Saturday Summary – the most interesting articles I’ve read this week (2014/08/23)

There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.

Each Saturday morning I like to share some of the ones I’ve read during the week.

Enjoy your weekend…and please forward to your friends by clicking a social link buttons on the left.

Thousands of mining jobs to go

If you still had any thoughts about investing in mining towns – DON’T! And if you own an investment property in a mining town I strongly recommend you consider selling it – if you can – I know many who’ve tried and can’t get out without making significant losses.

The Australian writes that:

Mining industry employment is forecast to slump by 4.5 per cent over the five years to 2018, with more than 16,000 jobs to be lost across exploration, metal ore and coal mining.

New analysis released by the federal Department of Employment describes the predicted ­decrease as a “significant slowdown’’ compared with the 106,700 jobs created in the mining industry in the five years to May this year.

Mining employment almost doubled in the five years to May 2012 as the industry responded to historically high mineral prices by expanding output and building new capacity

“Since May 2012, employment growth has stalled, growing by only 4000, or 1.5 per cent over the 12 months to May 2014 as mineral prices have fallen, construction activity has plateaued and operating costs are being scrutinised intensely,’’ the report says.

 

Top tips for capital growth | The 7 habits of successful property investors | How to buy better | Tips for refinancing

Another great Real Estate Talk show  produced by Kevin Turner. If you don’t already subscribe to this excellent weekly Internet based radio show.

Details of this week’s show:

Chris Gray from Sky Business’ “Your Property Empire” shares his top 3 ways to make sure you get maximum capital growth from your properties.
Cate Bakos shares some of her thoughts on how you can buy better.
Michael Yardney reflects on the 7 significant traits Dr. Stephen Covey says successful people habitually exhibit.
Finance expert Andrew Mirams who gives us his top 5 refinancing pitfalls and explains when refinancing makes sense.
Matt Jones who set up his own network group of investors that has now grown to thousands of like-minded people who share a passion for property. Hear his story.

You should definitely subscribe to this weekly audio program. Click here. It’s free and you can listen on the go on your smartphone, iPad etc.

 

The Gap Between Male And Female Wages Is Growing.

There has been a lot written in the last week about the fact that the pay gap between genders over the past 12 months has widened.

According to the Australian Bureau of Statistics’ average weekly earnings data, on average men are earning almost $15,000 more a year compared to women.

Over the past 12 months male wages have risen 2.9% compared to a rise of 1.9% for female wages over the same period.

Driven by the mining sector’s high average wages and male dominated workforce, the gap between male and female earnings has grown 7.6% in the past year.

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In his blog regular Property Update Blogger Pete Wargent breaks down the latest ABS wages data in his usual succinct way with lot’s of graphs and stats. Read more here.

 

Apartment oversupply to flood Perth property market

WA Today report that Perth is facing an impending apartment glut, as a cooling economy and subdued population growth threaten to overload the market with unwanted stock.

Property analysts expect the former boom town, which has previously experienced housing shortages, to face a potential over-supply as early as next year following the completion of a series of multi-residential developments.

Stewart Darby, executive manager research of the Real Estate Institute of Western Australia said there was an emerging risk of excess stock.

“The risk of oversupply in the foreseeable future by 2015-16 is a real possibility as new supply is completed but demand, particularly for rental stock, is falling as population growth slows. This in turn will limit demand for rental property at a time when rental markets across WA are already haemorrhaging.”

The fears are linked to the record number of multi-residential dwellings now under construction in WA – most of which were started in stronger economic times – but yet to be completed.

This coincides with a pullback in major resources investment, which has meant WA is fast losing its reputation as the nation’s jobs creation capital and migration destination.

Australian Bureau of Statistics figures released this week show that the unemployment rate in the resources state has lifted from 5 to 5.2 per cent, which is below the national average but higher than the two territories. Population growth officially peaked in WA in September 2012.

 

Do poor people drive less like Joe Hockey said?

Boy was there a lot of fuss made a few weeks ago when Treasurer Joe Hockey suggested that:

“The people that actually pay the most are higher income people, with an increase in fuel excise… The poorest people either don’t have cars or actually don’t drive very far in many cases.” – Treasurer Joe Hockey, ABC Radio, August 13.

Well was he right?

The Conversation dissected the argument and concluded:

1. Rich people pay more for their petrol:

Australian Bureau of Statistics (ABS) Household Expenditure Survey Data from 2010 reports that households in the lowest 20% of income spent an average of A$16.36 on petrol per week, whereas those in the highest 20% spent an average of A$53.87.

2.Poor people own fewer cars

ABS Stats show that roughly 65% of households in the lowest 10% on the SEIFA index own cars, in contrast to 83% of households in the highest 10%. Lower-income households thus own fewer cars, on average, than higher income-households.

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3. Do poorer people really drive less?

In fact there is reason to believe many poorer people are forced into driving long distances (mainly for work) by their geographical circumstances.

Weekend video: Ron Williams Tribute

Robin Willaims’ death seems to have touched us all. There are so many tribute videos around, but this short (1 minute) one says it all…

Blogs you may have missed this week:

If you didn’t have a chance to read my daily blog, here’s a list of some of the blogs you missed this week:

Follow the smart money | John McGrath

Will our property markets slow down before Xmas?

The rental Market remains sluggish

Want High Capital Growth Without Sacrificing Cash flow?

Borrowers shy away from fixed home loans

Are we building too many apartments in Sydney?



Want more of this type of information?


About

Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been once agin been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


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