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  • Posted on : 3 Dec 2018

All the way from New York, I am putting together this Blog post to give you a real good take on this months events in the finance and property world. Firstly, you’re probably wondering what I’m doing over at New York for 2 weeks?

I am partaking in a conference focussed on the fintech space and the disruptions being created in our industry with Peer to peer lending expected to grow significantly in the next 5-10 years. Governments (including ours back home) are providing incentives to this new generation of financiers in hope to find alternative, more customer centric forms of finance than the traditional avenues. I’ll be back on the 5th of December to cover more on this.

This months post is covering off on:
1. New homes, the smallest in 22 years.
2. Negative Gearing policy losing traction.
3. What has dot been upto for the month?

New homes, the smallest in 22 years

If you’re interested in quarter acre block, chances are quite slim to find what you’re after given the research undertaken by Commsec

Australian homes built in the past financial year were the smallest (on average) in more than two decades, according to the research. The average floor size of a newly-built dwelling was 186m2 in FY2018. That means the average new home was 1.6% smaller than in the previous year and the smallest they’ve been since 1996.

Victoria had the biggest houses of any state or territory, averaging 245m2. The average house size in NSW fell to a 23-year low of 220m2.
CommSec chief economist Craig James says the number of apartments being built has contributed to the decrease in the average home size. Apartments now make up 46% of all new homes built, compared to 27% eight years ago.

But Australians have also been more willing to inhabit smaller spaces since the size of homes peaked in 2009. More people are also willing to trade space for being closer to the city. Despite the trend, Australia still has the second-largest homes of any country, behind the United States.

Negative Gearing policy losing traction

Labor leader Bill Shorten says he is sticking with his negative gearing changes despite a drop in support for his housing policy in a Newspoll earlier this month.

The poll revealed a seven-point fall in support for the Opposition Leader’s centrepiece housing policy of limiting the number of properties that can be negatively geared. Shorten says there will be no changes to the policy and that its main focus was introducing greater fairness for first-home buyers, although he also claims that the policy will not push down home values (which begs the question: how will it improve affordability?)

Shorten says the proposed changes are not retrospective. “So if you’ve currently invested under current negative gearing laws, there will be no change. It’s a future change which will apply to new investments, not existing investments.”

The Newspoll, based on 1,802 interviews with voters across the nation, shows 47% are in favour of reducing tax breaks for property investors, down from 54% in April last year.

What has Dot been up to for the month?

It’s almost the end of the year and the dot brand has gone from strength to strength. We are on track for hitting all our goals we set for the calendar year – Thank you for being a big part of that. Being in New York during this time has given me a new-found appreciation for the amazing weather we have back home. Waking up in the morning to minus 7 degrees Celsius weather? Not fun at all!

As always, we hope you enjoyed reading the blog and should you have any questions, please feel free to email Connecting@dotfinancial.com.au or you can call us on 1300 000 DOT (368).

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