The “Bubble” Debate: What’s Happening In The Australian Housing And Mortgage Markets?

The “Bubble” Debate: What’s Happening In The Australian Housing And Mortgage Markets?

Investments
It's the question that Australian homeowners and buyers have been asking and industry experts & commentators across the country have been debating: is Australia in a housing "bubble"? With many opinions and insights circulating, here's the latest from the markets. A cause for concern Whilst it's no surprise that Sydney property markets continue to be closely watched as house prices remain on an upwards trajectory, Melbourne markets are also under scrutiny. The Australian Securities and Investments Commission's (ASIC) chairman Greg Medcraft told ABC's The World Today programme: "I think that the Sydney and the Melbourne markets are very hot. If you look at the average price to income ratio, it is very high." In May, following the RBA's second rate cut for 2015, Mr. Medcraft was the first of the…
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Metcash, The Real Loser In Supermarket Wars

Metcash, The Real Loser In Supermarket Wars

Investments, Shares
Metcash, grocery wholesaler and owner of the IGA brand, released a trading update earlier this week. The grim reality is that this reiterated the 19% - 26% decline in earnings versus the same period last year. So, while the market and the media have been focussed on Woolworths as the great loser of the supermarket wars, its the forgotten 'independents' who are truly feeling the wrath of the low-margin, low-choice option provided by Aldi. Most analysts have spoken how Woolworth's claims of growth in sales & market share must be misleading yet in their commentary they rarely consider the small guys. The local convenience supermarket is built on high-margin sales when you need it now but the proliferation of supermarkets has slowly squeezed the convenience concept. For many suburban families Coles,…
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Investment Lending In The Current Environment. Do You Need To Review Your Lender?

Investment Lending In The Current Environment. Do You Need To Review Your Lender?

Investments
When it comes to working out what investment product is right for you, we do the research to give you the information to make an informed decision. What lending ratio will a lender go to? What is the current variable rate compared to the fixed rates? Is your bank charging you too much interest? Loan Market works with over 30 lenders you know and trust, and takes the leg work out of finding the finance deal that’s right for you. In December 2014 APRA (Australian Banking regulator) had written to the authorised deposit taking institutions (ADIs) outlining steps it plans to take to reinforce sound residential mortgage lending practices. APRA had flagged to ADIs that it will be paying particular attention to specific areas of prudential concern. These include: • higher…
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Life Healthcare Group

Life Healthcare Group

Investments, Shares
Life Healthcare Group (LHC) is an independent medical device distributor. Their business is focussed on nine key channels: Spine Orthopaedics Neurophysiology Surgical instruments Bariatric Capital equipment Ultrasound Biologics, and Vascular Life Healthcare has been on our investment radar since listing 12 months ago for numerous reasons. These include: Long term growth industry as both technology and an ageing population increase the demand for medical intervention Core exposure to spinal devices for which the growth in demand is more than double that of hip or knee procedures Capability to leverage new devices and services in to their existing channel. Despite some great investment metrics we haven’t ever invested in LHC – to our detriment it would appear. At the core of this LHC has only been listed for 18 months and…
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APA’s Year Of Growth

APA’s Year Of Growth

Investments, Shares
APA is ‘just’ an Infrastructure company. Right? Well you’d be mistaken for thinking it wasn’t after it has increase by 50% in the last 12 months. This rapid increase in share price, the result of acquisitions and new contracts, has seen APA’s dividend yield fall from mid 6% to the low 4%’s. Still better than the cash rate but an increasingly poor yield compared to some of its peers. The question hanging in the air is “where to from here?” In our view APA has been in a sweet spot. In a recent UBS research note they quite rightly point out that infrastructure companies will do well in falling interest rate environments but once interest rates and bond yields start to rise their valuation should start to fall. In simple…
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