This Month in Review
In this month’s news, the Reserve Bank of Australia has broken a record for the longest stretch without an interest rate change, with rates on hold at 1.5 per cent for the 18th consecutive meeting.
The Grattan Institute’s John Daley has warned a 2% rise in rates would be “catastrophic” for new home owners.
AMP Capital chief economist Shane Oliver believes the “Fear Of Missing Out” (FOMO) era is over, saying the “combination of reduced lending to investors and interest only borrowers, along with tougher restrictions on foreign buyers, rising supply and more realistic price expectations”, are taking their toll.
Meanwhile, the banking royal commission is tackling a $500 billion pool of home loans with falsified borrower details, known as ‘liar loans’, with some estimates claiming up to a third of mortgage applicants fudge their details.
And a new study from the Australian Housing and Urban Research Institute has found capital gains tax discounts and negative gearing benefits are “heavily skewed” towards affluent Australians. It pushes for a move towards a progressive rental deduction where sophisticated investors are not given as significant tax concessions.
Download and read the full Market Essentials – April 2018 Report.