The case for reverse mortgages in Australia : applying the USA experience

In the USA, reverse mortgages have been promoted as a means of accessing equity locked up in a residence, especially after the owner/s has retired. Although there have been some teething problems, the concept of mortgaging the family home after achieving freehold ownership has many merits. Often an asset-rich household must survive on relatively small regular income, and is unable to access the increasing wealth of the family home. A reverse mortgage overcomes this hurdle.

The largest asset for many ageing households is their primary place of residence, the traditional house and suburban land parcel. Recently, the Australian housing market has witnessed substantial growth in the value of its capital city housing, especially on the east coast of Australia. This can be attributed to factors such as owner-occupiers trading up to a better class of dwelling, and the continuing gentrification process for owners choosing not to relocate. At the same time, demographic changes have placed pressure on the regular income of retirees, many of whom have no superannuation fund. For example, life expectancy rates continue to rise and there are an increasing proportion of single person households in society. This has placed additional pressure on financial resources of retirees, especially those with a substantial investment in their family home and a relatively small pension.

This paper visits the reverse mortgage scenario in the USA and considers potential implications for the Australian market. Strengths and weaknesses of this product are contemplated, and the viability of reverse mortgages is discussed. Although there are obvious benefits for certain segments of society, reverse mortgages are a unique product and caution should be exercised to ensure the public is fully knowledgeable from the outset.

Mortgage-Backed Securities (MBS): Is It a Curse or a Blessing for the Australian Home Loan Market? A Natural Experiment

The Australian home loan market has seen a significant and persistent boom over more than two decades. Theextant literature exploring the underlying factors explaining this boom has predominantly looked at thedemand side rather than the supply side. In this paper, we look at a major supply-side issue, the introductionof mortgage-backed securities and its likely impact on the home loan market. In doing so, we have developeda mathematical model that theorises this likely relationship. Our mathematical model predicts possibleexistence of an unstable equilibrium in the home loan market in the presence of mortgage-backed securities.We have subsequently backed up our theoretical exercise with sound empirical evidence acquired andanalysed as a natural experiment in the Australian scenario using quarterly market data on home loans andmortgage-backed securities data for a 36-year period from 1976 to 2012. Using unknown structural breaktests, we have identified significant breaks around late 1992 to mid-1995, clearly indicating that there weresignificant changes in the housing market due to the introduction of mortgage-backed securities in early1993. We have also performed a stability test confirming that under certain conditions this market canbecome unstable.

Using small reverse cycle air conditioners in relocatable classrooms - a case study

A 9-month study of four relocatable school buildings, each retro-fitted with small reverse cycle air conditioners (ACs), was conducted to investigate their effectiveness in heating and cooling the classrooms. A comparison with data from previous studies found the energy used by the ACs for heating these temporary classrooms was only 19–20% of the energy used by individual gas heaters installed in permanent classrooms. When equipment efficiencies were considered, the AC units supplied 20–27% less energy to heat the classrooms. The possible reasons for this reduction in supplied energy are explored in this paper. CO2 emissions for the AC units in heating mode, however, were calculated to be 16% greater than for individual gas heaters. The AC units were also used for cooling and on an average the total annual energy consumption for heating and cooling was found to be 11.6 kWh m−2. Responses to a small survey of staff and students about the use and operation of the conditioners are presented. Their responses were more favourable than the predictions of comfort levels in the classrooms using the Predicted Mean Vote–Predicted Percentage of Dissatisfaction (PMV–PPD) model, which indicated “uncomfortable” conditions on average summer days at 3:00 p.m. and average winter days at 10:00 a.m. Background noise levels in the classrooms with the air conditioners in use were above the recommended maximum design level of 45 dB(A); levels of up to 65 dB(A) were measured.

Reconsidering the scope of the equitable mortgage arising from deposit of title documents

This article examines the underlying fairness of applying equitable security presumptions to the deposit of title documents belonging to third parties. It argues that within such transactions, the focus of the equitable jurisdiction must be upon the intention of the owner of the title documents rather than presumptions arising from the fact of the deposit. It suggests that there is no logic in applying equitable presumptions, founded on the principles of part performance, to infer a security intention in transactions involving third party title documents. The fact that the parties to a loan advance may have intended to create a mortgage between themselves does not mean that the third party owner of the title documents also intended to create a mortgage. In third party transactions, the objectives of the equity jurisdiction are best achieved through a comprehensive assessment of the intention of all parties and the abolition of presumptions based upon the bare fact of title deposit.

Effective and strategic use of electronic reverse auctions

This paper reports the findings of an empirical study of Electronic Reverse Auctions (e-RAs). This study seeks to better understand the underlying and emerging issues in e-RAs to comprehend the implications of e-RAs on organizational procurement. The study contributes to practice and research by providing insight into emerging e-RA adoption issues, and by discussing strategies for improving e-RA processes, thus improving the effectiveness of e-RAs.

Reverse osmosis membrane fouling and its control

Reverse osmosis (RO) membranes can be used to treat ground water, surface water and wastewater, but a major problem in RO membrane applications is fouling. Many studies have investigated the mechanisms of fouling in RO membranes and suggested various methods to control the membrane fouling. This paper reviews several aspects of RO membranes, such as the types of membrane fouling, their effects on RO membrane processes and fouling control technologies, focussed on the appropriate feed pretreatment technologies and cleaning methods, especially on the membrane filtration pretreatment processes, including microfiltration (MF), ultrafiltration (UF) and nanofiltration (NF), which are the new trends in designing a pretreatment system in the application of RO.

Wellbeing of Australians : mortgage payments and home ownership

The Australian Unity Wellbeing Index monitors the subjective wellbeing of the Australian population. Our first survey was conducted in April 2001 and this report concerns the 16th survey, undertaken in October 2006. Our previous survey had been conducted five months earlier in May 2006. This intervening period was relatively uneventful in terms of events likely to change population wellbeing. In March 2006, the new Industrial Relations legislation came into force. Each survey involves a telephone interview with a new sample of 2,000 Australians, selected to represent the national population geographic distribution. These surveys comprise the Personal Wellbeing Index, which measures people’s satisfaction with their own lives, and the National Wellbeing Index, which measures how satisfied people are with life in Australia. Other items include a standard set of demographic questions and other survey-specific questions. The specific topics for Survey 16 are home location and travel time, and expenditure on mortgage or rent.

Mortgage nation : the 2004 Australian election

A comprehensive study of the historic win by the Howard Coalition Government providing analyses of the campaigns, an insight from the key players at the centre of devising the campaigns and covers election results and their interpretation.

A comparative study of banking in China and India, non-performing loans and the level playing field

It has become common in the literature to compare India and China, two remarkably growing economies, but these comparisons often do not take into account the institutional differences between these two countries. We have in this paper done a comparative analysis of banking institutions in China and India taking into accounts the contentious issue of nonperforming loans along with the issue of use of banks to provide countervailable subsidies to exporting organizations. Our research shows that the efficiency differences between banks in these two countries can be directly related to institutional difference and any comparative study between these countries not taking into consideration these institutional differences may lead to misleading results.

Reverse ascertainment bias in microsatellite allelic diversity in owls (Aves, Strigiformes)

A rich source of markers may be overlooked by screening for polymorphism in the source species only. We screened 129 microsatellite loci isolated from the powerful owl (Ninox strenua) against two closely related species; Ninox  connivens and Ninox novaeseelandiae. From the screening effort 20 polymorphic markers were isolated, including six loci which were originally discarded as they were monomorphic in the source species. Further cross-species amplification of all 20 loci across species from two families, Strigidae and Tytonidae, revealed unusually high levels of polymorphism within closely related species, and limited success within phylogenetically distant species. Routine screening of multiple  species during the marker development phase can yield a wider range of  polymorphic markers which can subsequently enhance cross-species  amplification attempts.