No Picture
Australian Economy

Banks tighten screws on foreign buyers

All four of Australia’s big banks have tightened lending for foreign buyers over the past months, some blaming increased regulatory requirements. Under the Basel III banking reforms, banks will face higher capital requirements on loans reliant on foreign income. Highly elevated house prices and paltry rents in Australia means rental

No Picture
Australian Economy

More sizable deposits required as property bubble reaches tipping point

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,

No Picture
Australian Housing

Perth rental crisis a precursor to housing crash

An unprecedented 10,200 vacant residential properties are now available for rent in Perth, according to an ABC news report published today. Perth City now has a distressing vacancy rate of 6 per cent, while the suburbs hover around an highly elevated 4 per cent, about three times the long term

No Picture
Australian Economy

Australia joins club deflation, cuts cash rate.

The Reserve Bank of Australia (RBA) has today acknowledged the Australian economy is slowing more rapidly than forecast, deciding to slash the official cash rate by 25 basis points to a record low of just 1.75 per cent. It follows ugly stats out last week from the Australian Bureau of

No Picture
Australian Economy

ABC Four Corners: Home Truths

The ABC’s Four Corners has aired an excellent story tonight showing how tax distortions such as negative gearing has created one of the world’s largest housing bubbles: Watch the 45 minute segment here.