscape with Founder and Candidate of The New Liberal (TNL) Victor Kline, and Candidate Professor Steve Keen.
You can ask a question live via the YouTube chat….
If you want the real truth about housing affordability, read the latest shocking data from the Demographia report, just released.
http://www.demographia.com/
Housing affordability in 2021 is considerably worse than before, with five times as many markets at 10.0 median multiples or higher than just a decade ago. The least affordable market is Hong Kong, with a median multiple of 23.2, followed by Sydney at 15.3, Vancouver at 13.3, San Jose at 12.6 and Melbourne at 12.1. Another 46 markets are rated severely unaffordable, with median multiples (price-to-income ratios) of 5.1 or higher. Just three decades ago, nearly all of the 92 major markets covered had median multiples near 3.0 or below. The pandemic has created a “demand shock” as households move to houses with more space (inside and in yards or gardens). This has been evident in markets with overly restrictive land use regulation (especially urban containment), and worsened by the inability of home builders in well functioning markets meet the unprecedented increase in demand. The most affordable market is Pittsburgh, with a median multiple of 2.7, followed by Oklahoma City and Rochester at 3.3, with Edmonton and St. Louis at 3.6.
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.
Go to the Walk The World Universe at https://walktheworld.com.au/
Suddenly Central Banks and Governments have the perfect alibi (a claim or piece of evidence that one was elsewhere when an act, typically a criminal one, is alleged to have taken place) to account for years of poor policy, as costs of living, and inflation are rising. And as RBA Deputy Governor Guy Debelle leaves the bank – does he see the writing on the wall?
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest Building Approvals data from the ABS to the end of January revealed that the total number of dwellings approved fell 27.9 per cent in seasonally adjusted terms in January, following a 9.8 per cent rise in December. The ABS said: “The fall in the total number of dwellings approved in January was driven by a large fall for private sector dwellings excluding houses, which fell 43.6 per cent.
Now, as I discussed with Edwin in our Monday property rant the number of listings, especially for apartments in on the rise, and are tracking much higher than last year. Yet despite this important observation the MSM are ranting on about supply shortages in the next few years. All designed to push for more land releases reduced approval fees and other measures – conveniently ahead of the upcoming election campaign, where property will be in the sights… again.
Spruik definition: to speak in public (used esp of a showman or salesman )
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.