2-Sense: Mortgage monster swallowing households, student migration and investor exodus

Welcome to the latest edition of 2 Sense on the Australian Property Podcast, where we break down the biggest news headlines of the week and tell you what this really means for you.

Mortgage Broker Chris Bates and Buyer's Agent Pete Wargent discuss mortgages swallowing 1/5 of households, overseas students driving migration, and investor exodus in Sydney and Melbourne. 

Story 1: Mortgage monster swallows 1 in 5 households

• The cash rate target has gone to 4.1%, and may even rise further and repayments exceed incomes in some households 
• Why? Overstretched? Over-leveraged borrowers? Other costs of living have soared
• What next? Unemployment up? Arrears up? Defaults? Forced selling?

Story 2: Indian Students migrating to Australia and Canada

• Population growth is at record highs – a huge driver is the return of international students
• India is taking over from China and is a key driver of population growth
• India is a different economy from China, and won’t need as much of our minerals 
• SQM reports that rental vacancies are going to hit all-time lows in October 
• What next? Population growth should normalise once student figures normalise

Story 3: Investor exodus gathers steam in Melbourne and Sydney

• More stock listings are accounted for by investors selling off
• Where? Mainly Melbourne especially inner Melbourne 
• Why? Cashflow sensitive, offloading underperforming assets (and Melbourne units have been)
• What next? Investor financing is actually also rising, so it’s a tug of war in both directions. New listings are up, but are being absorbed too.

Australian Property Podcast resources:

• Story 1
• Story 2
• Story 3
• Australian Property Podcast online - videos, notes & resources
• Ask a question
• Chris' mortgage broking
• Amy's new property course
• Amy's 100-point checklist (PDF)
• Pete Wargent's property coaching
• Join Owen's Rask Core  membership for $0.99

INFORMATION WARNING!

This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.

Full individual disclosures for each guest are available via the show notes page. Owen and The Rask Group Pty Ltd do NOT receive anything for mentioning Super funds, products, shares, bank accounts, etc.

Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg

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