Opinion: What we might expect.....
Part II

by Geoff Doidge

Keep reading as Geoff Doidge uses his crystal ball to give us his insight into our future.

Spin Doctors and the Canberra Property Market

Based on previous Labor Governments, you would expect an increase in Labour consultants and spin doctors and fellow travelers in Canberra. They all have to live somewhere and this may even lead to a firing-up of Canberra’s housing market.

At the same time, Brisbane bags the home of Prime Minister Rudd and Treasurer Swan, which may lay a golden egg for the sunshine capital and Brisbane properties.

How long for Labor?

The signs so far are that Labor (if they don’t blow it) will be in for a minimum of two terms. Therefore, for the next 8 years we should tailor our investments strategies accordingly.

Nationwide we have a shortage of housing with record low vacancy factors and soaring rents. That is unlikely to change in the near future. So for long term investor it looks like there is a good ride ahead.

B.R.I.CH.

As the song goes…”All in all, it’s just another Brich in the wall.”

You may miss out if you don’t keep your eye on the BRICH. That’s BR-Brazil, I-India, Ch-China. They are the power houses of the world and the future of Australia will depend on the future of these countries.

However what could affect BRICH? Well, it just could be the good ole USA! If the USA moves into a recession or even if its consumer demand drops, then what will China do with all its production? Let’s assume China slows its production: This will lead to less demand for coal, iron and other raw materials. As a result, prices of minerals will drop…there will be a slowdown in Australia and other mineral producers…spending will slow …jobs will be lost…End of Boom.

Personally, I can’t see a crash happening in the short term but John Edwards at Property to the Max 2007 workshop predicts the sub-prime mortgage mayhem will hit its peak about March 2008.

Tasmania

I still believe that the Labor Party diehards may find some way to block the Gunn’s pulp mill via environmental reasons. Maybe… maybe not … so we will see. But if it is blocked, that northern part of Tassie near Georgetown will no doubt ‘catch cold’ as the speculative buying will go into reverse.

God Save the Queen

On a lighter note I think sometime in a 2^nd Labor term (assuming that happens), we may become a Republic!!!

Property Investors all over can manage any of the challenges that lay ahead if they are knowledgeable about their investments.

To gain further insight on how you can be educated thoroughly on property matters, see details on our upcoming Property to the Max workshop at http://renos.com.au/property_max/

Renovate on a Budget | Finding Cash Flow Positive Property
Landscaping for Landlords | Privacy Policy | Disclaimer