Show Notes
Welcome back to CEO Breakdown.
The US Federal Reserve has raised interest rates again, and John Saade breaks down what that could mean for Australia.
Higher global rates can increase funding costs for Australian banks, influence expectations around the RBA and add even more pressure to an already struggling property market.
At the same time, Sydney properties are taking longer to sell, listings are piling up, bond yields are climbing, property stocks are under pressure and unemployment has risen.
So is Australia heading towards another rate rise?
And what happens to property if rates stay higher for longer?
John also looks at the growing gap between buyers and sellers, why higher bond yields are making property less attractive as an investment, the pressure on commercial property, and why falling house prices can flow through into consumer spending.
The episode also covers:
The US Federal Reserve raising rates Whether Australia could follow Higher bank funding costs Sydney property listings Why homes are taking longer to sell Why buyers currently have more negotiating power Rising Australian bond yields Commercial property and REIT valuations Why property has to compete with bonds and term deposits Myer’s $276 million statutory loss The negative wealth effect Australian unemployment rising John’s recession concerns Why unemployment matters to the RBA Australians putting more money into super The impact of recent tax changes on investment decisions Australia’s Intergenerational Report Falling fertility rates Population growth and migration Maternity leave and support for families The latest Bathla Group developments Construction sites being shut down The 18.6 year property cycle Whether Australia is entering another correction phase John’s reaction to calls to leave Australia Kevin O’Leary’s attack on consultants
John also gives his view on where Australia could be heading if unemployment continues to rise while inflation and interest rates remain elevated.
As always, these are John’s views and commentary on current economic conditions, not predictions of guaranteed outcomes.
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This content is general information and commentary only and does not constitute financial, tax, property, investment or business advice. Speak with a qualified adviser about your own circumstances.
Chapters 00:00 - Introduction & Market Overview 01:15 - US Fed Raises Rates: What It Means for Australia 02:57 - Sydney & Melbourne Property Listings Pile Up 05:56 - Bond Yields Surge & Smash Property Stocks (REITs) 09:51 - Myer Posts $276M Loss & Blames the Housing Downturn 13:58 - Unemployment Jumps to 4.6%: Technical Recession Looming? 18:03 - Superannuation Rush After Negative Gearing & CGT Changes 21:19 - Intergenerational Report: Australia’s Population & Fertility Crisis 26:07 - Bathla Collapse: Sites Shut Down & Worker Stand-Downs 28:34 - The 18.6-Year Property Cycle: Is the Crash On Schedule? 32:34 - Reaction: "Top 3 Reasons to Leave Australia" 34:02 - Reaction: Kevin O'Leary on Why Consultants Are Useless 35:41 - Final Thoughts & Latitude Accountants Outro
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