The RBA did nothing wrong.

The property market had been hot since 1999 in a Pre GST rush. When GST finished, the rush died, and the Builders did a Big winge. JH did not want anyone saying “GST sent me broke ” and so we had the first home owners grant.

It was not the low rates that created the bubble but the grant. Other markets have been hot…[Read more]

The prediction on the stock slump is floored.

1. If they have to draw down on there 401s what will they do with it all. Go to Vegas. Don’t think so. They will need an investment to live on.
If shares start to go down, would that not be an attractive alternative to cash ??? Also in the US the Boomers do not dominate the demographic like they do…[Read more]

Michael, I can’t wait, Paul should be paid for by the Government as a community service.

You forgot the other one…”hot Repossessions”…
this week we go to Kellyville where Simon and Sue are fighting to sell the home before the bank moves in….seems when they dropped their deposits on the “off the plan” units, they had a bit of a gap in their…[Read more]

Stephen, on the interest rate, I am going for a rise, I think the signs are that our monthly deficit needs a hand to be brought down, and the last rise did not seem to move the rate too much. The UK & (I think) NZ reserves raised rates at the same time, and with the UK property market also flagged as running hot in the UK it may happen again.

re…[Read more]

Re the comment on putting up rent on the first opportunity, I worked with a US ex pat, who rented in a large development in Pyrmont in around 1995-1996. Every six months he moved. Could always find cheaper rent in the same block. Bouhgt his own trolley and used to get some friends over on a Saturday morning to help move. Got quite good at it. In…[Read more]

Firstly due to the media, (the Wentworth Courier..a local paper Sydney is about the size of a Metropolitan Telephone book..and lets not start on the TV shows ) a lot of people have had a vested interest in the statistics that have been thrown around..ie the immigration rate, the dept responsible said that there had been a mistake in recent years…[Read more]

Although there have been concerns about property investors overstimulating the economy, the broader problem is that among the wider population, people, because of there increased equity, are spending more than they earn.
Business is gathering pace very strongly AND rates are moving up O/S.

The big question is the US, which due to the war “they…[Read more]

Re the comment on the margin call, yes I understand that some loans do have the capacity to force a sale (repossess …whatever ) if the value drops a certain percentage under the loan.

Got this from a broker at an informal lunch meeting of professionals,(accountants / liquidators etc ) certainly not an expert in this area.
Would come down to…[Read more]