Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
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.
Australia needs to have a housing conversation that isn’t just about housing “bubbles”, profits and investment properties says an article in The Conversation. Sadly, we punch well above our weight in international measures of poor housing affordability, and increasing numbers of Australians can’t afford their rents or mortgages. Even a modest increase in house prices … Continue reading “The Hidden Victims of Rising House Prices”
The House of Representatives Economics Committee has announced a new inquiry into home ownership. The Chair of the Committee, John Alexander, said that ‘home ownership is an issue that lies at the core of the Australian dream and represents the largest investment that most taxpayers will make during their lifetime. The importance of this issue … Continue reading “Inquiry On Home Ownership Launched”
ABC Fact Check investigates whether abolishing negative gearing in 1985 caused rents to surge. During the period negative gearing was abolished rents notably increased only in Sydney and Perth. Other factors, including high interest rates and the share market boom, were also contributors to rent increases at the time. As property prices continue to rise … Continue reading “Did Abolishing Negative Gearing Push Up Rents? – ABC Fact Check”
In a report released by ANZ today they say that while the Australian economy looks to the non-mining sector to drive economic growth in the shadows of rapidly slowing mining construction, strong residential building has provided a flicker of hope. Lower interest rates have eased housing affordability constraints and provided some stimulus to the cyclical … Continue reading “Overseas Money Powering New Residential Development – ANZ”
The latest housing affordability survey from Demographia has been released. Using data from Q3 2014, they conclude that in Australia, for the 11th year in a row all of Australia’s five major metropolitan areas were severely unaffordable. The latest survey also highlights the divergent trends in Australia’s main urban centres, and other parts of the … Continue reading “All of Australia’s Five Major Metropolitan Areas Were Severely Unaffordable – Demographia”
We know that first time buyers are sitting on the sidelines, as shown in our recent surveys. The biggest barrier is price. Many are desperate to enter the market and would jump at any additional incentive. No surprise then to see proposals popping up from time to time to try and assist first time buyers. … Continue reading “Why Enticing First Time Buyers With Super Is A Bad Idea”
In New Zealand, the tightening rate cycle which is currently in full swing – with more to come, is crushing the housing market, as illustrated by the August 2022 QV House Price Index for August which was released today. The average house value in New Zealand had fallen by some $89,917 to the end of … Continue reading “Now Property Is Costing New Zealanders Every Day!”
The recent release of 2021 Census data revealed a shocking “one million homes were unoccupied”. This statistic sent housing commentators, government agencies and policymakers into a spin. At a time of significant housing shortages, this extra million homes would surely make a big difference. They could provide housing for some homeless, ease the rental affordability … Continue reading “The One Million Vacant Homes Question…”