Household Debt may actually be “Healthy”!

11 September, 2007 by Leave a Comment

In an “earlier posting”:https://commercialpropertymadeeasy.com/2007/06/26/family-finances-are-being-stretched/, I raised concern over the dramatic increase in household debt — to the point where it now sits at over 150% of household disposable incomes.

As you can appreciate, the major concern has been as to how rising home-mortgage interest rates might cause a flow-on effect for Commercial investors. And this is because a fall in residential prices could adversely impact upon the security for any line-of-credit you may have against your home.
[Read more…]

Filed Under: Global Scene, Interest Rates, Investment Objectives, Residential vs Commercial, Using Debt, Your Exposure

The Rough and Tumble Marketplace

21 August, 2007 by Leave a Comment

The recent stock market instability has been more related to investor panic, than to any logic or reason. And you’re not about to see a stock market collapse — which has now been confirmed by Monday’s rebound, following 0.5% rate reduction by the US Federal Reserve.
[Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates

The Upcoming Federal Election

10 August, 2007 by Leave a Comment

There has been so much written in the media lately on both political parties. And everyday, you read predictions of a loss by the Coalition, come the election in November/December this year.

However, I recall reading earlier in the year about a study done on elections all around the world, during the past 30 or 40 years. As a result of this study (and despite the present media hype), these various election outcomes have apparently hinged upon three key performance indicators (KPI).
[Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates

An Interest Rate Reprieve — for now!

9 July, 2007 by Leave a Comment

Last week, the Reserve Bank of Australia (RBA) held its cash rate at 6.25% for the eighth month in a row — a decision welcomed by the Government and home buyers alike.

RBA July 07Inflation figures (due out later this month) could put pressure on the RBA to lift rates. However, the high Australian Dollar (at around US 85c) means that there is no external pressure on inflation, from imported goods. And, despite the higher dollar, demand for our exported commodities remains at record levels — which has in turn narrowed our Trade deficit.

Therefore, even with our GDP growing, inflation seems to have remained in check. And this is likely to continue — given the modest wage increase just granted with the Fair Pay Commission.

While the RBA has left interest rates on hold at 6.25% … our rates are still well above other major countries. That makes Australia an attractive place for overseas funds — which is causing our dollar to remain high. And you should see this situation continue for the next 4 to 5 months.

Then, as other countries start to increase their own interest rates … you will quickly see our rates follow suit.

Filed Under: Economic Issues, Global Scene, Interest Rates, Using Debt, Your Exposure

Feedback on the Office of the Future

27 April, 2007 by Leave a Comment

When I made mention of the revolving building planned for Dubai, a couple of people came back to me with some fascinating material.

If you’re interested you can “take a look”:https://commercialpropertymadeeasy.com/assets/2007/4/24/DubaiProjects.pps at what’s really going on over there.

Filed Under: Global Scene, Offices

Construction Climate – Australia and NZ

27 February, 2007 by Leave a Comment

In its Construction Cost Commentary for January 2007, the Rider Hunt offices report tendering activity continues to surge in most Australian cities, Sydney being the only location bucking the trend. In New Zealand, sustained levels of Building Consents and the coming on-line of some major projects indicate continued high levels of activity in 2007.

What I’ve done is to bring you some extracts from that report, And you’ll notice that Brisbane, Perth and Darwin are currently the strongest markets.
[Read more…]

Filed Under: Economic Issues, Global Scene, Property Cycles

Vietnam … Asia’s 2nd Fastest-Growing Economy

16 November, 2006 by Leave a Comment

You are always reading about how China has been breaking annual growth records. And then it was India’s turn to steal the limelight.

But after throwing off the Soviet shackles, Vietnam signed an accord to roll back trade barriers with the USA. And its stagnant economy has literally leapt into action.
[Read more…]

Filed Under: Global Scene