Real Estate Investing Advice & Strategies From Experts You Can Trust
It’s the time of year where were the economists look forward and make their predictions for the year ahead.
Of course when you look back at the forecasts they made 12 months ago, many were way off the mark. However, Dr Shane Oliver
Head of Investment Strategy and Chief Economist at AMP Capital has a pretty good track record, so I was interested to read his latest insights
Here’s what he had to say…
The Sydney Morning Herald reports that Victoria’s economic strengths will sweep it ahead in the next 20 years according to a report by consultancy firm Deloitte forecasts.
Of course Victoria’s strong economy and population growth have been good for our property markets and now the report predicts that six ”super-sectors” will grow faster than the rest of the global economy positioning Victoria to capture the demand from Asia’s middle class for everything from better food to better education and better returns on its savings. [Read more...]
Today I’d like to discuss the cost of bad property investment advice
No surprises that with the property market on the upturn, the usual parties are back talking up investing in property in remote locations. Recently the SMH reported that Cairns might be about to “awaken from its coma”.
Some fascinating studies have been carried out into the human tendency towards confirmation bias.
We tend to gather information selectively in order to support our preconceived notions and tend to frame our questions accordingly.
An interesting property report was released by RP Data which stated that: [Read more...]
Since we came out of Keating’s famous “recession we had to have” and slow growth returned to Australia in September 1991, our economy has posted an amazing 22 consecutive years of growth.
Although we experienced a slowdown around the turn of the century as the tech stock bubble burst, and again during the financial crisis, on both occasions interest rates were dropped and monetary policy helped Australia to avoid recession. [Read more...]
Capital city dwelling values rose a further 1.6 per cent in July according to RPData taking the cumulative recovery in residential home values to 6.5 per cent since the market bottomed out in May last year.
The July results also take the rolling quarterly change in capital city dwelling values to +2.3 per cent over the three months ending July and values are 4.9 per cent higher over the past twelve month.
Here’s a rundown of what’s happening in our property markets around Australia….
No surprises that with the property market on the upturn, the usual parties are back talking up investing in property in remote locations.
Recently, SMH reported that Cairns might be about to “awaken from its coma”. More than a dozen years ago now some ‘positive cash flow commentators’ were tipping buying off-the-plan in Cairns as a smart investment, ostensibly for the strong depreciation benefits and high yields (I think they were the only reasons given; I certainly can’t think of any others).
I’ve heard it said fairly often over the last few years that the cost of living in Australia is a “dead set joke”. We’ve certainly become a high cost country, although having visited Britain over the past month I can attest that the costs of some goods are worse elsewhere.
Is the cost of living in Australia spiralling out of control?
You’d have to be hiding under a rock not to know the RBA once again cut interest rates by 0.25% today bringing cash rates to a 53-year low. Everyone’s been tweeting about it.
It seems that the BAR has dropped its easing bias, meaning they are unlikely to drop rates further.However they’ve said that before and look what happened. I wouldn’t be surpirsed with another rate cut by year end.
But here’s what Governor Glenn Stevens had to say about their decision. [Read more...]
Australian’s are starting to see their Mojo return. For much of the last few years we were an unhappy lot, but confidence seems to be returning.
So what does it take to make us happy?
Obviously it’s more than money – because we’re already the world’s richest people. [Read more...]
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