Forum Replies Created
- wealth4life.com wrote:Who is the RBA they used to have influence over the banks but now the banks don't give a dam what the RBA says and they do what they like justifying every action.
In my opinion the financial crisis was a blessing to the major banks here is Australia. It wiped out most of the smaller non bank lenders that provided competition and kept rates in line with the RBA. Now they can move rates independently of the RBA and use that advantage to claw back losses they incurred during the meltdown and consolidate their power.
easyfinance4u3779 wrote:One tactic sometimes used by them leaves you wondering which to choose, they have been known, to over quote to win the job, can you imagine that.If you believe the agent is giving you a false estimate to get you to sign up then insist that a condition is inserted into the contract that says they will not be paid a commission unless you get a minimum offer close to what the estimate is. If the agent is so confident then that shouldn’t be a problem. Right??
If you cannot subdivide then doesn’t that mean the land can only have a single title on it? A duplex would allow two titles on the land? I’m in WA and have a large block but it is zoned R20 (single title only) and just falls short of what is required for a subdivision.
Newton’s Third Law at work?
Article from August 2008 regards the housing collapse there:
http://www.commondreams.org/archive/2008/08/08/10875
Extract from article:
But with the locals out of cash, who is buying? “The foreigners are coming in droves: 80% of the people coming into our office are from England, France, Germany, Italy. Between the falling prices and falling dollar, they can buy here for practically nothing. Who wouldn’t be here?” says Paul Merlesena, a local estate agent who notes that some of the first homes at auction have just sold for $240,000. “Last year they were selling for $660,000.” Looking a bit sad, he says: “If this was all reversed, America would be eating up Europe.” Another group of buyers has started moving in at the luxury end of the market in parts of the Miami area – wealthy Russians. Fond of winter sunshine and gated security, Russians are picking up mansions whose price tags have become increasingly attractive thanks to the weak dollar.Which New Zealand bank is paying 6%? Their current cash rate is 5% with further cuts expected.
In the US the rates have dropped steadily and are now almost 0% and that hasn’t helped them.
Google ‘short term accommodation perth’ from the pages in Australia option. You should find a few solutions there.
If they are young students like yourself then a hostel or backpackers may be the easiest option for a few weeks.
I heard her talk at a free DealMakers seminar a little while back along with Tony Melvin and another presenter on CFDs. All three were introductions to the respective weekend courses. I didn’t sign up but was very impressed by her energy and enthusiasm. It was very contagious!
Arab Bank certainly are offering a very high rate considering the RBA cash rate is currently 4.25%. The thing to remember is that savings accounts have variable rates so they are subject to change. So although Arab Bank is currently offering around 7% and you open an account and transfer money into it, they can reduce the rate at any time thus making it less attractive.
If you don’t need your money for a period of time then consider a term deposit as they usually have better rates than a savings account. Take a look at Ubank which is part of the NAB group and also Suncorp which offer a negotiated rate for amounts over 100K.
PosEnterprises wrote:I hope they drop down to zero % then can starty paying off the principal debt
What about all those people who have moved their money into cash because of the volatility of the share market? I read of the possibility of rates at between 2% and 3% by around Easter next year. If rates drop to that level then it would hardly be worth it.
I did see one of these signs in Perth along Flinders Street saying “Houses bought for cash’ or similar and a mobile number stuck to a light pole. I’ll have to look out for it again next time I’m driving that way.
I agree that there is little incentive to save. Whatever you earn in interest is calculated as part of your taxable income. And if that interest pushes you over into a higher tax bracket then you end up paying even more so we do need tax concessions on savings accounts.
As far as our economy is concerned it is now mostly based on consumer spending. Back about 50 years or so the strength of our economy was measured by our manufacturing industries and there was no such thing as credit cards. If you wanted to buy something then you needed the cash to pay for it right then or you had to put it on lay by. Just about the only thing you could get a loan for was a house and even then you would have had to pay a deposit.
Fast forward 50 years. Our manufacturing industries are now a shadow of themselves and the strength of our economy is now measured by consumer spending and how much we spend at big department stores. Credit has been sold to us a lifestyle with banks and other institutions handing it out like there was no tomorrow and gorging themselves on the interest rates they charge. Want that big screen plasma or LCD television? Don’t let the fact that you can’t afford it stop you. They want you buying things that you don’t really need with money that you don’t have and our economy is really in a precarious position because of this.
The government will always have cash but what is it really worth?. All they do is keep printing more of the stuff but no longer have any asset like gold to back it up which creates higher inflation. In Germany during the 1920’s they had hyperinflation. People would use money as fuel for their stoves because it was cheaper than using the money to buy firewood. The world now is vastly different and such a scenario is unlikely to be repeated but there are consequences to simply printing money whenever you need it.
I recall just over a year ago attending a seminar where the presenter said that the housing crisis in the US was only a minor issue for us here in Australia. 12 months on and the ripple has turned into waves of financial bad news for just about everyone.
I’m sitting tight at the moment. I shut down my managed funds because tired of the volatility and I think the overall downtrend will continue. Yes there are bargains out there but I will stay out until the market shows solid signs of stability and recovery. Otherwise you may be ‘catching falling daggers’.
I was retrenched from my job and at home not looking for the same instead wanting to do my own thing hence moved my money into cash. I live very frugally and at the moment am spending less then bank interest I earn but if interest rates keep coming down which banks are factoring in then this means less passive income and pressure on myself to find other sources of income apart from going back to the 9-5 routine.
I read somewhere ( I think it may have ben this forum) that when you move back in after 6 years you must move back 'completely' in order to satisfy the ATO that it is once again your PPOR. This means utility bills, bank statements and drivers licence should be back to the PPOR and not some interim address.
In the current issue of Smart Investor magazine there is a feature article about setting up an investment club so you might want to have a look at that.
Mortgage Hunter wrote:Originally posted by salacious:
I would like to buy large quantaties of legal stuff and onsell for a profit. But ether way if someone new the answer to this question we would all be wealthy people. Dom [biggrin]Import stuff from China and sell it on eBay.
If you import an item or items valued at greater than a certian amount, ( > $1000 AUD) I think, then what about the duty or goods tax you would have to pay? Would that not defeat the purpose if importing an item yourself and the onselling it? How is it done?
And all those millions haven't disappered into thin air either.
I really feel for those investors, mostly elderly, who now face an uncertain future. For many of them, their life savings gone.
Unfortunately this sort of thing will keep on happening.
And don't forget that world oil production will peak as well which means the potential for a world market collapse and general anarchy as existing supplies begin to dry up. And we are years away from a working alternative to oil.
