Changes for off-the-plan foreign buyers rely on a broken supply argument

From The Conversation. The government is proposing changes to the foreign investment framework that will allow a foreign real estate investor to purchase an off-the-plan dwelling when another foreign investor has failed to reach settlement. In announcing the changes, Treasurer Scott Morrison deployed a familiar narrative about foreign investment increasing housing supply and making “housing … Continue reading “Changes for off-the-plan foreign buyers rely on a broken supply argument”

RBA Admits Household Debt Is An Issue – Finally!

Philip Lowe RBA Governor spoke about the Australian economy tonight. He included (finally) some comments about household debt.  He said it surely must be the case that the higher the debt, the greater is the risk. It is unlikely to be in the public interest, given current projections for the economy, to encourage a noticeable … Continue reading “RBA Admits Household Debt Is An Issue – Finally!”

Attempts to cool over-heating property market are failing

From The Australian Financial Review. Attempts to cool the property market are failing as the number of interest-only loans surges back towards last year’s highs, an analysis of new lending figures reveals. The Reserve Bank of Australia said in its quarterly statement of monetary policy on Friday that despite recent strengthening in Sydney and Melbourne, … Continue reading “Attempts to cool over-heating property market are failing”

Initial US Q3 Growth Estimate Higher

The US Bureau of Economic Analysis says real gross domestic product increased at an annual rate of 2.9 percent in the third quarter of 2016, according to the “advance” estimate. In the second quarter, real GDP increased 1.4 percent. However a key inflation indicator in the GDP report, the personal consumption expenditures price index, slowed … Continue reading “Initial US Q3 Growth Estimate Higher”

The Low Growth Trap

Low growth, high inequality, and slow progress on structural reforms are important issues for the global economy. The political pendulum threatens to swing against economic openness, and without forceful policy actions, the world could suffer from disappointing growth for a long time. The IMF’s Christine Lagarde argues that forceful policy actions are needed to avoid … Continue reading “The Low Growth Trap”

Asian home buyers less likely to default on their mortgage: study

From The Conversation. People from cultural backgrounds where getting financial assistance from families is the norm are less likely to default on their mortgages, new research shows. This includes those from South East Asian countries. We also found in societies where the culture is to save more and for people to control their desires and … Continue reading “Asian home buyers less likely to default on their mortgage: study”

The Resilience Of The Australian Economy

Secretary to the Treasury, John Fraser gave an address to the Australian Government Fixed Income Forum in Tokyo. He argues that the Australian economy continues to perform well and largely as expected in the 2016-17 Budget. It remains resilient in the face of global volatility. The economy is transitioning from an unprecedented mining investment boom … Continue reading “The Resilience Of The Australian Economy”

Is competing on rate no longer an option?

From Mortgage Professional Australia. Australia approached zero like an out-of-control spender. A cash rate cut here, a cut there, and everyone benefited (if you ignore first home buyers, savers and many others, of course). In August the RBA announced another cut, and giddy brokers prepared themselves for another housing boom, but like an obstinate ATM … Continue reading “Is competing on rate no longer an option?”

Morrison targets state planning regulations as problem for housing affordability

From The Conversation. The government will push states to remove unnecessary residential land use planning regulations that are impeding the supply of housing, Treasurer Scott Morrison will say in a major speech acknowledging the pressing issue of housing affordability. Addressing the Urban Development Institute of Australia on Monday Morrison will say that improving affordability “right … Continue reading “Morrison targets state planning regulations as problem for housing affordability”

One in four Australian workers financially stressed

Financial stress is now a fact of life for more than one in four Australian workers who say they have low confidence in their financial position and find it difficult to make ends meet. New research, undertaken by AMP for its 2016 Financial Wellness report, revealed Australians’ confidence in their finances continued to decrease in … Continue reading “One in four Australian workers financially stressed”