Here’s your 3 minute weekend good news property read…
How’s this for a speech title – Internal balance, structural change & monetary policy.
Well before you start to yawn, it is worth reading what Philip Lowe the RBA Deputy Governor has to say. Few in the media, with the exception of Michael Pascoe, have done this speech justice.
It explains the three main forces shaping our economy – our exchange rate; savings ratio & monetary policy – in great clarity.
Did you know that since 2010, Australia’s economic output has increased by 9%; over half a million new jobs were created; unemployment has remained steady at 5.4%, yet inflation has averaged just 2.5%.
In addition, since the mid-2000s, the household net saving ratio has risen from zero to around 10%. This represents about $90 billion that is saved, not spent, by households every year. Most businesses would like to see these purse springs opened, but having money in the bank is far better than having none at all.
The cash rate has been eased six times (for a cumulative1.75%) since late 2011 – and whilst the banks, on average, are still holding onto 0.45% of this easing, monetary policy is now starting to work.
Nationwide, measures of house prices have increased by around 4% since mid-last year, after having declined for around 18 months. Home lending approvals & auction clearance rates have both risen. Equity prices are up over 20% since the middle of last year.
National measures of confidence are now above their long-term average, but as yet, this isn’t translating into more discretionary spending.
Me-thinks an event scheduled for September this year will make the world of difference. Hopefully, it will happen much sooner.
Highlights to be happy about this week…..
- Employment rose 102,400 over the three months to February. This is the biggest quarterly gain in the past five years!
- Of those who joined the unemployment ranks over the past year, 23% did so voluntarily – the lowest proportion in three years.
- Employment rose in 11 of the 19 industry sectors.
- Healthcare remains the biggest employer in Australia, representing 12% of the workforce and 1.39 million employees – and that, by the way, is why buying an investment property near a hospital is often very wise, hey Kochie!!
2. Go Oz
The Oz economy continues to perform well – as per the stats in this week’s moment with Mike, above. Reserve Bank Deputy Governor Philip Lowe said this week that Australia is going through a structural change, with jobs being created in some areas while being lost in others.
But the bottom line is that jobs continue to be created and our country is positively responding to global challenges, the high Aussie dollar and the information revolution.
3. Kickarse social media
Love it, or hate, social media is here to stay…and if you’re not using it, your competitors likely are. LinkedIn is designed for professionals to connect, so they can do business.
Here are a few tips from Inc.com to help make LinkedIn your new power broker for success:
· Have clear purpose
- Refine your profile – make It send a message and not sound like a job application
- Pick groups that matter
- Use your network – follow up through face and voice contact
- Personalise everything – don’t just use the auto buttons to interact
- Initiate meaningful interactions with your connections – identify regularly with some on yhour list that can bring you real value – and look for ways you can help them.
OUR NEW WEBSITE
It has been ‘hard-hatted’ for way too long. But now it lives. It isn’t the usual property website. But we aren’t the usual property consultant. Check it out.
Michael is the director of independent property advisory Matusik Property Insights and writes the Matusik Missive which is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.