Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Aussie Home Loans boss James Symond has described the mortgage industry’s mammoth lobbying efforts as a “case book study” in uniting a competitive industry – via InvestorDaily. Few sectors of the financial services universe had more riding on the 2019 federal election than mortgage broking. A Labor victory would have been a devasting blow to … Continue reading “Labor missed a trick with mortgages”
The Grattan Institute published an interesting article in The Conversation. They argue that Labor’s policies are more likely to impact housing affordability than The Coalition. But right at the end of the article, they still preach lack of supply is the problem. This is not the case. First, we have more than 1 million vacant … Continue reading “Someone has to lose in order for first homebuyers to win!”
We discuss the Coalition plans for first time buyers. As expected. Sound of can being kicked down the road! Remember such incentives lift prices, and will “bribe” people into a falling market. One of the new announcements in today’s launch was the Coalition’s commitment to helping first home buyers save for a deposit sooner by … Continue reading “Unnatural Acts As Advertised”
We have released the April 2019 edition of our confidence index, based on our rolling 52,000 household survey. The index fell again, to an all time low. All wealth segments declined (even those without a mortgage), but those leveraged up are really concerned now. Property Investors continue to take a bath, thanks to lower capital … Continue reading “Household Financial Confidence Decays – Again!”
Drawing from his direct experience in the market, mortgage broker and financial adviser Chris Bates and I discuss the latest issues and consider the impact of negative gearing reform. Chris can be found at www.wealthful.com.au & www.theelephantintheroom.com.au plus via LinkedIn: https://www.linkedin.com/in/christopherbates
DFA has released the March 2019 Household Financial Confidence Index, which is based on our rolling 52,000 household surveys. The index reached a new low this past month as the weight of issues on many household’s shoulders pile up. The index fell to 86.1, well below the 100 neutral setting. This video discusses our findings. … Continue reading “Household Financial Confidence Dives Again”
The latest amendments passed into law last week extends the capital raising capabilities of mutuls in Australia, via mutual capital instruments (MCIs), which Moody’s rates as “credit positive”. However, we are concerned by the extension of “financialisation” into the mutual sector, the potential higher risks it introduces as players compete for returns to investors, and … Continue reading “Mutuals Can Now Join The Capital Raising Dance – But What Of The Risks?”
The fall in residential property values is “losing steam” but could be reinvigorated by changes in the political and economic landscape, according to CoreLogic, via The Adviser. The latest Hedonic Home Value Index from Property research group CoreLogic has revealed that, in the month to 31 March 2019, national home values dropped by 0.6 per cent, driven by a … Continue reading “Housing market plagued by ‘uncertainties’ as downturn continues”
ANZ have announced a new flavour of interest only loans. They said that from 25th March 2019 they will increase the maximum Loan to Value Ratio of Interest Only Loans from 80% to 90%, and increase the maximum term from 5 years to 10 years. These loans will be marketed only for high-income professionals with … Continue reading “ANZ’s IO Loan Changes Have Risk Written All Over”
I discuss the latest from New Zealand with property expert Joe Wilkes, and we look at changes to capital gains, negative gearing and other factors which may impact the market. Some interesting comparisons with the UK and Australian markets too!
