Australia: AUD grow big big, good to retire and go overseas for holiday. :D

[Ash007]

AUD is growing against the UK pound, USD, soon it will be 1.6SGD and axe168 can go back Singapore to retire or jiak hong. Correct or not Axe? Don't let the trolls say otherwise mate.

http://www.smh.com.au/business/markets/dollar-soars-to-25year-high-against-pound-20100107-lvrw.html

Dollar soars to 25-year high against pound
LUCY BATTERSBY
January 7, 2010 - 1:21PM

The more powerful AUD. Photo: Virginia Star
The Australian dollar has soared to a 25-year high against the British pound, buoyed by stronger than expected retail sales, as it powers ahead against most major currencies, including the US dollar.

The Australian dollar was recently trading at 57.65 British pence - the highest exchange rate since May 1985. This is higher than last year's record of 56 pence, and means that one British pound is now worth $1.73.

The pound was also buying $US1.60 and 1.11 euros today, compared to an average exchange rate of about $US2 and 1.40 euros before the global financial crisis.

The growing gap between the Aussie dollar and the pound is caused by the different outlook for the two economies, as well as increasing commodity prices. Natural resources including gas, coal, metal and gold significant drivers of local economic growth.

The Australian dollar is also strong against the US dollar, currently trading at 92.36 US cents. This is less than the high of US97.98¢ reached in 2007 but far better than the 63.9 US cents just 10 months ago.

The pound is struggling because the British Government printed £190 billion last year. That dilutes the pound's value and could lead to inflation.

The economic outlook in the UK is also sluggish, with unemployment at 7.9 per cent and retail sales worse than economists expected. The national economy is still contracting but is expected to grow by about 1.4 per cent this year.

In comparison, Australia's latest retail sales figures, released today, were almost five times better than economists expected, at 1.4 per cent higher in December. The trade balance figures released this morning were also better than economists had predicted.

With commodity prices soaring due to high demand from booming Asian economies, the outlook for Australian metal exporters is good.

Many international investors are buying Australian dollar-denominated assets - local stocks and bonds, for instance - because the returns are better due to high local interest rates.

Plus, the outlook for the Australian economy is brighter than it is in many other parts of the world.

 

[Ash007]

Yah loh, old timer just sell all their assets convert to SGD and go back to SG to retire liao loh.

Wah bad news for SG looking to make a move to Oz.

Now I understand why those old timer ex-Singapre coming back to Peesai to retire.

 

[Ash007]

Why you posting this one here?

This is emigration folder for those to go outside of Peesai

You dont like bros to emigrate to Oz?

I dunno why you posting negative Oz news here

???? Negative or positive is just a perception. I'm a "recent" immigrant, I view a strong AUD as being positive. I have bigger dollar that I can spend when I go overseas for holidays now. My lifestyle has also changed because of this stronger AUD. Imports of cars, luxury goods are "cheaper" because of this as well. Nothing negative about it, in fact I'm rallying the AUD to reach parity with the USD.

 

[Ash007]

Then your "understanding" is screw up. This is folder to assist SG people to emigrate to greener pasture. You post "strong AUD" is sending strong signal saying "DO NOT EMIGRATE TO OZ" as most SG people have saving and CPF, property in S$ not in AUD$.

If they decide it that way, then they shouldn't, I don't want people to migrate because they feel "disadvantaged" by it. If they feel they are happier in SG because of other circumstances then by all means stay. I post this article not to tell people to migrate or not. But to inform them of the circumstances here. How they perceive the news, good or bad, is up to them. This is to assist them in making a decision whether to migrate or not.

 

[Ash007]

I dont think u r Singaporean person. If market is saying the move is good then its good for migration plain and simple. What you post here is "now is not a good time for migration over to Oz". What you are posting here in the emigration folder is now is a good time for all those who migrate donkey years ago to return to Peesai. What you posting with Strong AUD is now is good time for all the quitters who long time there in Oz to come back now. Last time we all know Singapore dollar is worth more than the AUD. Singaporean people think like this way I think you dont understand.

Thanks, you are like the second person in this forum that said I have been unsinkified in the last few days. When I'm back in Singapore for holidays I can proudly say I'm Aussie now.

I never said "now is not a good time for migration to Qz". Thats just assumption on your part and your own prerogative. On the other hand, I'll play along with your logic, non-Sinkies should view this as an opportunity, stronger dollar means the faster you migrate here, the more you can earn in terms of SGD. Just staying here and getting a job of equivalent "salary" in AUD would mean a simple 30% increment over their previous. How is this a bad thing?

 

[Ash007]

Again I dun think U R a Singaporean. As you can see on this forum the attitude of Singapore people are carried over to Oz in a suitcase and you do not sound or think like a Singaporean. The uncle and auntie there in Oz all behave as if they never left SG. Go read this forum. If you ang moh or FT wish to come here and pretend U R a Singaporean that is you wasting our time and creating nonsense here. Already this forum so negative about Oz now you just add to the fire.

Also you are posting in wrong forum. Maybe U need to visit the Intl News Folder more appropriate for you and your strong AUD. The only thing you have succeed is making people who read this forum have a more negative view of Oz with your strong AUD. How this has anything to do with migrate out of SG and help bros? Is your strong AUD have anything to do with migration topic? This is emigration folder not "Singapore Uncle Return Forum" or "Singapore Immigration Forum" Maybe you need to contact ICA and inform them you are agent there in Oz helping all the Oz people coming to SG to now with very strong AUD. I think you need to see dictionary. Aiyoh how can SG people teach Ang moh like you English language?

So you think I'm an ang moh now? Interesting.

 

[Ash007]

http://www.smh.com.au/business/markets/dollar-jumps-on-jobs-data-china-export-news-20100111-m10l.html

Dollar jumps on jobs data, China export news
January 11, 2010 - 1:07PM
The Australian dollar was more than 1.5 US cents higher today as fresh data showed a surge in Chinese exports and an improved outlook for the domestic jobs market.

A weaker US dollar following some disappointing US jobs data released on Friday night also benefitted the local currency.

At midday, the Australian dollar was trading at 93.04 US cents, up from Friday’s close of 91.34 US cents. It was also buying 85.87 yen, 64.14 euro cents and 57.79 pence.

Since 7am, the local unit has traded between 92.71 and 93.1 US cents.

Commonwealth Bank chief currency strategist Richard Grace said US dollar weakness, which was driven the disappointing US non-farm payrolls report, had assisted the Australian dollar in early trade.

"That’s helped it because the US dollar has softened a bit, but you also had some Chinese trade data out which showed a very strong surge in Chinese imports, up 55 per cent from a year ago, so I think that has given it an extra kick along," Mr Grace said.

China’s exports surged 17.7 per cent in December to snap a 13-month falling streak, the government said on Sunday, cementing the Asian power’s new status as the world’s biggest exporter.

Data out of Germany last week showed that China overtook Europe’s biggest economy in November to become the world’s top exporting nation.

The US Labor Department report on non-farm payrolls was a disappointment to those hoping for job growth.

The US economy lost 85,000 jobs in December, worse than concensus market expectations for no change in overall employment levels, while the unemployment rate was steady at 10 per cent.

Mr Grace said the local currency could push as high as $US0.9325 on Monday afternoon.

"That’s certainly possible," he said.

"When London comes in, it will push us a little bit higher."

He said the release of ANZ job ads figures showing the number of jobs advertised in major newspapers and online rose by 6 per cent in December, the strongest monthly rise in two-and-a-half years, had also helped the local unit.

"It is pretty supportive for the Aussie, given what it means for the labour market picture," Mr Grace said.

AAP

 

[axe168]

http://www.smh.com.au/business/markets/dollar-jumps-on-jobs-data-china-export-news-20100111-m10l.html

Dollar jumps on jobs data, China export news
January 11, 2010 - 1:07PM
The Australian dollar was more than 1.5 US cents higher today as fresh data showed a surge in Chinese exports and an improved outlook for the domestic jobs market.

AAP

I told you before my prediction is likely to happen. From property boomz to exchange rate @1.5 and my final retirement in SG

For the next 20yrs, we will live well and we have no inferior FTs or cheap labour... 'Hire & Fire' and expired (old) staff are unAustralian. We have work/Life balance..

In short, WE WILL BE HAPPY.

 

[Ash007]

I told you before my prediction is likely to happen. From property boomz to exchange rate @1.5 and my final retirement in SG

For the next 20yrs, we will live well and we have no inferior FTs or cheap labour... 'Hire & Fire' and expired (old) staff are unAustralian. We have work/Life balance..

In short, WE WILL BE HAPPY.

Wahahahah i see that happening for me as well. I'm truthfully blessed and felt the same way every morning. Its so different here compared to Singapore. I'm glad I made the right decision coming back.

 

[kiwibird7]

Australia interests rates for term deposits is the highest in the world, so naturally people all over the world convert their spare cash into Aussie $ to invest driving the Aussie $ upwards.

The US$ is stagnating if not going down because their banks are offering effectively ZERO % for term deposits.

 

[axe168]

Australia interests rates for term deposits is the highest in the world, so naturally people all over the world convert their spare cash into Aussie $ to invest driving the Aussie $ upwards.

The US$ is stagnating if not going down because their banks are offering effectively ZERO % for term deposits.

Spot on !
I cant see any reason why we should be pessimistic. There are ppl praying for property crash & we all know it is not going to happen.. (well, at least not within 5yrs)

We are on top of the world !! most importantly, we are happy

 

[axe168]

Wahahahah i see that happening for me as well. I'm truthfully blessed and felt the same way every morning. Its so different here compared to Singapore. I'm glad I made the right decision coming back.

I came back after my study, I dont see why not you Good life ahead is not what the God has given.. As a fighter, we "seek" and we shall "achieve".. we all deserve to be rewarded ~ handsomely.. :p

 

[axe168]

No shortage of excitement in year of the decade
Author: Chris Vedelago
Date: January 11, 2010
http://www.domain.com.au/Public/Art... shortage of excitement in year of the decade

Welcome to 2010, which is set to be the most eagerly anticipated and intensely watched property markets in a decade.

And after the twists and turns of the past two years — the 2008 bust and the shock 2009 recovery — it's not difficult to understand why.

RP Data-Rismark reports that Melbourne dwelling values grew 17 per cent in the year to November, a stunning reversal of the 0.5 per cent drop that occurred in 2008 during the period of high interest rates and global financial crisis.

Historically, the growth in the 2009 market fell just shy of the "boom" performance of 2007 (20.2 per cent) but was leaps and bounds ahead of 2004 (0.7 per cent), 2005 (3.4 per cent) and 2006 (4.9 per cent).

"It's a signal from the market that there is very strong demand but we don't have sufficient supply. It's a symptom of a housing shortage," said Christopher Joye, managing director of Rismark International.

With Melbourne's population still rising at a record pace and the economy on the rebound, the same fundamentals that kicked off the housing recovery in 2009 are in place to continue it in 2010, Mr Joye said.

The Real Estate Institute of Victoria reports that vendors are already showing some confidence, with the number of properties due to hit the market in the coming weeks already higher than for the same time last year.

"For a month out, to already have 100 [auctions] listed for the first week of February would seem to suggest it's going to be a reasonably busy month," said REIV spokesman Robert Larocca.

Just how strong the market will get, and there is still plenty of debate on this issue, will turn largely on what happens with interest rates.

Consumer confidence, and by extension buyer demand, can be fickle. The federal "emergency" boost to the first home owners grant ended on January 1, with the money available now back to $7000.

For properties costing less than $600,000, Victorians still get an extra $2000 for an existing home and $11,000 for a new home.

But after revelations that public funds were sunk into scores of million-dollar first homes last year, the $7000 federal contribution is restricted to people buying properties under $750,000.

Just what effect this will have on the market is another of this year's great unknowns. While many agents and analysts are anticipating — read: hoping — that investors will swoop in to take up the slack, they have a sizeable gap to fill.

Yesterday's auction activity was concentrated in coastal areas, with agents reporting plenty of observers but no determined buyers.

In Rosebud, the two-bedroom villa unit at 3/50 Warranilla Avenue opened at $280,000 and attracted bids from two parties before passing in at $320,000.

The reserve is $370,000. The nearby two-bedroom unit at 1/50 Warranilla Avenue passed in for $280,000 after two bidders fell well short of the $350,000 reserve.

Ray White agent Rodney Richards said negotiations were under way for both. Three bidders took the three-bedroom house at 18 Jubilee Avenue in Indented Head from an opening bid of $200,000 to $300,000 before it, too, passed in.

Negotiations are continuing. CJ Keane & Co agent Val Saunders said the property's reserve was $340,000.

 

[scroobal]

Spot on. Feds window rate is maintained close to zero to boost the economy while OZ rate has to go higher to fight inflation and cool the economy.

Australia interests rates for term deposits is the highest in the world, so naturally people all over the world convert their spare cash into Aussie $ to invest driving the Aussie $ upwards.

The US$ is stagnating if not going down because their banks are offering effectively ZERO % for term deposits.

 

[Ash007]

I came back after my study, I dont see why not you Good life ahead is not what the God has given.. As a fighter, we "seek" and we shall "achieve".. we all deserve to be rewarded ~ handsomely.. :p

No worries mate, I know what you mean by being a fighter. You, neddy, scroobal, IWC and the many regulars here have given me insights and hope that I can make it in this country. What I meant by "blessed" is that I'm grateful in a country that can make all this happen. I'm not a Christian or has any religion. But if there is one I know I've been given the best opportunity in life to achieve that here.

 

[axe168]

I've been given the best opportunity in life to achieve that here.

So are you going to buy me a kopi e ? Lets retire together (in 10-15yrs) and enjoy our kopi in SG..

 

[Ash007]

So are you going to buy me a kopi e ? Lets retire together (in 10-15yrs) and enjoy our kopi in SG..

Waahhaahha no worries, I think you'll retire earlier then me lah, I'm still single and only starting on the "path" still long way to go for me. Still have wife/kids to worry later. This year after getting my new passport I want to tour China/Japan/Thailand maybe even Europe. But kopi is not a problem with me.

 

[axe168]

Waahhaahha no worries, I think you'll retire earlier then me lah, I'm still single and only starting on the "path" still long way to go for me. Still have wife/kids to worry later. This year after getting my new passport I want to tour China/Japan/Thailand maybe even Europe. But kopi is not a problem with me.

This time... I really found the G spot ! If medium hse is gonna cost 1mil.. my crappy hse will worth 3mil !! lol !

Have you got a spare $1 million to buy a house?
By Peter Boehm
Jan 12 10:58am
Save to MyWebPrint


Peter BoehmThinking of buying property this year? You had better start saving. Real Estate expert Peter Boehm looks at the proposition that the average house prices will hit $1million in a decade's time.

Last year in my column Buying an Australian home - still worth it? I asked whether Aussie homes were still worth the sacrifice. One thing I examined was the financial pressure to buy - that is, people's worry that if they didn't buy soon they'd be forever priced out of the market, with prices going up and up.

Not long afterwards, in an article titled '$1m homes 'the norm' in a decade', The Age reported the Real Estate Institute of Victoria's view that Melbourne's median house price will be $1 million dollars in ten years' time. Perhaps my column should have been called Buying an Australian home - still afford it?

You might think that it's ridiculous or impossible for house prices to reach such dizzying heights, but is it?

Let's see how far fetched a prediction this really is by taking October 2009's median house price as a base point, looking back ten years to October 1999, then forecast ten years forward:



Using Residex's October 2009 median house price valuations in Sydney, Melbourne and Brisbane - alongside estimated median prices in 1999 based on Residex's House Price Indices - we see some huge increases.

The analysis shows that median house prices have almost doubled in Sydney, gone up one and half times in Melbourne, and tripled in Brisbane. That's impressive price growth over the past ten years (keep in mind that during this period prices went up, down and up again but the overall trend is positive).

So, in the next ten years, what growth would we need before the median price hit $1 million?



As you can see, the compound growth required is between 5 and 8 per cent, depending on the city. That's well under what was achieved over the last decade.

This suggests that, ten years from now, a $1 million dollar median house price in Melbourne, Sydney and Brisbane is, indeed, fairly likely.

Economic conditions right for growth

As in any market, home prices are a function of supply and demand. In the near future, population growth and an undersupply of housing stock will mean that demand continues to strengthen.

Combine this with a return to stable economic conditions and relatively low and stable interest rates and you have the necessary ingredients for home prices to increase well ahead of inflation.

While past market performance might not reflect future results, $1 million dollar median price predictions for Melbourne and the eastern capitals seem quite reasonable. Indeed, to go even further, Residex believes that 15 years from now median property prices will reach the $1.5 million mark.

What it all means

The residential property market is split into almost equal thirds: those who own outright, those paying off a mortgage, and those who are renting.

The first two groups are going to be happy. Their wealth and equity will increase as property values continue to rise.

But - without being too dramatic - for those who are renting and/or wanting to buy in the capital cities in the next ten years, the dream of home ownership might be nothing more than just that - a dream.

Affordability is already a major problem, and increased prices will make it worse. Low to middle income earners will be further marginalised, while the average Australian wage will need to rise 5 to 8 per cent per annum over the next ten years to keep pace with mortgage repayment and deposit requirements.

What to do

If owing a home is your goal, and you're worried about being priced-out, what can you do?

There are no easy solutions, but here are a few suggestions:

• Have realistic goals. Be flexible about the type and location of property you can reasonably afford as your first home. Enter the market at the lower end and move up the ladder when your needs and finances permit.

• Consider investing first. It might be easier to enter the market with the aid of someone else - your tenant. They will help to pay off your mortgage and your investment property might eventually become your home. (See my column Is it time to invest in property? for more information).

• Don't go for the biggest and best homes. Look for other types of properties, including units and apartments. These are good ways to get into the suburbs you like that might otherwise be unaffordable.

• Don't over commit your finances. Getting into the market isn't life's 'be all end all'. The last thing you want is to become a slave to your mortgage.

• Educate yourself so that you understand what's involved in becoming a first home owner or investor. Do your research by going online and talking to real estate agents. Buy independent property reports to get a feel for property prices in the suburbs you're interested in - making sure that, if and when you do buy, you're not going to pay too much.

 

[axe168]

Oh dear.. the forum is too orderly.. It creates fear..