Greek Australian economists on Australia’s COVID-19 property boom

·

House prices rose 2.2 per cent in May and more than 10 per cent since the pandemic hit, the latest CoreLogic data shows. 

The news isn’t all positive, UBS chief economist George Tharenou warns, expecting that macro-prudential regulation will be in place by October to eventually slow the boom down. 

“We expect the boom to continue until there is a policy response, which we still think is most likely to be macro-prudential tightening, rather than RBA rate hikes or federal government policy/tax changes (in contrast to New Zealand),” he wrote.

Tharenou is one of Australia’s most senior economists who predicted the five-to-ten per cent price rise in January.

UBS chief economist George Tharenou.

He adds that the Australian Prudential Regulation Authority (APRA) will be watching closely for any signs of deteriorating credit quality, including a rise in mortgages and debt-to-income ratio lending examples, as the market booms. 

His analysis followed CoreLogic’s data this week, adding that the market is on track to hit 15 per cent annual growth within “a matter of months”. 

Effie Zahos, Canstar money expert, urges borrowers to refinance their loans before interest rates rise as variable and short-term fixed mortgage rates remain at or near record lows.

Effie Zahos is a money expert at Canstar (Source: Ovations!)

“Focus on knocking off your home loan debt before 2024, when the Reserve Bank has said it’s likely to increase the cash rate for the first time in 11 and a half years.”

Canstar estimates Australian homeowners could slash over $15 billion from their annual interest bills if they all refinanced. 

“The dilemma for mortgage holders is not so much trying to secure a cheap rate but more so paying off as much as they can now to secure themselves a buffer before rates do go up,” Zahos says. 

Source: Stockhead, ABC News 

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

How Maih Porfyri’s career pivot took her from fashion to the Paralympics

Maih Porfyri had only been in her job for a few months before she was whisked away on a trip to Paris to cover the Paralympic Games.

My partner doesn’t speak Greek – Can we still raise bilingual kids?

You can absolutely raise bilingual children, even if only one parent speaks Greek. Across the world, countless families do so successfully.

Joint bank accounts: Who gets the money?

All people named in a joint account are privy to the money by Law. Most of us have opened accounts at various bank branches.

Vergina considered among the world’s most mysterious destinations

Featured alongside global wonders, Vergina earns its place through a mystery that has eluded scholars for centuries.

Gender in Modern Greek: Dr Angeliki Alvanoudi to give online seminar

The aim of the seminar is to examine the role of Greek gendered terms in sustaining social gender ideologies that reinforce sexism.

You May Also Like

‘A great honour’: Stuart McLennan on coaching the Greek women’s rugby league team

'A great honour': Stuart McLennan talks to The Greek Herald about coaching the Greek women's rugby league team.

Ange Postecoglou prepares Tottenham Hotspur for historic tour of Melbourne

Tottenham Hotspur coach, Ange Postecoglou is preparing to lead his English Premier League team on a historic tour of Melbourne this week.

Katerina Sakellaropoulou sworn in as Greece’s first female president

Greece’s first female president, a former high court judge, was formally sworn in to office Friday, nearly two months after the country’s parliament voted overwhelmingly to elect her.