In our Directors message of January 2008 we suggested there may be “possible further ramifications of the sub prime market” and in this regard made mention of “spending a little more time on your research”.

Looking back to that period 12 months ago it is difficult to find any financial commentator who correctly predicted the total effect of what we now call the Global Credit Crisis, and in fact the worst may not yet be over. Whilst we agree with those analysts that suggest Australia was hit harder than it deserved, given the strength of financial regulatory system, the fact is the tough times are here for a while yet.

But it is not all doom and gloom. There are opportunities, particularly for First Home Buyers eligible for Government Grants. A combination of these grants, plus low interest rates never before seen in recent history, and a very affordable property market makes this an ideal opportunity to invest in the longer term future. And for investors the same opportunities exist and at present there is a strong rental demand.

It is worth noting the Credit Crunch also saw the departure of a number of lenders from Australia, which has the potential for the remaining players to be less competitive in trying to attract your business. With this in mind it is even more important in 2009 to ask your Select broker to find the most suitable and cost competitive loan, whatever your investment strategy.

Whilst we are not in a position to make predictions it is interesting to consider how many of us will look back in a few years time and wonder why we didn't make that property purchase in 2009.


Regards

Garry, Les, Michael and Garry.