Banking Royal Commission results

Not really an answer. Try again with median wages.

 

Thanks , but I was after the median wage, which I think is significantly lower than that .
Those on an "average" wage are in about the top 25% of wage earners,so that still leaves about 75% that earn a lot less than 82k
Just checked median wage and its about 55-60k.
Many also get confused with comparing individual income v household income.
Even the" average wage" that many use is only using full time workers, which is only just under 70% of workforce .
The average of all workers is a lot lower.
And in the last 5 or 6 years all the growth has been in casual and part time workers with no entitlements and diminishing full time positions.

 

Fair enough. After tax median income is around 52K a year(latest ABS data) so that leaves most with around 35K after mortgage payments of 15K. Not too bad even you pay more than 15K a year on your mortgage.

 

What do you base this comment on?

 

I would have thought one would use the median annum household income and compare against the median house price.

According to the ABS (2016 Census), the median weekly household income for Sydney is $2,099 or $109,148 per annum.

2016 Census QuickStats: Sydney

Hope that helps .

 

If you watched the RC you would know. Some of his commentary made me truly believe that he has absolutely no idea of how the finance landscape works

 

I think the problem is that he does. He sometimes asks obvious questions to get obvious answers on the record, not because he doesn’t understand.

 

Just making sure that the stats are relevant. BTW... the original poster said this.

But again, there is imprecise use of language here, wage does not mean household income.

From the 2016 census, the median annual household income for Australia (not the Sydney SED) is $74,776.

 

Even though the buffered assessment rate (3%+) remained high for some time now, much larger reduction in borrowing power started much more after banks closely started scrutinising what one claims and what one really spends.
This disparity in what one really spends and what one declared on loan applications originating from 2012 till 2016/7 is highly understated. The impact of which is only recently started to be become visible in terms of price drops.
Compounding factors like IO2PI & OTC forced sales, surplus supply will continue the ball rolling and keep market under pressure atleast until 2020/21, Then the realisation of long term impact of NG/CGT changes on new investor will take over.

 

Really? I'll speak of one example only of which there were many.
He wouldn't know what a mortgage broker does for starters. He smirked and giggled with the clown from CBA and stated "Mortgage brokers, they don't really offer anything" Also "General public paying thousands to use Brokers and being put into loans and Lenders that pay the most commissions" If you think this guy has a clue, I've got no sympathy if the Big 4 take full control again and the smaller and second tiers fade away. Then be prepared to be gouged like you've never been before.

Commissions are a mute point as there wouldn't be a couple dollars difference between lenders unless its non conforming to which you would never put a client that didn't require non conforming

 

Well no more guessing anymore! Tomorrow after 4:10PM we will all find out what Hayne thinks!

 

Not what he thinks .

We will find out what him and his team wrote .

We will probably never find what he truly thinks

 

Agree with this. Josh looked a lot happier than the senile old fool at the media shoot. Just saying

 

No, that data is Sydney proper only ie. ~98k people

Greater Sydney data has the median weekly household income at $1,750 or $91,000 per annum

2016 Census QuickStats: Greater Sydney

For all of Australia however the median weekly household income is $1,438 or $74,776 per annum

It's also worth noting that this is not net but rather gross household income figures.

 

Really a nothing story from 60 minutes. Basically apartments in high rises are overvalued. Would def like to vet the claim of 1 in 10 households are in negative equity?

 

Your view vs his. Not saying either is correct, I have my own view based on my experience, as do many others

 

Who thinks there will be further tightening of credit from the report?

 

I don't think there will be further tighten of credit, with the new comprehensive credit reporting, some borrowers that might not work on current servicing parameters might get a chance to get their loan across the line.

 

In the long run I think this will be a good thing for the financial stability of the country, with more commonsense debt levels and price growths more in line with actual underlying economic factors rather than speculating.

 

I think what drive the market is equity access this is very similar to margin loan but most people
don’t think it that way .., there could be credit restriction based on this scheme

You basically access un-realised gain to borrow more debt, this has devastating consequences in a falling market, some will get wiped out no doubt.

Just like you borrow money based on your share portfolio value.

But in a rising market who cares Until it turns and it usually turn faster than you can react