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Forget negativity, no better time than now - Industry News

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Forget negativity, no better time than now

Published: 15 October 2008.

Contributed by Terry McMiles of Terry McMiles

It is interesting to note the negativity that persists in financial reporting with all "experts" continuing to put a negative spin on what for business and home borrowers was a very positive result yesterday.

Prior to the Reserve Bank reducing official rates by 1% yesterday, every "expert" with no exception predicted an 0.5% cut in official interest rates with the major Banks passing on just half of that cut to borrowers. Every expert was wrong. Official rate is down by 1% and 0.8% is to be passed on to Borrowers. The result for home and business borrowers is therefore 0.55% better than any experts forcast. But what do we now hear from the financial press? Nothing positive, just the negative story that "Banks refuse to pass on the full rate cut". Rare only mention that the Banks by retaining 20% of the Official cut are now in a much better position to continue lending to business & home borrowers without tightening up too much on lending guidelines. Now that, is positive news! And the rates for borrowers are now well and truely on the way down. Well done Reserve Bank, well done the major 4 big Banks and as for the Financial Press . . . let's hear some positive opinion instead of continually trying to spook people and talk markets down.

In recent years there has never been a better time to buy Management Rights. Many have been for sale for a long time and Vendors are very keen to sell. Borrowing rates are moving down, Rentals are moving up . . . all signs are here today for genuine buyers to get serious about buying. If you wait for the "negativity ingrained financial experts" to tell you when to buy, you will have "missed the Boat".

This opinion from Terry McMiles, Independent Management Rights Broker. www.terrymcmiles.com

Reply from: G Burns

10:22am Sunday, 19 October 2008

Absolutley correct Terry !!

Reply from: Terry McMiles

8:02am Monday, 03 November 2008

The Deputy Governor of the Reserve Bank has delivered a paper entitled "An update on household finances". In it Rick Battellino states he is confident that Australia can sidestep recessions in other parts of the world and he downplays fears of lower housing prices.
In regard to Real Estate values, he highlights the differences between the US and Australia. "The overhang of unsold houses in the US created downward pressure on house prices as builders and developers were forced to sell. This is absent in Australia. Rather the shortage of housing here (there is an undersupply) means that buyers not yet entering the market are simply waiting for better circumstances - e.g. lower interest rates or rising incomes - to facilitate their entry to the market. The latent underlying demand for housing is a factor that will support the market".
As I indicated in my original article, there are currently wonderful opportunities to buy well in Management Rights NOW. Many owners really keen to sell, and interest rates are on the way down . . . by the time the financial journalists suggest buying, prices will have already moved up.

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