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Daily Mail
20-05-2025
- Business
- Daily Mail
Barefoot Investor Scott Pape unleashes at the Reserve Bank for lowering interest rates
The Barefoot Investor has taken a swipe at the Reserve Bank of Australia, claiming young people should be 'p**sed off' the bank decided to cut the cash rate because it would cause house prices to surge. On Tuesday afternoon, the RBA eased the cash rate by 25 basis points to 3.85 per cent - a low which has not been seen since June 2023. Scott Pape said while the cash rate cut would alleviate mortgage repayments for millions of Aussies it would have a negative impact on young people trying to get into the property market. Mr Pape said young Aussies should be 'pissed' at the decision as it means property prices would inevitably increase. 'If I was a young person right now I would be pretty pissed off,' Mr Pape told 'Every time a young person gets close, it just keeps getting more expensive.' Mr Pape also took aim at the Albanese government for introducing a five per cent deposit scheme for first-home buyers,' labelling the policy as 'totally stupid'. Experts have warned the policy, which is set to come into effect from January 1, 2026, would ultimately push house prices up. 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it,' Mr Pape said. 'I don't understand how a responsible government can stand by and say this is a good thing.' SQM Research Managing Director Louis Christopher said he expects property prices to rise from now and into 2026, with a 10 per cent increase by the end of the year. Mr Christopher said auction clearance rates would skyrocket due to the rate cut and advised first-home buyers to try and enter the market before the end of 2025. 'First home buyers are in a better buying position compared to six months ago,' Mr Christopher said. 'Their purchasing and borrowing power has increased. However, if I am right about price rises, they will need to move quickly, otherwise they will be back to square one on affordability.' An owner-occupier borrower with an average $660,000 mortgage would save $107 on their monthly repayments with the latest rate cut, as typical variable home loan rates with the major banks fell under six per cent. ANZ became the first of the Big Four banks to announce it would match the RBA's latest rate cut with a 25 basis point cut to its variable rates. This means its online-only rate is falling to 5.59 per cent on May 30. Westpac followed seven minutes later, matching ANZ's equally lowest online-only mortgage rate but from June 3. The Commonwealth Bank matched its competitors shortly after, with borrowers getting relief on May 30. Australia's biggest home lender updated its forecasts to have more rate cuts in August and November, with relief at the RBA's next meeting in July a 'live' possibility. NAB's lowest online-only rate is falling to 5.94 per cent on May 30, but it's available for borrowers with a small five per cent deposit. Ms Bullock acknowledged the 13 rate rises in 2022 and 2023 were challenging for borrowers, who copped the most aggressive pace of monetary policy tightening since the late 1980s. 'I know this period of relatively high interest rates has been and continues to be challenging for many households and businesses but it was essential that we brought inflation down,' Ms Bullock said. The RBA declined to suggest more rate cuts were coming but left the door open for further relief as inflation is expected to fall into the target band. 'Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,' RBA said.
Daily Mail
18-05-2025
- Business
- Daily Mail
Barefoot Investor warns against 'stupid' real estate change that is going to push house prices up even further in Australia: 'Rise by 10 per cent'
The Barefoot Investor has warned the government's first home buyer scheme will worsen housing affordability and put vulnerable Australians at risk. Scott Pape said the scheme, which promises to allow first home buyers to purchase on just a five per cent deposit, would 'just push prices higher'. 'I caught up with my old mate Louie Christopher from SQM Research, who's predicting that in this calendar year property prices are going to rise by up to 10 per cent!' he wrote in a column for NewsCorp. 'The first home buyer deposit policies are stupid. They will just push prices higher, says my mate Louie.' Mr Pape claimed Prime Minister Anthony Albanese and Treasurer Jim Chalmers wouldn't suggest such loans to their own families. 'None of them would sit down at Sunday lunch and tell their sister (if she was a single mum on a low income) to go out and buy a house with a 2.5 per cent deposit,' he wrote. 'Instead, they'd say: What if interest rates go up? What if you lose your job?' Mr Pape warned the consequences of such policies were already evident, sharing a letter from a reader named Sarah. 'Two years ago I purchased my first property using the Government's single parent grant, which meant I only had to save a 2.5 per cent deposit,' she wrote. 'Unfortunately, with the rise in interest rates and cost of living, I can no longer sustain the cost of my mortgage. My daughter and I are really struggling.' Mr Pape said he would offer Sarah financial guidance in an upcoming column, but added a grim prediction. 'It'll be a good warm-up. After all, come January 1, when Labor's five per cent deposit policy kicks in, there will be a lot more Sarahs coming through the door,' he wrote. 'Tread your own path.' At the federal election Labor confirmed it would allow all first home buyers to access five per cent deposits with no income caps or place limits. The party also pledged to build up to 100,000 homes reserved for first-time buyers. Former Opposition leader Peter Dutton told voters he would allow them to use some of their superannuation to fund their first home purchase. Last month, the Barefoot Investor compared Aussie homes to 'sardine tins sold at caviar prices' in a brutal swipe at both political parties' attempts to solve the housing crisis. Mr Pape said he spent four hours of his long weekend driving across Melbourne with his 11-year-old son who quickly noticed a key phrase on election billboards splashed around the city: 'Cost of living.' The finance guru noted his son was 'spot on' but claimed neither Labor nor the Coalition were doing much to address the issue. 'The biggest cost? The roof over our heads - rent or mortgage. That's where the squeeze is,' he wrote in a column for the Herald Sun. 'Australian homes are now some of the least affordable on Earth. And to afford them we've racked up world-class debt. 'Back in the mid-2000s, the average house cost four times the average income. Now it's more than eight.' Mr Pape claimed the current housing market had 'priced ordinary Australians out of their own neighbourhoods'. Yet, Mr Pape claimed both have only offered options that will put more money into the hands of pre-existing property owners. In good news for Australian borrowers, however, those with an average mortgage could save $100 a month on their repayments following an expected interest rate cut next week. Most economists are expecting the Reserve Bank of Australia to cut the cash rate by another 25 basis points, from 4.1 per cent now to 3.85 per cent, at its May 20 meeting. Financial markets regard a quarter of a percentage point rate cut on Tuesday as a 95 per cent chance.
News.com.au
15-05-2025
- Business
- News.com.au
Commbank criticised over demands for financial information
SQM Research managing director Louis Christopher has criticised Commbank after it threatened to shut off his accounts unless he complied with "Orwelian" requests about his financial information. Mr Christopher took to social media on Tuesday to express his disgust with an email sent to him by the major bank, demanding to know how he acquired his wealth, why he had made transactions to certain parties, why he had made cash withdrawals, and whether he kept any cash at home. CBA said his accounts would be suspended this week if he failed to hand over the information. 'This is a security risk for me and my family,' Mr Christopher told Sky News Australia. 'Effectively, I felt like I had a gun held to my head, if I didn't answer these questions correctly. 'I've had thousands of responses … of people who have had their accounts frozen over this.'
Sky News AU
14-05-2025
- Business
- Sky News AU
'Felt like I had a gun held to my head': SQM Research managing director Louis Christopher eviscerates Commbank over 'Orwelian' demands for financial information
SQM Research managing director Louis Christopher has eviscerated Commbank after it threatened to shut off his accounts unless he complied with "Orwelian" requests about his financial information. Mr Christopher took to social media on Tuesday to express his disgust with an email sent to him by the major bank, demanding to know how he acquired his wealth, why he had made transactions to certain parties, why he had made cash withdrawals, and whether he kept any cash at home. CBA said his accounts would be suspended this week if he failed to hand over the information. Speaking to Sky News' Business Now on Wednesday evening, the founder of the respected property research firm detailed his run in with the bank and explained what he believed to be the cause of issue. "I was surprised. I first thought when I saw it, when I received the email, it was spam. I went every day, everybody's getting threats galore through spam, but when I noticed there was no link in the email I thought it could be real," he said. "I called the bank on a separate number and they verified that yes, they would suspend all my personal accounts including my super." Mr Christopher said he was happy to provide CBA with some details, including his address and drivers license number, as they were standard requirements to open an account at most banks. SQM Research managing director Louis Christopher has eviscerated Commbank after it threatened to shut off his accounts unless he complied with "Orwelian" requests about his financial information. Picture: NCA NewsWire/Morgan Sette However, he claimed the demand to know whether he had any cash at home posed a "a security risk for me and my family". After asking CBA why it required the information, the SQM Research founder revealed the bank had apparently been acting at the behest of one of Australia's financial regulators. "They actually told me today that this was not triggered by a particular activity of mine," he said. "It was just the CBA requiring, as per AUSTRAC, to have their records updated on me." The Australian Transaction Reports and Analysis Centre, handles investigations into money laundering, organised crime, tax evasion, welfare fraud, and terror financing. In a statement, CBA said it was "required to manage our customers accounts in line with the Anti-money Laundering and Counter-terrorism Financing Act, 2006", enforced by AUSTRAC, and the email had been an effort to "collect, verify and maintain customer identification information". Despite this, Mr Christopher said it was "weird" the bank had issued the demands, suggesting they went above and beyond what the regulator required. He was particularly scathing of the time frame given to comply and the consequences of failing to do so, claiming he felt as if he had no choice but to provide the details. Mr Christopher said it was "weird" the bank had issued the demands, suggesting they went above and beyond what the regulator required. Picture: Supplied "They confirmed they would close my accounts unless I cooperated and would do that within seven days," Mr Christoper said "Effectively I felt like I had a gun held to my head if I didn't answer these questions correctly." In a statement, AUSTRAC said that while banks were required to know the "risks posed by the services they provide", they did "not require banks to deny services, freeze or close customer accounts". Despite this, Mr Christopher revealed he had received "thousands of responses, messages" from others who had faced similar threats, suggesting there was a significant disconnect between AUSTRAC's requirements and the interpretation of major banks.
Courier-Mail
13-05-2025
- Business
- Courier-Mail
Tide finally turns for renters as market pressure eases
There appears to be a light at the end of the tunnel for Aussie tenants with new research suggesting an easing of rental market pressures across almost all capital cities. Latest SQM Research shows the national vacancy rate increased to 1.3 per cent in April – up form 1.1 per cent in March, resulting in 0.7 per cent drop of the average weekly rent of $650. Over the past 12 months, national rents had risen by 3.9 per cent, a slowdown from previous years, indicating tenants may have somewhat increased negotiating power compared to recent years. The data, compiled from online listings across major Australian cities, highlighted a growing availability of rental properties, particularly in Melbourne and Sydney, while advertised rents show varied trends across the nation. MORE NEWS How to pick the next booming property market 'Certain' RBA rate cut to fuel all-out war Innovative planning laws passed to fix Aus housing crisis 'The rise in national vacancy rates to 1.3 per cent reflects a shift toward a slightly eased rental market, particularly in Melbourne and Sydney, where increased supply is providing tenants with more options,' Managing Director of SQM Research Louis Christopher said. 'However, tight markets in Hobart, Darwin, and Perth continue to favour landlords, potentially triggering further rental price growth in those regions. 'It is typical that over the winter period, the rental market goes into somewhat of a lull with rental vacancy rates rising a notch. 'This winter might prove to be a good time for tenants looking for rental properties, keeping in mind we don't expect this lull to last any more than a few months.' Key Vacancy Rate Findings Based on SQM Research's monitoring of unique online rental listings, the total number of vacant residential properties nationwide rose to 39,378 in April 2025, up 18.7 per cent from 33,177 in April 2024. Melbourne recorded the highest vacancy rate at 1.8 per cent, up significantly from 1.1 per cent in April 2024, with vacancies surging 56.9 per cent to 9,379 properties. This suggests an oversupply or reduced demand in Victoria's capital, potentially easing rental pressure for tenants. Sydney, meanwhile, saw its vacancy rate rise from 1.2 per cent to 1.5 per cent, with vacancies increasing 20.8 per cent to 10,784 properties, reflecting a loosening rental market. Brisbane maintained a relatively tight market, with a vacancy rate of 1 per cent, up slightly from 0.9 per cent in March 2025. Perth and Adelaide continued to reported low vacancy rates of 0.7 per cent and 0.8 per cent, respectively throughout April, though both saw increased vacancies – with available homes in Peth climbing to 1425 and 1233 in Adelaide, indicating slight softening in these tight markets. Canberra, Darwin, and Hobart recorded declines in vacancies, with Hobart's vacancy rate dropping to 0.7 per cent from 1.4 per cent in April 2024, signalling a return to a landlord-favoured market. City-Specific Rental Trends Sydney's advertised weekly rent comes in at $853, with no change recorded between March and April. The higher 1.5 per cent vacancy rate suggests an easing rental market (compared to 2024), tempering current rent growth. In Melbourne, weekly rents are $649 – up 0.1 per cent over the past month, with a year-on- year rise of 2.3 per cent. The near balanced 1.8 per cent vacancy rate is likely contributing to this softening in rental prices. The weekly median rent of $685 remained unchanged in Brisbane over the past month but is up 4.5 per cent year-on-year. The 1 per cent vacancy rate supports moderate rent growth, though the flat monthly change indicates a potential plateau. In Adelaide, weekly rents are $613, down 1 per cent over the past month, with a year- on-year increase of 4.7 per cent. The 0.8 per cent vacancy rate aligns with a tight market, though the monthly drop rent indicates relatively easing pressure. Peth and Canberra, meanwhile, both recorded monthly rental increases of 0.2 per cent and 1 per cent, respectively.
