Warning: Declaration of TCB_Menu_Walker::walk($elements, $max_depth) should be compatible with Walker::walk($elements, $max_depth, ...$args) in /home/cpme/public_html/wp-content/plugins/thrive-visual-editor/inc/classes/class-tcb-menu-walker.php on line 620
stimulus

Is There a Credit Squeeze Looming?

WILL COMMERCIAL property investors and businesses be starved of ready funds during 2012?

Is there a Credit Squeeze looming?The banks seemed to be protesting about the increased cost of offshore borrowing. And using that as their excuse for not wanting to pass on any future RBA rate reductions in full.

But are they really telling you the whole truth? [Read more…]

Why the Slow Economic Recovery?

The Vagaries of Financial UncertaintyExactly why have industrial companies around the world been slow to recover? And why did everything look so promising … and then suddenly, seem to grind to a halt?

Perhaps some insight into this dilemma was provided by the IMF’s recent World Economic Outlook.

According to Oliver Blanchard (its chief economist), there are the dual influences of a slowdown in advanced Western economies; and the overall financial uncertainty.

During the GFC, companies allowed their inventories to run down. Then, with a hint of global recovery, those same companies began replacing their depleted inventory levels. [Read more…]

Will Australia’s Growth
Remain Strong?

Pick up any newspaper, and you’ll find most commentators saying the Resources boom is back on once again.

Also, people are pointing to China as our guiding light going forward.

But is this really true? And if so, why?

Here’s a short Video giving you a quick insight into whether there really is any substance to what we’re being told.
[Read more…]

When Should You
Fix Your Interest Rate?

On Wednesday, I put up this post about whether or not to fix your interest rate, when purchasing a Commercial property. Only to find there was a problem with streaming of the Video.

Hopefully, that’s now been resolved; and so let’s try Take 2.

The simple answer to the question of timing is … when most Investors are not giving it much thought.

Like right now!

Anyway, here’s a short Video to explain my logic for saying this. Hopefully, it will give you a “helicopter view” of where things will head, over the next 5 years. [Read more…]

Some Gloom … Yet More Glee!

The US Federal Reserve is concerned that consumption is still being underpinned by government funding.

US Interest RatesAnd so, even though stimulus measures may be winding down … the Fed has decided to maintain interest rates at their historically low level.

It seems that households and businesses are preferring to repay debt, rather than spend to encourage investment and growth.

In Europe, there is still simply not enough trust between Banks to lend to one another. And that means credit is extremely tight. Right now, Central Banks are stepping in to lend to private banks, in an attempt to free up funds to boost economic activity.

China still remains the bright light with its growing demand for of the commodities Australia exports.

The IMF actually predicts that the Asian economy (which includes Australia) will be 50% larger within five years.

And it will then represent about a third of the world’s trading activity.

h2. The Implications for Commercial Property

Foreign BuyersAlready, major Asian sovereign wealth funds and property trusts are starting to target Office towers within Australian capital cities.

In fact, foreign buyers have invested around $1.7 billion during the past 12 months — representing about 70% of the purchase is made.

While this won’t directly affect the smaller private buyer … it will force everyone to move down a price bracket ought to — looking for better value.

Therefore, as yields quickly firm at the upper levels … this will soon have a ripple effect down through more modestly priced Commercial investment property.

Couple this with rising rentals, as the supply of Office space starts to fall around Australia … and now would be the perfect time to position yourself, ready for the next growth cycle.

What about the Baby-Boomer Effect?

Yesterday, the Federal government released Australia’s third Inter-generational Report.

And about five years ago, I came out with a somewhat startling statement:

“If you haven’t sold your traditional family home by 2010-11 … you had better be prepared to hold it until 2025 — because there simply won’t be a market for it!”

Chatswood ... Sydney

Chatswood … Sydney

And given the recent surge in home sales (particularly in Sydney and Melbourne) over the past 6 months … you would be excused for thinking my prediction might be way off the mark. [Read more…]

Positive Signs Continue in China

China's Recovery

China's Recovery


Despite what the IMF has to say this morning … the World Bank expects China’s economy to start growing by mid-year, as a result of its massive stimulus package (some $A800 billion).

Overall growth for China has become more certain, as activity moves from state-funded projects into housing and improved consumption.
[Read more…]

Demand Finally Surfaces!

The pent-up demand for housing serves to underline that this downturn is more like the credit squeeze of the mid-1970s, than the recession of the early 1990s.

It’s principally a confidence thing.

Surge in 1st Home-Buyer Activity

Surge in 1st Home-Buyer Activity


However, the recent surge in purchases by first-home buyers confirms that with the encouragement of low interest rates and government hand-outs … the buyers will play their part.

More importantly, the flow-on effect throughout the construction industry will give our economy a much needed lift.