There is no denying that the Australian economy has turned for the worse over the past few months and the likelihood of the country heading into recession has become a reality. Indeed, many economists declare we’ve already been in one since September last year when unemployment, retail sales and other indicators started falling.
Towards the end of 2008 and well into the early part of 2009, the property market too, started struggling. However, house prices have held up and - compared to the share markets - property has put on a spectacular performance. What’s more, none of those grim predictions of a calamitous 40% drop in property values have materialised!
The fact that Australia hasn’t had a recession for 17 years partly explains many investors’ extreme nervous reaction to it. With the ongoing media beat-up about the current financial crisis, it’s little wonder they’re worried - and now even more afraid to get back into the property market.
As our article on “Who’s afraid of the recession?” explains, property prices do struggle in the beginning, but this is just to make way for the bigger gains that follows. In the past, we’ve seen two of them - in the 1980s and late-1990s - when property prices stagnated for a period of time but when the recovery started to take off, it did so with such a force that many were unprepared for the double-digit growth that followed.
It’s true things are rough now, particularly those who have lost their jobs. But even the sometime bearish AMP chief economist Shane Oliver, believes that the conditions are certainly falling into place for an eventual recovery.
This means now is the best time to position yourself for that growth. In our article on “Primed for growth”, we reveal where you should be buying now to reap up to 50% growth in the next three to five years.
We also looked at the infrastructure projects that are currently underway across Australia, and which suburbs are likely to benefit.
Our report on the units best buys is a must read for those who are considering investing in apartments. We also revealed which suburbs are best to pick up the best unit investments.
When it comes to financing, nothing ignites a more heated debate than cross-collateralisation. In our article on this subject, we reveal why it could be one of your best tools of investing now.
As the new financial year begins, many investors are considering prepaying their interest cost to improve their cash flow situation. But does this make sense when interest rates are these low? Find out in our article on this issue.
Finally, if you’re wondering whether you can still retire on rental alone, wonder no longer. Our article on “Retiring on rental” looks at the nuts and bolts on how to form a concise strategy and execute them today in order for you to create the income you need for a happy and wealthy retirement tomorrow.
Courtesy YIP Magazine
