"Intelligent Insight"
Edwin and I discuss the latest from the property front line, and a range of broader issues relating to the current restrictions, and their implications.
https://www.ribbonproperty.com.au/
For help with mental health and related issues, you can always reach for Beyond Blue https://www.beyondblue.org.au/ – You Are Not Alone! 1300 22 4636
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We discuss the RBA support for our large banks via the Term Funding Facility and the impact on their profit.
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The latest edition of our finance and property news digest with a distinctively Australian flavour. In today’s show we look at the performance of the markets, from the US, Europe and Asia and consider the underlying drivers, as in Australia, companies are handing back loads of cash to shareholders via buybacks. Even as Delta continues to rage.
CONTENTS
0:00 Start
0:15 Introduction
0:43 US Markets
1:24 Sentiment Slumped
3:55 Disney
7:28 Oil
9:55 Iron Ore Prices Down
12:02 Container Index
13:00 Asia
14:22 Australian Market
18:02 Buy-Backs
21:00 Results
24:35 New Zealand Monetary Policy
25:20 Bitcoin And Hedges
26:30 Conclusion and Close
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We have completed our mortgage stress analysis for July, and there is a significant correlation between mortgage stress hot spots and COVID hot spots. Here is an example based on South West Sydney, with geo-mapping which reveals the number of households in stress – defined in cash flow terms, not a specific proportion of income going on the mortgage.
Fairfield and South Western Sydney are the epicentre of COIVD, and mortgage stress. The reason is simple, more households there are in insecure work, often in multiple jobs with little fall-back, and massive spending pressures.
Analysis in other post codes across the country reveals the same findings.
More generally, mortgage stress rose across the country in July, thanks to the lock-downs, and also more mortgages being written at high LVR and DTI ratios. Overall mortgage stress rose to 41.7%, while household debt ratios also rose.
There was significant spike in NSW – at 40.15%, compared with 38.62% a month earlier. Tasmania has the highest proportion of households in mortgage stress.
Whilst young growing families – containing many first time buyers has the highest concentration of mortgage stress, at more than 78%, our analysis shows that other households, including first generation migrants and more affluent households are also impacted. Indeed, this is also true of rental stress, and overall financial stress. Its is patchwork of pain.
In terms of mortgage stress, the top post codes are contained within the high-growth corridors, across WA, VIC, QLD and NSW.
Rental stress – again measured in cash-flow terms is most predominant in 2540, 4217 and 2145, quite diverse areas, but with real issues in terms of income growth, against a backcloth of rising rents. We expect more pain ahead.
Investor stress is also widespread, with central city locations hit hard, by limited migration and lock-downs. Vacancy rates here are very high. Some more affluent areas are also impacted.
Turning to aggregate stress – the consolidation of the individual series, we see a consistent pattern of rising pressure.
Given the current trajectory of COVID and the ongoing lock-downs we expect stress to continue to grow – and as always we suggest people in difficulty should talk to their lender early, as there is no escape hatch in the current environment.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
In today’s show we look at the latest US inflation numbers, local household and business confidence numbers which appear in free-fall, and why we need macroprudential tightening in Australian mortgage lending right now.
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Caveat Emptor! Note: this is NOT financial or property advice!!
Join us for a live Q&A as I discuss our political system with the Founder of the New Liberals Victor Kline. Is it possible to change the current power structure and influence outcomes? You can ask a question live.
https://walktheworld.com.au/ .
The latest edition of our finance and property news digest with a distinctively Australian flavour. We look at the latest employment data, mortgage rate hikes, problems with loan processing during COVID, NAB’s acquisition of Citi In Australia, and international money transfer services.
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.
Go to the Walk The World Universe at https://walktheworld.com.au/
We discuss the latest on Australia Post, and why we need a Post Bank, as well as more deception from politicians and regulators. Robbie gets angry, and I get philosophical!
Robbie Barwick is the Research Director for the Australian Citizens Party.
Senator Sarah Hanson-Young (02) 6277 3430
Senator Pauline Hanson (07) 3221 7644
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Our latest ramble through the back-waters of property, with a touch of philosophy thrown in, as Edwin Almeida our property insider, and I discuss the latest. https://www.ribbonproperty.com.au/
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.
We look at the latest signs concerning pressures on the mortgage market. Despite the RBA’s deflection that home prices are nothing to do with them, it appears mortgage tightening is on the cards. Perhaps the only question is whether regulators will pull the trigger before next year’s federal election, due in May. And meantime loan deferrals are rising as the lock down runs. Yet much of the pressure is being felt by renters, according to recent surveys, plus small businesses, while real estate companies like REA have been making hay in the booming market.
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.
Go to the Walk The World Universe at https://walktheworld.com.au/