Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
According to the latest modelling from Digital Finance Analytics, around half of all households in rental accommodation are struggling to pay their rent on time. Across all households, more than 30% are renting, and this has been rising as the costs of property escalate, mirroring the rise in mortgaged households. Within the rental sector, around … Continue reading “Half Of Households Are In Rental Stress”
From Business Insider. We now know how many houses foreign investors are buying in New South Wales and Victoria, the hotbeds of Australia’s housing affordability debate. According to new research based on data obtained under a Freedom of Information request by Hasan Tevfik and Peter Liu, research analysts at Credit Suisse, foreigners are buying property … Continue reading “There’s finally hard data on the huge role of foreign buyers in Australian property”
From The Conversation. As the federal budget approaches, the government is grappling with ways to enhance housing affordability, including reforming the current 50% capital gains tax (CGT) deduction on property investment. The Economics Society of Australia (ESA) Monash Forum polled economists on this proposition: Capital gains tax deductions for housing investment should be removed because … Continue reading “Capital gains tax concession is too generous: economists poll”
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”
From The Real Estate Conversation. If first-home buyers are allowed to use their superannuation to buy their own home, they are likely to end up with bigger ‘nest eggs’ at retirement than if they rented their whole lives, says Malcolm Gunning, president of the Real Estate Institute of Australia. He said it is “nonsense” to suggest accessing super … Continue reading “Access to super is not radical: REIA”
From The Conversation. The “bank of mum and dad” is helping young Australians with more than just their housing aspirations. New analysis of data on children receiving an inheritance or cash payment from their parents has found they are more likely to be involved in business startups, financial risk-taking and entrepreneurial ventures, and receive other … Continue reading “Not everyone wins from the bank of mum and dad”
You only have to look at the trends on housing credit growth and wage growth to see the problem. Using data from the ABS and RBA, we can see that in recent times credit to households for housing has been growing significantly faster than wage growth (note the two different scales) whereas in the 2000’s, … Continue reading “The Fundamental Disconnect”
From The New Daily. The New South Wales government is considering increasing stamp duty paid by foreign investors to help first-home buyers get on the property ladder. The news comes as figures reveal more than one in 10 residential properties sold in NSW are being snapped up by foreigners, with a third of them bought by … Continue reading “Push to increase stamp duty for foreign buyers”
The Association of Superannuation Funds of Australia (ASFA) released its Retirement Standard updates for the December 2016 quarter showing a slight increase in the cost of living for retirees. The Association also released new figures showing Sydney retirees relying on the private rental market for accommodation would need more than $1 million in super savings, … Continue reading “Retirees renting need more than $1 million to be comfortable”
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”