By Christopher Joye, cross-posted with permission from The AFR: I welcome perma-bear Steve Keen’s commentary on my recent analysis of the asset-class, and his apparent comfort with my conclusions. It is, however, worthwhile clearing-up some misunderstandings as to how I arrived at them. It is doubtless frustrating for folks like Dr Keen, who claimed that Australian house prices would slump 40 per cent in nominal terms in 2008, to see that they are actually 22 per cent above their pre-global financial crisis peak today. Let me put that stark contrast another way. In March 2008 the national median dwelling price across all regions was $367,500. Dr Keen evidently believed it would fall to $220,500. The median dwelling price of $450,000 today is thus more than double his predicted outcome. On any benchmark, that is a massive miss. As is well known, I vocally maintained during the GFC that any house price falls would likely be modest, which proved to be the case, [...]
By Leith van Onselen Another day, another spurious defence of negative gearing has arisen, this time by RP Data's Cameron Kusher (via its weekly Property Pulse): “Negative gearing continues to be a contentious issue and feature of the tax system which is unique to Australia. “Another point worth noting is that the data in the 2011 Census shows that the Government only owns and rents out around 4.1 per cent of total housing stock; conversely dwelling approvals data shows that a very small proportion of new housing approvals are granted to the public sector. "Looking at these two individual results, it would suggest that the Government has little interest in building or managing rental accommodation. This suggests that negative gearing is in place to encourage developers to build new rental accommodation and private individuals to act as landlord for those who aren’t in a position to own their own home. “While it would make sense to apply negative [...]
BORROWERS have been warned about a disturbing rise in fraud by mortgage brokers who are pushing up incomes and falsifying other information on the promise that it will help clients secure a dream home otherwise out of reach.
Visa Europe says contactless payments uptake is exceeding expectations, with the chip card technology now available in twice as many countries as this time last year, while transactions have nearly tripled and terminals almost doubled.
Westpac Banking Corp’s top man in China believes Australian companies should consider opening up shop in Shanghai’s new free trade zone as a way to access investors from the world’s most populous country.
The Internet Of Things will make many of the familiar devices and objects in our lives — from door locks to toll booths to refrigerators — suddenly Internet-connected, smartphone-accessible, and responsive.