Forum Replies Created
caught a minute or two of a morning tv program this morning where someone was going on about the budget having no special goodies in it for farmers… gets my back up! the rest of the comunity doesn’t get special treatment, so if you can’t operate within the boundaries of the economy, sell up and turn the land over to someone else who can produce efficiently. move to europe perhaps, I hear they have plenty of handouts for inefficient producers.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
dmitchie – is that tongue in cheek or are you serious? his position seems quite different to yours that’s all i.e. correction is a long way off (read: never)
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
but to summarise: the key point is leverage/gearing though right? so you are still betting on prices rises on average? and if prices don’t rise for say 7 years you are stuck, as you will need to draw equity from somewhere to cover your losses. I think this strategy would be fine in Perth, but judging from comments about the eastern states it would seem a risky stage of the cycle to be gearing up at i.e. if prices fall for 3 or 4 years. Am I missing the point ?
In fact to draw equity and use the funds to gear into shares seems even riskier again with the sharemarket topped out as it is. You have leveraged highly into 2 different asset classes that are at a high.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
“For tourists,it was so cheap to holiday here.
Yanks and pommies doubled and tripled their currency on arrival.”you guys keep going on about the glory days of how cheap it use to be for foreigners… seriously most americans cannot get their head around how they end up with more AUD than USD anyway. The only benefit it seemed to have was for the few that managed to find themselves here on their 2 week annual vacation. Gaining 10 or 20c on your dollar will not enourage anyone to jump on a 20 hour flight and fly to the other side of the world. Now if you start to think of kangaroos, ayers rock and koalas you may start getting closer to the heart of matters.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
maybe it’s ‘buckflation’ – a weaker form of stagflation?
hmmmm inflation – inflates property values, deflates mortgage values in real terms. a great environment for property investment.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
interesting article dmichie… highlights our insane obseesion with fair go, socialism, blue collar first, onya farmer jack, tax the rich, books are for nerds mentality.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
with OTP it is likely you can get an extension for payment. it certainly won’t be after settlement though and the stamps office won’t care if you have inspected it or not.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
it’s so exciting around here these days!
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Originally posted by dmichie:I want 2 go on record as saying that IMHO this is leading Australians of the future into financial turmoil.We r not teaching financial fundermentals of how 2 save and start small to build wealth, we r teaching laziness.
I couldn’t agree more.
(and before Robert jumps on me, I don’t think all debt is bad)Here is a chart of household saving 1996-2005:
http://203.26.51.178/cracker/54029_2.jpgHousehold saving is now negative. We spend more than we earn.
Here is a chart of credit aggregates 1996-2005:
http://203.26.51.178/cracker/54029_3.jpgNote how housing credit has zoomed past business credit over the past decade. Australia borrows to build houses, not productive enterprises.
out of interest, what is your definition of a productive enterprise? is a car or a camera more important than a nice house? When you look at developed economies (and no I am not including Australia in that category) they typically outsource manufacturing offshore and expand the service sector. Am not sure how you can determine whether someone that washes your car is more valuable than having someone build you a nice house.
I looked at those charts – looked convincing but lacked a lot of detail. The first question would be what is the definition of savings in the first diagram? Who compiled it? what currency is it denominated in? Has it been adjusted? etc. But anyway the gist of it is probably correct… the papers tell me this so it must be true [blush2]
Given that you wish to develop Australian enterprise I can see your motivation for attacking the property industry, however I think you are going about it in the wrong way. To bring it down is to cut your nose of to spite your face, rather it would be better to embrace it as one element of the economy whilst building others. After all, the flow on demand from new homes is incredible. Makers of items like dishwashers must be loving it… a value added industry which is largely Australian made. This sort of support can give them the boost that they need to go on to export without being lazy and producing shoddy goods that only sell because the currency makes them cheap.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
I don’t think we have ever had it better. Reductions in tarriffs on items like cars combined with the still-weak-but-not-as-weak-as-it-was dollar have certainly improved our ability to consume. The brain drain is a huge consequence of a weak currency and is still a big problem. Why on earth you would wish the currency to be any weaker than it is is totally beyond me…. other than a vested interest in selling cheap software overseas? I still think you are missing the point that price is not the barrier to exporters… it’s about creating a product that others want to buy, with price as a second or third consideration. Countries like Indonesia continue to see their currency slide and I don’t see any great revolution in their economies. I would love to see our dollar back on a par with the USD to return our sense of dignity. Otherwise we will just be a cheap tourist destination which is still too far away from amywhere despite people being able to buy a pint of VB for a pound.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
cheeeeesy!
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
just out of interest, I use to work for a company that offered ‘best price guarantees’ etc, I think it was ‘best price garaunteed or double the difference back’. Most people in our culture are too shy to ask for their money back, heck most can’t even complain if their food is served cold at a restaurant. No one ever claims them and it’s a great marketing tool. I doubt very much that anyone goes to a seminar and makes personal contact with soemone and then at the end says “actually you are pretty ordinary can I have my fee back”, regardless of how good or bad that seminar is.
Having said that, I do know someone that works at a leading retailer for which people bring back yellowed underwear and worn out bathers at the end of the season – go figure.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
as per the saying: bite off more than you can chew and chew like hell….
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
“Imagine if solicitors conveyancing was a percentage of the contract price!”
actually in WA they are. Stamp duty, rates, land tax, REA fees, conveyancing, mortgage broking, loan application fees, mortgage insurance…. all based on value.
I like the idea though… I think taxes should be set as a fixed fee.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
“once the currency collpases you may as well switch off the lights”
“Rubbish! I don’t remember any lights going off when the dollar was at 48 cents (circa 2002 from memory). The economy was growing strongly at the time and the CAD was much smaller.
”
disagree… they were horrible times and frankly quite depressing being the laughing stock of the world. The brain drain that it created by skille dstaff heading overseas use to laugh about coming back and buying up the Sydney Oper House. People use to buy new hondas and trade them in years later at the same price as the currency was so hopeless. doesn’t sound like a healthy economy to me! Standards of living are vastly better now with a stonger currency and economy.devaluing currency = sick economy.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Originally posted by foundation:Originally posted by AUSPROP:Boosting inefficient exporters by devaluing currency is not a step forward improving the economy.
…but the alternative is raising interest rates – significantly. Which option would you prefer?
Cheers, F.[cowboy2]please expand… dmichie is saying the devaluation will lead to higher rates. are you saying if the currency doesn’t devalue we will hav higher rates?
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
once the currency collpases you may as well switch off the lights, you will never dig your way out as no one can afford capital or energy to get things going. The strong resources industry which has pushed this currency up is a glimmer of hope in our short history to invest in some decent industry and change the nature of the economy. Boosting inefficient exporters by devaluing currency is not a step forward improving the economy.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
” Given house prices have risen by up to 30% per year recently”
F – where has this happened? I am assuming Sydney…. or are you talking Brisbane?
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
it amuses me that you wish this banana republic status upon us so eagerly, with a property market crash to boot. weak currency, reduced standard of living, higher interest rates, higher unemployment, a falling stock market – it’s all looking rosie. At least some inefficient farmers will be able to afford another mercedes next year.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Dazzling – you are right and I was just assuming a typical suburban home.
Bofclark – sounds fair to me. pretty much can be summed up by “it’s a free country”
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
