The APRA Effect

The APRA Effect

Kevin Young Insights 0 Comments

There is a lot of comment in the media on the so called property “boom”.   All these commentators lack long term experience in property and most are feverish supporters of the share market.  They show an appalling ignorance of the property market. Wayne Byers, Chairman of APRA used these misinformed journalists to throw red tape around the property investor …

Advisers

Property Financial Advisers VS Property Financial “Advisers”

Kevin Young Insights 0 Comments

The papers regularly tell horrific stories of people who have lost hundreds of thousands of dollars on investments that could have been avoided with correct advice. A young couple were awarded investors of the year by a reputable property magazine, but it turned out later that they had invested in a mining town and now are facing financial ruin as …

Are your wages flatlining – or declining?

Are Your Wages Flatlining – Or Declining?

Kevin Young Insights 0 Comments

Do you believe the media? One headline will say something, then another headline will say exactly the opposite. It’s very confusing. Recently the GDP (Gross Domestic Product) figures came out showing that the Australian economy is growing at the fastest pace in four years. But following that same story was a comment that Australian wages are growing at a snail’s …

APRA Interference Unwarranted

APRA Interference Unwarranted

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APRA Interference Unwarranted Talk of a Sydney boom requiring APRA action shows a clear ignorance of historical property cycles.  From my dusty files I see that SQM Research Director Louis Christopher, in May 2009, made the comment that Sydney prices “are now lower than they were in 2003”. The average price in Sydney then was $530,000, yet just four years …

Are Chinese buyers to blame for the Sydney property boom?

Are Chinese buyers to blame for the Sydney property boom?

Kevin Young Insights 0 Comments

I’ve recently read that some politician has accused the media for wrongly blaming the Chinese for the high property prices.  Despite the huff and puff and misconceptions pedalled by the media, I believe that politician is correct. Below is the chart of Sydney price changes over the past eighteen years.  The black line shows the prices rises (or falls) in …

Consumer Sentiment

Where Is Investor And Consumer Sentiment Really Heading?

Kevin Young Insights 0 Comments

It’s long been recognized that a looming election will put consumer’s hands in their pockets, reluctant to spend until the final outcome of the election is revealed. And the same goes for investors. A recent survey, reported in the Sydney Morning Herald earlier this week, showed that for the past seven elections, spending and sharemarket investing has actually picked up …

Housing Shortage

APRA Inspired Housing Shortage is Here!

Kevin Young Insights 0 Comments

Too Few Bananas. Too Many Wrong Bananas! A – Shows normal high rise supply B – Shows the huge jump in supply of high rise C – Shows decline in ‘desired’ dwellings X – Population (demand) has risen 8% since 2009 yet the supply of medium walk ups and townhouses are down. The chart above clearly illustrates that we are …

Taxes

Australians Paying $1 Million a Minute in Taxes!

Kevin Young Insights 0 Comments

Now that’s one expensive tax meter! Governments throughout Australia should be focused on cutting taxes, not penalising property owners by reducing the negative gearing tax benefits. They are already collecting nearly $1 million in taxes every minute. The latest official figures on taxation collection by all levels of Government show they collected $119,563 million in taxes during the three months ...
Property Prices

Stagnant Property Prices Causing Doubt?

Kevin Young Insights 0 Comments

“I bought from the Club in 2009 and according to the local agent it is still worth the same price.” – Club Investor We occasionally get such questions from our members.  We don’t control the markets but we can point to history where property prices had doubled every seven to ten years.  Now, with much lower inflation, we are finding this …

Negative Gearing Tampering

Tampering with Negative Gearing will Threaten Wealth Creation

Kevin Young Insights 0 Comments

Negative Gearing tampering will be the single biggest threat to wealth creation and the chances of becoming a self-funded retiree, not a pensioner on $325 a week! We know the Labor party want to limit the negative gearing process to just new properties. It was also a rumour that the Liberals, while they will allow it on existing as well …