More spin than win – will looser lending really ignite the property market?

Some experts are calling the new simplified lending rules a huge economic game changer which will deliver benefits for everyone, but I wonder if they could be more spin than win.

It sounds fantastic in theory – a debt led recovery, with relaxed lending restrictions freeing up huge amounts of credit and supercharging our economy back into growth.

In practice, however, the change from “responsible lending” to “responsible borrowing” won’t encourage banks and other finance providers to throw open their vaults, nor do they give us any incentive to race out and apply for more credit.

People don’t borrow more to get out of trouble, they spend less

Unless there is a bright light at the end of the debt tunnel, people faced with financial hardship tend to tighten their purse strings and spend less, not borrow to spend more.

Here’s a graphic example of how this works.

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Studio Martin on Refined Rattan

Studio Martin on Refined Rattan

Design Eye

by Lucy Feagins, Editor

Studio Martin’s Fitzgibbon Residence, featuring the rattan  Teddy Armchair from Sika Design, available exclusively at DOMO. Photo – Martina Gemmola.

Studio Martin’s Fitzgibbon Residence, featuring the rattan  Teddy Armchair from Sika Design, available exclusively at DOMO. Photo – Martina Gemmola.

Amanda (left) and Lauren (right) of Studio Martin. Photo – Courtesy of Studio Martin.

Sika Design’s Teddy Armchair, available exclusively at DOMO.

O’Brien Real Estate foyer, designed by Studio Martin, brings together lux blue velvet and Sika Design’s Belladonna sofa, and Charlottenborg lounge chair. Photo – Martina Gemmola.

Interior Designer Amanda Martin, and her sister, Architect Lauren Martin bring a wealth of experience to their fledgling design studio, Studio Martin. Lauren completed her Masters of Architecture at RMIT, and started her Architectural career at Baldasso Cortese and later Preston Lane, working across large Education

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How many Australians own an investment property?

There is a lot of noise being bantered about regarding how much money it takes to be rich in Australia.

And there’s often fuss made about all those rich greedy property investors.

So just how many Australian households hold an investment property?

The Australian Taxation Office recently released their latest stats on property investment, so let’s see how rich property investors really are.

Here is a quick summary…

According to Corelogic:

  • There are 10.5 million dwellings in Australia with a total value of $7.1 trillion
  • There is a total of $1.85 trillion in outstanding mortgage debt.
  • 5% of Australian household wealth is held in housing

The Australian taxation office tells us that in the 2017-8 tax year (the latest statistics available)

  • There are 2,207,893 property investors in Australia
  • This means around 20% of Australian households hold an investment property and 80% don’t.
  • The top investor age groups are:
    • 83% are
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This Sydney House Takes The High Ground

This Sydney House Takes The High Ground


by Amelia Barnes

Stafford Architecture have designed this new house above a sandstone ridge in Seaforth, NSW. Styling – Room on Fire. Photo – Tom Ferguson

The clients were interested in open-plan living where family members are closely connected. Styling – Room on Fire. Photo – Tom Ferguson

A second level has been designed in line with the area’s height restrictions by creating a mezzanine over the kitchen that opens to a double height void. Styling – Room on Fire. Photo – Tom Ferguson

‘The sharp, pitched angular roof provides for the interior space and delineates the height restrictions, while giving a generosity to these rooms,’ says the architect Bronwyn Litera, senior associate at Stafford Architecture. Styling – Room on Fire. Photo – Tom Ferguson

Instead of doors, zones throughout the living area are prominently defined by

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Why past performance is no guide to the future

When it comes to the property market, many experts assure us that past performance is the best indicator of future performance.

But if we actually look at how they use past performance to make their forecasts, we immediately come across a huge contradiction.

Only buy in areas that have stood the test of time

One group of experts claim that we should only buy properties in suburbs that have “stood the test of time”.

They say that their high performance in the past offers us not only the greatest level of security, but the best prospects of continued price growth into the future.

This is based purely on the expectation that high past performance predicts future performance.

This seems logical, except that there are many suburbs and towns where housing markets have boomed for years, only to crash without warning.

Investing TimeIn fact, every boom has ended at some time, even … Read more

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