Vulnerable

First dollars out of the wallet

First dollars out of the wallet Falling house prices and rising debt costs are causing financial stress for highly leveraged Australian home owners, impacting patterns of consumer spending. In light of this wallet tightening, investors should take care that their equity exposure is concentrated on those businesses capturing the first dollars out of the wallet each pay day. Where did all the wealth come from? During the upwards phase of the economic cycle, Australians took …

FinancialPartners 19/11/2018 08/11/2018 Blog / FP - Financial Planning / FP - Investment / FP - Managing Money / FP - Money Management dollars / families / first / First dollars out of the wallet / Implications for investors / investors / Out / over-allocated / over-geared / over-geared and over-allocated / pressure / property / property investors / under / under pressure / Vulnerable / Wallet / Wealth / Young / young families / Young families under pressure

Are young families the most vulnerable as house prices head lower?

Are young families the most vulnerable as house prices head lower? The long-term rise in Australian home prices has led to a huge inter-generational transfer of wealth from the young to the old. A material reversal in property values will go some way to unwinding this, creating winners and losers amongst the generations. Australia has long had a love affair with home ownership, which is illustrated by the strong growth in residential prices over the …

FinancialPartners 01/10/2018 01/10/2018 Blog / E - Economics / E - Market Update / FP - Property & Real Estate Are young families the most vulnerable as house prices head lower? / families / head / house / lower / most / prices / Vulnerable / Young / young families

Are Australian households more vulnerable than we think?

Are Australian households more vulnerable than we think? A lot has been said and written about Australia’s household debt levels and possible implications on the banking system and the economy more broadly. But could Australian households be even more constrained than the headline numbers are suggesting? Michele Bullock, the Reserve Bank of Australia’s Assistant Governor, highlights the stresses households will likely be facing well before any rise official interest rate materialises in this speech. Bullock points …

FinancialPartners 22/02/2018 20/08/2018 Blog / E - Insights Papers / FP - Credit & Finance Are Australian households more vulnerable than we think? / Australian / households / more / than / Think / Vulnerable