As September draws to a close, catch up on the news you need to know. Here are the latest headlines affecting small business owners on Monday, September 30, 2019.
Housing affordability crisis continues
As the property markets in the nation’s capital cities continues to bounce back, a new survey by CoreLogic has found the dream of owning a home has become a nightmare for the majority of Australians, with millennials particularly hard hit.
The Perceptions of Housing Affordability Report by the property analysts found 63 per cent of millennials who are still living at home with their parents say they can’t afford to move out. Many believe this will remain unchanged for them until they hit their thirties.
Almost half the respondents believed that saving up for a deposit was the biggest barrier to owning their own home, while four in ten believed gaining access to finance was a hurdle.
“The report proves that the ‘cubby house’ syndrome — where children are prolonging their home stay with parents — is intensifying,” CoreLogic CEO Lisa Claes told the ABC.
“Our youngest generation is effectively being locked out of the market and increasingly dependent on parents.”
Australia’s digital ranking slide
While the world is becoming increasingly digital Australians should be concerned that their digital rankings are continuing to slide. Australia now ranks 54th out of 63 nations in communications speeds and has dropped to 38th for its internet speeds, despite the influx of the NBN. The World Digital Competitiveness rankings are collated by Swiss business school International Institute for Management Development. In the most recent rankings, Hong Kong and South Korea have entered the top 10. China has jumped from 30th to 22nd and Taiwan leap-frogged Australia, rising from 16th to 13th position. The US topped the digital competitiveness rankings, followed by Singapore and Sweden.
Borrowers lying to obtain loans
Investment bank UBS has found Aussie borrowers are providing false information on their loan applications in an effort to obtain mortgages and personal loans. The findings come despite the fact banks are toughening up lending requirements post the royal commission.
The findings suggest the introduction of stronger responsible lending practices is failing with 37 per cent of borrowers surveyed saying they provided less than accurate information to their financial institution, up from 32 per cent the year before.