OVERSEAS INVESTORS

Interesting article by Tony Koch in the Courier Mail on Thursday stating that over $1b in Queensland property has been purchased by Overseas Investors in the last year.

Buyers from Britain led the purchase pack last year, spending $252 million, followed by New Zealand ($141.9 million), Japan ($86.1 million), The Netherlands ($75.5 million) and the US ($54.8million).

Indicates that the Realestate.com.au drive internationally will help to market Australian property abroad as will the new Raine & Horne offices in the UK and Dubai.

http://www.news.com.au/business/story/0,23636,22567106-37037,00.html

INTEREST RATES BLUES

This week presented a bit of a mixed bag with the NAB monthly business survey showing conditions slipped again with the worst result since February 2007. The results could be based on increasing inflation, some global turbulence, tightening wages market and the upcoming election. Pundits are placing the liklehood of an interest rate increase by the end of 2007 at 45%.

theage.com.au/news/business/rate-rise-market-woes-batter-conditions/ 2007/10/09/1191695908896.html

ADELAIDE UP, SOUTH AUSTRALIA DOWN

Where Adelaide has achieved an 11.5% increase, overall South Australia have recorded a slump of 3% in the quarterly median house price and the Real Estate Institute of South Australia has blamed drought conditions as contributing.

The Adelaide increase of 11.5% is nearly double the 6% increase of the previous year.

http://www.news.com.au/adelaidenow/story/0,22606,22538552-5006301,00.html

http://abc.net.au/news/stories/2007/10/10/2055398.htm?section=business

CONSUMERS OWN WORST ENEMY

For the 11th time in the past year consumer spending increased in August. Household goods showed consumers were buying more electrical goods like DVD players, plasma screen televisions and gaming machines.

Food spending jumped by one per cent in August, on a seasonally-adjusted basis, while spending on household goods was up by 2.4 per cent. But department store sales were down by 4.2 per cent.

If both property owners and those that aspire to own property do not curb spending and start saving, inflation will increase, interest rates will be increased and the dream of property ownership will move further away.

theage.com.au/news/Business/Consumers-spend-more-despite-rate-rise/ 2007/10/03/1191091164490.html

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