Renegade Economists Show 401
Joseph Stiglitz discusses with the Institute for New Economic Thinking the important role of monopoly rents that Piketty missed in critique of inequality. If ever there was a demonstration of the Corruption of Economics, this was it. Karl then comments within the Australian context. Gee I wish I could reveal what’s happening behind the scenes! Exciting times.
According to Mortgage Choice’s latest Investor Survey, 36.6% of investors were first time buyers – significantly higher than the 21.1% recorded this time last year.
According to the ABS, rents nationally grew by 0.4% over the June quarter of 2014 – the equal lowest quarterly growth since March 2005 – and was up by only 1.9% over the year
AFR on loan costs to investors
The Australian Prudential Regulation Authority this week instructed the main four banks and Macquarie Group to hold billions of dollars in extra capital to cover mortgage loans. The change may be passed on to customers in higher borrowing costs.
An investor who wants to buy a $1 million property could have to prove they will generate an additional $22,500 in cash a year under new standards, assuming a 20 per cent minimum deposit. An investor with a $500,000 property could need up to $12,300 in additional cash a year.
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