No Picture
Australian Economy

Australia’s big 4 banks “almost too big to get sick”

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

No Picture
Australian Economy

OECD: Housing crash could be “dramatic and destabilising”

“Domestically, the unwinding of housing-market tensions to date may presage dramatic and destabilising developments, rather than herald a soft landing.” This is the latest warning from the OECD Economic Outlook and comes after the Reserve Bank of Australia stoked the hot coals last month, slashing the official cash rate by

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.

No Picture
Australian Economy

“No one wants to move to Australia” : Tech Giant

In his victory speech, Prime Minister Malcolm Turnbull said the Australia of the future has to be a nation that is agile, innovative and creative. But founder of Australia’s largest tech company, Mike Cannon-Brookes, claims Australia is too expensive. Mike Cannon-Brookes, a founder of Nasdaq listed software company Atlassian, headquartered

No Picture
Australian Economy

BIS Negative Gearing Blunder Embarrasses Government

A flawed report claiming Labor’s plan to quarantine negative gearing to new homes would result in rents surging by up to ten percent, and new home builds falling 7,200 annually, has embarrassingly backed fired for the government. The BIS Shrapnel report, riddled with significant errors such as Australia’s GDP being

No Picture
Australian Economy

Sydney housing market issued “sell” rating.

Performance Property Advisory believes Sydney property prices have “reached a classic peak” and have issued a “sell” rating according to the Australian Financial Review (‘Sydney and Melbourne property ‘set for price correction.’) The group provides market research and analysis for medium to high income professionals. According to the Domain, Sydney

No Picture
Australian Economy

Turnbull scare campaign: House prices to be ‘smashed’ under Labor’s negative gearing policy

He promised informed economic debate. But today, Prime Minister Malcolm Turnbull’s credibility in delivering much needed economic debate evaporated, as he launched a massive scare campaign claiming Labor’s negative gearing policy would result in house prices being “smashed”. After some debate over the past month, Turnbull has backed away from