The latest in our discussions with Mortgage Broker and Financial Adviser Chris Bates. We look at the latest developments in the property markets, and who the winners and losers may be.
Chris can be found at www.wealthful.com.au & www.theelephantintheroom.com.au plus via LinkedIn: https://www.linkedin.com/in/christopherbates
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Being the last working day of the month, we got the latest credit data for April from both the RBA and APRA. Overall the RBA reported that private credit was flat over the month, with owner occupied balances up 0.5%, investment lending down 0.2%, making net housing up 0.2% – reflecting deferred repayments in part, business was up just 0.1% after a big spike last month, and personal credit dropped 3% over the month – a noticeable drop by any standards.
Although total credit was flat, the broad money measure rose 2.9% over the month thanks to the various government and RBA schemes to support the economy. Something to bear in mind when we talk about removing the stimulus!
Annualised, owner occupied growth was at 5.3%, while investors were down 0.6% over the year and total housing lending was 3.1% and a little lower than last month. Personal credit is down 9.3% over the year and business credit is up 6.7% thanks to last month spike.
APRA showed that total bank lending for mortgages rose 0.19% over the month, with lending balances for owner occupiers up 0.45% to $1.11 trillion dollars while investor lending fell again, down 0.27% to 0.64 trillion dollars. Investor lending dropped again to 36.5% of balances.
Total mortgage credit is another new high 1.754 trillion dollars.
Looking at the individual movements, CBA wrote the largest net increase in owner occupied loans, followed by NAB, ANZ and Macquarie. Macquarie was streets ahead on investor lending, while NAB, Westpac and Bank Of Queensland saw the biggest falls. ME Bank was back in line this month after the securitisation deal last month. Once again bear in mind this is as reported to APRA, and reflects the net of new loans written, balances extended, and loans paid off. On these numbers many banks are shedding investment loans quite fast. Question is – is this by design or accident?
I had the opportunity to discuss a range of policy issues with Liberal Senator Gerard Rennick from Queensland. He has some potent views about the opportunity for change to set Australia up for the years ahead. And some of his thoughts may surprise you! His perspective on monetary policy and the role of the Reserve Bank, plus the need for a National Bank to support Infrastructure investment are really important. And he questions what Government is really for.
Economist John Adams and Analyst Martin North assess the current status of the Cash Transaction Restriction legislation, which officially, at least, is still tabled, and under review.
Your chance to ask Edwin a property related question via the YouTube chat – our insider really knows whats going on!
And spread the word, Cookie Boy one of our supporters is offering to make a $200 donation to charity if we get more than 800 on the stream at one time, so lets try and beat that target!. Thanks Cookie Boy…
A special event tomorrow, as Edwin Almeida joins me for a LIVE Q&A session. Edwin is one of our most popular guests, and his no-hold-bars approach to the industry and the issues we face are some of the best insights you will get.
You can ask a question on the YouTube live chat, or beforehand via the DFA Blog.
Please spread the word – this is a one-off special event….
This was my contribution to today’s live event which included Harry Dent and Robert Kiyosaki. I discuss my latest survey results and property and finance scenarios.