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First Home Buyer Figures Understated

By Pete Wargent on 16 Oct 2014 No Comments yet, your thoughts are very welcome

A point that has been much discussed over the past year: the nonsensical figures being reported as fact regarding the level of first homebuyer activity. Even until relatively recently, the Reserve Bank was producing stats for first homebuyers which suggested that numbers were abnormally low after a spike caused by homebuyer grants ...

Housing Credit Increases In August

By Pete Wargent on 2 Oct 2014 No Comments yet, your thoughts are very welcome

The Reserve Bank released its credit aggregates for August, which showed aggregates for personal credit (+1.1 per cent) and business credit (+3.2 per cent) to be marginally higher over the past year. Typically this leads to debate about productive versus unproductive lending, but I don't think this is likely to change ...

Which Does Better: Capital City Or Regional Property?

By Pete Wargent on 11 Sep 2014 No Comments yet, your thoughts are very welcome

Household debt levels have long since peaked out, and as a result, we do not expect to see any meaningful regional property price growth in real terms. Interestingly, mortgage serviceability has improved dramatically in Australia in recent years as lending rates have fallen, so there may be a small window of opportunity for regional property ...

Borrowing Costs To Remain At Historic Lows

By Pete Wargent on 21 Aug 2014 No Comments yet, your thoughts are very welcome

This week the RBA released the minutes from its August 5 meeting. Unsurprisingly, they revealed that interest rates should remain on hold for some time. The Board judged that monetary policy was appropriately configured and that, on present indications, the most prudent course was likely to be a period of stability in interest rates ...

Mortgage Demand At Record Levels

By Pete Wargent on 7 Aug 2014 No Comments yet, your thoughts are very welcome

Australia's largest mortgage aggregator Australian Finance Group (AFG) has released its latest mortgage index. According to the data, the AFG wrote the second largest balance of mortgages in its history at $4,122 million, just shy of the all-time record of $4,208 million written back in May ...

Practical Tips on Compounding

By Pete Wargent on 10 Jul 2014 No Comments yet, your thoughts are very welcome

Most of us have heard about the concept of compound growth, the snowballing effect caused by growth upon growth. The anecdotes associated with this term tend to be mildly interesting but not particularly useful in a practical sense. What does it mean when it comes to an investment portfolio? ...

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