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The Economy

Being the last week of the financial year this when many sell spec stocks to lock in tax loss, my pick is Kingrose, code is KRM, cash backing is 3.6 cents per share, current price is 4.1, just signed huge deal with BHP where BHP will provide over 60 million in exploration, read announcement on 22nd May, be a good buy if you can get them cheap..
 
cmorrison9 said:
Would love to see a government with the balls to close the doors on overseas investors.

Pretty sure we are the only country in the world that allow this to take place.

Most countries around the world you must be a citizen or married to a citizen to own property.

In times when we are in a “housing crisis,”as it is being called, it should be the first thing done to try and help ease this pressure on Australian families.

The flip side is, without overseas investment, the demand would decrease and so with it property value. Could see a lot of people who are paying off property with mortgages higher than what the property is valued. Example, purchased a house for $1m, and only be worth $800,000. Problems come with that scenario too. Hence the reason no government wants to do it I guess.
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Labor, liberal and the greens are a cancer on Australian society.
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Bluey said:
Being the last week of the financial year this when many sell spec stocks to lock in tax loss, my pick is Kingrose, code is KRM, cash backing is 3.6 cents per share, current price is 4.1, just signed huge deal with BHP where BHP will provide over 60 million in exploration, read announcement on 22nd May, be a good buy if you can get them cheap..
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Thanks for the tip Bluey.
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Sickening reading

The number of residential real estate investment proposals approved was 1,580 with a total value of $1.9 billion”, FIRB says.

“China was the largest source for approved residential real estate investment proposals by number and value ($0.8 billion), followed by Hong Kong SAR ($0.1 billion), India ($0.1 billion), Vietnam ($0.1 billion), and Taiwan ($0.1 billion)”.

According to the FIRB, Chinese investors purchased 2601 residential homes totalling $3.4 billion in the 2022-23 financial year, up from 2317 homes worth $2.4 billion in 2021-22.

Separate data published by the Australian Taxation Office (ATO) on Friday also showed that “across Australia, [foreign] purchase transactions increased by 26.8%”.

“From 1 July 2022 to 30 June 2023 there were 5,360 residential real estate purchases with a level of foreign ownership. The total value of these purchase transactions was $4.9 billion”, the ATO reported.

“The total number of residential real estate sale transactions by foreign persons for the period 1 July 2022 to 30 June 2023 was 1,119, with a total value of $1.0 billion”.
 
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Bluey said:
Inflation at 4%, looks like a rate rise is likely next month.
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They met this month and now meet bimonthly so any rise would not be till August when the next meeting is due. Also, there are deflationary aspects in the latest budget so there is a good chance to hold rates as are until they see what happens from those.
 
As I have mentioned before, increasing interest rates to lower inflation is not the answer. Not unless you want more people homeless that is.

As soon as a business is hit with higher running costs, all they do is increase the price for their service/product. I would argue that increasing interest rates, actually has the opposite effect. Increases inflation.
 
Percy Horne said:
They met this month and now meet bimonthly so any rise would not be till August when the next meeting is due. Also, there are deflationary aspects in the latest budget so there is a good chance to hold rates as are until they see what happens from those.
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cmorrison9 said:
As I have mentioned before, increasing interest rates to lower inflation is not the answer. Not unless you want more people homeless that is.

As soon as a business is hit with higher running costs, all they do is increase the price for their service/product. I would argue that increasing interest rates, actually has the opposite effect. Increases inflation.
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I think the reserve bank has been holding back on rate hikes hoping that inflation will start decreasing but I have read that it's the govt borrowing money that's keeping it high so if team Albo don't start doing their bit then more rate hikes will be on the way.
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Cant agree with that, low interest rates IE easy money has people chasing goods which lifts demand for commodities which equals higher prices, ie copper, iron ore, oil, ect, the govt has not helped with its spending, also Australia is actually behind its peers re interest rates.
Govt also revoked tax cuts from people who haven't had a bracket creep adjustment for nearly 20 years who would most likely not spend it and handed it to people who would surely go and spend it, ie demand, ie inflation..
cmorrison9 said:
As I have mentioned before, increasing interest rates to lower inflation is not the answer. Not unless you want more people homeless that is.

As soon as a business is hit with higher running costs, all they do is increase the price for their service/product. I would argue that increasing interest rates, actually has the opposite effect. Increases inflation.
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Govt is killing the chance of lower interest rates with high immigration and spending..
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"Shocker" inflation figures​



C
12m ago
By Clint Jasper
Betashares chief economist David Bassanese describes the May CPI figures as a "shocker".
"The still-high level of inflation across various underlying inflation measures suggest pricing pressure remains broad-based. Why? Higher-than-expected immigration, a public instrastructure spending boom, rising demand for health and personal care services, housing shortages and climate-related increases in energy and insurance costs are all contributing to persistent inflation. To an extent, many of Australia's lingering inflation pressures come despite weak consumer spending — and reflect the consequence of longstanding federal and state government policy failures in the areas of such as housing, energy and social service"
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Mr Bassanese says the number will put pressure on the RBA to lift rates in August.
"The upshot of today's result is that it places enormous pressure on the Reserve Bank to not only not cut interest rates anytime soon, but potentially lift them further. Although many of the factors holding up inflation are not directly sensitive to interest rates, the RBA needs to focus on the persistently high overall level of inflation — whatever its cause — and potentially use higher interest rates to produce offsetting declines in inflation wherever it can. For the RBA, the concern remains that the longer inflation stays high, the greater the risk of it becoming embedded into inflation expectations and ongoing wage- and price-setting behaviour — particularly given the economy, despite weak growth, is still operating at a high level of capacity."
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andyrabbit said:
Governments for decades (probably centuries) have relied on immigration because it boosts the economy and provides a steady stream of workers that enables businesses to expand rapidly when needed. It will be a brave government that is prepared to bite the bullet and take the economic hit.

Of course immigration does nothing for housing affordability.
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We pushed that past the practical limits around 2007 and it’s accelerated since to what is finally being recognised as unsustainable. Forced growth using the migration lever has it‘s limits. We’re short of housing, have stretched services eg Hospitals, ambos ramping, roads and other infrastructure under severe pressure….the list goes on.
 
If you think this months inflation figures were bad wait till the next few months, Houthi rebels are forcing container ships to go around the Cape of Good Hope adding thousands of KLMs for goods to be delivered, the spot rates for ocean container freight has jumped 28% in a month.
pride.png
 
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southsport said:
Well I don't want anymore high-rise construction but just getting back to skilled workers I think they include waitresses and baristas as skilled workers.

The LNP, ALP and the greens are all in favour of high immigration to suit their own agendas, we should have a plebiscite on the issue so that the people can decide.
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Regrettably high rise is the future for cities like Sydney, it’s where the population pressure is greatest and obviously where migrants usually choose to live……this is exactly what suits the developers and gives them the lever to push local government into allowing high rise, medium density and whatever gives the greatest return on investment. They have the perfect environment….governments know the housing dilemma isn’t palatable in the electorate so let’s build more high……errr houses to show that something is being done to paper over their skewed policies.
It‘s hard not to be cynical….
 
southsport said:
I think the reserve bank has been holding back on rate hikes hoping that inflation will start decreasing but I have read that it's the govt borrowing money that's keeping it high so if team Albo don't start doing their bit then more rate hikes will be on the way.
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One would think consecutive surpluses for the 1st time on 20 odd years would be doing their bit.
 
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