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households

Be Prepared for Strong Growth in Commercial Property During 2012

Australia stands poised ready to growThe underlying fundamentals for Australia are strong.

All that’s needed is a lift in the general confidence level, for our economy to really take off.

Therefore, the trick is … not to be caught by surprise when it does! [Read more…]

Global Progress?

The IMF has recently trimmed its overall global forecast — down to 4.2% from 4.3%, for 2011.

Global GrowthThe emerging and developing economies are tipped to grow by 6.4% (with China’s growth being over 9%).

Whereas, the various advanced economies are expected to grow by a subdued 2.2%, on average.

However, any double-dip recession is considered most unlikely — as investment and domestic consumption has replaced the building up of inventories.

According to the IMF: “Investment in machinery and equipment is already showing strength in a number of advanced economies.”

Nonetheless, spending and investment in most advanced economies will be constrained by households replenishing their savings; and banks remaining reluctant to lend freely to businesses. Plus, the US housing market still languishes.

Overall, the lack of business investment (and therefore employment growth) will adversely impact on tax revenues. And thereby, make government debt reduction programs a slow process.

On all counts, Australia will continue to enjoy solid growth — relative to other advanced economies. And this will provide ongoing pressure for interest rates to rise, over the next three years.

All the more reason to lock in your interest rates long-term … for any Commercial property investments you intend to make.

Thankfully, The RBA Displayed
The Courage of Its Convictions

Clearly, many households and first home buyers will have reason to complain … but someone had to step up and show leadership. And it certainly wasn’t going to be the Labor Party.

The RBA's Reasons for Increasing Rates

The RBA's Reasons for Increasing Rates

By increasing the official cash rate from 3% to 3.25%, the RBA has signalled its intention to ensure Australia’s financial future remains the envy of the world.

Rather than simply basking in the recent praise from the IMF and other G20 members.
[Read more…]