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.
Australia’s housing bubble is real and banks are to blame
The Sydney Morning Herald report overseas author Lindsay David who compared Australia’s banks to Lehman Brothers and Bernie Madoff.
But in his mind, it’s everyone else who is living in a “Disneyland” delusion by failing to spot a bank-led property bubble that shows no sign of deflating.
It’s “the sheer size of the loans relative to the incomes here” that troubles Mr David.
“No one in the Western world has ever done what we are doing.”
Mr David, who used the case studies and research projects from his time at the IMD business school in Switzerland to form the basis of a book, Australia: Boom to Bust, warns that the three shaky pillars of real estate, resources and the banks will eventually collapse.
He says that as Chinese authorities appreciate, China has built more houses and apartments than it needs. Demand for Australian ore will grind to a halt, triggering a weakness in the economy that will expose the banks.
“There are going to be more apartments than people in China and all of a sudden if [the construction] stops, then what is the floor on the spot price of iron ore? We don’t know what that is,” he said.
Now there’s nothing really new about overseas “experts” predicting a collapse in Australian property prices, however earlier in the week, the four major bank economists dismissed suggestions that property prices were in a bubble.
Why do reno’s fail | Is it time to lock in on interest rates? | Property research and more…
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In this week’s show:
Andrew Mirams has some practical tips to help you be successful with open home inspections
Dr Andrew Wilson answers questions about property price growth
Jane Slack-Smith reveals the 10 most common renovation mistakes people make
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Borrowing costs to remain at historic lows – Pete Wargent
He said that:
Australia is pushing through its 23rd consecutive year without a recession, a quite remarkable achievement
That’s the good news, but in truth though, a pretty weak result all round.
To get Pete’s take on what’s really going on in the economy read the rest of his blog here.
Property spruiker proliferation signals overheating market
Yes the property cycle is heating up and the Australian Financial Review report HSBC Australia’s chief economist Paul Bloxham as saying:
“A pick-up in the property spruiking business is a signal things may be getting a little too exuberant,”
The former Reserve Bank official co-wrote a 2010 central bank study into the causes of the 2003 Sydney housing boom and bust.
Mr Bloxham’s original report noted that one of the alarm bells about Sydney’s overheating market a decade ago was a crackdown on property investment seminars and increased scrutiny by the tax office of rental deductions.
“Some of the telltale signs are there,” he said.
Prominent real estate trainer Tom Panos told Real Estate Business that:
“History shows that every time the real estate market picks up and the media is talking about capital growth, prices going up and interests rates are low, it all of a sudden inspires a lot of people to get interested in real estate.
“There are groups of people who are quite vulnerable and they hear attractive stories that are really enticing and seducing and because they are new to it they are attracted to the fact there are quick rewards to be made with little effort and little risk. “But in fact, it is generally always too good to be true.
“A majority of these companies sell real estate by teaching real estate investing, and then also try and make money out of the sale of the property. They prey on vulnerable mums, dads and single people who want to get into the real estate market but don’t know where to start.”
15 Things Really Successful People Do Often
Why are some people so much more successful than others?
Most of them were not born into success; they worked hard, they learned and they simply and continuously did things successfully.
Lifehack lists 15 things successful people often do differently.
1. They trust their creative side
2. They think bigger
3. They plan ahead
4. They have fun
5. They are not afraid to quit
6. They enjoy the ups and downs
7. They take real action
8. They measure progress
9. They work outside of their comfort zone
10. They keep things simple
11. They focus on continuous improvements
12. They learn from mistakes
13. They spend time with the right people
14. They don’t rely on luck
15. They are flexible
Weekend video: Discover the Universe in numbers
Watch this interesting and short (1.34 minute) video and learn all about the Universe.
How big is the universe? How long will it take to get to Mars? How hot is space? Ever wondered why Pluto is not considered a planet.
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:
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