Those Moving Parts Are ALL Moving!!!

I caught up with Steve Mickenbecker from Canstar to talk about APRA’s changes to mortgage buffer rates, how lenders have tweaked their mortgage rates, credit card usage and the apathy tax. So many moving parts in the financial landscape.

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.

https://www.canstar.com.au/team-members/steve-mickenbecker/

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

Beauty and the Beast – Market Update 9th October 2021

In today’s show we look at the latest from the markets, as uncertainty continues to stalk the halls. Many though are just admiring the beauty – as exemplified by Bitcoin 25% rise this week – while others worry about the beasts of inflation, faltering economic growth, higher energy prices and the Chinese property sector, to name a few. Wall Street had closed sharply higher Thursday on the back of the U.S. Senate approving legislation to temporarily raise the federal government’s debt limit and avoid the risk of a historic default.

US stocks fell and Treasury yields gained on Friday after weak jobs data upended bets on the Federal Reserve’s policy plans. The S&P 500 and NASDAQ 100 declined in turbulent trading as data showed employers added far fewer jobs than anticipated last month. While the report is unlikely to deter the Fed from announcing cutbacks to its bond buying next month, it may remove pressure for the central bank to raise interest rates any time soon.

The latest edition of our finance and property news digest with a distinctively Australian flavour.

00:00 Start
00:15 Introduction
00:50 US Markets
03:15 Non-Farm Payroll Shock
07:00 Gold flat
09:00 Oil
10:30 SP500 Moving Averages
11:30 European Markets
12:39 IPO’s stall
15:00 Asian Markets
15:40 Energy crisis
17:50 Evergrande (again)
20:35 Japan BOJ eases QE
22:40 Australian market
25:30 Crypo booms
31:40 Global food prices jump to 10 year high
32:40 Conclusion and close

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Let’s Stoke House Prices Some More…

The Victorian Government announced an expanded new $500m Homebuyer Fund will see tax payers own part of up to 3,000 homes. Most recipients of the Victorian Homebuyers Fund will need to have a 5 per cent deposit, with the government chipping in up to 25 per cent on top of that. The government will keep that stake in the home until the property is sold or the owner buys out its share. However, the opposition has accused the government of giving with one hand and taking away with the other because of hikes in stamp duty and land tax.

https://www.abc.net.au/news/2021-10-08/victoria-announces-500m-home-buyers-fund/100523938

We discuss why this is a bad idea, and a million miles from the strategic approach to home ownership which is required. It also pulls in the opposite direction to APRA’s tightening this week!

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

Unpicking Financial Stability

The RBA released their Financial Stability Review today, and we look over the main points and highlight some of the issues. https://www.rba.gov.au/publications/fsr/2021/oct/

There is a risk of excessive borrowing due to low interest rates and rising house prices. Most borrowers’ income has recovered, but others may struggle with loan repayments.

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

The Bank Of Mum And Dad Goes Through The Roof!

We look at the latest DFA survey data relating to how parents are helping their kids to enter the Australian property market. The totals are growing fast, despite the risks. But there are a number of questions to be asked, and trade-offs to be considered.

Not least the relationship between BOMD and Lenders Mortgage Insurance. https://digitalfinanceanalytics.com/blog/what-you-should-know-about-lmi/

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.

Iceland Leads The Way On Macro-Pru

Funny how a small country (which was badly hit by the GFC a decade plus ago) seems more in tune with macro-prudential and home price growth risks. Perhaps the RBA can learn something?

https://www.cb.is/publications/news/news/2021/10/06/Statement-of-the-Monetary-Policy-Committee-6-October-2021-/

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

New Zealand Joins The Exclusive Cash Rate Hike Rise Club

The New Zealand Reserve Bank lifted the cash rate today. And expect more rate rises ahead. This could get eye-watering very quickly! Stagflation alert?

https://www.rbnz.govt.nz/news/2021/10/monetary-stimulus-further-reduced-official-cash-rate-raised-to-050-percent

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.

APRA Bowls A Wet Lettuce

APRA has told lenders it expects they will assess new borrowers’ ability to meet their loan repayments at an interest rate that is at least 3.0 percentage points above the loan product rate. This compares to a buffer of 2.5 percentage points that is commonly used by ADIs today.

https://www.apra.gov.au/news-and-publications/apra-increases-banks%E2%80%99-loan-serviceability-expectations-to-counter-rising

We look at the announcement and consider the consequences.

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

Its Edwin’s Monday Evening Property Rant!

My Monday chat with our Property Insider… Edwin Almeida.
https://www.ribbonproperty.com.au/

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!!