Yesterday, presidential hopeful Barack Obama described the current attitude toward the credit crisis as “Irrational Despair”. Malcolm Turnbull, Opposition and Liberal Party Leader said there was “more emotion than reality” about right now. I agree with them both!
It’s fascinating to observe how the same set of circumstances can invoke such different responses from different people. Given this, I think it pertinent to unravel the subject of DEBT. Today’s blog will be Part 1 of a series that I will expand on over the next few weeks.
My Finance Broker Said I Should Have ABN & GST Registration But My Accountant Said It’s Not Needed. Why Would They Differ In Their Opinion Please?
They are both right! It all depends on what you are trying to achieve. I am not going to give you financial advice nor tell you to ‘defy’ your accountant but I tend to agree (more) with your Finance Broker. Let me give you my opinion…
The mrd “set ‘n’ forget” for busy people ™ system exactly reflects my investment strategy. Let me explain why I only invest in (median priced and permanently tenanted) residential property.
As you would expect, from time to time I am asked why my investment focus is so narrow; i.e. only property, only residential and only median priced. The answer is very simple…
AUSTRALIA’S crumbling dollar and faltering economy has prompted Westpac to join the growing list of financial groups forecasting a 50 basis point cut in official interest rates next month.
Despite an unexpected surge in the number of full-time jobs last month, most economists expect a series of sharp cuts in interest rates with some forecasting the cash rate could drop from 7.25 per cent to as low as 5 per cent by the end of 2009.
You may have unanswered questions about specific areas of property investing; such as…
Managing a Property Portfolio
Negotiating Rental Agreements
The Impact Of Interest Rate Rises
How The Current Economic Climate May Affect Property Values
Unlocking equity for retirement
Property hot spots for high capital growth
Cash flow – Expenses & tax
Rental returns
and so on
Each week we prepare valuable information that we make available in our newsletters; which is why we want to hear from you. Over the coming weeks, our team will compile and group all the questions we receive back from our valued readers and clients. We will use your questions and ammunition for future news articles and blogs; especially those questions that are most popular. We will also take onboard your questions when doing the final preparation for our upcoming Melbourne-based Board Room Briefing in a couple of weeks.
So if you have a question that you would like us to address, simply click here to add a blog comment with your question (or email it to us if that’s easier)
Please post your questions now!
Happy Investing,
Nick Lockhart
PS: The theme for our Boardroom Briefing in Melbourne (on the evening of Tuesday 19th August) will be: “Global Slowdown, The Credit Crisis and Property in 2008″. This event is open to the first 18 registrations only (NB: at the time of writing this there are just 11 places remaining). If you would like to attend this event or request to be notified of any upcoming Boardroom Briefing event(s) in your city please let us know: Melbourne Registration / Request For Other City
This post was written by Martin Bell @ mrd
Posted Under: In The News @ mrd
The Australian Industry Group and Housing Industry Association have issued new data on residential construction. The figures show that in June 2008, the building of new free-standing homes fell for the fourth month running. There are concerns the undersupply of homes, which has reached about 35,000 dwellings in New South Wales, could push up rents even further. A forecast by BIS Shrapnel has the rate of growth a 35% by 2011, while house prices will also increase by up to 15% during that period. Low-income earners will find it harder to secure a mortgage as well, due to higher interest rates and the global credit crisis
The media tell us that the ANZ Bank has increased its interest rates forecast and is predicting that the Reserve Bank will lift rates twice before the end of the year.
Westpac say rates will stay on hold this year, while the Commonwealth Bank is tipping one 0.25 of a per cent rise.
TD Securities global chief strategist Stephen Koukoulas has forecast the Australian economy has now started to slow enough to prompt interest rate reductions over the next year. The investment bank has predicted 125 to 175 basis points; between five and seven rate cuts may be lopped from the official cash rate of 7.25% by the end of next year!
Somewhat supporting that view, the National Australia Bank’s chief economist, Alan Oster, said there was a 30% chance the Reserve Bank would begin cutting rates this year as economic growth deteriorated. An interest rate cut this year is a possibility, but there may not be enough of a slowdown,” he said. “But we think that by the late 2009 they will be down to about 6 per cent.”
With so much “background noise”, do you find yourself confused… and wonder who to listen to?
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