Our latest surveys to the end of February reveals the current state of Household Finances in Australian as measured by cash flow. A record 73.3% of those living in the rental sector are under pressure, while just over half of those with a mortgage are also in net negative cash flow. All up around 48% of households or 4.7 million families are struggling. The causes are clear to see, with costs of living still outstripping real incomes, high mortgage interest rates thanks to RBA monetary policy and rental cost driven sky high. Massive net migration, and bad government housing policies have created this disaster, which will likely be with us for decades. Housing affordability is shot.
So, in today’s show I will walk through the latest findings, ahead of a live show during which we will examine the data at a post code level. That show will be on Tuesday 12th March 2024.
But here we examine how we measure cash flow stress, examine the latest results across mortgage, rental, investor and overall financial stress, and also look at our price scenarios for the months ahead, alongside our estimates of mortgage defaults in the next 12 months.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
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This is a recorded version of my latest live show in which I discussed the current state of play of the property and mortgage markets with Chris Bates. Chris started as a Financial Adviser back in 2007 and sold his Financial Advice business in 2020. Over the past 9 years, Chris has grown into one of Australia’s top Mortgage Brokers and is passionate about taking the product providing industry to a trusted advice based profession.
Previously Weathful, Chris, and the team decided, in 2023, to rebrand and are now ‘Blusk’ – a name that better encapsulates the feeling they achieve for their clients. And further changes are afoot, as you will see on the show.
He is known for regularly airing his views on sound property investing on both LinkedIn and popular property industry podcasts The Elephant in the Room and Australian Property Podcast.
This is a recorded version of my latest live show in which I discussed the current state of play of the property and mortgage markets with Chris Bates. Chris started as a Financial Adviser back in 2007 and sold his Financial Advice business in 2020. Over the past 9 years, Chris has grown into one of Australia’s top Mortgage Brokers and is passionate about taking the product providing industry to a trusted advice based profession.
Previously Weathful, Chris, and the team decided, in 2023, to rebrand and are now ‘Blusk’ – a name that better encapsulates the feeling they achieve for their clients. And further changes are afoot, as you will see on the show.
He is known for regularly airing his views on sound property investing on both LinkedIn and popular property industry podcasts The Elephant in the Room and Australian Property Podcast.
There has been a spate of changes to lending rules as banks seek to make it easier to refinance and borrow. Question is, is this really in the interests of households?
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The latest new lending data from the ABS showed a surprise fall in April, with a drop in refinancing, first time buyers, and general lending for housing.
This surprise change in the lending weather might be related to Easter which occurred in the month, or it might reflect the higher interest rates now on the cards.
We discuss the data and consider the consequences.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Lenders are selectively lower the hurdles to make mortgage loans and refinance existing borrowing. According to an AFR article, some are tweaking the serviceability buffers. So we look at the implications, given rates are expected to continue to rise.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Just a couple of days ago, markets bounced on the back of hopes talks on raising the US debt limit were in play, on growing confidence a deal to raise the $31.4 trillion debt limit could be reached in coming days, with the benchmark S&P 500 climbing more than 2%. But as this came to a sudden halt, the optimism that had been building through the week fell away. As a result, U.S. stocks ended lower and the dollar lost ground on Friday as the negotiations to raise the U.S. debt ceiling were put on hold, yet moving closer to the deadline to avoid default. Then reports were made suggesting talks had recommenced.
Initial reports that debt ceiling negotiations had reached an impasse rattled markets even as investors were scrutinizing Federal Reserve Chairman Jerome Powell’s remarks in a panel discussion for clues regarding next month’s interest rate decision. In his remarks, Powell said that uncertainties surrounding the lagging impact of past rate hikes and recent bank credit tightening made it unclear whether more monetary tightening will be necessary.
All this is creating febrile markets, where big players can trade the volatility. But others may be best on the sidelines!
CONTENTS
0:00 Start 0:15 Introduction 1:00 Debt Ceiling Impasse? 2:15 Powell On Inflation, Credit and Rates 6:24 US Markets 11:08 Europe and UK 13:40 Asian Markets 17:15 Gold 18:32 Oil 19:40 Australian Markets 21:20 Crypto 22:54 Summary And Close
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
More Debt Ceiling Handbrake Turns Casts A Volatile Outlook... [Podcast]
Journalist Tarric Brooker and I chew over a range of audience questions in out Friday session today, from property prices and monetary policy to China demographics.
Thanks to all those who sent in questions. Tell us what you think of this format.
The ABS finally released their November 2022 New Lending stats today. Overall new loan commitments fell 3.7% in the month, and apart from refinancing, which hit a record, all other loan categories dropped to levels which in some cases were below pre-COVID levels.
First time buyers were hit hard.
More signals of a falling property market ahead.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
