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We regularly provide updates and commentary on the finance industry in Australia. Feel free to provide your thoughts.
🚨 Economic Reality Check 🚨
Amidst the headlines of economic growth and prosperity, it's vital to acknowledge the stark truth lurking beneath the surface. Despite the narrative of progress, many of us are experiencing the sharpest decline in living standards in decades. 📉
Inflation, once subdued, has resurged, impacting households across the nation. The Reserve Bank of Australia's persistent rate hikes to combat inflation underscore the gravity of the situation. But what's fuelling this inflationary pressure?
The culprit? Population growth. The latest national accounts unveil a troubling reality: when adjusted for our rapid population expansion, GDP per person is either stagnant or on the decline. This trend has persisted for three consecutive quarters, leaving many of us feeling the financial strain despite the apparent economic boom. It's a sobering reminder that economic metrics often fail to capture the everyday realities of people's lives.
With higher interest rates, the consequences are evident: housing has become increasingly unattainable for first-time buyers, exacerbating an already dire situation, new building approvals have plummeted, and the rental market has reached unprecedented levels of unaffordability. These challenges underscore the urgent need for action – we must significantly ramp up housing construction, while also addressing the underlying issue of unchecked population growth. Until we significantly ramp up housing construction, we cannot afford to continue on the current path of unchecked population growth."
Only by addressing the root cause of this disparity – rapid population growth – can we construct an economy that is truly inclusive and sustainable for all. 💼💡
#HousingCrisis #EconomicReality #Inflation #LivingStandards #PopulationGrowth #PolicyPriorities
smpl.is
Whatever today's economic data shows about how close Australia is to recession the truth is we are already experiencing the biggest dive in living standards in half a century — and have been for two...To celebrate National Pizza Day fully, here are some fun facts about pizza:
- The Margherita pizza, topped with tomatoes, mozzarella cheese, and basil, was named after Queen Margherita of Italy.
- The world’s largest pizza, according to Guinness World Records, measured over 13,000 square feet and was made in Rome, Italy, in 2012.
- Pizza delivery was pioneered in the United States by a pizzeria in New York City in the early 20th century.
-Pepperoni is the most popular pizza topping in the United States.
-Pineapple does NOT belong on pizza!
Australia's median property price reached a record $757,746 at the end of 2023, after another year of growth.
The median price rose 3.0% during the pandemic year of 2020, surged 24.5% in 2021, contracted 4.9% in 2022 and then climbed another 8.1% in 2023, according to CoreLogic.
The median price for the combined capitals ended 2023 at record levels, while the combined regions were just 1.5% off peak.
December was the 11th consecutive month of price gains (see graph) – however, as CoreLogic research director Tim Lawless noted, it was also the smallest of those monthly gains, at 0.4%.
“After monthly growth in home values peaked in May at 1.3%, a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year,” he said.
As interest rates move up and down, so does the average person's borrowing power. Borrowing power tended to decline in 2023 and is likely to change again in 2024 as rates evolve. The other point worth mentioning is that your borrowing power can vary significantly from lender to lender. The good news is that I can match you with a bank that wants to lend to someone with your situation.
