Forum Replies Created
How about the GHPC Australian Property Discussion Forum here: http://tinyurl.com/2drg6h
Cheers, F. [cowboy2]
DraconisV wrote:Masih wrote:Besides, the more rate rises, the higher the rentals as most people wont be able to afford to a buy a house. So demand for rental properties will definitly go up.Thats exactly what I think too.
You will have more expenses but more income, balancing it out.
The difference is the stall(or slow down) of rising prices.
I will be getting into the market for the first time around the end of 2009(start of 2010) and I want to see rates go up and up and up, coz I know that rents will go up balancing the rate rises, and will stop prices going up between now and when I am ready to buy some property. The rising rents may not cover the rate rises, but they do help balance.Come on rates, i want more, higher, come on!!.
Lol, talk about doign things differently, high rates rock.
Nice theory guys, and rather convenient. Conveniently optimistic. I can't see any evidence of high interest rates leading to high rents, but, hey, I've only done the analysis and you've thought it through, right?
Have you checked out whether the claims of a housing shortage have any statistical basis (aside from REIx spin)?
Cheers, F. [cowboy2]
erratik, that's it in a nutshell. Maybe not tomorrow, maybe not next year… but unless we find a supplementary industry the size of our current natural resources industry, we're headed for the worst correction in living memory. Most likely the greatest depression in our nation's history. Both the 1890s and 1930s depressions were preceded by just such a credit conundrum. This time it's just much bigger:
Now back on topic: The RBA has raised interest rates another 0.25% this morning, with fairly hawkish warnings of inflation breaching 3% by Q1 next year.
F. [cowboy2]
Yossarian wrote:If you're running a current account deficit of biblical proportions in the midst of an export bonanza and then the music stops….Of course, if we had taken advantage of the most significant boom in living memory by investing in skills, infrastructure and education rather than creating the world's largest election pork barrell, perhaps we'd have plan B……
We do have a plan B. Borrow money.
Wrap your head around this one… we have been borrowing money (at a national level – ie private debt) much faster than we've been earning money (at a national level – GDP). This is an unsustainable practise. However, if we had only ever borrowed at a sustainable rate, our economy would have been in recession for several years. This unsustainable borrowing/spending spree will naturally end at some point and we'll go into recession (declining GDP). What effect does that have on the aforementioned 'sustainable rate' of credit growth?
Cheers, F. [cowboy2]
Yossarian wrote:Nix,
The question I would ask is whether you are looking to invest or speculate. That is, is your expectation a quick return your goal or a longer term hold. If the former, I wouldn't consider it an appropriate first time play.Now that is good advice! You got a license for that Yossarian?
