In recently released data from CoreLogic, auction clearance rates in capital cities are at their lowest level since December 2012. But the real pain in the months to come may be felt by apartment owners.
There’s no point explaining why this is an important area of investment that we all should pay attention.
It is, after all, what translates our investments into true and honest cash.
It’s also one of the largest mixed market economies in the world, producing a GDP of almost $1.7 trillion in 2017.
In that same year, we were second only to Switzerland as the wealthiest nation in terms of wealth per adult.
2018 marked the 27th consecutive year in which Australia’s economy had grown, recession-free. This achievement is officially the world record.
Indeed, the last recorded recession in Australia ended last century…way back in 1991.
But is it all good news?
The Dark Spots of the Australian Economy
Well, around the same time we grasped that recession-free record, Australia also achieved another record…
But this one was not the kind to celebrate.
In late 2016, Australian households became the most over-indebted households in the world.
It was also found that Sydney and Melbourne were home to the greatest amount of over-indebted households. There was a total of over 800,000 over-indebted homes across the two cities.
Sydney and Melbourne are quickly becoming some of the most expensive property markets in the world.
And yet somehow, we’ve still been able to grow…
The Lucky Country?
The Australian economy has benefitted hugely from China’s decades of economic expansion.
Chinese demand for resources led to a mining boom that peaked in mid-2012.
And then, when the mining boom collapsed, the Australian economy was thrown a supposed lifeline…
In a desperate attempt to keep GDP growth positive, the Reserve Bank of Australia — the RBA — issued ever-lower interest rates. The aim was to encourage Australians to borrow from the banks, thus keeping GDP growth up.
Technically, this method worked.
But the reality is…
Debts are rising because rates are falling. And wages aren’t increasing like they used to.
Something isn’t adding up…
Australian Economy News, as it comes…
In Markets & Money, we work to connect the dots on the Australian economy to give you a clear picture.
And part of that picture is connecting record economic growth, with record debt and record home prices.
With daily updates, we’ll make sure you know exactly where this ‘land girt by sea’ is in terms of its economy.
Read on below for our most recent views.
The ‘official’ spin paints a picture of an economy enjoying relatively good health, when the reality is quite the opposite. We’re bloated with debt. That’s the truth behind our economic ‘successes’.
Class-action lawyers have lobbed a lawsuit against CBA’s wealth management arm, Colonial First State. And what is the suit about? It is all about performance — or a lack of it.
To give people the opportunity to borrow money and rebuild their lives, interest rates have remained ultra-low. In Australia, the Reserve Bank has left rates at 1.5% for 26 consecutive months.
There is little doubt that retail is a tough game. Yet despite the bad news, not everyone is doing it so hard. As it has always done, it will continually reinvent itself.
It seems that the RBA’s decision to keep interest rates at historically low levels came and went with barely a murmur. The mainstream media is currently avoiding discussion of the implications of this policy for…
The keys to understanding the next Aussie financial crisis can be found in the writings of famous Austrian economist FA Hayek.
At a time when mortgage lending and the housing market is slowing, banks are probably counting on business spending to pick up. Yet business investing has been declining in the last years…
It’s been 12 consecutive months that we’ve seen Australia’s property prices falling. By historical standards this decline is mild, yet this hasn’t stopped the flurry of questions wondering how long or how big this downturn…
For the shrewd investor, it appears now is not the best time to invest in property in Australia. In short, it is not as ‘safe as houses’.
The Aussie dollar steadied today around 72.5 US cents after a period of volatility yesterday. Perhaps markets had already priced in the Federal Reserve’s move to raise interest rates by the time it was officially…
Our banks spend millions on PR to convince us that they’re good corporate citizens. The veil on that deception has been well and truly lifted in recent months. The art of illusion and deception.
Job vacancies have grown by additional 3.4% as revealed in jobs data released by the Australian Bureau of Statistics today. Your first thought about this is likely positive. Not so fast…
Right now, there are a handful of retailers on the ASX slowly digitising their operations. To get a good idea of what our retail industry might be like, it’s worth looking to China.