Festive season of 2015

As we enter the festive season of 2015 it’s a time to reflect on our achievements for the year. Did you achieve your most recent 90 day and 12 month goals? Is your life progressing towards the Success that you desire?

Below are some my favourite quotes that I recommend you read as review the year that 2015 was and plan for what 2016 will be:

  • “Everything you can imagine is real.” — Pablo Picasso
  • “Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” — Barack Obama
  • “It is never too late to be what you might have been.” — George Eliot
  • “If you love what you do and are willing to do what it takes, it’s within your reach. And it will be worth every minute you spend alone at night, thinking and thinking about what it is you want to design or build.” — Steve Wozniak
  • “Try to be a rainbow in someone’s cloud.” — Maya Angelou
  • “In the midst of movement and chaos, keep stillness inside of you.” — Deepak Chopra
  • “We should remember that just as a positive outlook on life can promote good health, so can everyday acts of kindness.” — Hillary Clinton
  • “As we look ahead into the next century, leaders will be those who empower others.” — Bill Gates
  • “There are no mistakes, only opportunities.” — Tina Fey
  • “We can’t help everyone, but everyone can help someone.” — Ronald Reagan
  • “Be yourself. Everyone else is already taken.” — Oscar Wilde
  • “In the middle of every difficulty lies opportunity.” — Albert Einstein
  • “Education is the most powerful weapon which you can use to change the world.” — Nelson Mandela
  • “Your time is limited, so don’t waste it living someone else’s life.” — Steve Jobs
  • “But you have to do what you dream of doing even while you’re afraid.” — Arianna Huffington
  • “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” — Maya Angelou
  • “If you can do what you do best and be happy, you’re further along in life than most people.” — Leonardo DiCaprio
  • “Success isn’t about how much money you make. It’s about the difference you make in people’s lives.” — Michelle Obama
  • “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” — Warren Buffett
  • “Life isn’t about finding yourself. Life is about creating yourself.” — George Bernard Shaw
  • “The best way of learning about anything is by doing.” — Richard Branson
  • “Efforts and courage are not enough without purpose and direction.” — John F. Kennedy
  • “Don’t let the fear of striking out hold you back.” — Babe Ruth

November Property Market Update

Spring is typically the strongest season for the Australian Property Market and 2015 has been a year of the investor activity but since July it has become increasingly more difficult and expensive for investors to access funding.

Knowing this it should be a surprise that auction clearance rates in every capital city have dropped from again during November. What is more concerning is the continual weekly decline throughout the month to finish on all 2015 lows.

The average auction clearance rate for Australia in November was 48.69% with only two Victoria (67.25%) and Australian Capital Territory (66.75%) above the 60 percent level. This could potentially mean great buying opportunities early in 2016 particularly if the RBA maintain the current cash rate of 2% or reduces.

Rental Yields are still strong with vacancy rates remaining low. Darwin still the standout for both housing and apartment rental yields over 5%.

Start 2016 on track to success with Goals – some quotes to get you thinking…

As we enter the festive season of 2015 it’s a time to reflect on our achievements for the year. Did you achieve your most recent 90 day and 12 month goals? Is your life progressing towards the Success that you desire?

Below are some my favourite quotes that I recommend you read as review the year that 2015 was and plan for what 2016 will be:

  • “Everything you can imagine is real.” — Pablo Picasso
  • “Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” — Barack Obama
  • “It is never too late to be what you might have been.” — George Eliot
  • “If you love what you do and are willing to do what it takes, it’s within your reach. And it will be worth every minute you spend alone at night, thinking and thinking about what it is you want to design or build.” — Steve Wozniak
  • “Try to be a rainbow in someone’s cloud.” — Maya Angelou
  • “In the midst of movement and chaos, keep stillness inside of you.” — Deepak Chopra
  • “We should remember that just as a positive outlook on life can promote good health, so can everyday acts of kindness.” — Hillary Clinton
  • “As we look ahead into the next century, leaders will be those who empower others.” — Bill Gates
  • “There are no mistakes, only opportunities.” — Tina Fey
  • “We can’t help everyone, but everyone can help someone.” — Ronald Reagan
  • “Be yourself. Everyone else is already taken.” — Oscar Wilde
  • “In the middle of every difficulty lies opportunity.” — Albert Einstein
  • “Education is the most powerful weapon which you can use to change the world.” — Nelson Mandela
  • “Your time is limited, so don’t waste it living someone else’s life.” — Steve Jobs
  • “But you have to do what you dream of doing even while you’re afraid.” — Arianna Huffington
  • “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” — Maya Angelou
  • “If you can do what you do best and be happy, you’re further along in life than most people.” — Leonardo DiCaprio
  • “Success isn’t about how much money you make. It’s about the difference you make in people’s lives.” — Michelle Obama
  • “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” — Warren Buffett
  • “Life isn’t about finding yourself. Life is about creating yourself.” — George Bernard Shaw
  • “The best way of learning about anything is by doing.” — Richard Branson
  • “Efforts and courage are not enough without purpose and direction.” — John F. Kennedy
  • “Don’t let the fear of striking out hold you back.” — Babe Ruth

Expected Call By RBA – Rates on Hold

The Reserve Bank of Australia just announced the Cash Rate Target will remain at 2.00%. This outcome was largely expected.

The pertinent points in the RBA’s accompanying statement were:

  • Cash Rate target unchanged at 2.0%
  • Global economy is expanding at a moderate pace
  • Prospects for economy firmed in recent months
  • Inflation outlook may afford scope for further easing
  • Key commodity prices are much lower than a year ago
  • AUD$ adjusting to significant declines in commodity prices
  • US Federal Reserve expected to start increasing interest rates
  • Volatility in financial markets has abated
  • Growth in lending to property investors has eased
  • Pace of house price growth has moderated
  • Australia economy expanding moderating in face of mining investment decline
  • Business surveys suggest gradual improvement in non-mining conditions
  • Inflation low, should remain so
  • GDP growth has been somewhat below longer-term averages for some time
  • Mortgage rate hikes will offset rate support slightly
  • Outlook for inflation may afford scope for further easing of policy (ie interest rates)

At various times during 2015 there has been talk of the RBA cutting rates to further stimulate the economy or increase rates to cool the Sydney and Melbourne property markets. In hindsight the RBA doing nothing was the right move, rates have remained on hold since May 2015 whilst new capital adequacy requirements on Australian Banks were implemented by APRA, forcing lenders to first increase investment lending then raising all housing loans has slowed both these property markets.

All 33 economists and commentators surveyed by comparison website finder.com.au correctly predicted todays result.

Glen Stevens, RBA Governor, has commented recently that he was prepared to ‘chill out’ on cash rate cuts. This was further reinforced today

“In Australia, the available information suggests that moderate expansion in the economy continues in the face of a large decline in capital spending in the mining sector… Low interest rates are acting to support borrowing and spending.”

Finally, Mr Stevens added, “At today’s meeting the Board again judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate. Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.” This is all good news for Australian borrowers and has set the tone for continued low interest rates into 2016. Retirees are still going to be hunting for YIELD outside of fixed interest and high interest saver account for years into the future. Investors and Retirees will continue to seek high dividend yielding stocks.

The local share market (S&P/ASX200) continues to climb higher following this positive news up 98.7 points, 1.87 percent.