Our housing markets ended 2011 in a better position to where they started and I am confident that the year ahead will be better for residential property owners compared to last year. Most owners should see their assets hold value or increase and this year could in fact be a good time for investor activity provided the world economy doesn’t move into severe recession as a consequence of the problems in Europe.
It now seems all but certain that the Reserve Bank will cut interest rates next month, with AMP’s senior economist Bob Cunneen predicting the cash rate will drop to 4.0 per cent.
It appears that the November rate cut has already worked its magic in the housing market, leading to the first lift in dwelling prices in almost a year. Before the rate cuts in November and December, supply and demand in the housing market was reasonably balanced, translating to a softening of home prices. But the rate cuts will serve to lift demand for homes and drive property prices higher over 2012.
Is the “boom” in the gold boom over? After touching $1900, it is now on its way down to $1500. Last summer, I wrote that I wanted to start buying gold in the $1300 range. It seems I may get my wish. The question remains, “Is it time to buy or sell?” The answer depends upon you. If you purchased gold over $1600 and cannot sleep if prices drop, you may want to sell.
“The Great Crash Ahead” author Harry Dent shares his predictions as to where the U.S. economy is headed in 2012.
The November and December interest rate cuts did nothing to dampen borrower enthusiasm for fixed-rate mortgages, which surged to nearly a quarter (24%) of all mortgages approved by Mortgage Choice brokers in December.
Bullion rose 10 percent last year, beating the 1.2 percent decline in the Standard & Poor’s GSCI Total Return Index of 24 commodities and the 9.4 percent retreat in the MSCI All-Country World Index of equities. Treasuries returned 9.8 percent last year, a Bank of America Corp. index shows.
When I was growing up, I was taught at a very young age that saving money is very important. I even had a Commonwealth Bank Dolomite account where I could see my savings increase over a number of years. It was 1989 and I clearly remember the day my Dolomite account reached $10, wow what a milestone. I could buy 2 packet of chips, two chocolate bars and 100 packets of Wizz-Fizz. Saving really does work!
Meet Justin |
 Justin Wood is the director of Property Toolbox Australia, a successful investor and a leading expert in wealth creation through property, businesses and commodities. |
Meet Lillian |
 Lillian is a successful property investor and business owner with over 7 years experience in the banking and finance industry. |
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