The Unhappy State Of Investment Property

In the ABS data yesterday there was useful information on the state by state situation with regard to investment property lending. So today we look at the latest data, and it is quite shocking. The chart below shows the 6 month rolling average value of lending for property investment flows across the major states. It … Continue reading “The Unhappy State Of Investment Property”

August Lending Data Released

The ABS released their data series for August covering the entire lending spectrum (the housing details were released previously). The total value of owner occupied housing commitments excluding alterations and additions fell 0.1% in trend terms, and the seasonally adjusted series fell 2.0%. The trend series for the value of total personal finance commitments rose … Continue reading “August Lending Data Released”

The Rise And Rise Of The Bank Of Mum and Dad

As part of the DFA household surveys, we segment the housing market, to identify those who want to buy and first time buyers, as well as those down trading, the affluent, suburban and seniors. We described the full segmentation recently.  Today we look at those who are trying to buy. This group has been under … Continue reading “The Rise And Rise Of The Bank Of Mum and Dad”

Macroprudential, Revolutions and the RBA

Over fifty years ago, in 1962 Thomas S. Kuhn’s book The Structure of Scientific Revolution was published. It is an important work because if helps to explain how things work, and its findings I think are widely applicable beyond the scientific community. Amazon says of the book “Kuhn challenged long-standing linear notions of scientific progress, … Continue reading “Macroprudential, Revolutions and the RBA”

Investors Burn Bright, First Time Buyers Sidelined (Again)

The monthly ABS housing finance data was released today for August. In a way, nothing new here, as first time buyers continue to be squeezed out, and investors dominate. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.3%. Investment housing commitments rose 0.9% while owner occupied housing … Continue reading “Investors Burn Bright, First Time Buyers Sidelined (Again)”

Household Ratios By Segment

Yesterday DFA posted the most recent RBA household ratios showing that overall debt for households is higher than its ever been. Today we take the argument further, with detailed analysis across our segmentation, looking at loan to income ratios. The DFA segmentation positions households on a multi-factorial basis, including demographics, wealth and life-stage. The data … Continue reading “Household Ratios By Segment”

Household Debt Burden Increases Again

Using the RBA household ratios, we can look at the effect of debt on the average household. It blows up the myth of “household deleveraging”, much talked about after the GFC. Whilst the average data masks the differences between different household segments (see the segmented analysis in our survey and we know debt is becoming … Continue reading “Household Debt Burden Increases Again”

Unemployment Up – Probably!

The ABS released their much heralded employment data today for September, having warned yesterday about the seasonally adjusted sets. Australia’s seasonally adjusted unemployment rate increased 0.1 percentage points to 6.1 per cent in September 2014, as announced by the Australian Bureau of Statistics (ABS) today. The seasonally adjusted labour force participation rate decreased 0.2 percentage … Continue reading “Unemployment Up – Probably!”

ASIC Says Life Insurance Industry Needs Higher Standards

ASIC today released their review of activity in the Life Insurance Industry, and finds that consumers interests are not always given priority. The $44bn industry touches superannuation, annuities, and other elements, as shown in a diagram reproduced from the report. We have previously highlighted the issues around annuities. They found that high upfront commissions are … Continue reading “ASIC Says Life Insurance Industry Needs Higher Standards”

Macroprudential Bites in the UK – Bank of England

The Bank of England (BoE) recently published their Q3 Credit Conditions Survey. This is the first edition since the recent Mortgage Market reforms were introduced, and the macroprudential controls were tabled. Looking specifically at secured lending to households they report that demand for credit has eased, and the proportion of higher loan to value loans … Continue reading “Macroprudential Bites in the UK – Bank of England”