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2012 Property Investor of Year goes bust

From Kate Moloney, 2012 Property Investor of the Year: + In 2012, at the age of 24, Matt and I were crowned Australia’s Property Investor the Year (Your Investment Property Magazine) click here to see + Three years later, if we were to sell our properties, we would still owe the banks about three million of dollars (not

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What is Andrew Robb trying to hide?

By Leith van Onselen The Greens have slammed Trade Minister for attempting to force the Trans-Pacific Partnership (TPP) through parliament without a thorough independent examination. From The Canberra Times: Mr Robb tabled the text of the TPP in Parliament on Tuesday, warning opponents of the deal that Australia had to sign it… Following protocol, Mr

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Greens offer Coalition pathway to super and property taxes reform

By Leith van Onselen I continue to be impressed by the Australian Greens under senator Richard Di Natale, who took over the leadership last May from Christine Milne. Under Di Natale, the Greens quickly changed track and supported the Government’s fuel excise re-indexation (opposed by Labor). The Greens then supported the Government’s Aged Pension reforms

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HIA swarms with negative gearing liars

By Leith van Onselen The other main housing rent-seeker, the Housing Industry Assocation (HIA), has emerged to lobby against changes to negative gearing, claiming once more that any such move would trash housing investment, force-up rents and prices, and destroy wealth creation. Below is the HIA’s media release combined with facts exposing their lies. The

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India warming up more iron ore mines

Slowly but surely the Indian iron ore self-destruction is reversing, from ET: Odisha is targeting a production of 70 mt of iron ore in 2015-16, with top miners pinning their hopes on restarting operations even as they await a final nod from the Supreme Court, which is slated to consider their appeal later this month.

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China throws more rescues at realty

Cross-posted from Investing in Chinese Stocks. How long can first-tier home prices rise? So asks the headline of this article originally from China Economic Net. Conclusion: Under improper regulation, if asked high prices can sustain long? You can not have normal thinking or analysis to judge, it can only be resigned. And this situation, inevitably the

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Links 10 February 2016

Global Macro / Markets / Investing: World’s Negative-Yielding Bond Pile Tops $7 Trillion: Chart – Bloomberg Global Bond Rally Near `Panic’ Level With Japan Yield Below Zero – Bloomberg Goldman Sachs Abandons Five of Six ’Top Trade’ Calls for 2016 – Bloomberg Investors flock to CDS amid fear over banks’ bonds – FT Corporate Bond

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ASX at the close

Chris Weston, Chief Market Strategist at IG Markets It’s been a day of trauma for the equity bulls and for many the towel has been thrown in. I suggested yesterday that the financial markets were at a key juncture, but the widening in credit spreads and the focus now on credit default swaps suggests that

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Louis Christopher warns on outer-Sydney property

By Leith van Onselen On the weekend, SQM Research’s Louis Christopher sounded fairly positive about Sydney’s housing market after it posted a solid 70.2% clearance rate, albeit on small volumes: “It was a strong weekend overall.The auction numbers are going to keep building from here. Next weekend the volumes will be greater again,” he said.

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It’s time to abandon bad taxes

By David Collyer, cross-posted from Prosper Australia: Flinty Deloittes economist Chris Richardson and all-heart ACOSS chief Cassandra Goldie are on the same page today in the Australian Financial Review. Literally – page 47. Their tax policy prescriptions, now Malcolm Turnbull has ruled out increasing the GST, are identical. Both pieces are paywalled to limit readership

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Household energy use keeps falling

From the ABS today comes the Energy Account for 2013-14, which has revealed that household energy use has declined again: Energy use per household is affected by a number of factors, including economic (increases in energy costs), technological (increase in take up of photovoltaic and thermal solar energy generation), energy conservation measures (insulation and energy

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AVJennings screams “housing undersupply”

By Leith van Onselen Australia’s oldest housing developer, AVJennings, has today claimed that the country’s residential sector is in crisis due to a long-term undersupply. From The Canberra Times: AVJennings chief executive Peter Summers said: “You can see for the best part of 15 years … there has been a continuing undersupply of residential in

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Household finance confidence dives

By Martin North, cross-posted from the Digital Finance Analytics Blog: In the latest edition of the DFA Household Finance Confidence Index, to end January 2016, we see a marked fall in overall confidence, down from 91.46 to 89.24. This reverses the improvement we saw in the last quarter of 2015. Households with investment property and

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NAB business survey flames out

From NAB comes the February Business Survey: The NAB Business Survey softened slightly in January, although the deterioration was to a large extent driven by a sharp decline in mining and wholesale – conditions were generally mixed elsewhere – and was largely concentrated in Western and South Australia where the flow on effects from the mining slowdown

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Is there gold in them thar markets?

From UBS: Australian gold equities are divided, premium for some, discount for others We see Australian gold equities factoring in a gold price of US$1,147/oz, in line with spot. However, we see the sector split, with domestic & operationally diverse producers implying relatively higher gold prices and subsequently trading at a premium to NPV. This