first_img What the Budget offers home buyers Budget commits to ‘most ambitious to date’ megacity More from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours agoMost households “will likely remain in a position whereby the value of their assets is significantly higher than their debt”, Mr Kusher said. Capital city living for less than $45,000 Young, single and snapping up property Total value of household assets and liabilities — CoreLogic Property Pulse 04/04/19But, he warned, “no doubt an increasing number of recent property purchasers will have higher levels of debt than the value of their asset”.“This is probably an area of most concern for the RBA. If this leads to reduced consumer expenditure an in-turn slower economic growth, it may be a trigger for either lower official interest rates or changes to mortgage lending policies (or both).” Ratios of interest payments to disposable income — CoreLogic Property Pulse 04/04/19This as latest data from the Australian Bureau of Statistics put net household worth at $10.2 trillion — which is the lowest level it’s been since September 2017 — with a big portion of that drop coming off falling property values. BUDGET 2019 Housing debt was at 28.3 per cent of total housing assets — the highest level it’s been since September 2014, with CoreLogic research analyst Cameron Kusher warning asset values were falling as debt increased.“It is important to understand that if asset values fall, the value of the debt typically doesn’t reduce at the same speed, which can lead to asset value erosion.” The fear for RBA is those households that have higher levels of debt than the value of their asset.Mr Kusher said “if household debt levels haven’t declined by the time interest rates rise, it could create more challenges for households”.Overall household wealth dropped in both the September and December quarters last year, so much so that they sat -1.6 per cent below June 2018.The assets of Aussie households were valued at $12.6 trillion at the end of last year, ABS data found, but household liabilities rose 1.5 per cent to $2.4 trillion, which put net worth at $10.2 trillion, the latest CoreLogic Property Pulse said. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHow much do I need to retire?00:58 Latest ABS data has put national household net worth at $10.2 trillion. Picture: Richard Walker.If you’re feeling a bit poorer today, here’s a very good reason why — and also the reason you need to go for broke now, according to experts.Debt levels in Australian homes have hit record highs with families putting more of their income towards paying down borrowing — effectively trying to go for broke while interest rates are low, according to latest figures from the Australian Bureau of Statistics and CoreLogic analysis.About 9.1 per cent of household disposable income was going on interest payments in December — the highest level it’s been since September 2013, according to CoreLogic research analyst Cameron Kusher. “Despite the cash rate tracking at generational lows, households are paying a proportionally higher share of interest than they have in many years.” MORE REAL ESTATE NEWS Mortgage stress up nationally, down in QLD FOLLOW SOPHIE FOSTER ON FACEBOOKlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *