SHOULD YOU be fixing the interest rate for the term of your investment loan … or simply running with the best variable rate?
Lurking behind that question is another concern: Will interest rates fall any further; and if so, by how much?
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...]
Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.
Economic Clock
As you'll see, it is actually a "Multi-asset Investment Clock" — in that you have all the sectors displayed together: Shares, Property, Resources and Interest rates.
Furthermore, if you click on it … you'll see the clock confirms Australia is midway through its Recovery phase.
h3. And the timing for Commercial property? [Read more...]
Business Investment
This increase is the latest confirmation that Australia has entered its recovery phase — emerging from the global turmoil, without experiencing a technical recession.
h3. But what does this mean?
[Read more...]
Anecdotal evidence suggests that consumers are cutting back on their spending around Australia. And it's likely that luxury items and overseas travel will be the most affected.
A recent article in The Age expounded "The Flight to Value" — where Australian Property Monitors reported a 24% drop in the median price for Toorak Homes, in the 6 months to September.
[Read more...]
There are a couple of questions on the minds of Commercial Property Investors at the moment.
And they go something like this.
[Read more...]
According to the recent Property Council (PCA) report in the Financial Review (AFR) … the 6 months to June saw overall demand for offices fall around Australia — as business confidence has gradually waned throughout the world.
[Read more...]
There has been much made of the poor US Retail Sales Data for December.
However, the figures were only down 0.4% on November. The most likely explanation being that some early Christmas shopping occurred November; and the increase in gift-card sales will not come through until early in 2008.
Clearly, the Sub-prime issues are having some effect. But, if you follow HS Dent at all — their view is that … "a short, mild recession is indeed likely, and we are arguably already in the middle of it." (Update: Wednesday 16 January 2008).
[Read more...]
Will things really change all that much, now that Australia has wall-to-wall Labor governments across the country?
You'd better believe it!
[Read more...]
Australia wide, the level of Retail construction was up by some 17% for the 12-month period to June 2007.
In the main, this involved extensions to existing suburban Shopping Centres; plus some new construction in many of the growth corridors.
[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 ...
