Residential Recovery?......Not Yet
No one wants to be that guy, the glass half empty guy. But the calls of a recovery in the housing market may be somewhat premature, perhaps even wishful thinking.
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Interest Rates - Steady as She Goes
So, interest rates remain on hold by the RBA at 1.50%. With an inquiry into the financial sector, it would be a very brave bank that raised interest rates at the moment. What we are now seeing is APRA growing some teeth that is supporting the muscle it used to slow investment lending and a recognition that some practices were perhaps a little too easy for some borrowers to access loans.
Read the Full ArticleThis Time, It's All About You
The latest population data has been released and it tells a very interesting story on how Australia is settling and growing. It remains a very Eastern State centric platform and with that, the challenges of how to distribute economic benefit and control economic development. This is even more apparent when consideration is actually given to the current growth profiles of each.
Read the Full ArticleRBA - A Rock and a Hard Place
This was a link provided to us today by Goran Padezanin which highlights a recent speech given by the RBA Deputy Governor. It is not difficult to see this being a problem for some property owners that continue to leverage any equity that became available to them. Given many markets in Australia are softening in terms of volumes and prices in particular sectors, going to a principle and interest repayment structure could be problematic .
Read the Full ArticleTime to Fix The Real Issues - Stop Government Handouts for Housing
There is in fact no real affordability problem in Brisbane, Perth or Adelaide for that matter. This perpetual drive to have the government creating more handouts is the wrong approach simply because it is putting a band aid on the wound. The real issue is how do we stop the wound from occurring in the first place. If government was serious about addressing affordability, it has to attack the problem on multiple fronts. The first is by addressing the issue of youth unemployment and underemployment.
Read the Full ArticleIf Apartment Values Fall, So Will Housing ... Simultaneously
There has been so much speculation around the apartment market and how it could impact the broader housing sector, however history tell us that this hasn't been the case in the past since 2003. The data actually demonstrates that the apartment market and housing market typically move as one, a really important consideration if you believe there will be an uplift or a fall. Often there is the expectation that every cycle is different, but that is hardly the case in property. Developers build too much on the back of confidence, they stop building and the market catches up, reaches equilibrium for a short period of time and then we over build again and hence the cycle starts all over. If it didn't, then the notion of the "property clock" would cease to exist.
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