Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
From The Conversation. Average income earners largely are the people who do get to take advantage of negative gearing – nurses, policemen and women on an average wage, investing, for instance, in a property. Most of them hold only one property, which adds to the housing stock that’s available for people as well. – Assistant … Continue reading “FactCheck: are average earners the main beneficiaries of negative gearing?”
The sharing economy has the potential to disrupt current business models, whether its taxis, banking, accommodation or a range of other areas. It also has the potential to be stopped dead in its tracks, if incumbents, or regulation get to dictate too much too soon. This note offers a few observations about the potential of … Continue reading “Digital Disruption and the Sharing Economy”
From The Conversation. Allowing first homebuyers to cash out their super to buy a home is a seductive idea with a long history. Like the nine-headed Hydra, which replaced each severed head with two more, each time the idea is cut down it seems to return even stronger. Both sides of federal politics took proposals … Continue reading “Five reasons the Turnbull government shouldn’t let us spend super on a home”
A CEDA report released today is calling for an overhaul of retirement policy, including options such as pre-tax mortgage repayments and superannuation being available for owner-occupied home purchases, to be considered. We think, like the curate’s egg, it is good in parts! Whilst we agree that a root and branch review of retirement income provisions … Continue reading “CEDA Super Report, A Curate’s Egg”
Most would accept that house prices in the major Australian centres are too high. Whether you use a measure of price to income, loan value to income, or price to GDP; they are all above long term trends. Indeed, in Sydney and Melbourne, they are arguably more than 30% higher than they should be. The … Continue reading “Who Benefits from High House Prices?”
Wayne Byres opening remarks to the House of Representatives Standing Committee on Economics Inquiry into Home Ownership. He suggests that investment loan growth rates are likely to remain above 10% for some time yet. Our submission to the Inquiry noted the steps APRA has been taking to reinforce sound lending standards in the housing sector. … Continue reading “APRA’s Opening Statement to Inquiry on Home Ownership”
The HIA-CoreLogic RP Data Residential Land Report to the March 2015 quarter shows price growth accelerating as turnover falls sharply. The residential land price in Australia increased by 4.1 per cent compared with the previous quarter whilst residential land transactions fell by 5.2 per cent compared with the previous quarter. Higher land prices translate to … Continue reading “Land Supply Shortages are Shutting Out Home Buyers – HIA”
In the RBA’s submission to the Inquiry on Home Ownership, they argue that negative gearing for investment property should be reviewed, because it has the potential to raise risks in the market, lift prices and distort the market. Housing, particularly owner-‐occupied housing, receives preferential taxation treatment in many countries, and Australia is no exception. Australia’s … Continue reading “RBA Says Negative Gearing Should Be Reviewed”
The IMF released their Concluding Statement of the 2015 Article IV Mission today. Australians have enjoyed exceptionally strong income growth for the last couple of decades. But the waning of the resource investment boom and the recent sharp fall in the terms of trade have brought this to a halt. Incomes should start rising again … Continue reading “IMF Warning To Australia – Ambitious Reform Needed”
Interesting segment on Lateline yesterday discussing housing affordability and negative gearing with Finance Minister Mathias Cormann.