IN RECENT TIMES, the entire retail sector has been hit on two fronts — with local traders having been challenged by both the highest-rated in dollar, and weakened global economic conditions.
Plus, you've also seen a structural shift in how modern consumers are choosing to engage in the market — with the continued growth of online consumer purchases.
[Read more...]
IN ALAN MITHELL's article last Saturday (AFR: page 15), he discussed a recent report from the OECD — which outlined the growing pressures upon the Australian economy for structural change.
Apparently, the centre of gravity for global activity is gradually moving.
And as the table shows, this is moving closer to Australia; and will bring with it an increase in … specialisation, innovation, productivity and income.
However, as a Commercial property landlord, you will only continue to be successful if you can quickly identify those businesses benefiting most from what's occurring.
You have already seen a shift in manufactured goods offshore; as well as the car industry unwisely being subsidised by government. [Read more...]
THE REST of the world looks upon Australia with envy. And you only need to scan these graphs to understand why.
It all comes down to a feeling of comparative well-being.
Australians have had it so good, for so long … that the current slower pace somehow makes us feel gloomy — because it's simply "not normal".
Meanwhile, most other countries just wish they were in our position. [Read more...]
AND WILL it keep underpinning both Australia AND Commercial property? Well, that really depends upon who it is you're asking.
Most miners are somewhat guarded; many journalists are painting a gloomy picture; and Labor politicians seem to be arguing among themselves.
So, no wonder most of us are confused.
And whenever the general community is confused … it takes what seems to be the safest route, and simply does NOTHING.
This is the dilemma our economy faces right now.
THE LABOR government is crowing about its latest statistical achievements — low inflation, low unemployment, strong growth and booming investment.
So, why aren't Australians feeling an overwhelming sense of warmth and well-being? Probably, as my earlier articles have explained … it all comes down to an overall lack of confidence.
Most people are still expecting the RBA to further reduce interest rates. However, barring a European meltdown, that would seem to be rather unlikely in the foreseeable future.
You only need to study these graphs to understand the RBA's hesitancy — because clearly, the average measures of inflation currently sit at the bottom of the target band adopted by the Reserve Bank. [Read more...]
NOT 
EVERYONE was expecting the RBA to further ease the cash rate, when its Board met this week.
Some felt the Board would simply "keep its power dry", and just wait to see how the outcome of the 17 June election in Greece unfolded.
Some economists like Saul Eslake (of Merrill Lynch) felt that the $2.5 billion of cash payments by way of government compensation for the carbon tax, would serve as "enough stimulus" for now.
But maybe, such thinking took too simplistic a view of things. [Read more...]
AMIDST ALL the recent doom and gloom, major global banks are quietly alerting their clients to prepare for a sharemarket surge, if Greece exits the Euro-zone.
That's because they believe world authorities will be flooding international markets with massive liquidity.
And given the G8 Communique from Camp David, this may well occur anyway — just to keep Greece within the fold. [Read more...]
LAST TUESDAY, the RBA left the cash rate on hold — much to the surprise of most pundits. And yet, only the week before, that's exactly what I suggest would happened.
You might also remember I suggested that you lock in a fixed rate mortgage — because it was then about 1% below the variable mortgage rate.
Many scoffed, and said that rates will continue to come down. Well, the past 7 days have certainly put paid to that theory — with the big 4 Banks raising their rates, quite out of step with the RBA. [Read more...]
THE GENERAL consensus seems to be that the RBA will further reduce rates by 25 basis points. But can this view be fully justified; and what does all this mean for Commercial property investors?
Most pundits would point to the recent CPI figures and say "Yes"! And on the surface, an underlying inflation rate of 2.5% per annum is plumb in the middle of the RBA's stated target zone.
Yet despite what seems to be a rather hesitant mood by consumers, inflation in the service sector actually surged by massive 4.4% per annum. And some other sectors (not affected by overseas competition) also finished the year strongly, growing by 3.9% per annum. [Read more...]
THE LAST quarter of 2011 saw a definite improvement in the US economy — with consumer spending up, and companies finally replenishing their inventories.
GDP increased by an annualised 3%, with improved sales for durable goods and new homes.
Petrol prices have been cheaper, since mid-2011; and the US jobless rate was the lowest in nearly 3 years.
Therefore, with improved employment figures, consumers have felt more comfortable spending — which represents around 70% of US economic activity. [Read more...]
EVERY capital city has both a CBD and suburban Office market. And as you can appreciate, keeping tabs on all the various suburban markets is almost an impossible task for most investors.
But generally speaking, the health (or otherwise) of the CBD Office markets within each capital city will provide you with a fairly good gauge of the overall Office scene around Australia.
Accordingly, this graph will provide you with a clear picture of what has occurred over the past 4 years.
As a rule of thumb, Office markets are said to the "in balance", when their Vacancy Rate lies between 5% and 7%. [Read more...]
"From a very early age ... Chris Lang has always sought to discover what the RULES were for each new challenge — so he could finally master them. And then go on to succeed, at whatever he undertook". More ...
