Saturday Summary – the most interesting property investment articles I’ve read this week (2013/01/26)

There are more property investment 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 interesting 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.

Glenn Stevens is right – there will not be an Australian property crash, as there is no bubble

One of many reasons there will be solid price growth in Australian property markets this year is that current prices are at sensible levels says Terry Ryder in Property Observer.

According to Ryder Australian house prices make sense in an international context, based on the relationship between household incomes and typical prices. They make even more sense when you factor in culture and tradition, elements economists can’t put into an equation but important nevertheless.

He explains that Reserve Bank Governor Glenn Stevens does not think Australian house prices are unreasonably high and does not believe they will drop. Nor does he agree that we have a price bubble.

Ryder says that the impression created by bad journalism is that most of the nations of the world suffered a US-style collapse in prices, and Australia was one of the few to unreasonably resist the trend.

In fact, only a handful of countries had property crashes: the United States, Ireland, Spain and, to a lesser extent, the UK. Those declines happened for specific reasons. In the US these included a recessed economy, high unemployment, a major oversupply of dwellings and an unregulated lending sector (pretty much the opposite of Australia on every count).

The vast majority of nations, even some with weak economies, have escaped decimation of their property values. Many have continued to show growth since the onset of the GFC. Australia is, in fact, reacting in line with most of the world’s nations.

Read the rest of this insightful article here.

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“The Black Box” of the finance world

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

  • Rolf Schaefer explains that since the GFC banks have fine tuned their lending policies and turned on a “black box system” known as credit scoring. This is something all property investor should know about.
  • Michael Yardney gives his forecasts for our property markets for 2013
  • Louise Christopher from SQM Research explains what the Commonwealth Games will and won’t do for the Gold Coast property market.
  • Tom Panos reminisces about what the market was like in the late 80’s. Since they were very similar to this market, what is likely to happen in the future

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.

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What’s the property supply and demand ratio got to do with the price of fish?

Regular Property Update blogger Peter Wargent has been prolific over the summer break providing me with some excellent property investment related reading.

One of his insightful blogs discusses our old friends – supply and demand and in Pete’s usual way he gives a good background into what affects property values and explains the concepts of elasticity and seasonality.

And if you want to know what all this has to do with the price of fish, read Pete’s blog here:

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50 Business and Life Lessons from 2012

2012 was a hard year for people behaving as victims. And a superb year for people like showing up as leaders according to Robin Sharma who shared 50 of his best lessons learned (or reinforced) from 2012.  Here are a few:

  1. Hard work is a force multiplier.
  2. Don’t participate in recessions.
  3. Exercising for 20 minutes first thing in the morning is a game-changer.
  4. If you’re not innovating daily, you’re on the path to obsolescence.
  5. Procrastination is an escape mechanism for people scared to do their best work.
  6. Don’t do it if you’re not having fun.
  7. If you’re not scared a lot you’re not growing very much.
  8. When no one else believes in your vision, you absolutely must stay true to your vision. (Have the guts to stay in the game far longer than makes any sense).
  9. A job is only a job if you choose to see your work as a job. All work is a noble sport. (The reality is all work is a chance to express your genius–and to inspire the world).
  10. Creativity comes in seasons. There’s a time to harvest your ideas. And there’s a time to let the field sit fallow. (I’ve been working on integrating this lesson for years).
  11. Sometimes the most productive thing you can do is relax (When you relax, your brain shifts into alpha state–the time when million-dollar ideas present themselves).
  12. Change is hard at the beginning, messy in the middle and gorgeous at the end. (And without change, there is no progress).
  13. Someone’s going to win in your space. Why not you?
  14. Delete victim speak from your language. No more “I can’t” and “It’s not possible” and “It’s so hard.” More “I will” and “This is awesome” and “What’s the opportunity here?”
  15. If you inspire one person each day, you’re day hasn’t been a waste. It’s been a blessing.
  16. Living in the past is disrespecting your future.
  17. Build an amazing career but enjoy your lifestyle along the way. What’s the point of becoming a business legend but a failed human being.
  18. The person who tries to do everything achieves nothing. Focus. Focus. Focus.
  19. Goal-setting is mission-critical. (Review your Big 5, quarterly goals and daily goals constantly).
  20. Remember that your greatest gift is so much stronger than your deepest fear.
  21. Be the most honest person you know. It generally takes 30 years to build a fantastic reputation. And 30 seconds to lose it by a single silly move.
  22. Problems come to test your commitment to your goals, hopes and dreams.
  23. Use your life to make the world a better place.

You can read the other 27 lessons here.

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Global graying

There has been a lot written about Australia’s aging population. Fortunately our immigration will take care of the problem that is taking place in Japan.

The New York Times recently wrote about Japan’s aging population.

The first grade class at the elementary school in Nanmoku, about 85 miles from Tokyo, has just a single student this year. The local school system that five decades ago taught 1,250 elementary school children is now educating just 37. …

Over the next 25 years, the proportion of Japan’s population that is elderly will rise from almost one in four to one in three. Does that mean that sales of adult diapers will soon surpass those of baby’s nappies?

Read the full article here.

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Blogs you may have missed:

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

 4 ways property investors may use leverage & 6 ideas for equities

Good news for property investors – leading indicators are pointing to an improving market

State of the states – how is your local economy performing?

Look what’s happening in our capital city property markets – Brisbane & Adelaide

10 reasons to feel positive about property in 2013.

5 ways you can profit from the mining boom

[post_ender]



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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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