THE REST of the world looks upon Australia with envy. And you only need to scan these graphs to understand why.
It all comes down to a feeling of comparative well-being.
Australians have had it so good, for so long … that the current slower pace somehow makes us feel gloomy — because it’s simply “not normal”.
Meanwhile, most other countries just wish they were in our position. [Read more…]
ONLY RECENTLY, I flagged the emerging opportunity being provided by Industrial property. But I felt it was important for you to understand the underlying reason for that.
In a nutshell, it comes down to our persistently high dollar.
In last weekend’s Financial Review (page 24), Joanna Heath posed the following question:
Can you name Australia’s second-largest export?
She went on to point out that it’s not … coal, gas or wheat. Instead, it is actually Australian Commonwealth Bonds! [Read more…]
I THINK it was management guru, Tom Peters, who came up with probably the best advice on how to overcome procrastination — stemming from the need to have everything perfect BEFORE taking action.
And even though his advice may have originated in the 1980s … it certainly still holds true today, when it comes to Commercial property investors.
Tom Peters’ simple strategy was: “Ready … Fire … Aim!” [Read more…]
IN VARIOUS recent articles, I’ve tried to explain how Australia’s underlying fundamentals are actually very solid.
And by most measures, our economy seems to be travelling at close to its full capacity.
However, the contradiction is that Australia’s budget should now be running at a substantial surplus. And the reason it’s not relates to a number of structural issues. [Read more…]
THE LABOR government is crowing about its latest statistical achievements — low inflation, low unemployment, strong growth and booming investment.
So, why aren’t Australians feeling an overwhelming sense of warmth and well-being? Probably, as my earlier articles have explained … it all comes down to an overall lack of confidence.
Most people are still expecting the RBA to further reduce interest rates. However, barring a European meltdown, that would seem to be rather unlikely in the foreseeable future.
You only need to study these graphs to understand the RBA’s hesitancy — because clearly, the average measures of inflation currently sit at the bottom of the target band adopted by the Reserve Bank. [Read more…]
THE FIRST half of 2012 has been rather dismal for retailers. Figures coming out of the ABS tend to confirm anecdotal evidence that retailing is doing it tough.
And none more so than department stores, fashion and electronics. Whereas, food and entertainment remain the only bright spots. [Read more…]
ACCORDING to a recent report by Property Watch, overseas investors appear to be strongly buying Office buildings, within Docklands and the CBD of Melbourne.
Currently, these Office purchases account for around 36% of all very major deals being transacted — and they seem to be driven by Melbourne having the 2nd lowest vacancy rate, after Perth. [Read more…]
NOT 
EVERYONE was expecting the RBA to further ease the cash rate, when its Board met this week.
Some felt the Board would simply “keep its power dry”, and just wait to see how the outcome of the 17 June election in Greece unfolded.
Some economists like Saul Eslake (of Merrill Lynch) felt that the $2.5 billion of cash payments by way of government compensation for the carbon tax, would serve as “enough stimulus” for now.
But maybe, such thinking took too simplistic a view of things. [Read more…]
There is no doubt, you can certainly accelerate your overall return from Commercial property, by gearing up with a loan.
Even so, you should FIRST make sure that you can say “Yes” to each of the following questions. [Read more…]
THE RBA Board’s big 0.5% cut in the cash rate surprised many people. While others were wondering … what took them so long?
You could certainly be forgiven for thinking that the trigger for this latest cut lay in the underlying inflation (at 2.2% pa) now being “under control”.
And also, that the RBA was seeking to lower the Australian dollar to assist manufacturers and exporters. [Read more…]
Vacancy rates for Industrial property have fallen dramatically over the past year — declining by 39% on average, across the country.
This is mainly the result of strong demand for warehousing, following the high Australian dollar.
Plus, there has only been a modest amount of new construction. And that means you should see rentals improve and selling yields start to firm. [Read more…]
