Over the past 48 hours both ANZ and CBA have increased interest rates for property investors, not owner-occupiers, by 0.27%. Westpac and NAB are expected to follow shortly (25 July 2015). Although analysts forecast these rate rises will add about $800 million in combined profits to the big four, they are not intended as a […]
Property investor slowdown
The bubble debate part 2 — There is no housing bubble
Joe Hockey was heavily criticised in late 2014 when he dismissed suggestions of there being a housing bubble in Australia. But that’s politics. In reality there are many people who share the Treasurer’s view, and that’s what this post is about. Our post last week summarised the opposing side of this bubble debate. No one […]
The bubble debate part 1 — Beware of the housing bubble bursting
This post summarises the arguments in support of there being an Australian housing bubble in 2015. Amongst all of the noise, bubble advocates are making two key points: 1. House prices have risen well beyond their true values; and 2. Debt levels are unsustainable Price rises On house prices, the common references are to Sydney […]