Letters of the Week

Politics and investing. Crunching the numbers on property development. Oil security.

Let's talk politics
I just wanted to say how happy I am with my subscription to Eureka Report. I feel I am at a significant advantage when it comes to investing my money. After reading the Saturday Edition, I just wanted to let Alan know that I am happy with his predictions and not to let a few negative opinions from others stop him from writing what he feels. Finally, I wanted to add that I also enjoy the political discussions, even though Eureka Report is more about investment. If possible, I would like to see someone expand on this and write an article about what actions the government (be it Liberal or Labor) could take to improve this country financially. What reforms should take place?

A Schilg

Michael Feller’s response: Considering everything that's happened in politics this year, these articles may seem a bit dated but I believe you will find some food for thought in my articles Life after Gillard (August 29, 2011) and The age of extremes (September 19, 2011).

Property homework

You are absolutely spot-on with your Ten Commandments. We are builders in south-east Queensland and we have done many types of property development, including renovations, subdivisions, townhouses and apartments. We always crunch the numbers many times before moving – and we always sign documents for everything, using solicitors and accountants (especially with family members). But the number one thing is research! 'Homework" is almost a full-time job for anyone who wants to make money out of real estate, and there is money to be made but it takes hard, and sometimes dirty, work!

K Silich

Oil security

I was reading an article today that suggesting a fall in our domestic oil refining capacity. I'd like Eureka Report to ask relevant contributors to appraise the country’s oil security and analyse the possible impact such an event will likely have on the Australian economy.

B Moon

Editor’s response: It’s unclear whether a drop in refining capacity from 761,500 barrels per day to 433,000 bpd would pose a security threat, considering America’s commitment to the region and our relatively robust supply lines to Singapore. But considering that we consume petroleum at a rate of 941,000 bpd (and rising), it is indeed a pity that we can’t justify the costs of onshore refining. On a cost versus benefits basis, the unattractiveness for multinationals to refine in Australia is unfortunately very clear. The continued strength of the Australian dollar, in addition to further legislative and taxation costs, also makes this unlikely to change.

To read this week’s letters, click here.