Archive for 'Residential vs Commercial'
Will Interest Rates Affect
Commercial Yields?
Posted on 07. Apr, 2010 by Chris Lang.
Yesterday, the RBA confirmed an upward bias with its latest rate increase. This table from today's Financial Review seems to sum up the RBA's position fairly well. Residential property prices are still surging (particularly in Sydney & Melbourne); and our commodity exports have also regained their momentum. As such, the RBA has decided that Australia [...]
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Was the RBA Asleep at the Wheel?
Posted on 04. Mar, 2010 by Chris Lang.
In fact, the RBA has been cautious ... NOT asleep! Last week, we covered the statistical anomaly relating to Australia's low unemployment figure. And that may well have influenced the RBA in holding rates steady last month. Although, the patchy spending in December and January probably coloured their thinking as well. Nonetheless, you continue to [...]
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"How Baby Boomers affect
your Commercial Property"
Posted on 10. Feb, 2010 by Chris Lang.
Last week, you hopefully gained a clearer understanding of the timing (and impact) Baby Boomers will have on Residential property, until around 2025. Most people probably feel all this would have little or no impact on Commercial property. And for some of you, that might be true. But I suspect there are many Boomers, where [...]
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What about the Baby-Boomer Effect?
Posted on 02. Feb, 2010 by Chris Lang.
Yesterday, the Federal government released Australia's third Intergenerational Report. And about five years ago, I came out with a somewhat startling statement: "If you haven't sold your traditional family home by 2010 ... you had better be prepared to hold it until 2025 — because there simply won't be a market for it!"
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Your Opportunities Moving Forward?
Posted on 21. Jan, 2010 by Chris Lang.
There has been much written already about the global financial crisis. But in layman's terms, it occurred as a result of capital imbalances occurring throughout the world. And nowhere more so, than in America. The principal cause can be found with the high levels of US debt-funded consumption. And in order to better understand this [...]
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Biggest Economic Threat For Australia
Posted on 13. Jan, 2010 by Chris Lang.
It might surprise you to hear this, however ... A Strong US Recovery ... would probably be the worst thing to happen for Australia in 2010. If that occurs, the US Federal Reserve would be forced to quickly raise interest rates, from zero to around 3%. And that would cause the collapse in the Australian [...]
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How Interest Rates Affect
the Property Markets
Posted on 17. Nov, 2009 by Chris Lang.
If the Reserve Bank (RBA) further increases rates in December, you will start to see the housing market plateau in the New Year. However, this should have little or no immediate effect on the rest of the economy. In all discussion about Australia's improving economy and retail spending, there has been little regard placed upon [...]
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Demand Finally Surfaces!
Posted on 13. Mar, 2009 by Chris Lang.
The pent-up demand for housing serves to underline that this downturn is more like the credit squeeze of the mid-1970s, than the recession of the early 1990s. It's principally a confidence thing. However, the recent surge in purchases by first-home buyers confirms that with the encouragement of low interest rates and government hand-outs ... the [...]
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You May be a Doubter ... But I say: "Yes, we can!"
Posted on 23. Feb, 2009 by Chris Lang.
The Weekend Financial Review ran several articles, which seemed to echo many of the sentiments contained in my last blog about the Capital City Markets — but perhaps putting things a little more bluntly. Brisbane Mark Ludlow (on page 2) referred to Queensland as having moved from "boom state to gloom state" — because of [...]
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Some Answers in These Troubled Times
Posted on 15. Oct, 2008 by Chris Lang.
There are a couple of questions on the minds of Commercial Property Investors at the moment. And they go something like this.
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Household Debt may actually be "Healthy"!
Posted on 11. Sep, 2007 by Chris Lang.
In an earlier posting, I raised concern over the dramatic increase in household debt — to the point where it now sits at over 150% of household disposable incomes. As you can appreciate, the major concern has been as to how rising home-mortgage interest rates might cause a flow-on effect for Commercial investors. And this [...]
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