Articles

Efem Castelnuovo & Bruce Preston| The Conversation| 19 March 2018 https://theconversation.com/why-the-rba-needs-to-talk-about-future-interest-rate-policy-93292 The Reserve Bank of Australia should follow the example of other central banks and be clearer about when and how rates will change, called “forward guidance”, to make its policy more effective. At the moment the RBA follows an approach to implement monetary policy […]

Richard Holden| The Conversation| 16 March 2018 https://theconversation.com/vital-signs-construction-yet-to-slow-down-with-a-cooling-housing-market-93358 The Australian Bureau of Statistics housing finance figures released Tuesday reveal a modest increase in the total value of dwelling commitments, up an overall 0.7% for the month of January on a seasonally adjusted basis. The investor segment (up 1.1%) was stronger than owner-occupied housing (up 0.5%). […]

Daryl Dixon| Sydney Morning Herald| 15 March 2018 https://www.smh.com.au/money/borrowing/the-attractions-of-interest-only-loans-20180315-p4z4il.html Despite tighter regulations, interest-only loans offer substantial benefits to potential borrowers. It’s true there is heightened risk for lender and borrower because the loan is not paid down over time. With interest-only loans, the risks will fall only if the value of the property or asset […]

Rachel Ong, Gavin Wood & Susan Smith| The Conversation| 6 March 2018 https://theconversation.com/home-ownership-foundations-are-being-shaken-and-the-impacts-will-be-felt-far-and-wide-91664 he nature of the centrepiece of the Australian housing system – owner occupation – is quietly undergoing a profound transformation. Once taken for granted by the mainstream, home ownership is increasingly precarious. At the margins, which are wide, it is as if […]

Ambulance chasers are not seen as the best friends of the property and finance sectors. But, ironically, they could boost incomes for brokers and financial planners A rising tide lifts all boats. But, when the tide goes out, its obvious who has been swimming naked. And with the property market being close to the top, many potential purchasers […]

David Scutt| Business Insider| 20 February 2018 https://www.businessinsider.com.au/rba-financial-stress-low-households-2018-2 Australian household debt has increased and wage growth remains weak, but that’s not yet led to a substantial pickup in financial stress. And that includes households with a mortgage, be they owner-occupiers or investors. That’s the concise view of Michelle Bullock, Assistant Governor of the Reserve Bank […]