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
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
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
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
The Mining GFC raged higher last night as the tension between falling commodities and the end of Fed tightening gave way to simple worries about global growth and commodity demand. The easing Fed dumped the US dollar: Which boosted commodity currencies: But oil was smashed anyway -7%: And base metals were hit as copper was
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.
The Brent oil price sank again overnight down -7%+ to $30.60 as I write. Henry Hub gas fell sharply as well to $2.09mmBtu: There were two causes. First, the IEA cut its demand growth estimates for 2016: Having peaked, at a five-year high of 1.6 million barrels per day (mb/d) in 2015, global oil demand
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
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
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
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.
From Domainfax: CBA chief credit strategist Scott Rundell said credit markets were “skittish” and there had been a global spike in bank CDS spreads. The Australian lenders were getting caught up in the trend, he said. “We are getting caught up in this global uncertainty at the moment. The banks are the next perceived risk,” he said.
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
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
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
Japanese stocks are taking another flogging today with the Nikkei down -4.4%. More to the point they are now down -8-9% since the BOJ announced its new negative interest rate policy (NIRP) as a part of its ongoing attempt to inflate markets. Likewise the yen has rallied 6.1% since the announcement even though the 10
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
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
From Michael West, the last journo standing: The Gas Cartel has managed to convince the Australian public that when global gas prices are high we should pay global prices and when global prices are low we should pay 60 per cent more than the global price. Yes you read that correctly. Australian industry is currently
By Leith van Onselen Right on cue, the property lobby has re-emerged to caution against any changes to negative gearing, arguing that it would not boost the Budget. From The Australian: Cutting back negative gearing would add nothing to the government’s bottom line… Aussie Home Loans founder John Symond warned of the ripple effect of
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