WEEKEND READS: Catch up on the most interesting articles I’ve read this week

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.

2015: property market predictions

Your Investment Property Magazine warns investors need to prepare themselves for modest house price growth across most capital cities in 2015.

The Domain Group’s Australian Housing Market Year in Review predicts that housing markets around Australia are set to experience a year of flat activity in 2015.

This follows on from a year of expansion and strong price growth in 2013 and a year of moderation in 2014.

Domain Group senior economist Andrew Wilson said most capital city markets are feeling the effects of both local economic conditions and concerns over the national economy.

With a weakening economic outlook, particularly in terms of the jobs market, the case is growing for an official interest rate cut by mid-2015, he continued.

“But, without improved economic conditions and a return of incomes growth and confidence, marginally lower interest rates will be unlikely to have a significant impact on housing markets.”

This meant that, in 2015, house price growth for most capital cities is likely to be modest at best and will hover around the inflation rate.

Wilson said the rate of growth in each city will be dependent on local supply and demand factors – rather than the overarching impetus of low interest rates which have driven markets over the last two years.

Sydney, which was the leading performer over 2014, will outperform other capital cities again for the third year running in 2015.

A top performing local economy and the continued undersupply of housing will generate consistent buyer activity over the year, Wilson said.

“The inner and middle ring mid-price range suburban regions are set to continue to record double figure prices growth but, overall, growth is likely to be at least twice the inflation rate.

 

10 Experts share their biggest property lessons from 2014 | What’s ahead for 2015 | 30 Property Strategies

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

Details of this week’s show:

This week as we look ahead to a new year, what are the lessons we can take out of 2014 that will help us invest better in 2015. That’s the question I ask no less than 10 of our experts in this show.

In this week’s show I talk to Dr Andrew Wilson, Michael Yardney, George Raptis, Bryce Holdaway, Kieran Clair, Brad Beer, Rachel Barnes, Jane Slack-Smith, Ken Raiss and Shannon Davis to get their lessons from the year past and what they think about the year ahead.

As usual we have our suburb pick. This week we talk to Mark Armstrong about why he likes the inner northern part of Melbourne around Preston and Reservoir.

And to wrap up the offering we have for you as our last show for 2014, I talk to Jennie Brown about the 30 different strategies she believes are available to investors and Ken Raiss answers a question about lines of credit and their use.

 

Get used to low rates – they’re here to stay

How do we prepare for a long period of steady (and possibly falling) prices and very low interest rates?

That’s the question to which there is no easy answer, writes Alan Kohler.

Prepare how?

It’s a bit hard to know since none of us were around during the last period of persistent deflation – the 19th century – which was before the invention of central banks, and was muddied by frequent financial crises, booms and busts and bank runs (not that central banks have managed to abolish financial crises).

It’s likely to be a period of rising asset prices, and rising volatility – a secular bull market punctuated by big corrections, not that there’s anything much new about that: bull markets are always punctuated by big corrections.

And this new era is already being characterised by huge transfers of wealth:

  • from savers to borrowers, because of low interest rates
  • from energy producers to consumers, because of low oil prices
  • from legacy industries to disruptors, because of cloud computing
  • from young people to old, thanks to high real estate prices

And that seems likely to continue.

Four reasons why more first home buyers are now first time investors

In October, 11.6% of home loans were made to first-time buyers, as against a long-term average of 20%. Property investment lawyer Anthony Cordato, gave 4 reasons many first-home buyers have changed into first-home investors:

1.  Since 2011, the withdrawal of the first-home owner grant and stamp duty concessions has encouraged first-home buyers to buy an investment rather than a home.

2. Lenders, particularly second-tier lenders, offer 30-year investment loans with five years’ interest only followed by 25 years’ principal and interest, which means low repayments for five years.

3. Direct property investment has tax advantages of negative gearing and depreciation.

4. Availability of new stocks of home units and house and land packages is increasing.

China Used More Cement In The Last Three Years Than The US Used In The Entire 20th Century

Business Insider report a mind blowing fact:

blog sat

The significance of cement can’t be understated. A powdery substance made with calcined lime and clay, it is a binder that enables the creation of concrete (along with water and gravel or sand).

Concrete, according to Smil (whom Gates calls his favourite author), is the most important man-made material in history. It has been used in everything from the Pantheon to the Hoover Dam to China’s incredibly big Three Gorges Dam.

Where there’s cement consumption, there’s growth, and there’s never been anything like what’s happening in China.

Weekend video: ‪ A very different way to conduct an open home

This Dutchman who is selling his house came up with a great idea for showing buyers through…

 

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:

What assets can I buy in my self managed super fund [Video]

The top 10 ways children damage their parents’ homes | Michael Yardney

National Housing Market year in review 2014 |  Dr. Andrew Wilson

What do record Sydney investor loans mean for property  |  Pete Wargent

Capital Gains Tax on selling your Principal Place of Residence |  Michael Yardney



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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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