Archive for 'Using Debt'
Is There a Credit Squeeze Looming?
Posted on 17. Jan, 2012 by Chris Lang.
The banks seemed to be protesting about the increased cost of offshore borrowing. And using that as their excuse for not wanting to pass on any future RBA rate reductions in full.
But are they really telling you the whole truth?
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Do Banks Use a Formula When Lending on Commercial Property?
Posted on 08. Dec, 2011 by Chris Lang.
BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.
For them, the most important number is the property's Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.
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The 9 Benefits You Can Gain ...
From Investing in Commercial Property
Posted on 27. Oct, 2011 by Chris Lang.
One of the main attractions of investing in Commercial Property is its security.
Unlike residential property ... Commercial Property is generally still there for you, if the economy does slow down.
However, when the economy is strong, Commercial Property grows in value and provides you with a steady income.
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Why All The Panic?
Posted on 16. Aug, 2011 by Chris Lang.
Well, not here in Australia anyway! And even overseas, things are vastly different this time around.
In 2008/09, it was private debt causing the problems ... because nobody was too sure which banks were overly exposed to the sub-prime mortgage problem.
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September Growth Figures
Just a Pothole in the Road
Posted on 08. Dec, 2010 by Chris Lang.
Relax, it hasn't all come to an end. Sure, the Australian economy may have grown by only 0.2% in the September quarter. And retail sales might have actually fallen by 1.1% for October. However, the overwhelming consensus is that this is merely an aberration. And the underlying growth projections remain very favourable — with the [...]
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Why November?
Posted on 05. Nov, 2010 by Chris Lang.
Most people seemed taken by surprise, when the RBA chose to raise the cash rate to 4.75% on Cup Day this week. However, with Oaks Day being held yesterday, I thought today would be better timing for this post. Sure, the September quarter CPI had fallen to within the RBA's target range. And yes, there [...]
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Where in the Debt Cycle?
Posted on 20. Oct, 2010 by Chris Lang.
In several recent postings, I have given you an overview of where Australia's economy currently sits within the overall global scene. Well the other day, I came across this really neat chart ... as part of an article within the Financial Review.
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Global Progress?
Posted on 13. Oct, 2010 by Chris Lang.
The IMF has recently trimmed its overall global forecast — down to 4.2% from 4.3%, for 2011. The emerging and developing economies are tipped to grow by 6.4% (with China's growth being over 9%). Whereas, the various advanced economies are expected to grow by a subdued 2.2%, on average. However, any double-dip recession is considered [...]
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When Should You
Fix Your Interest Rate?
Posted on 17. Sep, 2010 by Chris Lang.
On Wednesday, I put up this post about whether or not to fix your interest rate, when purchasing a Commercial property. Only to find there was a problem with streaming of the Video. Hopefully, that's now been resolved; and so let's try Take 2. The simple answer to the question of timing is ... when [...]
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Some Gloom ... Yet More Glee!
Posted on 30. Jun, 2010 by Chris Lang.
The US Federal Reserve is concerned that consumption is still being underpinned by government funding. And so, even though stimulus measures may be winding down ... the Fed has decided to maintain interest rates at their historically low level. It seems that households and businesses are preferring to repay debt, rather than spend to encourage [...]
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Interest Rates Looking Forward
Posted on 03. Jun, 2010 by Chris Lang.
... and Commercial Property This week's decision by the RBA to leave the cash rate on hold was an easy one — mainly because the major banks had basically helped it out, by increasing their rates earlier by a greater margin. The RBA's view was that the current rate of 4.5% was "appropriate for the [...]
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