Distortion Guaranteed?
Posted on 20. May, 2010 by Chris Lang.
While the Rudd government may have moved quickly to provide guarantees for the major Banks during a financial turmoil ... the impact of doing so has been disastrous for borrowers.
Right now, these major Banks seem to account for virtually 80% of all owner-occupier loans for property.
As such, the margins they are charging have never been [...]
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Is Negative Gearing for You?
Posted on 13. May, 2010 by Chris Lang.
Buying and negatively gearing a Commercial investment property is not forever in one — particularly, with interest rates on the rise.
And if you already have high personal debt ... adding to that wouldn't be a smart move on your part.
Make Borrowing just one of your Tools
ny gearing you decide to take on, should be viewed [...]
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Interest Rate Rises ...
Are they a Good Sign?
Posted on 05. May, 2010 by Chris Lang.
The RBA's decision on interest rates yesterday came about because of what's happening here in Australia, rather than in Europe.
It has been made against the backdrop of our exporters having recently extracted massive price hikes for iron or in coal, as a result of China's strong growth.
Since the global turmoil started in 2008, the $A [...]
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Is Saving Back in Fashion?
Posted on 29. Apr, 2010 by Chris Lang.
Presumably as a result of the recent global turmoil, Australia's savings rate jumped to 4% of income during last year. And that is a major change from three years ago — when spending outpaced our income growth.
s we emerged from the financial scare, our savings rate peaked at 6.3% in mid-2009; and was running at [...]
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Only 2 Left ...
Posted on 21. Apr, 2010 by Chris Lang.
Remember those 7 small Office Investments I mentioned in South Yarra, during last week?
Well, only 2 of them now remain — because, five were snapped up and went straight to contract.
had thought the others were to be taken by a couple of investors in Shanghai. But they probably needed to see them first.
Therefore, [...]
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"Things Can Change So Quickly"
Posted on 15. Apr, 2010 by Chris Lang.
ave you stopped to think just how things have changed over the past 25 years?
Just take a look at the global trade figures for the United States, Japan, Germany and Britain.
After the United States, China is now the world's largest economy. However, it is currently the largest exporter; while being the second-largest importer.
Here's a [...]
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South Yarra ... Amazing!
Posted on 13. Apr, 2010 by Chris Lang.
f you haven't been there for a while, you'll be simply astounded at the Commercial transformation going on — between Chapel Street and the South Yarra Station.
nyway, I've just been given access to several newly-tenanted Office Suites at 9 Yarra Street — which I presented to a select group of Clients, only yesterday.
And they've started [...]
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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 is in full [...]
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Retail Returns to Favour
Posted on 31. Mar, 2010 by Chris Lang.
Retail property has had some press coverage of late.
It has shown a surprising improvement, given global events and the hike in interest rates.
Westfield (a good retail barometer) reported a strong mid-year result from its Australian shopping centres.
As you can see from the table, Vacancy rates have fallen significantly and Yields firmed — particularly within the [...]
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From here on ...
Back to a 2-Speed Economy?
Posted on 25. Mar, 2010 by Chris Lang.
The latest figures show unemployment crept up from 5.2% to 5.3% last month — probably due to school leavers. However, the total number of hours worked actually jumped by 2.4% during February.
ith predictions of a 60% surge in commodity prices from next month's contract re-negotiations, this will put further strain upon the labour and capital [...]
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CBD Offices on the Move
Posted on 17. Mar, 2010 by Chris Lang.
Westpac has just released an Australia-wide outlook for Commercial property. And it predicts you will start to see growth in rents and values during 2010-11.
s employment numbers grow with the improved economy, demand for Office space will also take off again.
