This is a saying in the news media indicating “bad news sells”.Regardless of this pessimistic outlook, of all the buyers we have been in contact with us recently, none discussed the economy.
This is no thanks to the news media, pessimistic economic analysts, politicians, and even private individuals who spread the financial “bad news” at every opportunity.
There is more than enough positive news out there, but unfortunately you have to search for it. Page 40 Financial Section Sunshine Coast Daily Fri. 31st October – Chief Executive of Westpac Bank Gail Kelly said “I don’t believe we are heading for a recession”.Page 40 the same day the Deputy Governor of the Reserve Bank said “the nation is on track to avoid a recession” and “Australia was well placed to avoid a recession”, and very recently the Reserve bank Governor told the Government not to talk the economy down!Chicago based global economist, David Hale (who also advises Australia’s Commonwealth Bank on the world economy) during an interview on the ABC’s World Today, Fri. 14th November said “the Australian economy will slow down, but because the internal economy is relatively sound Australia should avoid a major recession”.Tim Lawless, national research director with RP Data said recently “residential property values in Australia have passed through the lowest stage of a downward cycle”.Over the year to date recently the S&P ASX 200 fell by over 30% (back to the 2005 level), whilst in the same period national housing values dropped 1.3%!
So which is the better investment – shares or property?Buyers and potential buyers of property are not concerned – and why aren’t they?
Firstly they know that well placed real estate is always a sound investment and just possibly, they understand the economy better than the pessimists!
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