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Brunei welcomes back APAD! Once again, a great success with exclusive Coburg launches in Melbourne!

APAD — Thu, 31 Mar 2016 09:41:25 +0000

We were back in Brunei over the weekend and once again received warm reception for our private event. This shows there is still great demand for Australia properties in Brunei. Attendees to our exclusive event were well pleased with the wealth of information shared and widened their perspective on wealth creation opportunities available in Australia. Meanwhile, they also took advantage of the personalized consultation sessions offered by the various specialists present during the event on the topic of property, migration and financing options.

Australia Property And Development (APAD) provides a one stop platform on Australian properties information, properties management, taxation and migration services to help our clients build their property investment portfolio. Like our Facebook page to get the latest updates on special offers and property deals.

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Population growth continues to slow due to ongoing decline in net overseas migration

APAD — Wed, 30 Mar 2016 07:00:48 +0000

The Australian Bureau of Statistics (ABS) released demographic data for the September 2015 quarter last week. The data showed a continuation of the trend towards a slower rate of population growth at a national level. At the end of the quarter, it was estimated that there were 23,860,133 residents of Australia, an increase of just 0.3% over the quarter and 1.3% over the past year.

The 12 months to September 2015 saw an additional 313,237 residents of Australia which is 7.3% lower than over the same quarter in 2014. In fact, the annual increase in population for the country is the lowest it has been since the June 2011 quarter.

At a national level, there are two components of population growth, natural increase (births minus deaths) and net overseas migration. Over the past year, there was a natural increase of 145,585 persons and net overseas migration of 167,652 persons. As the above chart shows, the two measures are converging due to a sharp decline in net overseas migration. Annual net overseas migration is now at its lowest level since September 2006, is -7.0% lower over the year and -46.9% lower than its peak in December 2008.

Looking at population growth across the states and territories, the rate of growth has been strongest over the past year in Victoria at 1.7% and lowest in the Northern Territory at 0.3%. The annual rate of population growth is above 1% in all states and territories except the Northern Territory, Tasmania and South Australia. In terms of raw number population increase over the year, New South Wales and Victoria are way out in front of all other areas with increases of 102,243 persons and 102,311 persons respectively. Queensland (55,232) and Western Australia (32,542) were the only other two regions to record annual population growth of more than 15,000 persons. Across the remaining states and territories the annual population increase was recorded at: 12,396 persons in South Australia, 5,491 persons in the Australian Capital Territory, 2,159 persons in Tasmania and 826 persons.

The four most populous states accounted for 93.3% of total population growth over the year with New South Wales and Victoria accounting for 65.3%. The mining states and territories in particular have felt the full brunt of the slowdown in population. At its peak in December 2008, Queensland recorded a population increase of 115,561 with annual growth now less than half this figure. In Western Australia, annual population increases peaked at 88,156 persons in September 2012 and in Northern Territory the annual population increase peaked at 7,073 persons in March 2013.

It is also worthwhile at the state and territory level to have a look at the interstate migration trends. As well as net overseas migration there is net interstate migration across the states and territories which affects population growth.

Firstly if we look at annual net overseas migration, New South Wales (66,540) and Victoria (55,447) account for an overwhelming majority of the population increase. In fact, 72.8% of all net overseas migration was into these two states which is the highest proportion since December 1984. Elsewhere the number of net overseas migrants has been recorded at: 16,725 persons in Queensland, 10,255 persons in South Australia, 14,249 persons in Western Australia, 1,119 persons in Tasmania, 975 persons in the Northern Territory and 2,333 persons in the Australian Capital Territory. Annual net overseas migration into Queensland is at its lowest level since December 2000 and South Australian net overseas migration is at its lowest level since December 2011.

Turning to net interstate migration, movement between the states and territories is slowly starting to rise again; the above chart shows the annual movements between states and territories. The chart shows that since 2003 there has been a fairly consistent decline in the proportion of the population moving interstate. I have to admit this is a little surprising given that it coincides with the end of Sydney’s and Melbourne’s housing boom and is pretty much the beginning of the mining boom. Although, the sudden slowing of interstate migration coincides with the substantial ramping-up of net overseas migration and with net overseas migration we are now seeing a pick-up in interstate migration.

Over the past 12 months, Victoria and Queensland are the only two states or territories to have recorded a positive net inflow of population form other states. Net interstate migration to Victoria was a record high 11,187 persons over the past year compared to 6,890 persons to Queensland. Net interstate migration into Queensland seems to be turning a corner after hitting a trough of 5,598 persons over the year to December 2014. Across the remaining states and territories there have been losses from net interstate migration of: -7,451 persons in New South Wales, -4,125 persons in South Australia, -2,721 persons in Western Australia, -180 persons in Tasmania, -3,019 persons in the Northern Territory and -581 persons in the Australian Capital Territory. The net loss of persons from interstate migration is at its highest level since March 2014 in New South Wales, its highest since June 2009 in South Australia and its greatest since March 2003 in Western Australia. In Tasmania the loss of residents to interstate migration is at its lowest level since June 2011 and it is at its lowest level since December 2013 in the Australian Capital Territory.

The more up-to-date overseas arrivals and departures data indicates that net overseas migration is likely to trend even lower next quarter which will dampen the national rate of population growth further. At the same time, the data shows that Victoria (which would seem to be a proxy for Melbourne) is the migration epicentre of the country attracting large numbers of both overseas and interstate migrants. Meanwhile the outflow of residents leaving New South Wales is picking up pace while interstate migration to Queensland is starting to build. Perhaps we are seeing the impact of high housing costs in Sydney and fairly strong jobs growth in Victoria and Queensland starting to attract Sydneysiders to other parts of the Eastern Seaboard. Weaker economic conditions in Western Australia are seeing residents leave with Victoria and Queensland the benefactors. Meanwhile, Tasmania’s outflow of residents is slowing on the back of the booming tourism sector and a recent improvement in economic conditions.

Finally with population growth slowing we are seeing a better relationship between housing supply and housing demand. After recently hitting record high levels, it is reasonable to expect that the slowing population growth will see property developers respond by seeking fewer approvals for new residential properties.

Source: http://blog.corelogic.com.au/2016/03/population-growth-continues-to-slow-due-to-ongoing-decline-in-net-overseas-migration/

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Report reveals Australian suburbs where renters are most under housing stress

APAD — Thu, 26 Nov 2015 06:25:46 +0000

Lindy Chu rents in Campsie, southwest Sydney, and has decided to buy an investment property on the Central Coast where prices are more affordable. Picture: Craig Wilson

RENTERS on average wages are being forced out of Australia’s inner cities and are facing housing stress, according to a new report released today.

But while rental affordability is an issue in all major centres, the problem is most acute in Sydney where someone earning the national average would have to shell out almost 90 per cent of their income to live in the most expensive suburbs.

According to Australia’s first Rental Affordability Index, suburbs once considered to be inexpensive are now out of reach to many renters. With average households spending 28 per cent of their wage packets, Sydneysiders were under the most stress nationally, with people living in Perth and Brisbane spending the smallest proportion of their income on rent.

The situation is more dire for people on low incomes, with families earning less than $500 a week having to spend 65 per cent of their wages in NSW and 59 per cent in South Australia to rent an average-priced property.

The report, produced by Community Sector Banking, listed the most and least affordable suburbs across Australia’s major urban centres. It found that the exclusive Sydney eastern suburb of Darling Point was the most expensive, while Bateman in Perth and Victoria’s Melton were easiest on the pocket.

SYDNEY

The report found rents were expensive across the board in NSW and rents for low-income households were “extremely unaffordable”.

Mount Druitt in western Sydney may have been the subject of SBS’s controversial Struggle Street documentary, but if you’re on an average wage it’s anything but a struggle to pay the rent, taking up just 21 per cent of your wage. Nevertheless, this is still substantially more than the most affordable areas of other capitals.

In contrast, if you want to live it up with the famous residents of the harbourside suburb of Darling Point, there won’t be much left over for Champagne and oysters after you’ve sacrificed 87 per cent of your weekly wage on rent.

The most expensive neighbourhoods were crowded around the inner city and north shore.

Mount Druitt, in Western Sydney, is one of the city’s most affordable suburbs.Source:News Corp Australia

However, even areas previously considered affordable, such as Lidcombe, Lakemba and Dee Why, are now unaffordable.

Top 5 most affordable suburbs in Sydney basin
1. Black Springs, near the Blue Mountains
2. Mount Druitt
3. Bluehaven, central coast
4. Lake Haven, central coast
5. Silverdale

Top 5 least affordable suburbs in Sydney Basin
1. Darling Point
2. Kirribilli
3. Woollahra
4. The Rocks
5. Paddington

The views of Sydney Harbour from Darling Point don’t come cheap.Source:Supplied

MELBOURNE

The disparity between rents in Melbourne was less extreme than in Sydney with the Victorian capital one of the most affordable overall. Nevertheless, while rents in Melton, west of the city, will only set you back 17 per cent of the average wage, in Albert Park almost half your pay cheque would be gone on accommodation. The report noted rents were particularly unaffordable for those on low incomes while housing stress hot spots were focused on the inner city and suburbs to the east and south east of the CBD. Rents in the north and west were more affordable.

Living close to Melbourne’s Albert Park will take up almost half the average wage in rental costs. Picture: Mark WilsonSource:News Corp Australia

Top 5 most affordable suburbs in and around Melbourne
1. Caldermeade
2. Melton South
3. Melton
4. Albion
5. Seville East

Top 5 least affordable suburbs in and around Melbourne
1. Portsea
2. Albert Park
3. Beaumaris
4. Brighton
5. Seaholme

BRISBANE

While Brisbane is affordable overall, many of the most expensive suburbs are located within 5km of the city centre. But the prize for the most out-of-reach neighbourhood goes to Burbank in the city’s southeast, with rents eating up 37 per cent of average incomes. But the CBD itself and Spring Hill will still hit you in the hip pocket, as will Bulimba and Murarrie. Bang for buck can be found in Dinmore, near Ipswich, and Coochiemudlo Island.

Top 5 most affordable suburbs in and around Brisbane
1. Coochiemudlo Island
2. Aratula, Scenic Rim
3. Dinmore
4. Allandale
5. Kingston, Woodridge

Top 5 least affordable suburbs in and around Brisbane
1. Burbank
2. Samford Village
3. Fig Tree Pocket, Kenmore
4. Brisbane CBD, Spring Hill
5. Albany Creek

PERTH

The slowdown of the mining boom has boosted Western Australia’s affordability, with average households spending less than 25 per cent of their wages on rent, well below the level where housing stress would kick in. But the extremes between most and least expensive suburbs was some of the most extreme outside Sydney. More than half the average wage would go on rent in City Beach but Bateman, in the city’s south, would set you back just 12 per cent. Areas to the west of the CBD had the most unaffordable rents.

It might be bustling but you’ll struggle to pay the rent in Fremantle, Perth, if you’re on an average wage.Source:News Corp Australia

Top 5 most affordable suburbs in and around Perth
1. Bateman
2. Rottnest Island
3. Nambeelup
4. Wooroloo
5. Coolup

Top 5 least affordable suburbs in and around Perth
1. City Beach
2. Claremont
3. Mahogany Creek
4. Peppermint Grove, Cottesloe
5. North Fremantle

ADELAIDE

Rental affordability varies greatly across the South Australian capital, with the northeast and southeast out of reach for many. Cudlee Creek would be a particular struggle for an average earner, chewing up 64 per cent of their wages, with inner city areas not far behind. Most affordable are suburbs in the northern concerted around Gawler.

Top 5 most affordable suburbs in and around Adelaide
1. Davoren Park
2. Angle Vale
3. Gawler
4. Elizabeth
5. Forreston, Gumeracha

Top 5 least affordable suburbs in and around Adelaide
1. Cuddle Creek
2. Aldgate
3. Oakbank
4. Cleland
5. Carey Gully

TASMANIA

Tasmania wasn’t immune from housing stress either but the extremes of rent were far less than in other capitals. Nevertheless, Clifton Beach, Cremorne and Old Beach would take up a third of a standard wage earner’s income while Collinsvale and Clarendon Vale would give you coin to spare.

HAMMERED

Adrian Pisarski, executive officer of low-income housing organisation National Shelter, said high rents were dividing Australia.

“It shows what we have known anecdotally for far too long: low income households are being hammered beyond belief [and] moderate income working households are very hard up and have little disposable income,” he said.

According to the Australian Bureau of Statistics, the average individual weekly wage is $1485 with those spending more than 30 per cent of their income on rent considered to be under housing stress. Renters make up more than a quarter of those occupying homes.

Speaking at the National Housing Conference last month, Dr Ian Winter of the Australian Housing and Urban Research Institute said housing affordability, for both renters and those paying back a mortgage, was an increasing problem.

“More and more first homebuyers just can’t get in and in the private rental markets, lower income earners, in particular, have got very significant affordability problems. There’s just not enough affordable rental accommodation around,” Dr Winter told ABC.

Source:
http://www.news.com.au/finance/real-estate/report-reveals-australian-suburbs-where-renters-are-most-under-housing-stress/news-story/42a81433cb6b45956882d58b23ad3bee

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Will there be an Australian property crash?

APAD — Mon, 16 Nov 2015 04:05:22 +0000

Banks decisions to raise interest rates for investors, followed up by higher interest rates for owner-occupiers over the last three weeks, has dented market confidence raising question around a potential imminent property crash.

Fragile buyer sentiment was also likely knocked by the Reserve Bank’s decision to leave official interest rates on hold at 2.0 per cent for the sixth consecutive month in its November rates announcement, despite signs of a weakening economy.

Even 70 per cent of Aussies think the property market is either in, or entering, a property bubble, according to a recent survey by the NSW division of the Australian Property Institute.

But Aussies should be comforted by the fact that experts on Australia’s property sector are confident there is no Australian property crash on the horizon.

Michael Yardney, director of Metropole Property Strategists points to a number of reasons why we won’t see major falls in home priced in our capital cities anytime soon.

Robust population growth, a healthy economy, a sound banking system, rising business and consumer confidence and a healthy level of household debt are just some of the reasons he doesn’t expect an Australian property crash.

“While immigration levels have dropped, we’re still growing at a faster rate than any other country in the developed world,” Yardney said.

“A healthy economy, that, while slowing a little, will continue to perform at a level that is envied by much of the Western world and will create jobs for anyone who wants one.”

The Australian culture of home ownership, with 70 per cent owning of paying off their own homes, also supports Australia’s robust property market.

Clive Warren, associate professor, property & project management at University of Queensland also agrees that while there is an element of uncertainty surrounding the market, strong growth, in Sydney and Melbourne in particular, leads him to believe Australia will not face a property crash.

“Even in Sydney and Melbourne where the growth has been, we might see some of the very top prices paid easing a bit but general if anything we will see a catch up period where there is little price movement,” Warren said.

At this stage with very low interest rates, although there are signs that the rate of growth in the market is slowing, Cameron Kusher, senior research analyst at CoreLogic, also doesn’t forsee any imminent significant downturn.

“How big would a downturn need to be to be considered a crash?”

“I don’t think there is a crash imminent but down the track as interest rates increase and affordability continue to get stretched, markets like Sydney and Melbourne, which haven’t seen a correction and have strong capital growth, have potential for a downturn,” Kusher said.

But he adds that what generally happens when prices fall is that they then track sideways for around 5-8 years, further suggesting it would be difficult to classify it as a property crash.

While sources agree that there is no avoiding the fact that property price growth will slow in 2016, there is still large demand for housing and if these Australians can’t afford to buy homes, then they will rent, forcing rental prices up instead anyway.

As for any ‘rapid’ property price crash in future, it will likely only occur if there is a dramatic change in policy, Warren said.

“This does depend somewhat on interest rates, but the RBA is still talking of easing and is a long way from increasing rates which would affect housing prices negatively – a change in tax rules such as removing negative gearing might result in a brief period of decline, but this is very unlikely.”

“With demand and low interest rates I don’t see the decline that some have predicted, what we might see is a return to more normal growth levels in most locations and perhaps a more stagnant period in Sydney and Melbourne due to the rapid price rises in recent months,” Warren said.

Source:
https://au.finance.yahoo.com/news/will-there-be-an-australian-property-crash-025158867.html

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Busy Weekend For Sydney And Melbourne As Auction Volumes Pass 3000

APAD — Fri, 13 Nov 2015 07:39:57 +0000

Australia’s auctioneers are set for another busy weekend, with more than 3,300 homes across the country to go under the hammer, according to figures from CoreLogic RP Data.

The selling season isn’t slowing in either Melbourne or Sydney, with the two combining for more than 2,700 auctions.

Melbourne will be the nation’s most active market for the week, with 1,563 auctions scheduled, on par with figures from the corresponding week last year.

Last week Melbourne held 1,204 auctions, and its clearance rate saw a weekly rise from 65.6% to 69%.

Sydney sellers have 1,270 homes on the block this week. While volumes are relatively similar to last week, vendors will be hoping the harbour city’s clearance rate records some upward movement after finalising at 58.4% last week.

That mark was down from the previous week’s 60.2% and is the lowest clearance rate recorded in Sydney since the Easter long-weekend in 2013. It also marked the ninth straight week Melbourne has recorded a higher clearance rate than Sydney.

The two busiest suburbs this week are Melbourne’s Reservoir with 29 auctions and Sydney’s Mosman with 20.

Brisbane is set to have a relatively busy weekend, with 207 auctions scheduled for this week, compared with 168 last week.

The other capital markets are set for quieter weekends, with auction volumes down from 122 to 97 in Canberra, down from 146 to 121 inAdelaide and down from 44 to 37 in Perth.

Source:
http://www.yourinvestmentpropertymag.com.au/news/busy-weekend-for-sydney-and-melbourne-as-auction-volumes-pass-3000-208310.aspx

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New figures have revealed the top yielding suburbs across Victoria for houses and units

APAD — Thu, 12 Nov 2015 03:19:33 +0000

Being the only Victorian suburb of the top 10 highest yielding situated in Melbourne, Doreen achieved a yield of 9.4 per cent for units, according to CoreLogic RP Data figures.

Two coastal suburbs made the top 10, with Inverloch seeing a yield of 6.9 per cent (units) and Seaspray 9.2 per cent (houses).

Right on the border of Victoria and New South Wales sits Cobram, with a yield of 6.7 per cent for units.

Toward the west of the state, in the Wimmera region, suburbs Dimboola, Murtoa and Warracknabeal made the top 10, with yields of 9.6, 9.4 and 9.1 per cent for houses respectively.

Midway between the Wimmera region and the city of Melbourne sits Maryborough. Maryborough placed fifth in top yielding units and tenth overall, with a yield of 6.5 per cent.

Situated in north-western Victoria is the number one top-yielding suburb in the state, Ouyen, with a yield of 11.9 per cent for houses.

Rounding out the list is suburb Red Cliffs, on the boarder of Victoria and New South Wales, and not too far from the border of South Australia. Red Cliffs achieved a yield of 8.7 per cent for units.

Top 5 Victoria rental yield suburbs (houses)

Ouyen: 11.9%
Dimboola: 9.6%
Murtoa: 9.4%
Seaspray: 9.2%
Warracknabeal: 9.1%
Source: CoreLogic RP Data

Top 5 Victoria rental yield suburbs (units)

Doreen: 9.4%
Red Cliffs: 8.7%
Inverloch: 6.9%
Cobram: 6.7%
Maryborough: 6.5%
Source: CoreLogic RP Data

Source:
http://www.smartpropertyinvestment.com.au/spi-plus/latest-hotspots/14793-top-victoria-rental-yield-suburbs-october-2015

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Australian real estate still performing strongly

APAD — Thu, 05 Nov 2015 06:14:44 +0000

The head of a major real estate franchise believes concerns about property markets in Australia are somewhat overblown.

Angus Raine, executive chairman of Raine & Horne, said the idea of markets such as Sydney being in trouble is far from the truth.

“Real estate markets in Sydney are returning to a more normal market where we might have two or three committed bidders at auctions rather than the situation a few months back where the fear of missing out saw more like six to eight groups jostling for the prize,” Raine said.

“We often forget that each vendor only needs to attract one buyer for a property to transact and there are still plenty of committed buyers in the market for quality, well-located Sydney real estate – it’s just that they feel they have more time to make a decision,” he said.

Raine also said there are plenty of signs pointing towards Sydney and other markets continuing to perform strongly in the future.

“Take the Australian Population Research Institute findings that were released yesterday, indicating that Sydney will need an extra 309,000 homes in six years’ time,” he said.

“Lack of stock will continue to underpin long-term values in Sydney, and Melbourne too for that matter, as both cities are the engine rooms of the Australian economy and also great places to live.”

Raine also said Australian real estate outside of Sydney and Melbourne is performing well.

“We are also seeing signs that property markets in Northern Australia and South East Queensland are starting to attract more southern state investor capital,” he said.

Source:
http://www.yourmortgage.com.au/article/australian-real-estate-still-performing-strongly-207919.aspx

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Here’s what economists are saying about today’s RBA decision

APAD — Wed, 04 Nov 2015 04:04:08 +0000

Earlier this afternoon the RBA left interest rates on hold at 2.0% following its November policy meeting. On balance, the statement strikes a slightly more optimistic tone than that seen in October, although the board has left the door open to further interest rate cuts by inserting an easing bias in crucial the final paragraph of its monetary policy statement.

Will the RBA act upon this easing bias and reduce rates further in the months ahead, or has its easing cycle come to an end?

In exceptionally quick time, particularly given the Melbourne Cup was run and won in the minutes following the decision, Australia’s economists have had their say.

Here’s a collection of the views received so far this afternoon.

Bill Evans, chief economist at Westpac:

Michael Workman, senior economist at the CBA:

Ivan Colhoun, chief markets economist at the NAB:

Felicity Emmett, co-head of Australian economics at ANZ:

Scott Haslem, George Tharenou and Jim Xu, economists at UBS:

Shane Oliver, head of investment strategy and chief economist at AMP Capital:

Attention now will turn to RBA governor Glenn Stevens who is scheduled to address the Melbourne Institute 2015 Economic and Social Outlook Conference in Melbourne on Thursday at 9.25am AEDT. Beyond that keynote address, markets will also receive updated economic forecasts from the RBA when the bank releases its quarterly statement on monetary policy at 11.30am AEDT on Friday.

Source:
http://www.businessinsider.com.au/heres-what-economists-are-saying-about-todays-rba-decision-2015-11

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RBA: Official cash rate left unchanged at 2% at November meeting

APAD — Tue, 03 Nov 2015 07:55:10 +0000

The Reserve Bank of Australia on Tuesday held the cash rate at 2 per cent for the sixth month in a row, but left the door open to another cut if growth and inflation fail to pick up in the next few months.

Striking a slightly less fixed tone about current settings, RBA governor Glenn Stevens said in his statement that “the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand”.

Markets and analysts immediately seized on the comments, and interest rate pricing around the possibility of a third cut in the current cycle, in February, soared to 100 per cent.

Glenn Stevens says GDP growth under 3 per cent may be the new normal. Photo: Glenn Hunt

The Australian dollar, too, eased at first before gradually climbing above US72¢ for the first time in a week. In late local trading it was back down at US71.95¢, compared with US71.65¢ just before the RBA decision.

All eyes are now on this Friday’s quarterly statement on monetary policy, where the RBA is expected to downgrade its inflation outlook and could tweak its growth forecast.

The latter, in the past, has been a precursor to rate cuts.

“We see this as more dovish than previous commentary and can be viewed as an official easing bias,” said Charlie Jamieson from Jamieson Cootes Bonds in Melbourne.

“Clearly the RBA are now highly sensitive to any weaker data going forward that could derail economic conditions,” he said.

Tuesday’s decision was widely expected, despite the surprisingly soft third-quarter inflation reading last week and credit tightening by Australia’s four main lenders, who have been making investor mortgages more expensive.

By increasing the interest rates charged to buy-to-let and buy-to-sell investors, the banks have helped take some of the heat out of the Sydney and Melbourne housing markets, allowing the RBA to lower rates again without re-stoking price inflation.

Mr Stevens acknowledged recent mortgage rate increases by the four main lenders, but said overall conditions were still quite “accommodative”.

“Credit growth has increased a little over recent months, with growth in lending to investors in the housing market easing slightly while that for owner-occupiers appears to be picking up,” he said.

“Dwelling prices continue to rise in Melbourne and Sydney, though the pace of growth has moderated of late.”
More importantly, say economists, the RBA signalled it was concerned enough about the slowing pace of consumer price index growth to consider another cut.

Although low inflation is desirable, when prices drop too much consumers and businesses hold back on spending and investment, respectively, while the relative cost of debt rises.

If the trend is allowed to become a deflationary spiral, the impact can wreak economic carnage.

Deflation is unlikely to take hold in Australia, but central banks around the world have been vigilant for the last year against the possibility of an outbreak in the face of falling energy and other input prices.

“Overall, [Tuesday's] statement highlights the importance of inflation to the RBA,” said Australia and New Zealand Banking group’s co-head of Australian economics Felicity Emmett.

“That is, despite the prospect of some improvement in activity the bank seems prepared to ease monetary policy on the back of a lower inflation outlook.

“This then suggests that a move in December is unlikely; the RBA seems more likely to wait until February when it will have another inflation number which will likely confirm the lower than previously anticipated inflation trajectory,” she said.

Source:
http://www.smh.com.au/business/the-economy/rba-official-cash-rate-left-unchanged-at-2-at-november-meeting-20151103-gkpffs.html

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Foreign Property Investors Benefit from Australian Dollar Drop

APAD — Fri, 30 Oct 2015 03:08:20 +0000

Foreign Property Investors Benefit from Australian Dollar Drop

Overseas buyers who purchased off-the-plan Australian apartments when the local dollar was stronger are now reporting gains of up to 30%, according to property investment company IP Global.

The company, which helps investors from Hong Kong, Singapore, and the Middle East buy property in new apartment developments, has seen many of its clients profit financially from unhedged currency positions.

Elizabeth Chu, senior investment manager at IP Global, confirmed that investors who bought apartments in Australia over 18 months ago only paid a 10% deposit, and by the time the units were completed and the transactions due to settle, the purchase power of the buyers’ currencies had gone up.

Ms Chu said that currency has been a pivotal consideration when buying Australian properties. Investors secure their purchases with a 10% deposit and then settle the balance when the local currency decreases in value.

Wanting to diversify holdings as well as acquire assets in a lower price range, IP Global’s high net worth clients turned to Australia after purchasing in the United Kingdom and / or United States. Many of them have already invested in Melbourne and Sydney real estate, and are now looking at Brisbane as a source of potential opportunities.

Ms Chu said that IP Global also has its eye on the Gold Coast, but she advises her clients to stick to locations where the economy appears to be sustainable and does not fluctuate. Describing Sydney as a “tough market” where the prices have skyrocketed, she admitted that her investors are still trying to get into the city’s real estate market.

IP Global, which normally buys large blocks of apartments off the developer and then sells them on to overseas investors, is currently eying Brisbane. Favoured locations include Newstead and the inner east suburban areas such as Cannon Hill.

Source: http://www.homesgofast.com/blog/3293-foreign-property-investors-benefit-from-australian-dollar-drop/

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