Digital Finance Analytics (DFA) Blog
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From The Conversation. In 2013 alone, more than 500 houses were demolished in Nashville, Tennessee, a sharp increase from previous years. And hundreds of additional teardowns are expected in a city that’s projected to add a million residents over the next two decades. Nashville is hardly the only North American city to experience a recent … Continue reading “When a house is demolished, more than the home is lost”
From The Conversation. In recent weeks, there have been signs sentiment may be changing around the contentious policy of negative gearing. There are well-rehearsed arguments on both sides. Critics argue that the deduction of property losses from other sources of income (such as wages) is a tax shelter that imposes an unfair burden on other … Continue reading “The real reasons negative gearing on housing should be phased out”
From The Conversation. The appeal of owning a home seems deeply embedded in the psyche of Australians. Yet psychologically, it is not clear the home ownership dream is entirely rational. Achieving the dream may not be all we might have hoped, and chasing it may even do damage. We’d all like a castle of our … Continue reading “A home of your own: dream or delusion?”
The AFR report cited research provided by DFA from our household surveys. Australia is becoming a nation of landlords as record-high real estate prices force house-hunters into buying and renting investment properties rather than becoming owner-occupiers, analysis of purchases reveals. Property investors are also becoming younger and more likely to own several rental properties, with the … Continue reading “Australia Becoming a Nation of Landlords – AFR”
The NZ Reserve Bank has published a consultation paper about proposed changes to the rules that banks must follow for high-LVR mortgage loans. The proposals were announced in the Reserve Bank’s Financial Stability Report released on 13 May 2015. They would mean investors in Auckland property would generally need a 30 percent deposit if they’re … Continue reading “RBNZ Issues Consultation On LVR Rules For Auckland Residential Property Investors”
Andrew Bailey, Deputy Governor, Prudential Regulation and Chief Executive Officer, Prudential Regulation Authority gave a speech at Cambridge University – Financial Markets: identifying risks and appropriate responses – which discusses important concepts in relation to the effective supervision of Financial Markets, in the context of expanding bond markets and automated electronic trading. There is good … Continue reading “Risks In Financial Markets And Shadow Banks”
Moody’s Investors Service says that underwriting discipline and capital are key variables in maintaining the health of bank credit profiles in Australia, in the face of rising housing market imbalances. “Rapid house appreciation, particularly in Sydney, as well as lending imbalances are increasing the risks of a housing market correction,” says Ilya Serov, a Moody’s … Continue reading “Housing Market Imbalances Pose Long-term Challenges for Australian Banks – Moody’s”
The final Senate report into Affordable Housing was released today. The report is more than 450 pages long (including appendices), and the 40 recommendations cover a wide range of issues, including coordination and management across states and territories; developing a long term national plan; phasing out stamp duty; new funding options; urban planning; land supply; … Continue reading “Senate Delivers Final Affordable Housing Report”
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”
AFG announced their April 2015 Mortgage Index statistics today. It further confirms the momentum in the investment property sector, in both Sydney and Melbourne. The housing market’s strong 2015 performance continued during April with AFG processing total mortgages of $4,380 million for the month. This compares with $3,674 million in April 2014 and is a record for … Continue reading “Hot Investment Lending – AFG”