Search Results for: housing affordability

It will take more than piecemeal reforms to convince older Australians to downsize

From The Conversation. Many older Australians are living in larger dwellings than they need after their adult children leave the family home. The 2011-12 ABS Survey of Income and Housing shows households aged 55 and over are more than twice as likely to have three or more spare bedrooms in their home than those aged … Continue reading “It will take more than piecemeal reforms to convince older Australians to downsize”

Are Australian House Prices Overvalued?

Within the 65 pages of the IMF report there is a comprehensive section on Australian house prices.  Housing market risks they say remain heightened. They conclude that house prices are moderately overvalued, probably around 10 percent. The problem is concentrated in Sydney and is fuelled by investor credit and interest only loans. Current rates of … Continue reading “Are Australian House Prices Overvalued?”

Global House Price Index Up; Australia In The Middle Of The Pack

The IMF just released their Global House Price Index update. It is also worth noting that Australia, whilst experiencing significant house price growth and affordability issues, is in the middle of the pack. House prices are being impacted by significant international issues, not just local ones (factors such as financial globalisation, QE, low interest rates, … Continue reading “Global House Price Index Up; Australia In The Middle Of The Pack”

Six simple tax reforms plagued by politics

From The Conversation. Even before the government’s options paper on tax reform is released later this year, many reforms have been taken off the table, at least before the next election. Here’s the expert view on six. Broadening or increasing the GST Some experts say expanding the GST, which is a regressive tax, would unfairly … Continue reading “Six simple tax reforms plagued by politics”

Households Necks In The Debt Noose

The ABS data released yesterday, highlights that overall household debt is sky high, much of it linked to mortgage borrowing. Whilst household net worth is over $8 trillion, its mainly thanks to house price inflation (and stock market holdings inflated by ultra low interest rates and QE). The RBA data tells the story. Using their … Continue reading “Households Necks In The Debt Noose”

Making Residential Rental Markets Work for Financial Stability

In an address by Stefan Gerlach, Deputy Governor (Central Banking) of the Central Bank of Ireland, at the Twenty-First Dubrovnik Economic Conference, Dubrovnik, he discussed the rise of the rental market, and the potential implications for financial stability, with specific reference to what happened in Ireland post the GFC. There are some important observation for … Continue reading “Making Residential Rental Markets Work for Financial Stability”

Banking: Australian Banks’ Moves to Curb Residential Investment Lending Are Credit-Positive – Moody’s

In a  brief note, Moody’s acknowledged that the bank’s recent moves to adjust their residential loan criteria could be positive for their credit ratings, but also underscored a number of potential risks in the Australian housing sector including elevated and rising house prices, declining mortgage affordability, and record levels of household indebtedness. As a result, they … Continue reading “Banking: Australian Banks’ Moves to Curb Residential Investment Lending Are Credit-Positive – Moody’s”

March Monthly Banking Stats Update

APRA published their monthly banking statistics for March. Overall housing lending was $1.336 trillion by the banks (the RBA number of $1.45 trillion includes the non banks). This was a rise of  0.59% in the month, with owner occupied loans lifting 0.46% and investment loans 0.84%. Investment loans accounted for 35.1% of all loans in … Continue reading “March Monthly Banking Stats Update”

Sydney Rentals Unaffordable For Many – Anglicare

The Rental Affordability Snapshot (RAS) was originally developed by the Social Action Research Centre at Anglicare Tasmania to highlight the lived experience of looking for housing whilst on a low income. An audit of rental properties determines the extent to which on the nominated day a person on a low income is able to find … Continue reading “Sydney Rentals Unaffordable For Many – Anglicare”

First Time Loans Now 25% Higher – ABS

The ABS published revised First Time Buyer data to try and iron out some data issues. As a result in November 2014 an extra 1,566 loans (25.8%) were found. This means First Time Buyer Loans were 14.6% of new loans in November, as opposed to 11.6% reported previously. Still a low number, compared with the … Continue reading “First Time Loans Now 25% Higher – ABS”