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 […]

School of hard knocks now accepting enrolments…

Where would you raise $2,000 from if it was an emergency? Going broke hurts. I know from experience (divorce can do that pretty quickly). And it’s not really the money. Most people have the opportunity and enough time to rebuild their fortune again. There’s an emotional toll too. We live in a world where we […]