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Australian Economy

Appetite for credit hits 17 year low

Figures from the Reserve Bank of Australia today show annual credit growth has slowed to a 17 year low in November. Credit growth for the 12 months to November 2009 was just 0.8%. Business credit contributed the most to the fall, falling 8.2% in the past year. While many business

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United States Economy

U.S. Government gets set for 2nd wave : unlimited aid to Freddie & Fannie

The U.S. government has removed the US $400 billion dollar cap and extended support to 2012 for Fannie Mae and Freddie Mac in preparation for the second wave. Fannie Mae and Freddie Mac together guarantee almost half of all mortgages in the USA. The timing of the announcement, done during

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Australian Housing

FHB saving in case the economy deteriorates

A Bankwest/Mortgage and Finance Association of Australia (MFAA) research report found that 43.8 per cent of potential first home buyers are saving money in case the economy deteriorates. 47.9 per cent are now looking at purchasing cheaper properties that originally planned. The new report comes as welcome relief after a

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Australian Economy

Failed U.S. banks hit 140 this year

Over night, the Federal Deposit Insurance Corporation (FDIC) shut down a further 7 United State banks bringing the total this year to 140. This number of failures is the most since 1992 during the grips of the savings and loans crisis. Most of the banks have become a victim of

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Australian Economy

A third of listed companies unhealthy / Small Business, big trouble

With many Australian’s relying on wage growth to fund housing expenses growing at an even faster pace, the future is not looking rosy for many businesses. The Australian Corporate Health Index today shows more than 70 per cent of 200 listed companies outside of the financial services sector went backwards

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Australian Housing

End of boost to hit mortgage market

The Sydney Morning Herald reports a forecoming $14 billion decline in mortgages written over the next 12 months as the first home buyer frenzy gets watered down. The value of mortgages written fell $3 billion or 6 per cent in the September quarter as the full value of the boost

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China

China gets set to pop speculative housing bubble in 2010

In what could be seen as a splitting image of Australia, young Chinese is struggling to get into a housing market fueled by speculation. The AFP reports “The boom has been bolstered by easy bank loans, tax breaks and a lower down payment threshold, introduced by the government in the

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Australian Economy

Australian average mortgage size ballons to new heights

While much of the world is coming to terms with falling housing prices brought on by crippling debt and the inability to service it, Australia’s size of new mortgages has hit a new record. Fueled by emergency low interest rates, the average home loan brokered in November was $367,000 up

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Australian Housing

Australia : Home of the McMansion

The size of the Australian home has overtaken the U.S. to become the biggest in the world. The average size of the new Australian home is now 215 square meters, up 10% over the past decade. In contrast as the U.S. comes to grips with the worst recession since the

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Australian Housing

New home sales in downward spiral as stimulus measures wears off

New home sales fell for the 2nd month in Australia as the effects of the unprecedented financial stimulus wears off. The Housing Industry Association reported today sales of new homes fell 6.9 percent in October, following a fall of 4.3 percent in the month previous. » New home sales retreat:

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Australian Housing

First Home Buyers flee market in droves

The Sydney Morning Herald reports there were only 2626 first home buyers in NSW in the month of October after the First Home Buyers Boost was slashed to $3,500. This is a fall of 57% from the previous month where 6079 buyers made a rush to ensure they picked up

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Australian Economy

Australia’s 18 years of economic expansion will continue for years to come

Australia deputy governor Ric Battellino has stolen the limelight today with comments that we have only just entered a new upswing and that our 18 years of economic expansion has many more years to run. “It is now 18 years since Australia has experienced a negative in year-ended GDP growth,

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Australian Housing

Home deposit rules could stem price bubble

Amid fears another house price bubble is brewing in Australia, RBA Assistant Governor Guy Debelle has entered into debate with the suggestion of regulating the size of deposits home buyers must provide banks, in a bid to prevent credit fuelled asset bubbles. Back in September the International Monetary Fund endorsed

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Australian Economy

Households set to feel debt squeeze

The Sydney Morning Herald reports : Households will begin to feel the impact of more interest rate rises, after years of racking up more debt, a report shows today. The Melbourne Institute Bulletin of Economic Trends for November flagged the increased likelihood of a Reserve Bank rate rise in December

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Australian Economy

Worst house building slump since WW II

The ABC reports on a Housing Industry Association (HIA) report revealing this year marks the seventh straight year of weakness in housing starts, with Australia experiencing the longest slump in new home building in its post-war history. The HIA argues new building is being crippled by bottlenecks and that it

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Australian Economy

Housing the bubble that no one dares burst

The Age’s Tom Ormonde today wrote an article about the housing bubble that on one dares burst. THE phrase ”safe as houses” was always ridiculous, and not just because it’s a cliche. Bricks, mortar and gaudy imitation period features can be a good investment, but frequently aren’t, particularly when procured