Search Results for: negative gearing

Explainer: the financialisation of housing and what can be done about it

From The Conversation. A recent United Nations report on the right to adequate housing identifies the financialisation of housing as an issue of global importance. It defines the financialisation of housing as: … structural changes in housing and financial markets and global investment whereby housing is treated as a commodity, a means of accumulating wealth … Continue reading “Explainer: the financialisation of housing and what can be done about it”

The latest ideas to use super to buy homes are still bad ideas

From The Conversation. Treasurer Scott Morrison wants to use the May budget to ease growing community anxiety about housing affordability. Lots of ideas are being thrown about: the test for the Treasurer is to sort the good from the bad. Reports that the government was again considering using superannuation to help first homebuyers won’t inspire … Continue reading “The latest ideas to use super to buy homes are still bad ideas”

The US is healing but we can’t even admit we’re ill

From The NewDaily. The Federal Reserve’s widely anticipated rate rise is a reminder that while the US has learned from its housing market crash, our political leaders have created a record bubble of mortgage debt by shying away from reform. When Fed chair Janet Yellen announced Thursday morning (Australian time) the fed-funds rate had risen to … Continue reading “The US is healing but we can’t even admit we’re ill”

More High Home Price Evidence

The Economist updated their home price data series. Further evidence Australia’s home prices are look severely overpriced. Buyers, beware, and also consider the underlying reason why this is occurring. Limited supply, and negative gearing are a smart part but other deeper, more structural factors are also in play. PROPERTY is as safe as houses, at … Continue reading “More High Home Price Evidence”

Property Investors Show Stronger Buying Intentions

The ABS data today showed that investor lending in January was very strong. Our weekly household surveys ask about buying intentions – a forward looking estimate based on whether they are likely to transact in the next 12  months. We have an indication earlier in the year from our weekly tracker than perhaps investors were … Continue reading “Property Investors Show Stronger Buying Intentions”

Investors Boom, First Time Buyers Crash

The ABS released their Housing Finance data today, showing the flows of loans in January 2017. Those following the blog will not be surprised to see investor loans growing strongly, whilst first time buyers fell away. The trajectory has been so clear for several months now, and the regulator – APRA – has just not … Continue reading “Investors Boom, First Time Buyers Crash”

Tackling housing unaffordability: a 10-point national plan

From The Conversation The widening cracks in Australia’s housing system can no longer be concealed. The extraordinary recent debate has laid bare both the depth of public concern and the vacuum of coherent policy to promote housing affordability. The community is clamouring for leadership and change. Especially as it affects our major cities, housing unaffordability … Continue reading “Tackling housing unaffordability: a 10-point national plan”

Yet Another Nail In The Investment Property Coffin

The AFR has reported the Turnbull government is planning a crackdown on capital gains tax concessions for property investors to seize the mantle on housing affordability and provide revenue to help replace soon-to-be dumped budget cuts. Given most property investors are benefiting more from rising capital gains than offsetting costs from negative gearing, this is … Continue reading “Yet Another Nail In The Investment Property Coffin”

CBA 1H Results Strong … But

Commonwealth Bank of Australia announced its results for the half year ended 31 December 2016 today. CBA is well run, so they are a bellwether of the broader financial sector.  It was a solid result with asset growth, 3% lift in underlying income and good cost management, but shows the pressure created by regulatory capital … Continue reading “CBA 1H Results Strong … But”