Top 5: Finance & property quotes week commencing October 13

By the resi financial blog team, 20 October 2014

Top 5: Finance & property quotes week commencing October 13

Everything is not as it seems in the world of finance and property, with popular misconceptions hiding underlying trends, and vice versa. This week's top five quotes go into some more detail.

#1. Assistant Governor (Financial Markets), Guy Debelle, in his speech to Citi's 6th Annual Australian and New Zealand Investment Conference on October 14, highlighted that although there have been big dips in the Australian dollar in recent weeks, the big picture reveals a very different trend.

"In part that is because the depreciation of the Australian dollar in September only saw it partly catch up to the depreciations which other currencies had experienced in previous months. So for instance, the Australian dollar is still 6 per cent higher against the euro since the beginning of the year. Why the Australian dollar held up for longer than other currencies prior to September is not clear."

#2. In a global wealth survey, Credit Suisse Private Bank has ranked Australia the wealthiest country in the world by measure of a median wealth per adult, as it had in the previous five years running. When considering net wealth per adult, Australia came second behind the Swiss. The win in median wealth indicates a very high degree of wealth equality across the country. "These are obviously remarkable figures for Australia," said Credit Suisse Private Bank chief investment strategist David McDonald in an October 14 article in the Sydney Morning Herald.

#3. Amidst fears of overseas investment driving first home buyers out of the market, Labor trade spokeswoman Penny Wong said that debates around housing affordability issues needed to be taken on the merits of their arguments, rather than populated with people's fears or suppositions. Ms Wong said that she did not see Asian investment in Australia as the primary issue affecting housing affordability.

"I think there's some overblown anecdotes about the effect of Chinese or foreign investment on property prices," she told Sky News.

#4. In discussing the government's agreed changes to credit card rules, Finance Minister Mathias Cormann told Shaun Drummond of the Sydney Morning Herald on October 14, that "the government's changes will encourage new participants, driving product innovation and encourage better use of technology."

He also noted that customers should benefit in the long run: "Increased competition will also benefit consumers and retailers by putting downward pressure on credit card fees and charges."

#5. On October 16, Global Property Guide featured a discussion with Victorian MP Kelly O'Dwyer on the penalties for illegal foreign investment in Australian residential property. Ms O'Dwyer, Chair of the Standing Committee on Economics said that allowing foreign buyers to keep profits from the sale of illegitimately owned assets is "clearly creating the wrong sort of incentive for bad behaviour," and that penalties should be in proportion to the value of the asset.

Categories: Business Owners, Financial Services, Property Investment