The Art Of Credit Creation

Today we discuss how banks lend, and why the idea that bank deposits limit bank lending is plain wrong and helps to explain why home prices have exploded in recent years. The correlation between home prices and credit availability are clear to see. We have updated this chart to take account of 2018 data. As … Continue reading “The Art Of Credit Creation”

Is QE Back On? – The Property Imperative Weekly – 26 Jan 2019

Welcome to the Property Imperative weekly to the twenty sixth of January 2019, – Australia day – our digest of the latest finance and property news with a distinctively Australian flavour.    Watch the video or read the transcript. This week, amid weaker global economic news, there were signs that more stimulus of the financial … Continue reading “Is QE Back On? – The Property Imperative Weekly – 26 Jan 2019”

Australian Property Still Severely Unaffordable – Demographia

The 15th edition of the annual Demographia Internal Housing Affordability Survey has been released. Once again it shows that Australia and New Zealand property is unaffordable. Globally there were 26 severely unaffordable major housing markets in 2018. As normal they argue for planning reforms to release land, but do not consider credit availability, the strongest … Continue reading “Australian Property Still Severely Unaffordable – Demographia”

IMF On The Australian Economy

The IMF has released their Concluding Statement of the 2018 Article IV Consultation Mission.  And, well, it gives a relatively clean bill of health, whilst talking of risks in the housing sector, a need for more financial risk oversight and suggests that supply side issues need to be addressed to ease affordability. In other words … Continue reading “IMF On The Australian Economy”

Blowback City! – The Property Imperative Weekly To 3rd November 2018

Welcome to the Property Imperative weekly to 3rd November 2018, our digest of the latest finance and property news with a distinctively Australian flavour. Watch the video, listen to the podcast or read the transcript.  scrollings=”no”  The latest data reinforces the downward momentum in property, and the blowback more broadly across the economy … Continue reading “Blowback City! – The Property Imperative Weekly To 3rd November 2018”

The Property Market Black Hole – The Property Imperative Weekly 20 October 2018

Welcome to the Property Imperative weekly to 20th October 2018, our digest of the latest finance and property news with a distinctively Australian flavour. Watch the video, listen to the podcast or read the transcript.  scrollings=”no”  As you approach a Black hole, gravity increases exponentially, to the point where it is impossible to … Continue reading “The Property Market Black Hole – The Property Imperative Weekly 20 October 2018”

Brokers targeted in major litigation proceedings

Maurice Blackburn Lawyers has confirmed that it is preparing court proceedings against the major banks and brokers in regards to alleged breaches of the NCCP, according to The Adviser. On Monday, media reports began circulating about rolling litigation being levelled at the major banks and brokers relating to alleged breaches of the National Consumer Credit … Continue reading “Brokers targeted in major litigation proceedings”

Upping The Ante 10 Years Later – The Property Imperative Weekly – 15 Sept 2018

Welcome to the Property Imperative weekly to 15th September 2018, our digest of the latest finance and property news with a distinctively Australian flavour. Watch the video, listen to the podcast or read the transcript.  scrollings=”no”  On the 10th Anniversary of the failure of Lehman Brothers, the consensus seems to be that the … Continue reading “Upping The Ante 10 Years Later – The Property Imperative Weekly – 15 Sept 2018”

Let The Sunshine In – The Property Imperative Weekly 18 August 2018

Welcome to the Property Imperative Weekly to 18th August 2018, our digest of the latest finance and property news with a distinctively Australian flavour.    Another week, yet more data, so let’s dive straight in. And by the way, if you value the content we produce please do consider joining our Patreon programme, where you can … Continue reading “Let The Sunshine In – The Property Imperative Weekly 18 August 2018”

Who Really Benefits From High Home Prices? – UPDATED

Most would accept that house prices in the major Australian centres are too high. Whether you use a measure of price to income, loan value to income, or price to GDP; they are all above long term trends and higher than in most other countries. Indeed, in Sydney and Melbourne, they are arguably more than … Continue reading “Who Really Benefits From High Home Prices? – UPDATED”