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.
Monday will be here before you know it, so enjoy for some weekend reading…and please forward to your friends by clicking the social link buttons.
No Luck For Investors As Owner-Occupiers Look To Benefit From Even Lower Interest Rates
Your Investment Property reports that owner-occupiers are set to benefit as lenders continue to reduce the amount finance made available to investors.
According to mortgage comparison site Mozo, lenders across the country have made more than 50 cuts to interest rates on owner-occupied home loans and there are likely more to come.
Owner-occupier interest rates have been cut by an average of 0.12% over the last month, with the lowest home loan rate available sitting at 3.94%.
The average owner occupier home loan rate is now 4.69%, which is 0.55% lower than it was this time last year (5.24%).
Meanwhile, investor loans are averaging 4.81%, only 0.43% lower than this time last year.
Mozo’s data shows owner occupiers are better off to the tune of $100 per month on today’s lowest home loan rate, compared to the lowest rate one year ago (4.54%).
Why agents underquote property prices | UK Property Market | What is APRA doing | 6 Habits of successful investors | What do you think about real estate agents
Another great Real Estate Talk show produced by Kevin Turner.
In this show:
- Shannon Davis reflects on how differently real estate transactions are conducted there and what opportunities exist for investors
- Andrew Mirams looks at the impact of the new APRA rules on investors
- Michael Yardney looks at why agents underquote property prices and how to beat them at their own game
- Jane Slack-Smith shares the 6 things she has found successful investors do.
If you don’t already subscribe to this excellent weekly Internet based radio show do so now by clicking here.
5 Crazy Paradoxes That Will Blow Your Mind
A paradox is a premise that contradicts itself. Lifehack.org provides a list that will really make you think! Here’s 5 of them:
1. Likely to exist means likely to be found, but where is everybody?
A mind-blowing paradox comes from the apparent contradiction that exists between the high probability of extraterrestrial civilizations being out there somewhere, and our lack of alien contact or evidence.
2. Does an object that has all its components replaced remain the same object?
This is a classic paradox drawn from the ancient Greeks’ original Ship of Theseus Paradox.
Imagine you have an old wooden ship. If you construct a new ship out of the old pieces you took off the first ship, which one is the original ship?
3. Can you travel back in time and prevent yourself from being born?
A famous example of a time travel paradox is the Grandfather Paradox. In this mind blowing scenario, someone travels back in time and kills their own grandfather to prevent their own birth.
If she were never born, how could she kill her grandfather?
4. If destiny designed a master plan which defines everything that is to happen, isn’t it useless to go to a doctor, for example?
According to this Lazy-bones Paradox, if you are ill and it is your destiny to regain health, then you will regain your health whether you visit a doctor or not.
5. If someone says “I always lie,” are they telling the truth? Or are they lying?
The great stoical logician Chrysippos came up with a paradox popularly known as the Liar Paradox.
See the full article here.
Construction expands in August
Pete Wargent shares a short but sweet update about the state of the construction industry.
Now the construction sector is expanding again per AIG.
Some good analysis from AIG here that is well worth a read – apartment construction is an obvious strong point, which makes the drag on second quarter GDP by dwelling construction something of a mystery.
Perhaps the residential construction industry is operating at or close to its full capacity.
In any case, I expect dwelling construction to contribute to the economic growth in the third quarter.
All three of AIG’s Performance Indices are now in expansion territory – manufacturing, construction and services.
Good to see.
Abolish capital gains tax discount: Australia Institute
Property Observer recently published an article discussing the Australia Institutes’ recommendation to do away with the Capital Gains Tax Discount.
In their submission to the House of Representatives Standing Committee on Economics, the Australia Institute state not only is current tax treatment putting upward pressure on house prices but are also encouraging speculative behaviour and increasing the chances of property bubbles and financial instability.
“Negative gearing has been a part of the Australian tax system from early last century. In the context of residential housing investment it allows property investors to write off any losses against their taxable income from other sources. This effectively means that the tax payer is paying for some of the loss.
“The CGT discount was introduced in 1999 and means that for assets held for more than a year only 50% of the capital gain is taxed. This decreased the amount of CGT paid, and means capital gains become increasingly important to property investment.”
“After the introduction of the CGT discount net rental income collapsed. Investors were willing to take on significantly larger losses at a time when they could keep a larger slice of the capital gain.
“In a normal investment market if the return on the asset was going down because the price of the asset was rising then this would be a signal to investors that it could be overvalued and would decrease the interest in investing.
The Australia Institute does not believe that changes made to negative gearing would decrease investment and increase house prices.
Read the full article here.
Finnish magician Jose Ahonen has a little fun with a bunch of dogs, doing the disappearing dog treat. We reckon the chihuahua’s onto him though