Search Results for: property
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How private credit can help reshape investment strategies for investors over 75 years
Roger Montgomery
December 18, 2023
As the first of the baby boomers approach the celebration of their 80th birthdays in the next few years, a distinct change is being felt in financial services, with serious implications for financial markets. Continue…
by Roger Montgomery Posted in Investing Education.
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Worried about rising rates creating choppy conditions? Not everyone is in the same boat
Roger Montgomery
December 5, 2023
Investors in the Aura High Yield SME Fund (for wholesale investors) have experienced returns of 9.61 per cent per annum, since inception, earning monthly cash income with no negative months nor loss of capital. *
In a world where the interest rate tide has been rising, savvy investors are sailing towards more stable horizons. The Aura High Yield SME Fund, designed for wholesale investors, has emerged as a beacon of consistent returns, offering a compelling case for investors looking to diversify their portfolios away from volatile seas. Continue…
by Roger Montgomery Posted in Aura Group.
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Transferring the pain from the levered Chinese property developers to the banks
David Buckland
November 30, 2023
As China reflated its economy in 2015, we saw a massive five-to-six-year tailwind assisting the property boom. Speculation and strong property prices led to over-supply, and the eventual carnage experienced by most highly levered Chinese property developers over the past two years. Continue…
by David Buckland Posted in Global markets, Property.
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Why I believe REA Group is one of Australia’s highest quality businesses
Roger Montgomery
November 28, 2023
I believe REA Group (ASX:REA), is one of Australia’s highest-quality businesses. REA Group’s online portal – realestate.com.au – is the go-to destination for people wanting to buy, sell or rent property. Price rises in all property related areas have led to substantial revenue and earnings growth and have turbo-charged REA Group’s share price. Continue…
by Roger Montgomery Posted in Companies, Editor's Pick, Property, Stocks We Like.
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Criminals help make housing unaffordable
Roger Montgomery
November 22, 2023
Those wondering about Australia’s interminable house price rises may have read our blog post explaining immigration is one of the leading reasons prices remain elevated despite the fastest increase in interest rates in Australia’s history. Continue…
by Roger Montgomery Posted in Property.
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Mezzanine finance revealing another weak spot in the U.S. economy.
Roger Montgomery
November 21, 2023
After the Global Financial Crisis (GFC), U.S. regulators imposed stricter regulations on larger banks. Limiting their riskier lending for commercial real estate and development. Their more conservative lending practices meant property owners turned to smaller banks or sought second loans from non-bank lenders to bridge their financing gaps, often on top of existing bank mortgages. Continue…
by Roger Montgomery Posted in Global markets, Market commentary, Property.
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Why are property prices surging as rates are rising?
Roger Montgomery
November 8, 2023
In the thriving metropolises of Australia, the real estate horizon is gleaming brighter than ever. House prices have surpassed previous highs, putting a final nail in the coffin of those pessimistic forecasters who predicted 25-30 per cent declines. Continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary, Property.
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Private Credit: Where collateral is king
Dean Curnow
November 7, 2023
Private credit, in your author’s opinion, will feature in the top ten most used investment phrases for 2023. My BBQ conversations on weekends this year have gone from penny stock recommendations to weird and wonderful ways to get exposure to private markets, notably through credit. Continue…
by Dean Curnow Posted in Investing Education, Market commentary.
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The dawning of a new financial era: The silver lining in rising interest rates
Roger Montgomery
November 3, 2023
There is much debate about whether rates will rise or fall or stay about here for some time – the latter being my personal stance and prediction. Irrespective of our own beliefs, I think we can all agree interest rates aren’t going back to the lows we saw when the U.S. Federal Reserve cut rates to zero, and our own Australian banks benefitted from the Reserve Bank of Australia’s (RBA) term funding facility, which provided three-year funding at 0.1 per cent. Continue…
by Roger Montgomery Posted in Economics, Market commentary.
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How do the Aura Private Credit strategies differ from residential mortgage-backed securities?
Brett Craig
October 20, 2023
Securitisation plays a pivotal role in the global financial landscape, providing investors access to diversified pools of loan exposures, while allowing lenders to optimise their capital structure. Among the various types of securitisation products, residential mortgage-backed securities (RMBS) and private warehouse securitisations stand out as prominent categories in the Australian market. The Aura Private Credit strategy structure and invest in the latter, partnering with Australian small and medium sized business lenders. This week, we delve into the high-level differences between these two investment options. Continue…
by Brett Craig Posted in Aura Group.
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Australian SMEs, non-bank lenders, private credit funds & securitisation
Brett Craig
October 17, 2023
The Reserve Bank of Australia provided an update on its “Recent Developments in Small Business Finance and Economic Conditions” series in the September 2023 bulletin1. The update touches on both the contribution of SMEs to the Australian economy and their access to finance (particularly small businesses), via traditional ADI (bank) funding and non-bank funding. Continue…
by Brett Craig Posted in Aura Group.
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What can we expect from equities in the near future?
Roger Montgomery
October 16, 2023
Some commentators, pointing to the price to earnings (P/E) ratio for major indices like the S&P500, argue the next decade will be terrible for equities. Are they right? There are always plenty of people happy to offer their opinion. Continue…
by Roger Montgomery Posted in Global markets, Market commentary.
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GWA group – Finding value in the midst of share price uncertainty
Roger Montgomery
October 16, 2023
Back in February 2020, and just before COVID-19 sent the world into a tailspin, GWA (ASX:GWA) shares were on a high, trading at nearly $4 each. Today, shares in the small cap building materials company and distributor of Caroma, Clark and Dorf bathroom and kitchen accessories, tapware and sanitary ware are trading just below $2, a decline of just over 50 per cent. Continue…
by Roger Montgomery Posted in Companies.
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Population growth in Australia: Opportunities and challenges ahead
Roger Montgomery
October 12, 2023
Australia, known for its stunning landscapes, unique wildlife, and thriving cities, is experiencing a population boom of historic proportions. As of March 31, 2023, our great southern land is home to 26,473,055 individuals. This remarkable figure represents an astonishing increase of 563,205 people in just one year, marking a growth rate of 2.17 per cent. If this pace continues for another quarter, Australia is poised to set a record for its highest annual population growth, and net overseas migration (NOM) is the driving force. Continue…
by Roger Montgomery Posted in Economics, Market commentary.
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Insights navigating the complex economic landscape
Roger Montgomery
October 6, 2023
The economic outlook both in Australia and abroad remains complex, with the lags from material monetary policy tightening proving to be longer than expected. The U.S. economy is showing remarkable resilience, with the consumer benefiting from savings buffers, fixed rate mortgages and rising real wages.
by Roger Montgomery Posted in Economics, Market commentary.
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Have investors considered less dynamism in interest rates?
Roger Montgomery
October 5, 2023
I have a great deal of respect for the team that has been assembled at Barrenjoey, and I have every confidence they will add enormous value to investors through their insights and contribution to the ongoing conversation about the economy and markets. Barrenjoey recently penned a note revealing their outlook for economies and markets, and it’s safe to say, it isn’t the consensus view, which makes it particularly compelling reading. Continue…
by Roger Montgomery Posted in Economics, Market commentary, Stocks We Like.
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Don’t sell! House prices must go up (unless you’re in Victoria)
Roger Montgomery
October 4, 2023
Recent data from the Australian Bureau of Statistics (ABS) has highlighted a significant concern echoed by analysts like Leith Van Onselen of Macro Business. According to the latest ABS data, Queensland’s population has grown by 124,200 residents in just the past year, culminating in March. This dramatic increase can be attributed to a combination of substantial overseas arrivals and a notable interstate migration trend. Continue…
by Roger Montgomery Posted in Market commentary, Property.
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The RBA’s battle with inflation: Examining the latest data points
Brett Craig
October 3, 2023
The Australian Bureau of Statistics (ABS) released some important data points last week on the state of inflation and the national accounts. The headline figures did not demonstrate the signs of contraction the Reserve Bank of Australia (RBA) is trying to achieve, however looking into the underlying causes and effects can provide some clarity and sense of optimism. Continue…
by Brett Craig Posted in Aura Group, Market commentary.
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The OECD says core inflation remains persistent in many countries
David Buckland
September 22, 2023
With forecasters failing to predict the acceleration of inflation from 2021, and its subsequent persistence, it is unsurprising that the U.S. ten-year treasury bonds now exceeds 4.4 per cent, the highest yield recorded in 16 years. Continue…
by David Buckland Posted in Economics, Market commentary.
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How soon will another property construction boom emerge?
Roger Montgomery
September 8, 2023
The Australian bureau of statistics’ (ABS) building approvals data paints a sorry picture for the supply of apartments today but also points to a much brighter future. Continue…
by Roger Montgomery Posted in Market commentary, Property.
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