The Debt Monster – The Property Imperative Weekly – 19 Aug 2017

Household Incomes are growing at the slowest rate for two decades, putting more strain on family budgets who are wrestling with rising costs and bigger mortgages and battling the debt monster. What the implications for home prices, and the broader economy? Welcome the Property Imperative weekly to 19th August 2017, as we look at the … Continue reading “The Debt Monster – The Property Imperative Weekly – 19 Aug 2017”

Another Perspective On Debt

We had significant reaction to yesterday’s post on the “normal” status of high household debt. So today we take the argument further using data from the RBA Household Balance Sheet series (E1) and the recent ABS data on income growth. The traditional argument trotted out is that household wealth is greater than ever, this despite … Continue reading “Another Perspective On Debt”

Allegations against the CBA show the need for a Royal Commission into the banks

From The Conversation. The Commonwealth Bank is facing another scandal as the Australian Transactions Reports and Analysis Centre (AUSTRAC) launches civil proceedings accusing the bank of being complicit in money laundering. This exposes a deeply worrying prospect, that the Australian public are vulnerable to crime and terrorism directly funded through the Australian banking system. AUSTRAC … Continue reading “Allegations against the CBA show the need for a Royal Commission into the banks”

Giving you more say in your super? Not likely with these changes

From The Conversation. The government is introducing a raft of changes to the regulation of superannuation in a bid to give consumers more power over their retirement funds. But, in fact, consumers are unlikely to use these new powers and the changes might not improve super fund performance. The headline change introduces annual general meetings … Continue reading “Giving you more say in your super? Not likely with these changes”

Who’s responsible? Housing policy mismatched to our $6 trillion asset

From The Conversation. Does the Australian government have the policy, organisational and conceptual capacity to handle the country’s A$6 trillion housing stock? We ask this question in a newly released research report. The answer is critically important to both household opportunity and prosperity, and to the management of our largest national asset. Australians’ wealth is … Continue reading “Who’s responsible? Housing policy mismatched to our $6 trillion asset”

Budget 2017: Prepare to be disappointed on housing

From The New Daily. Despite all its huff and puff on housing, a senior economist has warned voters the government will disappoint on the one reform almost everyone wants. Professor Richard Holden said it would be a “real shame but no surprise” if Tuesday’s federal budget failed to curb tax perks for property investors. “There … Continue reading “Budget 2017: Prepare to be disappointed on housing”

Social impact investment can help retirees get the housing and care they need

From The Conversation. A recent report raised concerns about the erosion of retirement income by ongoing rental or mortgage payments. The report by the Australian Institute of Superannuation Trustees is timely, given the Australian aged pension system is predicated on an assumption of outright home-ownership. Yet increasing numbers of people are still paying mortgages after … Continue reading “Social impact investment can help retirees get the housing and care they need”

A less than super response to housing

From The New Daily. Prime Minister Malcolm Turnbull has reportedly intervened to scotch reports the May budget will include a measure to allow first home buyers to access funds from their superannuation. He may believe that’s the end of the story, but in reality it’s the continuation of a too familiar narrative. This is a government … Continue reading “A less than super response to housing”

Shadow banking and where it came from

From The Conversation. The term “shadow banking” often has connotations of dodgy lending and borrowing practices, out of reach of regulators. And while its use may contribute to risk, in reality shadow banking does serve a purpose in our economy, one that is increasingly connected to our day-to-day lives. Shadow banking affects not only the … Continue reading “Shadow banking and where it came from”

Property And Household Financial Footprints

Data from the Digital Finance Analytics Core Market Model tells an interesting story when we look at households dependence on wealth from property. To illustrate the point, here are three charts, looking at different household groups. The first is the owner occupied mortgage group. The blue area represents the distribution of households by age bands. … Continue reading “Property And Household Financial Footprints”