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 …
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 …
Australia’s trek to the polls on Saturday has resulted in a nail biting, too close to call result. At the conclusion of counting at 2am Sunday morning, the ALP had 67 seats, LNP – 65 and the minor parties have picked up five. 13 seats remain in doubt with counting …
Western Australia’s highest residential vacancy rate in decades has turned the state into a hot spot heaven for squatters. Squatters are finding home in some of the tens of thousand vacant properties sitting idle in WA. Some are changing the locks and threatening landlords. Others are conducting their own renovations …
Australia’s banking regulator has expressed “perpetual concern” about the dominance of Australia’s big four banks in the lending market. Charles Littrell, Australian Prudential Regulation Authority (APRA) supervision general manager told a Centre for International Finance and Regulation showcase event on Thursday, “In 1990, the four major banks had 40 per …
A Treasury report released under Freedom of Information has found over half of all negative gearing tax benefits aid our top twenty percent of income earners and the top ten percent of income earners gain 75 percent of the capital gains tax concessions. Despite claims by the coalition that Mums …
Moody’s Investors Service has warned today, the recent resurgence in house price growth following last month’s rate cut would been seen as a credit negative for Australian banks. The surge, “against a back drop of an already-high level of household indebtedness” would increase the sensitivity of Australian banks to a …
Borrowers are having to pay larger housing deposits in 2016 as lenders re-evaluate their risk appetite, according to Genworth. Genworth Mortgage Insurance Australia Limited is Australia’s largest provider of Lenders Mortgage Insurance (LMI). LMI protects the lender when borrowers default on their home loans. According to the Chief Executive Officer, …
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