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Is 'The Great Australian Dream' a sham?

Peter Dutton has made housing a key issue for the next election, pledging to “restore the Australian dream” of home ownership. It got me thinking about what this dream represents, how it originated, and whether it’s still relevant today.

Lessons from Australia’s largest property busts

After three decades of phenomenal growth nationally, it seemed as though Australian house prices would never go down, until they did last year. Here is a look at previous property downturns and what we might learn from them.

There are good reasons interest rates need to rise

Interest rates are political dynamite in Australia given high home ownership and household debt. But increased rates are not bad for everyone and they are what's needed after the serious central banking errors of the past decade.

Ignore the noise, long-term investors will be well rewarded

Economic growth, profit growth and therefore dividend growth for Australia is fairly assured over the next decade and the opportunity for patient investors to benefit is greatly enhanced by recent price corrections.

RBA switched rate priority on house prices versus jobs

RBA Governor, Philip Lowe, says that surging house prices are not as important as full employment, but a previous Governor, Glenn Stevens, had other priorities, putting the "elevated level of house prices" first.

House prices surge but falls are common and coming

We tend to forget that house prices often fall. Direct lending controls are more effective than rate rises because macroprudential limits affect the volume of money for housing leaving business rates untouched.

Housing prices from black hole to blue sky

Housing prices and construction rose dramatically until 2016, and since then, low interest rates are helping home owners weather the storm of falling prices. How long until the blue sky shines again?

Will the Royal Commission end our debt obsession?

The tightening of credit conditions for home lending driven by the Royal Commission has not fully translated into aggregate statistics, and the slowdown may already be worse than we realise.

Perfect storm brewing for local retailers

A decline in activity related to household construction, combined with the arrival of foreign retail brands, does not bode well for Australian retailers. And an online behemoth may be an even bigger threat.

Debt binge main cause of house price rises

Household borrowing, mainly for property, now far exceeds business borrowing, but it is businesses that create jobs and wealth. The crackdown on housing debt is overdue.

‘Silent seconds’ are the landmines of Australian residential property

Second mortgages are far more common than is recognised, often in the form of expensive debt. These 'silent seconds' may sit unnoticed until market conditions deteriorate and payments cannot be met.

The pace and structure of lending stifles Australia

The lending patterns of households and businesses, when compared against GDP and disposable income, can provide useful insights into where the economy is headed.

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The nuts and bolts of family trusts

There are well over 800,000 family trusts in Australia, controlling more than $3 trillion of assets. Here's a guide on whether a family trust may have a place in your individual investment strategy.

Welcome to Firstlinks Edition 581 with weekend update

A recent industry event made me realise that a 30 year old investing trend could still have serious legs. Could it eventually pose a threat to two of Australia's biggest companies?

  • 10 October 2024

Preserving wealth through generations is hard

How have so many wealthy families through history managed to squander their fortunes? This looks at the lessons from these families and offers several solutions to making and keeping money over the long-term.

Welcome to Firstlinks Edition 583

Investing guru Howard Marks says he had two epiphanies while visiting Australia recently: the two major asset classes aren’t what you think they are, and one key decision matters above all else when building portfolios.

  • 24 October 2024

A big win for bank customers against scammers

A recent ruling from The Australian Financial Complaints Authority may herald a new era for financial scams. For the first time, a bank is being forced to reimburse a customer for the amount they were scammed.

The quirks of retirement planning with an age gap

A big age gap can make it harder to find a solution that works for both partners – financially and otherwise. Having a frank conversation about the future, and having it as early as possible, is essential.

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