Mortgage Stress Higher In February 2021

Well, against expectations – based on the main thrust of economic news (and spin), some may find it surprising to learn that our latest household surveys detected a RISE in Mortgage stress in February, based on our 52,000 or 0.5% rolling sample. Remember that we are measuring free cash flow, and a range of factors … Continue reading “Mortgage Stress Higher In February 2021”

An extraordinary clash of conditions in investment markets

An excellent piece of market analysis from Damien Klassen from Nucleus Wealth. Investment markets have a host of both positive and negative factors fighting for supremacy. The real question is whether central banks and governments will engineer a continued suspension of capitalism. I was sceptical six months ago. I’m less sceptical now that capitalism will … Continue reading “An extraordinary clash of conditions in investment markets”

DFA Live Stream Q&A HD Replay – With Nucleus Wealth

This is the edited edition of our latest live stream with Damien Klassen. Join us for a live Q&A as I discuss the current market environment with Damien Klassen from Nucleus Wealth. We will also discuss their property calculator, which I think is one of the best out there. https://nucleuswealth.com/property-calculator The macroeconomics of Australian residential … Continue reading “DFA Live Stream Q&A HD Replay – With Nucleus Wealth”

Mortgage Stress Shoots Higher In December

We are releasing the results of our rolling household surveys, which were completed before the latest round of bushfires started raging. Nevertheless, the results are a concern because the total number of households registering as financially stressed rose again, to 32.7% of borrowing households. This represent 1.1 million households across the country and a predicted … Continue reading “Mortgage Stress Shoots Higher In December”

RBNZ Consults On Cash – And Blows A Hole In The Australian War On Cash!

There is an interesting paper the Reserve Bank NZ has put out, seeking comments by 31 August. The Future of Cash Use. It was issued in June 2019. The paper describes the transition to digital alternatives, and explains some of the reasons. But what caught my eye was this section. “All members of society will … Continue reading “RBNZ Consults On Cash – And Blows A Hole In The Australian War On Cash!”

Housing market unlikely to rebound soon

Despite the recent surge of optimism regarding the property market, one financial analyst feels that the relief is misplaced, via Australian Broker. “There are some people now claiming that property prices have hit bottom and it’s all up and away from here. But then, there are others who rightly focus on the burden of debt, which … Continue reading “Housing market unlikely to rebound soon”

How millennials are affecting the price of your home

From The US Conversation. It used to be that everyone wanted to buy a home, seeking pleasure and security, as well as the potential for future wealth. But younger Americans are buying homes far less often than their elders’ generations did, and that puts a large sector of the U.S. economy at risk. Millennial home … Continue reading “How millennials are affecting the price of your home”

Their biggest challenge? Avoiding a recession

From The Conversation. Albo, or Plibersek, or whoever it turns out to be the next Labor leader, might have had a lucky accident. Usually, it’s Labor that inherits an economy turning down. This time, it’s the Coalition. And because of regular updates from the Reserve Bank and the Bureau of Statistics strikingly at odds with … Continue reading “Their biggest challenge? Avoiding a recession”

Do Student Loans Cramp Home Ownership Rates For Young Adults?

In an article, released by the US FED via the first issue of Consumer & Community Context, they explore the impact that rising student loan debt levels may have on home ownership rates among young adults in the US. They suggest that higher debt overall helps to explain lower home ownership. The home ownership rate … Continue reading “Do Student Loans Cramp Home Ownership Rates For Young Adults?”

Major Banks To Take Another Funding Hit; Thanks To APRA

APRA has released a paper on Loss-Absorbing Capacity of ADI’s. It shows that currently major Australian banks are at the lower end of Total Capital compared with international peers. As a result of proposed changes, major banks (Domestic systemically important banks in Australia, D-SIBs) will see their funding costs rise – incrementally over four years … Continue reading “Major Banks To Take Another Funding Hit; Thanks To APRA”