Housing debate plumbs new lows

This idea is an attack on seniors and marks a new low in the housing debate. There’s this odd idea that retirees have to play their part to help fix the affordability crisis. It flared up again in this year’s budget, as some people criticised the plan to give extra funding to allow older people […]

RBA says IO loans are A-OK

RBA flags that tight credit conditions have probably served their purpose. I’ve heard a lot of people say recently that Interest-Only (IO) loans in Australia are our version of sub-prime. In case you’ve forgotten, because it is over ten years ago now, sub-prime mortgages brought down the housing sector in the US during the GFC. […]

Investors become collateral damage

How tough is the credit environment right now? This tough: The Royal Commission is practically unearthing the equivalent of bodies in barrels in the financial sector. The CEO of AMP is gone, more will probably (and should) follow. This is all a good thing. It was pretty clear to everyone that the banking sector had […]

APRA- bunch of spankmonkeys

  APRA is just not doing us any favours. If you want to know what’s behind the multi-week decline in Sydney property prices, there’s only one culprit: APRA. APRA – the bank regulator – has been tightening the screws since the middle of last year, going hard on investors and interest-only lending. APRA threatened the […]

Lots Of Government Money Going Into Property

Where is government money going now? The First Home Owners’ Grants (FHOGs) weren’t particularly popular. Well, they were if you got one. They were great. But as far as economists went, they weren’t seen to be all that fabulous. Effectively the government just poured a whole lot of cash into the housing market, via the […]

The tipsy top-end could topple

Should we be worried about the bubble in commercial property? One of the key concerns last year was that an oversupplied high-rise apartment market might weigh heavy on the market overall. So far, as much as we’re seeing any fall out from this, it’s been fairly contained. It certainly hasn’t been the house of cards […]

WTF? You can only own 2 properties?

This is the key thing that makes me different from all the others So Australia’s supposedly largest residential property investor was in the Australian Financial Review last week, taking a pot shot at APRA. Kevin Young reckons 20,000 of his Property Club members can no longer afford their mortgage after the banks shifted them from […]

Are people really this ignorant?!?

This is the scariest statistic I’ve seen in years… Quick Quiz: How many people in the property market have no idea what they’re doing? 5%? 20%? 50%? All of the above? Someone forwarded me a recent study by investment bank UBS. They call it the UBS Evidence Lab Australian Mortgages survey. It aims to be […]