The Reserve Bank of Australia’s surprise decision earlier this month to only increase the official cash rate (OCR) by 25 basis points is, as expected, starting to manifest itself with a weakening Aussie dollar (AUD). Most economists had expected a 50 basis point rise. At 2.60 percent, the OCR sits …
The Reserve Bank of Australia (RBA) has today increased the official cash rate by 25 basis points to 2.60 percent. Most of the market was expecting a 50 basis point rise. This is the sixth consecutive rate hike this year as the RBA continues to normalise interest rates and start …
The new Australian Bureau of Statistics (ABS) Monthly CPI Indicator has shown headline Inflation in Australia had hit 7.0 percent in the year to July, and 6.8 percent in the year to August. Prices for food and non-alcoholic beverages have risen at 9.3 percent per year, helped by fruit and …
As widely expected, the Reserve Bank of Australia (RBA) has today increased the official cash rate (OCR) by 50 basis points to 2.35 percent. This is the fifth consecutive rate hike this year as the RBA continues to normalise interest rates in preparation for what is shaping up to be …
New figures released from the Australian Bureau of Statistics (ABS) show building approvals continue to decline due to a significant slow down in the apartment sector. The largest decline in approvals have been in sectors other than houses – i.e. townhouses, units and apartments. Australia turned to an apartment building …
Lending for dwellings continues its sustained decline in Australia according to the latest Australian Bureau of Statistics data released Thursday. Across both the owner occupier and investor segments, lending by value is down 20.8 per cent in the past 12 months to May 2019. The decline in more pronounced in …
The World’s Central Banks have today created countless financial bubbles through unconventional and unproven monetary policy. Paralysed by the 2007/08 Global Financial Crisis (GFC) stemming from the burden of unsustainable debt levels, central banks and governments have tirelessly worked in unison to recklessly pump world economies full of more and …
Earlier this week, Australia’s Federal Treasurer Scott Morrison reassured foreign lenders that “Australian housing values, while high, are still ‘real’.” “Safe as houses still broadly means something in Australia,” He went on to say, “The rise in housing values has been driven principally by genuine economic forces of supply and …
With a fire raging in the Melbourne and Sydney property markets, incentivised by emergency low interest rates, negative gearing and capital gains discounts, APRA has announced it can no longer wait for Basel IV banking reforms. The regulator plans to implement a new round of stringent regulation starting mid year. …
Nine banks have today hiked interest rates, out-of-cycle, on regulators confirmation of a housing bubble. On Monday, the Australian Securities and Investments Commission (ASIC) chairman Greg Medcraft remarked “I’ve been saying for a while I thought it was a bubble, other people are catching up now,” The latest Australian Bureau …
“Once you are in the Sydney housing market you are pretty well set then for the rest of your life,” It’s the claim of New South Wales Housing Minister, Anthony Roberts. The Sydney property market is one of the most expensive in the world, and with Australia also having the …
China’s most recent capital controls, introduced on the 1st of January, are having an immediate effect, with fewer Chinese buyers able to purchase property abroad. From London to Melbourne, Vancouver to Sydney, Chinese citizens are struggling to close property transactions in some of the world’s largest property bubbles. International experts …
Credit rating agency Fitch has placed Australia’s banks on a negative credit watch, citing an increase in macro-economic risks stemming from the property asset bubble. Fitch indicated a key risk for the banking system was the banks’ exposure to the overheated property market. Of special concerned is strong increases in …
If there is one person that knows the severity of the Australian housing bubble and the repercussions for our banking system, it is ex Commonwealth Bank CEO David Murray. Murray more recently headed up the the government’s Financial System Inquiry. In an interview broadcast on Sky News earlier this month, …
Australia’s property investors and debt slaves were in shock on Friday, when Westpac joined the ranks of smaller banks, significantly hiking mortgage rates out of cycle, on its fixed term loans. Westpac’s five year fixed investment loan will jump 60 basis points or 2.4 times the standard Reserve Bank increase …
Australia is facing an unprecedented apartment oversupply as an estimated 230,000 new apartments flood the Melbourne, Sydney and Brisbane markets over the next 24 months. The surge in new apartment building was in an attempt to satisfy the insatiable demand from the foreign Chinese property investor. Under an Australian law …
Australia’s unprecedented housing bubble has forced a significant number of mortgage applicants to falsify loan applications, simply to get a foothold in the ever challenging market. A recent UBS survey found mortgage fraud in Australia was rife, with 28 per cent of applicants admitting to falsifying loan documents. Many had …
It’s not just those struggling to break into the property market that need to cut back on smashed avocado with crumbled feta on five-grain toasted bread. Interest rates might be at record lows, but delinquency rates have hit record highs in Western Australia, Tasmania and the Northern Territory. In South …
Prime Minister Malcolm Turnbull has called on Australians to be prudent towards excess household debt, saying interest rates will not always remain low. “It’s not for me to give lectures on household finance but I think most Australians are very alert to the fact that while interest rates are low …
Foreign investors in Australian real-estate will need to conduct their own sound due diligence after it has been revealed one of the countries leading house price indices has been overstating growth. But it is not the only problem they face. Australia’s central bank has been forced to drop using a …
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