Prevention is better than cure!
Do you remember when the GST was introduced into Australia? It was July 2000. Since then, most working singles and couples could have managed to secure (at least) half a dozen well researched residential investment properties. If you did this; congratulations! No doubt, with falling interest rates and a seriously growing housing shortage… the global slowdown would be delivering you more benefits than challenges right now!
Reaction is all too common! Why wait for drastic times to push us to those “drastic measures” that the politicians keep spruiking?
Doesn’t it make more sense to conduct our financial affairs during the good times in preparation for those drastic times… that always find us sooner or later?
Now while we can’t change the past, it is unwise… perhaps irresponsible… not to learn from it!
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Australia has about 1.6 million individual residential property investors, according to the Australian Taxation Office – and most of them would be pretty happy.
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Friday February 13, 2009, 3:27 pm
SYDNEY (AFP) – Australia’s parliament narrowly passed a 42 billion dollar (28 billion US) stimulus package Friday in a bid to stave off recession in the face of the global economic crisis.
The parliamentary approval leaves the government free to immediately implement its spending plans, with Prime Minister Kevin Rudd stressing the need for swift action throughout protracted negotiations during the bill’s passage.
Rudd was jubilant after parliament backed the plan, saying the package was in the national interest and would help Australia’s centre-left Labor government fight the global economic recession.
“The most irresponsible thing to do today, with the worst global economic recession since the 1930s staring us in the face, would be to do nothing,” he told parliament.
The package includes spending of 28.8 billion Australian dollars on schools, housing and roads over four years, tax breaks for small businesses and cash handouts of 12.7 billion dollars to eligible workers, farmers and students.
Rudd said the Treasury estimated the plan would boost economic growth by 0.5 percentage points in 2008-09 and 0.75-1.0 points in 2009-10, supporting up to 90,000 jobs.
“Without parliament’s support for this plan, growth would be slower and unemployment would be higher,” he%2
>>>> Finance, Business and Company News – Yahoo!7.
Over the past 8 years or so speaking with all types of people on the subject of investing in property, many, generally new to investing, ask me the “what if” questions. My broad base of experience has meant my answers have generally put their minds at ease. Two questions, however, that I lacked a good solid answer for were:
- How good will your portfolio be if we have another world war?
- How good will your portfolio be if we have a worldwide recession or depression?
Well, with regards to Q 1, I still have no concrete answer for, and hopefully never will. With respect to Q 2, however, I can now (i.e. only now) say from experience… “It’s all ok”!
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RENTS have recorded their highest increase since 1988 amid fears the rental crisis will only get worse as the impact of the global recession takes hold.
Latest figures from the Australian Bureau of Statistics show the annual rate of growth in rents across the country has jumped to 8.4 per cent in the year to last month, up 2 per cent from 2007. The statistics also reveal the increase in rents has jumped from 5.4 per cent to 8 per cent in Sydney, 11.2 per cent to 12.2 per cent in Perth and 8.6 per cent to 10.1 per cent in Brisbane. Adelaide also recorded an increase in residential rental growth of 4.7 per cent to 5.4 per cent and Melbourne jumped to 6.6 per cent from 5.4 per cent.
BIS Shrapnel senior economist Jason Anderson said the rental market was only going to get worse as the country’s economy faced a possible recession. He said the roots of the rental crisis before the economic downturn were the significant increase in immigration and high interest rates that left a shortage of about 100,000 houses.
But falling interest rates were yet to have an impact on the rental shortage because construction of much-needed properties had decreased because of worsening economic conditions and higher unemployment. “This means the shortages are going to get worse over the next two years,” Mr Anderson said.
From: The Australian January 29, 2009
A DRAMATIC plunge in building approvals has highlighted the serious body blows to the Australian economy from the global financial crisis.
Queensland and Western Australia suffered the worst declines in approvals, which fell nearly 13 per cent nationally in November, stunning analysts who had predicted a 1.5 per cent drop.
>>> Slump in building approvals hits Australian economy | The Courier-Mail.
ONE of Australia’s leading financial forecasters is talking up the health of the nation’s housing market in the face of the global economic crisis.
The upbeat view also comes as local auction clearance rates remain poor.
>>>>> House prices unlikely to collapse, says expert | The Courier-Mail.
WOW, what an exciting year 2008 turned out to be! We started by moving our office on Australia Day. When the removalist arrived at the new location ready to unload the guys who had constructed the office partitioning were still sanding down plaster board… and there was dust everywhere (and I do mean EVERYWHERE). They had not started painting at that stage. Suffice to say that the turbulence of the last 10 days of January, culminating with Katrina and me jumping on a plane to head over to Fiji to be part of my former business partners’ wedding, set the tone for what was to become a very “different” year.
I’d like to share with you two of the slides I use in my presentations around the country. These slides emphasise two of the messages I echo… and 2008 has confirmed their validity. They are:
- “You Need To Do Something”
- “38 Years Of Economic & Social History: 1974 To 2008″ and property proved itself to be resilient… regardless!
In your household, I hope history continues to repeat itself ONLY IF your are making significant and measurable financial progress… each year that passes.
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WOW, Christmas is almost upon us yet again; hasn’t 2008 come and (almost) gone so quickly? It has been a tumultuous year. The fallout from the subprime issues in the USA gave way to a credit crisis… with went on to become a global economic crisis. I believe the Australian property market is poised for good things; as clearly demonstrated in my recent Web Seminars titled “What In The World Is Going On With Property“.
NB: If you missed out on participating in one these Web Seminars you can now watch it online; click here.
The Global Credit Crisis & Property Investors
As property investors the good that has come out of the recent global turmoil has been a massive reduction in interest rates. I am now so very close to being cashflow positive across my property portfolio… and interest rates are still falling and likely to stay very low for years to come!
The downside for property investors is that lenders have tightened their lending criteria making it harder to secure funding that it was previously, in some instances. With interest rates falling, however, serviceability has been made that much easier creating opportunity for many who previously could not secure funding to now qualify.
The Global Credit Crisis & Property Developers
The impacted on developers has been massive. Companies large and small have all been affected. Many developers have gone broke or just closed up shop, others have shelved projects indefinitely and are waiting until they see evidence of investors returning to the market. Others have soldiered on but have had many new funding hoops to jump through put in front of them.
Banks have been scared to lend to each other, so regardless of whether you are an individual looking to borrow money to buy a property or a developer looking for the funding necessary to complete a project… 2008 has seen a real tightening of lender willingness.
Waterside Residential:
We have received the following update from the developer…
More…
WOW, Christmas is almost upon us yet again; hasn’t 2008 come and (almost) gone so quickly? It has been a tumultuous year. The fallout from the subprime issues in the USA gave way to a credit crisis… with went on to become a global economic crisis. I believe the Australian property market is poised for good things; as clearly demonstrated in my recent Web Seminars titled “What In The World Is Going On With Property“.
NB: If you missed out on participating in one these Web Seminars you can now watch it online; click here.
The Global Credit Crisis & Property Investors
As property investors the good that has come out of the recent global turmoil has been a massive reduction in interest rates. I am now so very close to being cashflow positive across my property portfolio… and interest rates are still falling and likely to stay very low for years to come!
The downside for property investors is that lenders have tightened their lending criteria making it harder to secure funding that it was previously, in some instances. With interest rates falling, however, serviceability has been made that much easier creating opportunity for many who previously could not secure funding to now qualify.
The Global Credit Crisis & Property Developers
The impacted on developers has been massive. Companies large and small have all been affected. Many developers have gone broke or just closed up shop, others have shelved projects indefinitely and are waiting until they see evidence of investors returning to the market. Others have soldiered on but have had many new funding hoops to jump through put in front of them.
Banks have been scared to lend to each other, so regardless of whether you are an individual looking to borrow money to buy a property or a developer looking for the funding necessary to complete a project… 2008 has seen a real tightening of lender willingness.
Seashells @ Clifton
We have received the following update from the developer…
More…
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