Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The Department of Human Services released their 2013-14 Annual Report. One topic of note is the rise in the early release of superannuation savings. According to the DHS, Superannuation cannot generally be accessed before a person reaches their preservation age. In some limited circumstances the law allows for early access to superannuation. Most of the … Continue reading “Early Access To Super Is On The Rise”
There is no doubt that negative gearing is a hot issue. As the ASIC Money Smart web site says: Negative gearing is when your income from an investment is less than your expenses. In the case of property this means the rental income you receive is less than the interest and other expenses you pay. … Continue reading “A Perspective On Negative Gearing”
We have been looking in detail at recent trends in housing refinance, by using a combination of the recently released ABS data and results from the DFA surveys. There is an interesting story to tell here. So today we explore the refinancing landscape. First the ABS data shows us that refinancing value has been increasing … Continue reading “Refinancing; An Important Driver Of Housing Finance”
Using the RBA household ratios, we can look at the effect of debt on the average household. It blows up the myth of “household deleveraging”, much talked about after the GFC. Whilst the average data masks the differences between different household segments (see the segmented analysis in our survey and we know debt is becoming … Continue reading “Household Debt Burden Increases Again”
ASIC today released their review of activity in the Life Insurance Industry, and finds that consumers interests are not always given priority. The $44bn industry touches superannuation, annuities, and other elements, as shown in a diagram reproduced from the report. We have previously highlighted the issues around annuities. They found that high upfront commissions are … Continue reading “ASIC Says Life Insurance Industry Needs Higher Standards”
In the paper released by the Central Bank of Ireland, it is clear they have gone macroprudential! According to the Irish Times new rules will be applied to mortgage lenders in Ireland from 1 January 2015. A 2 month consultation period now starts, so they may get tweaked before implementation. The UK had announced parallel … Continue reading “Ireland Joins The Macroprudential Bandwagon”
The ABS today released their Distribution of Household Income, Consumption and Wealth data for the years from 2003 to 2012. According to the ABS, the average gross disposable income of Australian households grew 58 per cent in the period 2003-04 to 2011-12. However, the highest income quintile grew at a rate above average, at 62 … Continue reading “Household Income Trends Show Strongest Growth At The Top”
The RBA made a statement today to the Inquiry into Affordable Housing. Several points to note: 1. They recognise the high price to income ratio we currently have, but also state that low rates make larger mortgages affordable. the ratio of housing prices to incomes is at the top of its historical range; but over … Continue reading “RBA Highlights Housing Supply Issues And Lending Regulation”
I did an interview for the ABC, on the RBA Financial Stability Review. Here is the transcript, courtesy of the ABC. The link to the interview, and my longer interview can be found at the ABC site. By way of context, a quick reminder of current house price trends from the Economist: CHRIS UHLMANN: The … Continue reading “My Recent Thoughts On House Prices”
We have updated our mortgage stress models, to take account of the latest tranche of economic data, including falling real incomes, potential uplifts in capital requirements and inflation running hot, so creating the need to lift interest rates; and demand for property continuing to go ahead of supply. Our recent post the Anatomy of Mortgage … Continue reading “Mortgage Stress Coming To A Household Near You”