Australia ever more dependent on China./Phuket Condo.
Australia benefits from the resilience of the Chinese economy and its currency will weaken if China’ has a set back. A Phuket condo to consider.
Many developed countries have a false sense of security. Believing because theirs is more advanced, the risk levels are lower by definition. These routinely and in clever ways fear-monger their own citizens, making the subtle but wrong message that if we have problems developing countries must have even worse. Deja vu all over again.
One key reason why Aussi Dollar is so strong of late is because of the strength of the Chinese economy, where AU exports allot to -and visa versa. Exports to China rose to nearly 25% of its total from just 12% just 2-3 years ago. The fortunes of China’s economy will now loom as a major risk factor for Australia, its economy and currency. If China has a sudden slump, AU will be caught in the cold. If China sneezes and coughs, Aussi will catch a cold! Australia, maybe even more then SE Asia, is very dependent on China and today more then ever.
But, for example tourism to Phuket is far less, hence real estate here and some of my stock picks of late are somewhat disconnected, I think. Lately I found a great mid range Condo here, right on the park & lake adjacent to Phuket town. Suan Luang Park. In my view one should book one right away overlooking and with direct access to its biggest public park and nice lake there. Excellent location still many great choice units available.
The top floor units are favored. Being developed by some reputable local people we know here. If it bombs out, they will loose their long built local credibility, as many locals “whose who” here bought-in. The thing is, one only has to pay a small deposit and then 10,000 Baht (330 US$) a month, every month for 25 months to secure it and lock in the price on it. This is hard to believe as one blocks the 4.5 mill Baht selling price on say this unit, until its all 100% finished/furnished -as is expected in 2013. If the unit goes up say 7-8% a year, but I think maybe more, then the value appreciation alone is far more then the monthly booking fees paid! One can resell it anytime for a small fee.
If this Condo building is late in getting finished one has very little capital in it as the developer must then wait for the big remaining 90% unpaid balance. You can see it here.
http://www.facebook.com/pages/Sugar-Palm-Condo/110587495689749
I am not recommending this to you specifically, just giving an great example of an overall non-correlated investment and so how together and combined, it likely has less risk viewed as whole.
Like the expected upcoming mega wind project with DEMCO has little/nothing to do with China or the SET, nor even likely with the Thai elections -same on some other chosen stocks! In the meantime hope you all are benefiting from MAJOR’s (16) rise which I brought to your attention repeatedly here of late. Major's stock price has risen about 7 times more then the SET benchmark index since my major write up here on Jan 17 '11. :)
Best Regards,
Paul Renaud.
