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How Safe is it to Invest in Australia
According to a report from Dun and Bradstreet, Australia is the highest ranking country for "security of investment" making it one of the safest places in the world to invest. Australia shares the honour with Switzerland, Canada and Norway out of the 161 countries surveyed.
Given the current debt problems faced by Greece and other European countries the sovereign risk is at the fore front of many investors thinking given the global reach of modern financial markets. Australia's main trading partners such as US, China and the UK are in the top 11 and seems to indicate that our moto of the "lucky country" will continue. Unlike most of the rest of the world Australia has hardly missed a beat during the Global Financial Crisis and is forecast to grow at 3.3% this year by Dun and Bradstreet compared to the global growth of 2.4%.
Given this Australia looks like a safe investment destination however you still need to buy the right assets. In a report released by the Economist recently they stated that Australian house prices are some 54% over valued based on traditional price-rent ratios. I remember seeing the same survey 2 years ago and the US was featured as one of the most expensive countries with 8 out of the top 10 most expensive cities being in the state of California. That was pre GFC and the fact that US prices have plummeted means they no longer are expensive according to long term valuation methods. Caveat Emptor which is latin for "buyer beware".
Given the current debt problems faced by Greece and other European countries the sovereign risk is at the fore front of many investors thinking given the global reach of modern financial markets. Australia's main trading partners such as US, China and the UK are in the top 11 and seems to indicate that our moto of the "lucky country" will continue. Unlike most of the rest of the world Australia has hardly missed a beat during the Global Financial Crisis and is forecast to grow at 3.3% this year by Dun and Bradstreet compared to the global growth of 2.4%.
Given this Australia looks like a safe investment destination however you still need to buy the right assets. In a report released by the Economist recently they stated that Australian house prices are some 54% over valued based on traditional price-rent ratios. I remember seeing the same survey 2 years ago and the US was featured as one of the most expensive countries with 8 out of the top 10 most expensive cities being in the state of California. That was pre GFC and the fact that US prices have plummeted means they no longer are expensive according to long term valuation methods. Caveat Emptor which is latin for "buyer beware".
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