Category: Property Market

Sydney’s Debt Sheep Are Scrambling Like Rats

With the RBA now tightening interest rates, what is critical to understand when the RBA will officially surrender to inflation is to look at forward leading indicators.

When it comes to the property market, Adams and North think there are three indicators which need to be paid close attention to, which are:

  • Consumer Confidence;
  • New property starts (something which Adams and North will come back to); and
  • Property listings.

Today, Adams and North are going to focus on residential property listings for Sydney and the surrounding regional suburbs using data from SQM Research. Property listing data is a better forward leading indicator than credit, because vendors list their properties on the market before buyers and borrowers purchase property.

We should note in a previous show, Adams indicated that the three areas of the property which are likely to crack first are:

  • New housing estates;
  • Commercial property; and
  • Residential investor property.

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

The Property Cracks Are Widening

Today we look at some of the recent research from a flurry of surveys across the property market. Combined, they paint a concerning picture. And we also look at the stamp duty question, later in the show, so stay around for that!

Some 26% of Australians see mortgage repayments as a significant cost-of-living concern – that means 5.05 million people may be worried about keeping up with mortgage repayments in the coming months.

NSW Property Services Commissioner John Minns told a panel discussion on Tuesday he would like to see the land tax change expanded to include the whole property market and not just first home buyers.

But just remember such a move would primary benefit property investors who could offset the annual tax cost against the income from the property, whereas owner occupiers cannot, so in fact this could have a two fold distorting effect. First lifting the price of property by the stamp duty saving, and second orientating the benefits towards investors. In short this “reform” is not what it seems to be.

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

FINAL REMINDER: DFA Live Q&A With Leith van Onselen 8pm Sydney

Join us for a live discussion about the current state of the economy, with a specific focus on Australian property with Leith van Onselen, the Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.

The RBA reported on their yield curve control today, and Phil Lowe spoke about rising mortgage rates – how high will they go – and what are the consequences?

You can ask a question live via the YouTube chat.

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

Its Edwin’s Monday Evening Property Rant!

The latest from our Property Insider, Edwin Almeida, as we look at the latest market dynamics, price movements, and gossip from China. Things are getting, well interesting. And we also discuss mold in property and stamp duty and other levies relating to new construction. A packed show.

https://www.ribbonproperty.com.au/

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

Operation Anti-Spruik!

Today we discuss the latest property data and highlight some of the recent changes which suggests the “it always goes up brigade” may be wrong.

Thanks to Cookie Boy for helping with the research!

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.

Defusing The Household Debt Bomb

Some quick thoughts for households facing higher interest rates. There are some simple things you can do to help take the sting out of the rises – and taking more debt is not one personally I would play with.

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

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Caveat Emptor! Note: this is NOT financial or property advice!!

And Now The Pain Begins…

We look at the latest data as interest rate rises are passed through to borrowers, the changes in housing affordability, and the horrendous mess the RBA has made. Which begs the question where to from here?

[Content]

0:00 Start
0:15 Introduction
1:00 Marginal Buyers Under The Bus
5:37 Banks Pass The Rate Hikes On
14:20 Home Prices To Fall
16:43 Housing Affordability Dies
19:59 RBA Major Fail – What Now?
24:41 Conclusion

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.

No Mercy for the Debt Sheep sent to the Slaughter

Yesterday, the RBA raised its official cash rate by 0.5% to now sit at 0.85%. This increase was above market expectations and was the RBA has signalled that more rate rises are coming. This is particularly so given that the RBA has signalled that inflation is expected to go higher, not lower in the coming months.

Adams and North in the past two months have been warning that rates will go up, however, the key question is now how much pain is the RBA willing to inflict before it becomes too much and they need to stop. This is the 64 million question which no one is able to forecast – including the RBA board. The RBA Board signalled that the one areas that they remain unsure are households and what impact will rising interest rates have on consumption.

However, one of the most critical points that has emerged from the mainstream media coverage is that many people don’t accept the level of mortgage and rental stress outlined in the DFA dataset set. North suggests that mortgage stress is at 43% which would signify a major economic problem – however, the banks and market economists suggest that Australian households are in a strong position to handle these jobs.

As Adams and North mentioned in the last show – there will be a certain percentage of Australian households who will be sacrificed and they will go to the wall. There will be no compassion to these particular households. Especially those who have purchased in during 2022 and who likely took a variable mortgage – these are the sheep that will go to the slaughter. Go to the Walk The World Universe at https://walktheworld.com.au/