Forum Replies Created
- JL wrote:
benmelbs,
Have you bought in Ouyen. I notice that a set of 5 x 1units have come on the market for 180-220k. If you could hold until the mine opens, it could be a very profitable purchase?
JLtheyve been on the market for over a year
for starters you might be better of renting out your ppor, rent somewhere cheaper, draw out some equity for a small deposit and buy your first IO. by cheap and make sure you can add value and its got a high cashflow. my opinion only though.
BOOM,BOOM,BOOM,BOOM.
I will be selling between 2011-2013hbbehrendorff wrote:We are heading towards a huge recession perhaps even a depression, And it looks as if kevin rudd is going to do everything in his power to make this ecconomic storm do as much damage as possible, To push for his real agenda, An Asian union followed by world government ruled by the social elite.If our all wise and loving government really cared about us like they so whole heartling claim, They would be taking huge steps to make the foundation of our monetary system sound, and yes it would be possible to fix our ecconomic system from comming collapse.
1: Limit bank and non bank lending organisations from using higher then 10:1 leverage ratios, financial institutions should be made by law to report quarterly on how leveraged they are, If at any time they go over the 10:1 ratio they have a limited time to comply with the leverage standards before prosecution
2: If we truley lived in a capitalist society then why are interest rates artificially controlled by the people who own the central bank of australia ? Can't anyone see this is a conflict of interest and fraudulent ? Thereby I also say that the RBA should be nationalised and owned by the commonwealth of Australia, Only Australians should profit of central bank earning, Not elitists.
3: Make our currency real, If our dollar was backed by real money (Gold or Silver) then our ecconomy would be in much better shape and fair much stronger in the international market
4: Outlaw budget deficits, Our budget deficit is expected to be 30% of GDP come 2040, Why should a country spend more then it makes and impose unnecessary taxes on the people to pay for interest, The idea of borrowing is insane and not benificial to the people in anyway.
thats it, make currencies less liquidable!!
if you swim with all the other fish you will die/eaten up. be a shark.
who gives a shit who owns the rba or how low the dollar and interest rates fall or the dow reaches 5000 points.
history tells us inflation increases, shares slump, interest rates fall, yields. increase, property becomes more affordable etc.
As investors, the worst thing that could of happened is the rba cutting interest by a full 1%. This will limit our buying power time and quicken the next property boom. it might take 1-2 years for the cycle to start a steep upward trend but it will def happen.
Property fundamentals at the moment are extremely strong. massive undersupply, increasing population, billions and billions of dollars of infrustructure investment, increasing rental yields.
this is not the nineteen thirties when ppl were getting around on push bikes we survived on damper and pies!!
IMO buy discounted, smart, obscure properties, reno, strata, add value, increse rents, create equity and hold on to your seat for the biggest property boom in Australias history in the next 5 or so years.http://www.amatecon.com/gd/gdcandc.html
Depression?? 25% unemplyment rates, rba raising interest rates when the economies contracting, selling gold to increase liquidity, calm down ppl
gold has also traditionally been a hedge bet when inflation has been high. when the credit crisis is over and oil goes back to $150 a barrel, the price of gold will probably go through the roof.
Mister wrote:I chuckled after posting this question though, I must have been the only person in the country offering anything on anything last week of all weeks .Cheers
your not alone, trust me!
if your a true PI, you would be doing your best to buy at least a couple of IP before the years end, obviously 15% below the asking price.courses are a waste. unless you can overcome your fear of big debt and have the drive to buy multiple IP, I dont see the reason to attend. theres no point doing a course if your only want to buy a couple of IP's
if yields keep rising because of lower interest rates and huge rental demand, then wont house prices keep rising, resulting with the rich getting richer and the poor getting poorer? that is, by 2020 there will be a greater percentage of renters than todays percentage.
basic economics really!Scamp wrote:Wealthyjvd :– There are more and more rentals available on the market. Some units just won't rent out for over a year already.
– Credit isn't available to any fool anymore. ie : people on 40.000 wages won't be able to buy a 500.000 house anymore.WHERE???
ABS estimates that by the year 2030 50percent of australians will be living in rental accomodation, compared to around 33percent today. What will this do to rents with CPI increases only? setting aside prolonged shortages of supply.Scamp wrote:Wealthyjvd,This is how USA and UK financial markets and housing markets crashed. This is also how Australia will crash.
Only difference is Australia's crash will be MUCH bigger than UK and USA crash put together.Stay out of property… until you can buy for 200.000 instead of 500.000….
I think thats very unrealistic, I don't know anyone in Australia, in the past few years that was offered a 'honeymoon' interest rate of 3% for 3-5 years. Sure interest rates have been rising lately but that was needed to lower demand and stabilise prices in the medium term.
In the next few of years interest rates will drop, developers will start building new dwellings to try keep up with massive housing demand, 200K migrants a year will be coming to Australia and average house prices will nearly double as rental yields rise.answering your question, well IMO buy 2 properties yielding around 9% and one around 5%. That is two CF+ and offset the return into a high growth property. Keep renovating, increasing rents and drawing out your equity and in ten years you willl have more than 10 properties.
I dont know anyone who got wealthy through real estate by negatively gearing all the way. There is a problem called serviceability as well!!Only my opinion though.
Is Moura the next Moranbah?
If companies spend tens of millions of dollars to set up, I highly doubt that will pack up shop 12 months later if commodity prices fall. For example, if coal was to drop in price by a third, it is still viable for the mines to keep on mining. IMO they will amp up production regardless to keep theyre share price high.
http://news.bbc.co.uk/1/hi/programmes/newsnight/4330469.stmThe RBA has to lower interest for a number of reasons. Economic growth can not occur efficiently if rates are kept higher just to battle inflation. If the RBA leaves rates as they are or even raises them and demand slows considerably then stagflation might occur. This has already started to happen though as business confidence is at its lowest levels in seven years.
The RBA isn’t stupid and they are aware that Australias economy cant rely solely on the mining boom. It has to create activity in all business sectors, so the most effective way of doing this is to lower rates as much as possible without blowing out inflation again (2011-2014). This will eventually happen when world demand slows, the dollar falls and thus inflation falling.
Eventually banks will follow suit and lower rates as they will be competing with each other and non-institutional lenders. This is part of a normal economic cycle I think.
The biggest challenge Australia faces is the price of oil. If it reaches 200 a barrel in a couple of years(very likely thanks to Chinesse and Indian demand)inflation might hit double digits.
IMO only…The U.S. currently has a 15% foreclosure rate compared to Australias 1%. The only worse to come is going to be for those who aren't currently actively building their portfolio as we speak. You don't see Woolworths frantically selling and reducing debt. Their obviously building in rural mining towns…My opinion only.
How many IP do you own badger???
honest answer only though….
