bardon wrote:
This is how it works, you buy a place and rent it out. The rent increases, that is all. No delusion, no spin, just the facts.

Rents rise while home values fall by 2.7 per cent in 2011</font

http://www.rpdata.com/research/rents_rise_while_home_values_fall_by_2.7_per_cent_in_2011.html

Can’t see a winner here.

………”No…[Read more]

bardon wrote:

Lets face it most investors bough a property with a known cash flow. This cash flow is improving and will get better. The buy and and holds just need to enjoy their improved lifestyle and reduced holding costs and savour how lucky the are in this very much sought after country.

Bardon I’m not sure if you’re willingly…[Read more]

Bardon, ran across these comments at MB. Even though they’re anecdotal they add weight to the real world events happening out there as opposed to the data and statistics.

SMc….In my opinion its already started.. I live in Sydney and have the fortune or perhaps financial misfortune to live in Mosman.. take one look at military road and count the…[Read more]

bardon wrote:
But anyone buying into the Sydney market at market price are not shitting themselves right now about negative equity, debt serving or how much their joint is worth, that ‘s for sure.

Not sure I’d agree with that. Our high net worth clients where time and cash poor. There’s a keep up with the Jones’ mentality in the upper markets…[Read more]

bardon wrote:

Steady on their Freckle, any fecker that bought a joint in Sydney 98/99 didn’t see a crash, wont see a crash on what they bought in at and as far as wage growth is concerned have blown their debt out the water in the thirteen years since.

No we didn’t see a crash obviously and I was way ahead of the game so to speak. What…[Read more]

From MB today

Something Just Snapped in the Economy (Link)

In short, this report is suggesting that we are headed into recession. Add in the R.P.Data Index of a resumption of house price falls in April and I’m getting the distinct impression that we’re going through some kind of freeze in aggregate demand.

If I had to pick a cause, I’d…[Read more]

grantos_champos wrote:
The Freckle,Are you a former member by the name of JackFlash? Your posts seem very similar and both from Port Hedland. Excuse me if I'm wrong.

Know him well he sends his regards

The freckle

Ian you’re a little ray of sunshine.

You’re on the money mostly for my part. As they say; hope for the best plan for the worst.

Where I would disagree is

Time to stop trying to figure out the world’s woes here

this is exactly the right place to discuss issues like this. Forums (and Blogs) are some of the best information and learning tools…[Read more]

scha9799 wrote:
Hi Freckle,I really appreciated your research, stat. and opinion?I am here just wondering where do you live ? what kind of car do you have? how many properties do you have ?also if OZ property market collapse what will you do ? ( what will you invest in ? or where will park your money ?)more, in next 3 years which asset class…[Read more]

This Is the First Time In History that All Central Banks Have Printed Money at the Same Time … And They’re Failing Miserably 01/05/2012

http://www.zerohedge.com/contributed/2012-18-01/first-time-history-all-central-banks-have-printed-money-same-time-%E2%80%A6-and-they%E2%80%99

Four of the world’s largest central banks have gone absol…[Read more]

bandwagon wrote:

If you do have IPs, I’m stumped as to where you have invested?

I saw the writing on the wall years ago but like many others thought the great correction would have happened much sooner. What we didn’t realise was the lengths governments and central banks would go to in propping up a failing system. I have absolutely no…[Read more]

For Luke and other non believers with cognitive dissonance.

The exponential growth in debt and declining GDP is accelerating as the massive debt loads drag on growth. Debt loads are being managed by artificially (market manipulation) suppressing interest rates. A 1% rise in US treasuries would literally cripple The US overnight.

Govt figures are…[Read more]

bardon wrote:

I am in awe of your economic knowledge and readings.

On average I would read 1 – 3hrs of material a day. Compared to many what I know wouldn’t fill the back of a postage stamp.

The Freckle

scha9799 wrote:
wow I am really interested in what you guys saying now !!I think end of the day if you scared of the big crush, then sell all your properties ….. then end of the stories.

Not necessarily. There are arguments that support holding property in such a crises. The arguments do not centre around whether or not you loose your shirt…[Read more]

bardon wrote:

Well if the price of that house and its rents are higher now than they were way back when, then they have conformed to the general rule, no ?

“No time in history” is a very long time for you to have a comprehensive economic knowledge of.

You talk as if rents and asset prices increase in a linear fashion when they don’t. At…[Read more]

luke86 wrote:
Freckle- The sky will not fall in and the sun will rise tomorrow.

True but for how long.

Some countries have a debt prioblem but most do not.

Luke do you live in an information vacuum or something

I strongly disagree with your statement that every major economy is near collapse.

Then you don’t appreciate the interconnected…[Read more]

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 Australia will not…[Read more]

bardon wrote:

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

What? Prices and rents?

I’m from Christchurch so its a radically different market since the earthquakes. A fair chunk of the housing stock is to be condemned and the areas not rebuilt on. You can’t rent for love nor money at the moment while rebuilding kicks in. Rents…[Read more]

Ninder wrote:
I've got only 10 years to retire and am hoping to get into somethng with capital growth.

Seems to be something of a panic on as those nearing their desired retiring age look to make up shortfalls in retirement funding. You guys often see property as an easy answer to topping up.

I think we’ll see a lot of ppl like yourself jump…[Read more]

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.

Note the plunge in inflation.

Corresponding drop in interest rates

But the killer was the plunge in house prices.

The Freckle