Aussies trapped in ‘commodity bust, housing boom’ cycle and the unwinding is going to be painful

There is an article published on financialpost.com dated 29/09/2016. I think it is worth to read. Basically it argues that Australia is “having its central bank backed into a corner, forced to warn about the dangers of high debt and hot housing markets, while powerless to change interest rates as a commodity bust weighs on the economy.” Economists …

Earning more than $80,000 a year and seek help with mortgage repayments?

There is a news on Yahoo saying “many people earning more than $80,000 a year are seeking help with mortgage repayments” from Welfare group Lifeline. I think this is just ridiculous – I don’t mean the housing prices. I mean the people who earn more than $80k and seek help with home loan repayments. Did …

House prices will increase because of the new tax breaks for savings?

In a bid to encourage Australians to save more money, the Rudd Government is set to unveil a tax break for bank saving deposits. According to the Daily Telegraph, this new scheme would offer tax concessions on savings similar to superannuation’s discount rate of 15 per cent. This new offering is a component of the …

Looking to buy investment properties? Adelaide might be a good choice!

The Real Estate Institute of South Australia says the housing affordability in South Australia compared to all other states, still remains probably one of the best although the median house price for metropolitan Adelaide has passed the $400,000 mark for the first time. The Real Estate Institute of South Australia says the median house price …

Glenn Stevens says blaming foreign buyers for rising house prices

Reserve Bank governor Glenn Stevens says foreign buyers are a factor in rising house prices. Mr Stevens said the bank was monitoring how much the federal government’s decision last March to relax its rules on foreigners owning property had contributed to surging prices for housing. He said the role of foreign purchases was ”an important …

Should we blame Foreigners especially Chinese for poor housing affordability?

Should we blame foreigners, especially Chinese, for poor housing affordability? I don’t think so although there seem to be many people thinking so. Here are some comments I found on the web regarding high housing prices and poor housing affordability in Australia. It is going to be hard to work out how much it is raising …

Housing prices increased almost 2 percent in January 2010

Australia housing prices increased 1.8 per cent in January, according to RP Data, taking them 11.8 per cent higher in 12 months. “What makes me angry is that my father was able to buy a three bedroom house in Williamstown and support a family (my mother didn’t work) on the average income of a school teacher,” said …

House prices and rents are expected to rise in 2010

Without the required new home building to keep up with underlying requirements, house prices and rents are expected to continue pushing upwards through 2010, according to Housing Industry Association (HIA). The association is forecasting a moderate housing recovery in 2010 with about 152,000 dwelling starts. But that’s still below the 190,000 required to keep pace with …

Australia housing affordability reached a new low point

Australia has the most unaffordable housing market according to the Sixth Annual Demographia International Housing Affordability Survey published in 2010 (see the housing affordability index by country and housing affordability index scales below). The survey looks at 272 metropolitan markets in Australia, the US, the UK, Canada, Ireland and New Zealand. Housing affordability is measured by using the …