It might surprise you to hear this, however …
h3. A Strong US Recovery
… would probably be the worst thing to happen for Australia in 2010.
If that occurs, the US Federal Reserve would be forced to quickly raise interest rates, from zero to around 3%. And that would cause the collapse in the Australian dollar from its current level of around US90c.
Up until now, Australia has been shielded from inflationary pressures, with a high dollar holding down the cost of imports.
[Read more…]
Looking Up
As you can see, the Westpac-Melbourne Institute consumer sentiment index increased strongly by 9.5% for June.
And that means it has now leapt by some 23% since May — the largest 2-month increase for over 30 years.
First-home buyers have also been active, accounting for nearly 30% of all loans during May.
And this overall level of confidence follows an increase in retail sales, for three months in a row.
[Read more…]
Capture The Benefits
Depreciation is probably the most under-used weapon to legitimately shelter a significant portion of your property income.
And as a Commercial Investor, you really do have an unfair advantage over somebody investing in only residential property.
Therefore, let’s now set about dispelling a few of the common Myths concerning Depreciation.
[Read more…]
In an earlier article, I gave you a bullet-point comparison of how things are NOW … compared to the early 1990s … in relation to Commercial property.
Anyway, here are some very revealing graphs — based upon figures from the RBA.
Now & Then
The Weekend Financial Review ran several articles, which seemed to echo many of the sentiments contained in my last blog about the Capital City Markets — but perhaps putting things a little more bluntly.
h3. Brisbane
Mark Ludlow (on page 2) referred to Queensland as having moved from “boom state to gloom state” — because of its heavy reliance on resources. [Read more…]
But for the most of 2008, Australia has basically experienced what you might term a Goldilocks market for Commercial property … “not too hot, and not too cold!”
Despite Office, Retail and Industrial being near the top of their cycles … the global turmoil has prevented the usual runaway activity occurring — in most capital Cities.
Anecdotal evidence suggests that consumers are cutting back on their spending around Australia. And it’s likely that luxury items and overseas travel will be the most affected.
A recent article in The Age expounded “The Flight to Value” — where Australian Property Monitors reported a 24% drop in the median price for Toorak Homes, in the 6 months to September.
[Read more…]
There are a couple of questions on the minds of Commercial Property Investors at the moment.
And they go something like this.
[Read more…]
With all that has occurred recently as a result of the American Sub-Prime crisis … Property Investors are finding it hard to gauge the current market.
Some are preferring to “sit and wait”. Whereas, others are seeing it as an opportunity to secure a good deal … while the present confusion reigns.
The Prime Minister’s “freezing” of parliamentary salaries is a clear endorsement of RBA Governor Stevens’ warning to curb our spending.
Last week, I mentioned the impact this could have on retail turnover — with a flow-on effect for growth in rental and sale prices for the Retail sector.
[Read more…]
Yesterday’s interest rate increase by The Reserve Bank carries with it some hardship for the outer residential suburbs around Australia.
p=. 
Curbing inflation is clearly the RBA’s main aim. And from their additional comments yesterday, we now have confirmation that Australia is effectively seen as being shielded from the turmoil in the US.
[Read more…]
