On my way across to the US yesterday I really couldn’t help but hear people on the plane discussing the state of the US economy. Confidence is very low and it would seem as a foreigner that Americans are looking for change which seems to be Barack Obama. The Americans I have met so far aren’t talking recession – they are talking about a “Depression”.
I spoke with a retired man who discussed how terrified he was of Sarah Palin: he believes that the US needed someone young and energized like Obama and he was genuinely worried that John McCain could die and the US would end up with Sarah Palin as President which would send a terrible signal to the rest of the world about Americans as a whole. He also just wanted George Bush to go and described him as a “lame duck President”.
It made me think just how lucky we are in Australia. Our property market is holding up price wise although sales volumes are taking a beating and are only a fraction of previous years. With interest rates decreasing (the massive 1% decrease this week is key) and more decreases likely to come, property throughout Australia is starting to look very good. I strongly believe that investors both domestically and abroad are already starting to look at Australia as a safe haven for money.
Our banks are safe and deposits are guaranteed. Australian interest rates are decreasing and property pricing is not volatile, with demand from immigration assisting throughout Australia. With rental yields increasing, property as an asset class is looking extremely attractive. Marquette Turner Luxury Homes will be doing all we can during our time in the US to promote Australia a safe haven and with the Australian dollar falling, foreign investment in our wonderful country is looking very attractive.