Blowing the Gaff on Housing Affordability

Through 2013, DFA has been highlighting the systematic long term deterioration in housing affordability in Australia. Not a bubble, but something much more structural, driven by easy credit AND artificial limitations on land supply. Demographia has just published their 10th global affordability survey. Australia features as one of the most expensive places around the world … Continue reading “Blowing the Gaff on Housing Affordability”

Mortgage Brokers Day In The Sun

We just updated our mortgage broker models, to take into account recent transaction patterns and commission changes. Our last snapshot was in November last year. Brokers are doing very well at the moment, thanks to increases in the average mortgage transaction value, lifting volumes, and more generous commission rates from the banks who are actively … Continue reading “Mortgage Brokers Day In The Sun”

Should Debt To Income Servicing Ratios Be The Mortgage Policy Tool of Choice?

Last November the Bank of International Settlements published an interesting working paper entitled “Can non-interest rate policies stabilise housing markets? Evidence from a panel of 57 economies “. The paper discussed the relative effectiveness of a number of policies, over and above the blunt instrument of interest rates, and capital buffers which are designed to … Continue reading “Should Debt To Income Servicing Ratios Be The Mortgage Policy Tool of Choice?”

Banking’s Digital Elephant

A quiet revolution is under way as digital device take-up continues to rewrite the rules of banking. We have just completed a thought experiment with our survey participants as part of our channel preference study, and the findings are significant for current and potential players in the banking sector. This post provide some of the … Continue reading “Banking’s Digital Elephant”

Units Win In New Construction

The ABS today published its latest figures on residential construction. The trend estimate of the value of new residential building work done rose 0.4% in the September quarter. The value of work done on new houses fell 1.7%, while new other residential building rose 3.7%. The seasonally adjusted estimate of the value of new residential … Continue reading “Units Win In New Construction”

Foreign Property Investment (a.k.a The Chinese Factor)

One factor which is driving the residential property market, especially in the major centres of Sydney, Melbourne and Perth is a rise in overseas purchasers. They may be Australian residents, overseas purchasers buying property for investment through an approved development, or locals acting for overseas purchasers, who are attracted by the sustained house price growth … Continue reading “Foreign Property Investment (a.k.a The Chinese Factor)”

First Time Buyer Life-Style Trade-Offs

We just completed some analysis from our surveys on the attitudes of first time buyers. We cut data from our 2013 and 2010 data sets to compare and contrast. Back in the heady days of 2009/2010, first time buyers made up to 27% of all purchases, today is only 8%. We looked at those in … Continue reading “First Time Buyer Life-Style Trade-Offs”

The Superannuation Story, part 4

Continuing our series on superannuation, today we look at Self Managed Super Funds (SMSFs). Growth in SMSFs is probably the most significant event in the superannuation industry, leading not unsurprisingly for calls for greater regulation or a clamp-down from many industry players. We will be referring to the recently published 2011-12 SMSF data from the … Continue reading “The Superannuation Story, part 4”

The Superannuation Story, part 3

Continuing our series on Superannuation, after looking at performance and fees, today we look at consumer attitudes to Superannuation, based on the DFA household surveys. We collect data on an ongoing basis, and maintain a statistically robust sample. We include a number of specific questions to enable us to assess how connected households are with … Continue reading “The Superannuation Story, part 3”

The Superannuation Story, part 2

Yesterday we started our series on Superannuation, and showed that performance varied by type of fund, and across funds in an unpredictable way. Today we look at the industry from a consumer perspective. This is important because the overall returns as reported by APRA do not necessarily translate into the experience of individual superannuation accounts. … Continue reading “The Superannuation Story, part 2”