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.
So enjoy for some weekend reading ….and please forward to your friends by clicking the social link buttons on the left.
When will the next cut in interest rates occur?
When will interest rates drop again? Or will they?
Nomura Australia rate strategist Andrew Ticehurst says a combination of low inflation, and the slowdown in China will force the RBA’s hand for a third time this year by November.
The only economist to accurately forecast the Reserve Bank of Australia’s four interest rate decisions so far this year says the central bank will likely cut the cash rate again in 2015, although governor Glenn Stevens appears to be done for the next few months at least.
“The next real window for an RBA cut is likely August, and we currently assign a 40 to 50 per cent probability to a move at this time,” he says.
“We think the probability rises again later in the year, and a move by November is more likely than not.”
Why low interest rates are NOT so good | Why so negative on negative gearing? | Auction tips | Where most renovators go wrong plus more
- Jane Slack-Smith thinks it is about time we realised that low interest rates are not a good thing
- Michael Yardney puts negative gearing into perspective
- Patrick Bright has some timely tips on buying at auction and, in particular, ways to make sure you don’t pay too much
- Cate Bakos tells us, from an agents perspective, where most DIY renovators go wrong
- Jennifer Duke reveals that the number of Gen Y’s who own multiple properties is now on par with Baby Boomers – here’s how they do it
- Carolyn Boyd from Domain investigates whether buying a property in a good school zone will increase the growth potential of your investment
Good news for the Sydney economy and property markets
In his excellent blog Pete Wargent explains the latest Labour Force figures bode well for the Sydney property markets as an extra 20,500 jobs were added taking annual employment growth for the Harbour City to +44,200, second only to Melbourne with +66,900 jobs added.
Over the past two years, while Sydney (+76,200) and Melbourne (+61,700) have added jobs on a net basis, regional New South Wales (-4,200) has shed positions.
Is it any wonder then, that Australians in the Premier State continue to crowd the capital city?
Cumulative employment in the two largest capitals has continued to outstrip by far that of the combined regional centres.
First home Buyers cheating for grants
The daily Telegraph reports that some investors are obtaining first home buyer grants through complex ownership arrangements.
Owners of multiple properties may be getting NSW’s first homeowner grant and stamp duty concession despite not qualifying for it, cheating the government out of taxpayer revenue.
The grant and concession is only available for buyers of new properties who can declare that they have never owned property before and are purchasing real estate for their own purposes, not on behalf of a company or trust — but industry watchdogs warned that the application system is easy to dupe.
They say applying for the benefits relies too much on applicants telling the truth with little fact checking by government, leading to recent cases where property investors received grant payments for multiple properties through complex ownership arrangements.
This included, among others, a Lidcombe property that was purchased in 2008 using the first homeowner grant, despite a trust arrangement later showing that the de facto owner held multiple properties at the time and should not have been entitled to the benefit.
Bannermans Lawyers principal David Bannerman said similar cases emerged after people who purchased homes using the benefits became embroiled in bankruptcy or divorce proceedings.
In these cases it “becomes clear that a third party is the true owner of the property because the original buyer allegedly held the property on trust for the third party,” Mr Bannerman said.
Take The Apple Logo Test: Explains Why Everyday Memory Is So Poor
Which of the images above is the Apple logo?
Dr Jeremy Dean explains that if you selected “B” then you did better than 84 out of 85 UCLA students who were asked the same question.
All 84 got it wrong. And this was in a group in which 52 were exclusively Apple users, while fully 75 owned Apple products.
This was despite being very confident beforehand that they would be able to draw it from memory.
The reason for this discrepancy is that our minds focus on information that’s really important to us, although we don’t realise it.
The details of a corporate logo are not that important in our daily lives.
Our memories tend to store the ‘gist’ of information rather than the specifics.
So if you feel your memory is poor, then take heart from this study — it just means the stuff you can’t remember isn’t that important to you.
Labor beats hasty retreat on foreign ownership property tax
The Age reports that:
The plan to tax foreign owners investing in Victorian properties – which could increase the cost of housing for Victorian first home buyers – was drafted without consulting the Planning Minister.
Now, Labor is in frantic talks with developers to neutralise the issue, after Planning Minister Richard Wynne admitted on Friday the plan could increase the cost of new properties.
There were “potentially unintentional consequences” to the policy, Mr Wynne acknowledged during an often fiery public accounts and estimates committee.
Weekend video: What the Earth would look like if all the ice melted?
We learned last year that many of the effects of climate change are irreversible.
Sea levels have been rising at a greater rate year after year, and the Intergovernmental Panel on Climate Change estimates they could rise by another meter or more by the end of this century.
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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