Category: Property Market

Sounding The Retreat?

A clutch of information about the slowing real estate market, tighter lending standards and rising interest rates points to a significant slow down in Australia. So how likely is this, and could rate hikes be more gentle as a result?

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

Live Property Rant here 18:00 today: https://youtu.be/EgBwYH28S7s

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.

The Insolvency Wave Has Yet To Hit… But…

Equifax data suggests that, while the overall rate of insolvencies in March 2022 was up 5 per cent on last year, construction insolvencies were 28 per cent higher.

Iconic firm Grocon collapsed in 2020 and this year mega-builder ProBuild — with its $5 billion pipeline of work — fell over. Since then, ABD Group, Privium Home, Condev and, most recently, Next, went under. In the first quarter of the year, compared to the same period in 2021, 270 construction companies filled for insolvency, a 21 per cent jump.

Building costs have risen so much that one construction professional says he goes to work every day knowing he’ll “disappoint at least one person”.

Stretched global supply chains have fed into soaring costs for materials. Ongoing border closers boosted a hot labour market, meaning tradespeople have been charging more.

“It’s created a ‘profitless boom’, with many construction companies committed to projects that are no longer financially viable, thanks to major price increases for building materials”

Pivotal, which has built more than 1,500 homes over 15 years, was placed into liquidation on Thursday, following other major firms such as Condev and Probuild earlier this year.

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

Its Edwin’s Property Snap!

A breaking news update from our property inside Edwin Almedia.

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

Also join us for a LIVE property rant on Monday at 18:00.

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.

Wither House Prices: With Tarric Brooker

My latest Friday afternoon chat with journalist Tarric Brooker who is @AvidCommentator on Twitter.

In today’s show we look at Australian Housing, the drivers of inflation, and the limitations of Central Bank policy.

The slides can be found at: https://avidcom.substack.com/p/charts-that-matter-27th-may-2022

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

Your Home Is More Likely Not Your Own!

The ABS released their latest Housing Occupancy and Costs series for the financial year 2019-20. Now, this is important research of course but the potential of the findings to be useful are blunted by that fact that much has changed since June 2020, which of course was in the early phase of COIVD. With that caveat, there are some important findings.

First, in terms of basic home ownership, In the past two decades, from 1999–00 to 2019–20, the percentage of Australian households that own their own home: With or without a mortgage decreased from 71% to 66%. Without a mortgage decreased from 39% to 30%. With a mortgage increased from 32% to 37%.

In other words, more people are more in debt, no surprise for those following our shows. There are also some important state differences.

In the rental sector, Between 1999–00 and 2019–20, the percentage of Australian households that rent their home from: All landlord types increased from 27% to 31%. A private landlord increased from 20% to 26%. A state or territory housing authority decreased from 6% to 3%. Again there are significant state variations.

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.

FINAL REMINDER: DFA Live Q&A The Renters Dilemma

Join us for a live discussion with Meighan Wells from Property Pursuit as we explore the current dynamics of the rental sector. Given rising interest rates, and rents, lack of supply and the reemergence of AirB&B, how does this all play out. This is part of a DFA series on renting.

You can ask a question live.

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

Its Edwin’s Monday Evening Property Rant!

Property Insider Edwin Almeida and I look over the election results, and consider the impact on property, examine the latest from China, and the market trends. What will be done to try and “save” the property market now?

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

Its Edwin’s Monday Evening Property Rant!

My latest outing with our Property Insider Edwin Almeida. We look at the latest from our We-chat chatters, the numbers, which go on rising, and the housing policies from the main parties.

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

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

An Outside In View Of New Zealand Housing

New Zealand Housing makes an interesting case study, given the Central Bank there started lifting rates last year, following a strong period of credit driven price growth.

Now the IMF has reported on the state of play, and they highlight the risks in the system. https://www.imf.org/en/Countries/NZL

In its latest review of the New Zealand economy, the IMF has had a close and detailed look at the housing market. The housing market they say constitutes a risk in view of borrowers’ vulnerability to rising mortgage rates, high household debt, and banks’ exposure to housing.

The IMF says that financial stability risks from a sharp downturn in the housing market are limited given high bank capitalisation, “but pockets of vulnerability, particularly amongst recent borrowers, may exist”.

“More broadly, there is likely to be a larger impact on consumption through wealth and sentiment effects. In a scenario of a marked housing correction, macroeconomic policy support may be needed to avoid second round effects and a pronounced downturn.”

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