May Financial News Highlights
Fertile ground for town planners.
Bernard Salt, The Australian.
Our thoughts: An interesting article by well-respected author, observer and special adviser Bernard Salt. Reflecting on the current “baby boom” and its correlation with town planning requirements and property demand. Starting or growing your family is, unsurprisingly, a very emotive driver of where and how people want to live and, consequently, those experiencing this aspire to do so whilst living in a particular suburb or type of home. It seems reasonable therefore that during cycles of increased fertility numbers, demand is growing for the “traditional” house and land package where mum, dad, and family can enjoy both house and yard in a sense of community with other aspiring homeowners and budding parents.
Labour loss to deliver positive property “shock”.
Matthew Cranston, The Australian Financial Review.
Our thoughts; Following what most agree to be a surprise federal election win to the Liberal Coalition, many industry observers and economists agree that improved corporate and consumer sentiment, within a stable policy environment should, and has, seen a buoyed mood and confidence levels steadying. This should ease concerns at all levels and with significant new tax policies and industry reforms no longer looming, coupled with a stronger government with lower risk of political deadlock – we should see a trickledown effect of this confidence through credit policy and industrial relations, a rebound of sorts in the economy and housing sector in particular.
APRA Scraps 7pc home loan buffer.
James Frost, The Australian Financial Review.
Our thoughts; In 2014 serviceability buffers were introduced to control the rampant property market and ensure borrowers were sufficiently able to service mortgage debt at a longer term, sustainable interest rates. Having clearly succeeded in its goal, APRA, in consultation with relevant industry groups feels an economic environment now exists where the risks no longer warrant such a high buffer. Whilst APRA has acknowledged the implementation of this buffer has served its purpose and the time is right to relax it, it is still in discussions with the major banks regarding additional mechanisms to control household debt levels, sustainable serviceability, and prudent lending practices.
Change to five-year-old rule could see housing market boom.
9 Finance.
Our thoughts; Another article discussing APRA’s relaxing of their serviceability buffer requirements, and how this may lead to another property cycle “boom”.
ANZ email scam could allow criminals to steal your entire life savings.
9 finance.
Our thoughts; A worthy read, and 5 minutes well spent in remaining diligent against online scams. This particular ‘phishing scam’ is incredibly elaborate – whereby an email with information advising of a successful BPAY transaction having been completed and instruction to log in your bank account to view the transaction. A link takes unsuspecting customers to an exact copy of ANZ’s online bank login portal, adding to the apparent legitimacy of the email, where it then takes customers through a security question and answer scenario, in an attempt to capture critical information – allowing the scammers to potentially defraud peoples bank accounts. Definitely, one for ANZ customers to be aware of. This article also finishes with a wrap up of numerous other scams doing the rounds at the moment that consumers should be aware of, so as mentioned at the beginning, a great article to take 5 minutes to read.