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 some weekend reading…and please forward to your friends by clicking the social link buttons.
‘Anyone who buys a Block apartment is in need of psychiatric help’
An article published by Business Insider takes a look at the ‘Block Effect’.
The finale of the renovation reality TV show, “The Block”, has put a spotlight on Melbourne’s heated property market.
The winning couple may have walked away with $655,000 over the reserve price, selling their penthouse apartment for $2.3 million, but local real estate experts say it’s not worth the sale price.
In fact, one buyer’s agent told The Australian Financial Review that private investor who bought the apartment, which was expected to go for between $1.5 to $2 million, must be crazy.
“It’s close to the Alfred Hospital but that means parking is a problem. Anyone who buys a Block apartment is in need of psychiatric help,” said buyer’s agent David Morrell.
At the corner of Punt and Commercial Rd in South Yarra, the three-bedroom apartment is in a block “at the worst intersection” in the city and “has a petrol station view”.
Read the full article here.
Another great Real Estate Talk show produced by Kevin Turner.
In this show:
- Simon Pressley identifies some regional markets that are well worth investigating for good returns.
- Michael Yardney answers the question – why would a rich person waste time writing a book helping others to get rich?
- Brad Beer explains why there are more ways to profit than just collecting rent. .
- Mira Stammers tells us about a new website she has created that makes getting a solicitor on a fixed rate so much easier.
- Rachel Barnes tells the story of her success if that category.
- Patrick Bright shares another off the plan horror story.
If you don’t already subscribe to this excellent weekly Internet based radio show do so now by clicking here.
Who pays the interest?
When it comes to the question of who pays the mortgage interest, the answer is that New South Wales and Victoria do: well over half of the national interest payable in fact.
While this might seem surprising, in fact the share of interest paid by the largest two states has declined over the past two decades.
The reason for this has been the expansion of both the population and mortgage sizes in Queensland (its share of the mortgage interest pie increasing from 15 per cent to 19 per cent) and Western Australia (its share increasing from 9 to 13 per cent).
The changes elsewhere have been negligible when viewed from the national level.
Despite the Australian population having increased by well over 1 million persons (or about 4.7 per cent) over the past three years, total interest payable has declined by nearly 22 per cent thanks to the slashing of interest rates.
Mining towns’ collapse ‘hasn’t even begun’
Smart Property Investment featured this article on the doom and gloom of the mining town property market.
Investors who have been burned by the downturn in mining activity and decline in commodity prices have been warned that things are only going to get worse.
“Mining is dead for a long time,” according to BIS Shrapnel’s chief economist and director Frank Gelber, and no one – whether they be economists, politicians, or investors – should be waiting for the next boom.
Mr Gelber said “anyone who expects this to be quick is misleading themselves” and cautioned that recently instated Prime Minister Malcolm Turnbull can’t “wave a magic wand to fix it”.
The continued downturn has drastic implications for investors who still own properties in mining-driven regions, Mr Gelber said.
This is Why You Should Quit Facebook For One Week
PsyBlog published this article which looks at why we all need a break from Facebook.
Psychologists tested the effect of a week-long break from Facebook on people’s mental health.
The ‘treatment’ is based on a study by the Happiness Research Institute, which is a Danish think-tank.
They split 1,095 regular Facebook users into two groups.
One kept on using the social networking site as normal for the week while the other group simply stopped.
After the week, people in the ‘treatment’ group reported all sorts of miraculous improvements:
- A better social life.
- Finding it easier to concentrate.
- Being in a better mood.
- Wasting less time.
Instead of using Facebook, people found better things to do: they talked to each other, they called their family, they felt much calmer.
Weekend video: Cat vs Dog: A Trick Contest
The old rivalry is back!