Forum Replies Created
It must have been interesting times in Russia back then when a major transfer of wealth took place.
As for the US, I used to live there before coming to Australia and I liked it a lot. The preference for me was Australia due to better opportunities and less social problems with respect to starting and raising a family. All of these hopes have been met and having a split family between the US, UK and Oz the last thing I want to do now is start this splitting process all over again so my anchor is now dropped here. In a selfish type of way I hope my sons do not eventually settle down in another country as I would like to keep close contact with them and their families as I grow older and wiser
The US has went through a correction and it may well be the right time for them, I see that Buffett is okaying property investment out there as well.
I guess one thing we do know is that there will be regime change next year in Oz. Meet the new boss, same s the old boss!
Yes they do get over excited by a short term snapshot, no doubt about it. But there are some trends emerging such as us having the best performing economy in the developed world, having an abundance of resources that the emerging economies need, plenty of room left to move on interest rates, AAA bonds, rising yields and high employment. The big picture is looking good in my view.
Freckle wrote:Sorry Bardon but I don't rate anything Koukoulas says as serious economic comment. It's in his interests to sell the establishment. After all it's where he earns his crust.
I don't know why you mention Koukoulas in reference to me.
Dr Steve Keen the uberbear seems to be painting himself into a corner with his response to he recent positive housing numbers. A months data does not mean that much in my books but the commentators seem to treat them like life or death.
According to this article the Newman Govt plan to release large quantities of land allotment for residential construction.in mining towns.
Newman targets mining house shortage
Some more good numbers out recently on the housing market, affordability, GDP, interest rates, population and rents. The long term residential property investment fundamentals that were always there are hopefully a bit clearer to all now.
Nooob wrote:/>All I'm asking is; with the same amount of risk can we do better?I don't have an answer yet
Some would argue that investing in leveraged property in itself is wealth generating. Some investors have set themselves up that they have investments in shares, business and property and don’t actually work in the traditional sense and hats off to them as they would be in the minority.
Personally speaking I earn a wage in the traditional sense which supports my property portfolio. My super is in shares and not doing that well and I am considering a different approach in that regard. I have some equity in the company that I am with which could prove to be a decent wedge if things go to plan over the next three years.
Better investors than me could best explain the pros and cons of the various wealth building methods but I think the key is to save some seed capital and get started, set long term goals, don’t get distracted by the daily noise and doomsayers, have a cash buffer and keep learning and reading like you are now doing.
simple wrote:One can consider it as your personal INFLATION ADJUSTED savings account outside banking system.This is my experience, other people would have different view. Probably depends on how you do it and what is the aim of the game.
This to me is the reason why investing in property is a good long term proposition. We live in an economy where the policy targets a minimum inflation level and this is why leverage into appreciating assets has to make sense. Ever since the 90’s the RBA has made targeted inflation a policy and this has resulted in much smaller inflation in comparison to pre-management times. Maybe in this managed inflation ere we might also see smaller growth in asset prices.5% appreciation in a 2% inflation range still gets you ahead in time.
Switching between assets types is not for me, I think I am a never sell type.
The fact of the matter is that Thiess have been awarded a $2.3b contract for a mine near Dysart.
Freckle wrote:If I’ve read and interpreted the release correctly Thiess have simply retained an existing contract and will manage a relatively small expansion over 3 years provided they can get access to transport to shift the stuff. In reality it’s still speculation until logistics materialises to move their extra production to port. That might be a challenge because everyone else is trying to do the same.Well I never read in the release that the award of the contract was conditional on anything.
ECB money supply ramping rhetoric way up on the back of the Guvnors comments yesterday.
In the context of this thread the extension to Thiess contract, specifically given the location, the job stability and the thread title is actually quite significant. I only read their ASX release which was factual; and once again relevant to this thread, as opposed to iron ore tonnages out of the Pilbara.
Freckle wrote:In places like Karratha and Port Hedland they talk about increases in the 100’s of million tons.But everything is always bigger in Texas.
No problems with the long term bit in housing whatsoever but I thought in your cycle you were saying that after equities crash so will housing, no?
For me its simple, residential housing will always be the store of our nations wealth, we are getting wealthier and the money supply will always increase.
As for inflation, I too am an Inflationista and am patiently waiting for all this new money to eventually find its way into the system and erode my debt level and repayments and pump up my asset values and rent.
What did Kiyosaki say about 2016?
Nooob wrote:They will be investing in property as a safe haven for their money which will increase the demand = increase the housing price = more redraw from super = crash of the stock market = major drop in housing price as it happened before.That an interesting cycle there Nooob. So you are saying that house prices will rise, equities will fall and then fall to such an extent that house prices will also come tumbling down ?
I see that the Guvnor has weighed into the debate. Saying that there was a lot more evidence of things that make a market crash five years ago than there is now. He went on to say that affordability is back at 2002 levels.
As for China, not that I think it is going to stop growing, a smaller growth % on a growing economy can be growth % the same as a higher growth % on the previously smaller economy.
That mine contract that Thiess won will double the production that’s not too shabby at all.
Yes I have been seeing some of these articles as well. I guess that they are only articles and they in themselves wont make the market rise. I have always been in it for the long game and I would like to think that growth will return at long last.
Freckle wrote:bardon wrote:As for Assange he is the pasty for increased internet censorship and I think he is in on it, as this is, in my opinion staged.Bardon when you make comments like this I can’t take you seriously. You certainly have a perspective on things that is definitely ‘out there’.
Well for someone that was banging on a post or two ago about the lengths that govt will go to achieve their sinister goals, then maybe you should think a little more laterally about what you are saying.
So we have a child of a questionable cult, coming out the woodwork to found a supposedly anti establishment trendy website called Wikileaks. He then says he is too busy to read his material and choses a very senior and well connected member of the US elite to control the release of his material through the established media. Material that wasn’t top secret after all, material that did not contain any of the hyped up and promised spectacular revelations. Material that supported US foreign policy with respect to Iran, Korea and the war on terror.
The only thing that will come out of this will be a major political misinformation initiative that will serve to advance the US political agenda for internet censorship.
bigblueit wrote:Just my 2cQuite a good read for 2c.
In addition to the scenarios outlined in your post, what about the old fashioned, boring and some may say lazy, buy and hold investor that has already bought their houses and has no plans to do anything other than wait. There are those passive types that think nothing wrong of buying a few joints and then holding them for a very long time. They were also average type purchases, just normal houses in normal suburbs at normal values. If they can handle the holding cost and I would say that the majority can and the cash flow gets better each year then why should they do anything about the straw men kicking their door down? What can they do anyway, sell, that’s a tough call in this market but if you can’t handle no growth in the near term them maybe you should, but you will not be getting a good price if you sell now. The thing is if you bale on housing and say jump into another investment then you are going to have the same risk with the new thing so why bother?
How much are these Australian houses going to be worth in twenty years from now is my question, how much rent will they be pulling and how little will that outstanding I/O mortgage be in comparison with their equity and the rental income then?
