Australian Economy

RBA begins to import inflation

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

Australian Economy

RBA increases rates 25 bps to 2.60 percent

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

Australian Economy

Australia’s CPI Indicator hits 6.8 percent in August

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

Australian Economy

Building approvals continue to plunge

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

Australian Housing

Lending to property investors worse since GFC

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

Australian Economy

Australia’s Property Market “Safe as Houses”: Treasurer.

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

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Australian Housing

Investor mortgage rates rise on confirmation of housing bubble

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

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Australian Economy

Australian Banks placed on Credit Watch Negative

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

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Australian Economy

Up, up and away. Why are mortgage rates on the rise?

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

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Australian Housing

Who will purchase all the apartment defaults?

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

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Australian Economy

Systemic mortgage fraud under investigation

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