USA continuing slow recovery.Europe to follow Both USA and EU...

USA continuing slow recovery.

Europe to follow

Both USA and EU have reset their economies to large extent.

As they recover Asia will benefit and grow at a higher rate

And the AUD will drop significantly, and this will help us out big time in terms of competitiveness.

I don't see property prices rising in line with the past.

However what I do see coming is two fold. Rents increasing significantly in all suburbs within a 30km radius of major cities (ex Hobart) but property prices stagnating or rising in line with inflation.

A low aud will tighten the property market as those who own will ride out higher interest rates (still historically low) and play the yield game for a while.

From a macro point of view I think Australia is lucky that the USA and EU are starting to show green sprouts of recovery as an elevated AUD is killing us by a thousand cuts.

I see AUD at 75cents by 2015