Freckle wrote:

bardon wrote:
the general rule

And there in lies the problem in thinking among many investors. What most fail to realise is this is not ‘a general rule’ incident in global financial events.

There has been no time in history that I can recall when virtually every major economy is near collapse simultaneously. Economies like…[Read more]

That is quite an interesting story. But earthquakes aside, the general rule is that in the long term both prices and rents will rise.

As far as when this inflation tsunami will be released. Maybe if Romney gets in, in the US, the economy will start moving again, under utilised resources will get busy, unemployment will drop and people will feel…[Read more]

All you coal town investors aint looking that bad when you look at the long term demand figures. Especially coking coal.

India’s demand for coal set to soar
BY: ROBIN BROMBY From: The Australian April 30, 2012 12:00AM
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FORGET coal price forecasts for 2013 in tonnes — think quadrillion British thermal…[Read more]

Andrew_A wrote:
Brisbane recorded the strongest monthly growth since December 2009 this month. The +1.49% result in March has Brisbane in the black for the year with 0.33% growth in the index.The turnover has been healthy since December 2011 and not surprised to see this monthly result and the market near balance in prices, the last few weeks…[Read more]

Freckle wrote:

bardon wrote:
Out of interest what was the rent achieved back then and what is the current value and rent for that property now ?

Have no idea Bardon. I was a spec builder/developer in those days.

The Freckle

So would you say that they would both be higher today ?

Yep

Yes build time and cost of loss of rent if the schedule blows out should be addressed. Also builders insurance that covers you if they go bust or have quality issues with their works and an agreed progress payment method for the works that the bank are also happy with.

Freckle wrote:
. During the 90’s we saw high inflation high interest rates and then a deflationary crash in RE. My property (NZ) went from $350k to $230k in the space of 8 months.

The Freckle

Out of interest what was the rent achieved back then and what is the current value and rent for that property now ?

simple wrote:
+1In simplified form, if you are in debt – inflation is good. That is assuming business, not personal debt.If you are saver (in fiat currency), inflation is reducing your savings and is bad for you.I have lived thru inflation and hyperinflation in Poland 1990, Russia 1992 and few others. General rule is, as inflation rate increases…[Read more]

Freckle wrote:

bardon wrote:

Inflation always has been a trusty 24/7 servant of a leveraged property investor

You are kidding right! If you aren’t you have no idea of how inflation works or the FIAT currency system.

eroding debt level and increasing asset and rental values.

If your income rises through inflation and your debt stays the…[Read more]

It’s on tomorrow night assuming no more Labor scandals.

Starts in 18 mins, lets hope it doesn’t get Slippered.

A few nails hit on the head there. One of the low risk situations of the property market is that you are either an owner or a renter. Unlike the stock market you cant leave. So the majority of owners decide not to sell and wait until they get a better price equates to a concrete floor in the market.

Personally speaking I think that due to the…[Read more]

According to Chris Joyce and the RBA set, those long term norms with respect to income to prices are back at trend again after all the creep that we have had with disposable income in recent years.

All that aside, I don’t think that some notional belief that mortgages must be 3 x dads income is some kind of benchmark that has ever really existed…[Read more]

Good for you Cg Brumby hope it all works out well for you and the kids.

Now that the drought has broke I cant see anything wrong with it.

JT7 wrote:

bardon wrote:
I have just realised that some of those new projects that got the green light may be adversely affected by the Rio pull out. We may well be over the top of the boom now, given the high production costs, trade union militancy, red/green/black tape and government emailers.

Indeed, this may well affect operations right…[Read more]

Given that Wandaon coal was going to be loaded out of Gladstone, maybe this pull out by Rio up north is a shot in the arm for this project in getting a leg up. Maybe.

JT7 wrote:

bardon wrote:

JT7 wrote:
It’ll be interesting to see whether the plans of Aldani are adversely affected by this latest setback?

What are these plans I am not aware of them but interested in finding out?

As far as I’m aware Aldani purchased a 99 year lease on Port Abbot. Aldani has massive interests in projects in the Galilee…[Read more]

JT7 wrote:
It’ll be interesting to see whether the plans of Aldani are adversely affected by this latest setback?

What are these plans I am not aware of them but interested in finding out?