When advising our clients we like to develop a “risk” profile with them. It’s a balance of their risk appetite and risk of the properties we will consider with them. For example a mining town with no other industry or growth drivers to support it could reach our maximum high risk factor of 10. A stable inner city property with low available rental accommodation, with strong population growth would score a much lower value.
So what about this recent announcement blasting around the media that...
Everybody has their view. The Christmas cycle of companies making changes with their staff has caused some disquiet in some mining towns especially in the Pilbara region, when the market was spooked following the dramatic pullback affecting infrastructure development in October last year when iron ore prices dipped to $86 a tonne. Since then they have dramatically recovered to $150 a tonne although these high prices are expected to be temporary. But it has left many investors very unsettled.
In a boost for retailers investment property owners and homeowners ahead of Christmas the Reserve Bank has cut rates on Tuesday. This will provide a saving of about $600 for the average homeowners with a $300,000 mortgage if banks pass the rate on to mortgage holders in full.
According to a report commissioned by Commonwealth Bank, KPMG advise housing is affordable now as it has ever been since 1950 when it required 7 times average yearly income to purchase a home. It now stands at less than 6.9. This is probably due to a slight decline in house prices in many parts of Australia and the fact that many families have salary income from two partners rather than just one.
The Reserve Bank of Australia advise information released over the past two months suggests that the Australian economy g...
We’ve spent a few days chatting to discretionary retailers in NSW. We wanted to know what is happening to sales. We’ve long thought things were pretty bad, although we hear of GDP increases and statements well over 12 months ago saying the NSW economy would be moving along in a higher gear by now. We asked a number of retailers three questions. 1) How is business. 2) Is it any better now than three months ago and 3) Is trade better or worse than this time last year. The answers were the profoun...
Well, that’s what I’ve being reading during the past few days. Do you remember when gold almost touched US$2000 an ounce last year? The analysts were chanting it was on an nonstop ride to $US5000 an ounce.
Now the focus is on broadcasting the Resources Boom is Ending, not good news for a rental property investor. To my mind Australia is not in a boom, but in a manufacturing transition where a number of our manufacturing industries are in decline, including car manufacturing, touri...