Top 5: Finance & property quotes week commencing 20 April

By the resi financial blog team, 24 April 2015

Top 5: Finance & property quotes week commencing 20 April

The week gone by has been an interesting one. Discussion in the property and finance industries spread far and wide, with an assortment of topics coming to light. Debate has continued to rage about the role of negative gearing in the housing sector, while other commentators highlighted the importance of real estate in keeping the economic wheels turning. Here are five of the top quotes to spark your interest. 

#1. After a vocal week last week, the Housing Industry Association (HIA) has taken another track and revealed an insight or two into the future of the renovation market over the coming months. HIA Senior Economist Shane Garrett said the outlook isn't as bright as they would hope, but home renovations are still a crucial element in the construction sector - and activity is expected to lift 8.2 per cent between 2015 and 2018.

"The importance of the home renovations market is often underestimated," Mr Garrett said in an April 23 release.

"Valued at $29.66 billion during 2014, the renovations sector accounts for over one third of all residential construction activity and about 2 per cent of GDP." 

#2. The Real Estate Institute of Australia suggested the future is looking bright for homeowners across the country, with the latest inflation figures indicating that interest rates should remain low for a while to come. The Reserve Bank of Australia (RBA) has it's inflationary target set at between 2-3 per cent, which places the latest rise of 0.2 per cent in the March quarter well within the bank's zone. 

"With inflation under control combined with a slow down in housing finance, it's reasonable to expect that the RBA board will not be increasing interest rates in the medium term, providing a stable outlook for home buyers," Ms Lynch concluded in an April 22 statement.

#3. On the topic of bright futures, the latest ANZ/Property Council Survey holds a positive outlook for the housing sector as a whole. The results for the June quarter revealed a slight dip and there were some marked differences across the country, but confidence is strong overall. Property Council of Australia Chief Executive Ken Morrison said this will help economic growth and boost job creation. 

"Confidence in the property sector remains high and importantly, forward work and staffing expectations are strong across all states and territories," Mr Morrison said in an April 23 statement. 

#4. RBA Governor Glenn Stevens had a few words of wisdom in an address to The American Australian Association on April 21. Mr Steven's speech highlighted the influences that the world economy has on Australia's performance. In particular, he noted that governments across the globe have been too reliant on monetary policy to do the hard yards for economic growth - something that could colour the outcome of the next RBA board meeting. 

"Across much of the world, too much weight is being put on monetary policy to try to achieve what it can't: a durable and sustainable increase in growth, in an environment where private leverage is already rather high or even too high," Mr Stevens said. 

#5. In the spirit of debate on tax reform, the Association of Superannuation Funds of Australia (ASFA) has offered its view point on the direction the changes should take. ASFA CEO Ms Pauline Vamos said any changes to superannuation should be considered against a number of factors, including the impact that the change will have on Australians' motivations to save for retirement.

"Any proposal needs to be assessed against the principles of adequacy of retirement income, equity, simplicity and fiscal sustainability. It is also important that any changes maintain confidence in the system," Ms Vamos said in an April 22 statement. 

Categories: Property Investment