Wishing a joyous Holiday season to all

by admin-king | 18th December 2014

To our clients, customers, contractors and friends I take this opportunity on behalf of our directors and the King & Co team  to wish you a very Merry Christmas and a happy and prosperous 2015.

2014 has been an interesting and for some a very challenging year.  It is easy to dwell in recent negative events; however, to be successful in life it is  absolutely essential to be able to adapt to change and to look for & act on opportunities.  

Opportunity can be defined ‘a time or set of circumstances that makes it possible to do something’.

What are the positives?  Just to identify a few:

  • Our currency is returning to more sustainable levels against the US dollar – 81.66 cents yesterday
  • Interest rates remain at historic lows with the prospect of even further interest rate reductions next year
  • Westpac forecasts that Australia’s Gross Domestic Product will grow by 2.7%, slightly less than previous forecasts of 3.2% – the economy is still growing.
  • Although there are expectations that the Chinese economy is slowing it is still expected to grow by 6.5% in 2015.
  • Commodity prices are falling quite quickly which has the potential to reduce costs of manufactured goods and other products
  • Australian employment rates are relatively stable

So despite the views of some of the gloom and doom merchants there are positives and therefore there must be opportunities.

Industrial and commercial property represent good value at the present time.  It is definitely an ideal time for owner occupiers to use the low interest rate regime to purchase rather than lease their properties.   Investment yields are still high relative to interest rates and the resultant return on equity is well worth taking a close look at  - you could be very pleasantly surprised.  

For those seeking a higher return there are opportunities in considering investment properties that have shorter lease terms.  Potentially well priced property leased to reasonable tenants with shorter leases often overlooked by risk averse buyers can produce good yields.

We at King & Co are looking forward to 2015 and all its potential. Once again on behalf of the whole King & Co team, Merry Christmas and a happy and prosperous 2015.

Wayne J Robson
General Manager

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