Bearish economist Gerard Minack upgrades in Mosman

Bearish economist Gerard Minack upgrades in Mosman
Bearish economist Gerard Minack upgrades in Mosman

The prominent economic bear Gerard Minack was one investment analyst who warns of a recession as Australia ended its once in a century mining boom. 

Now he turns up on Monday's Four Corners with the ABC program investigating the forces driving our debt fuelled housing boom.

The program drew together key bearish experts to map the danger zones in the housing market.

It also revealed the Australian suburbs currently experiencing the highest levels of mortgage stress in the boom market.

"I don't know when we get a downturn that pops this, but sure as hell one's coming," he told 4 Corners.

Gerard Minack, the former head of developed market strategy at Morgan Stanley, said Australia had been led down this path by current tax arrangements and lenders who had been increasingly willing to leverage up borrowers.

This, he said, had created “a massive affordability problem” that will exacerbate the pain associated with any downturn.

Australia now has a household-debt-to-income ratio of 190 per cent.

“For every $1 of household income, there’s [nearly] $2 of debt,” Mr Minack said.

Ofcourse Minack quietly upgraded Mosman homes a little while back, with hushed commentary coming from his former colleagues at Stanley Morgan.

He purchased a Mosman property for $4.2 million through agent Ben Svenson at Century 21 Mosman.

The completely rebuilt three storey house is nestled away in a private location with views of Middle Harbour. Locals say he bought well as the block cost $2,725,000 some 10 years ago.

Minack's former Spencer Road Federation has sold for $3.1 million having paid $1.2 million in 1999. His 15 year ownership saw the property value appreciate at an annual rate of 6.45%.

Both homes featured five bedrooms but his new acquisition comes with those prized views.

In 2015 before his purchase Minack forecast when "we get across-the-board unemployment then we’ll get an across-the-board downturn in house prices; it’s just a matter of time."

Tags: 
Title Tattle Mosman

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