Search Results for: property
-
Prepare to lose enormous [property] wealth: UBS and Harry Triguboff
Roger Montgomery
September 13, 2017
Earlier this week, The Australian – the newspaper I write for fortnightly – updated their reporting of Australian property mogul Harry Triguboff’s view on property prices.
Separately this week, UBS reported the results of a survey of almost 1000 Australian mortgage holders who borrowed in the twelve months to August 2017. They observed; “Our 2017 survey found factually accurate mortgage applications fell to just 67 per cent. There are now ~$500 billion in ‘Liar Loans’ on the banks’ books.” A third of borrowers admitted to understating their living expenses. Continue…
by Roger Montgomery Posted in Editor's Pick, Property.
- 29 Comments
- save this article
- 29
- POSTED IN Editor's Pick, Property.
-
Sold! REA comes through with growth
Roger Montgomery
August 17, 2017
When REA Group (ASX:REA) announced the FY17 full year results the shares fell six percent (they’ve since recovered). REA Group reported an underlying profit for the full-year FY17 of A$228.3 million, which was up about 12 percent. Most of the growth can be attributed to growth in the more expensive ‘premium’ depth ads, and much of the growth came from higher prices. Continue…
by Roger Montgomery Posted in Companies, Property.
- 4 Comments
- save this article
- 4
- POSTED IN Companies, Property.
-
It’s time to be prudent as the end of the boom draws closer
Roger Montgomery
August 15, 2017
The increasing flow of money into riskier ‘investments’ is making us ever more cautious. After all, every boom must come to an end. So what does holding high levels of cash mean? In the short term, it may mean we lag some of our peers. But, longer term, we are convinced it will prove a very sound approach. Continue…
by Roger Montgomery Posted in Market commentary.
- 21 Comments
- save this article
- 21
- POSTED IN Market commentary.
-
REA’s profits will keep growing even if property falls
Roger Montgomery
August 9, 2017
Conventional wisdom would suggest that, in a softening property market, any company exposed to property will suffer operationally. While that might be true for developers and builders, it might not be true for REA Group. Continue…
by Roger Montgomery Posted in Property.
- save this article
- POSTED IN Property.
-
Which is a better investment – property or shares?
Andreas Lundberg
August 2, 2017
After a previous post on negative gearing, a reader asked us what an investment property would look like from a company value analysis perspective. Good question. Here’s my attempt to answer it. You may find it useful when considering your next investment decision. Continue…
by Andreas Lundberg Posted in Editor's Pick, Property.
- 17 Comments
- save this article
- 17
- POSTED IN Editor's Pick, Property.
-
Why REA Group remains a stand-out business
Roger Montgomery
July 31, 2017
For some years we‘ve advocated for our investment in Australia’s dominant real estate portal, REA Group. For us, REA ticks all the boxes. It’s a well-run business with high returns on equity and an ability to raise prices in the face of excess supply – without an adverse impact on unit sales volume. Continue…
by Roger Montgomery Posted in Property.
- 3 Comments
- save this article
- 3
- POSTED IN Property.
-
Which companies could disappoint the market?
Roger Montgomery
July 31, 2017
As we’re on the cusp of reporting season, it’s a good time to look at the companies and market sectors that may soon be under pressure – in particular, those that could be affected by the record levels of debt held by Australian households. Continue…
by Roger Montgomery Posted in Market commentary.
- save this article
- POSTED IN Market commentary.
-
Where there’s disruption, there needs to be innovation
David Buckland
July 27, 2017
In Andy Macken’s Whitepaper “Who are the businesses of the future?”, he explained the online technology platforms (OTP) concept, arguing “by implementing this model in software – which results in an effective zero cost of marginal production; and online – which results in a near zero cost of global production: owners of successful online technology platforms often generate enormous economic profits stemming from a number of advantages which are both powerful and sustainable”. Continue…
by David Buckland Posted in Global markets.
- save this article
- POSTED IN Global markets.
-
What will be of FY2018?
Roger Montgomery
July 25, 2017
With the 2018 financial year underway, it’s worth examining the forces that could determine whether the Australian stock market repeats its circa 13% return of 2017. Continue…
by Roger Montgomery Posted in Market commentary.
- 4 Comments
- save this article
- 4
- POSTED IN Market commentary.
-
The competitive advantage of a ‘customer moat’
Scott Shuttleworth
July 21, 2017
One type of competitive advantage that we find particularly compelling is the customer moat. Businesses with a strong customer moat – like Amazon and REA Group – create value for their customers, making them highly durable investments over the long term. Continue…
by Scott Shuttleworth Posted in Investing Education.
- save this article
- POSTED IN Investing Education.
-
A random walk, a pattern in the making or businesses as usual?
Scott Phillips
July 21, 2017
As we pass through another financial year we can stop, record the data and reflect on what has transpired to try make sense of it. Reflecting on this financial year just past, it may be helpful to look at the returns of the major asset classes over this year and then for the last 20. Morningstar produce a neat checker board visual (Chart 1) for each of the major asset classes that Australian investors typically invest in. The glaringly obvious admission here is direct residential property but let’s not let that stop us. Continue…
by Scott Phillips Posted in Market commentary.
- 1 Comments
- save this article
- 1
- POSTED IN Market commentary.
-
Falling purchasing power could hit retail spending
Andreas Lundberg
July 14, 2017
In June, Australia took the record for the longest run of uninterrupted growth in the developed world. In the same week, it was reported that the share of Australian GDP going into workers’ pockets hit a record low. It’s therefore timely to look at the difference between total GDP and GDP per capita, and the outlook for retail spending and consumer-driven businesses. Continue…
by Andreas Lundberg Posted in Market commentary.
- save this article
- POSTED IN Market commentary.
-
Is negative gearing good for Australia?
Andreas Lundberg
July 12, 2017
The negative gearing debate continues to heat up. And well it might. It’s a classic argument between the ‘haves’ and the ‘have nots’, focusing on one of the things we hold most dear: affordable housing. If we take a dispassionate view, it’s not hard to see which side of the debate has more merit. Continue…
by Andreas Lundberg Posted in Property.
- 25 Comments
- save this article
- 25
- POSTED IN Property.
-
If the bears are right
Roger Montgomery
July 11, 2017
If the bears are right, an Australian property bubble, a recession for retailers and dramatically slowing Chinese growth rates towards the end of the year, combined with record high asset prices — especially assets that produce no income such as art and two-digit licence plates — are a recipe for a meltdown. Continue…
by Roger Montgomery Posted in Editor's Pick, Property.
- 17 Comments
- save this article
- 17
- POSTED IN Editor's Pick, Property.
-
The smashed avocado index – episode 2
Scott Shuttleworth
July 10, 2017
Last month we created our own smashed avo index as a tongue-in-cheek way of analysing housing price affordability. The reception since then has been more than we anticipated and there’s probably a couple of points to note up-front. Continue…
by Scott Shuttleworth Posted in Property.
- save this article
- POSTED IN Property.
-
The great unwind of the Fed’s balance sheet
David Buckland
July 7, 2017
For the first time since it began its quantitative easing in 2009, the US Federal Reserve (Fed) announced it would commence the gradual unwind of its US$4.5 trillion balance sheet sometime later in 2017. Should this plan proceed, higher borrowing costs for corporations and households will be the likely result and this warrants a degree of caution. Continue…
by David Buckland Posted in Editor's Pick, Financial Services, Global markets.
-
The higher the price you pay, the lower your returns
Roger Montgomery
July 3, 2017
The higher the price you pay, the lower your returns. This is a fundamental truth of investing, a law, like gravity, and an impost that cannot be escaped. And yet it is always the case that when future returns are the least attractive, enthusiasm for assets is highest. Continue…
by Roger Montgomery Posted in Investing Education, Market commentary.
- 3 Comments
- save this article
- 3
- POSTED IN Investing Education, Market commentary.
-
The property boom may finally be about to bust
Roger Montgomery
June 19, 2017
In this article for Professional Planner, Roger discusses how the population of real-estate experts has grown so much faster than the Australian population itself. Read here.
by Roger Montgomery Posted in Editor's Pick, On the Internet.
- 3 Comments
- save this article
- 3
- POSTED IN Editor's Pick, On the Internet.
-
Consumer wealth effect – Another nail in the coffin for retail spending.
Andreas Lundberg
June 19, 2017
Consumer spending has risen strongly in the past year, spurred on by property owners feeling richer due to higher house prices. This is called the household wealth effect. But with house prices looking toppy, should retailers – and investors – be concerned about the effects of a property market correction? Continue…
by Andreas Lundberg Posted in Consumer discretionary, Property.
- 2 Comments
- save this article
- 2
- POSTED IN Consumer discretionary, Property.
-
Welcome to NSW, a province of Canada
Roger Montgomery
June 14, 2017
In August 2016, fed up with a glut of apartments sitting vacant because overseas owners weren’t renting them out, the city of Vancouver, in the province of British Columbia, implemented a 15 per cent foreign investor tax rate. The law added almost $300,000 to the price of a $2 million property. Toronto has since also joined Vancouver by imposing a 15 per cent tax on foreign investors.
by Roger Montgomery Posted in Editor's Pick, Property.
- 4 Comments
- save this article
- 4
- POSTED IN Editor's Pick, Property.