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You don't want an upside down mortgage, they are not a good financial strategy, Especially if something happened to go wrong… That's why I said in a previous post that during the next few years some will prosper and some will loose everything they have.
We are experiencing a time of great wealth redistribution, I predict that while western living standards start to fall, Asian living standards will increase dramatically over the next decade, Mistakes you make now could set you in a devastating riptide in the near future.
Absolutely NO, 2009 is not the time to invest in property, You will find it will be loosing value for several years.
Yes, I remember all the guru's on this site telling how by late 2008 or early 2009 it would boom…. "The Mother of All Booms" to be exact.
Then there where the guys telling everyone on this site to Quickly put all there money in the stock market a few months back…. Now we are in 2009 to find the ASX in the 3300's
Like K Rudd and a lot of people on this site, They just do not understand economics, The government can't fix our economy by redistribution of wealth and continued shots of consumer spending, Nor will spending money we don't have on infrastructure change anything, Actually ANY government intervention will only cause a bad recession to turn into something worse then the 1930's depression. One example of making things worse is through the 21k housing grant, This is the government's bid to keep house prices at the unsustainable levels they are currently at, Falling house prices is the solution, Not the problem.
The same things applies to this so called big government spending on infrastructure to "get the economy going". If bob looses his job, Its the same thing as a financial adviser telling him to spend money on upgrading his kitchen or putting a swimming pool in the back yard, Its obviously that this type of childish action will only serve to worsen his economic problems.
In America they have just elected a new president and Obama plan's to solve the unemployment problems by creating millions of new government jobs, Government jobs are unproductive and only serve to increase the burden on the people, As its the citizens who pay for government to exist, The bigger the government the bigger the burden they place. This is something right out of the book of Marxism and Kevin seems to be leading us down the same path of socalism and away from free market policy's
The facts are that consumer spending is not what makes for a good economy, Hell, if this myth where true then America with there $8,000,000,000,000 debt and growing $1 trillion dollar trade deficits would make them the most economicly prosperous country on the earth. You can't spend your way out of a recession because the solution is actually consumer saving, Not spending. Economically strong country's are the ones who consume less then they produce and have savings so entrepreneurs can create growth and jobs.
Just like America we in Australia continue to consume more then we produce and this has been going on for some time, It may be viable for a short period but eventually there will be dire concequences, And NO, Our Natural resources are not enough to sustain our WHOLE economy.
http://www.dailyreckoning.com.au/trade-deficit-5/2008/04/08/
In 10 years time we will have a lower standard of living then we do today unless we totally turn our economy around the other way, If we continue on to long we will eventually become a broke country and possibly even turn into an undeveloped nation.
2009 will not be good year to earn money in either Australian Property or Stocks, As I have always said, the best assets will be precious metals like gold/silver and Asian Stocks.
In the next few years, the money savy people will earn much while stupid people you will see loose there fortunes…
Government boost fails to attract buyers
INTEREST rate cuts and the increase to the first-home buyers grant appear to have failed to restore confidence to the property market with auction clearance rates dropping sharply over the month.
The slide was most pronounced in Melbourne, which recorded its worst monthly clearance rate since January 2006, The Australian reported.
The November clearance rate in Melbourne was down five percentage points on the previous month, and was 22 points lower than the figure recorded for November last year.
Australian Property Monitors senior economist Liam O'Hara said the market remained "lacklustre".
"The market never really looked like it was going to improve. There were some seasonal factors that led to a small spike in weekly rates during the month but these were due to seasonal factors," he said. "It's very lacklustre and people are still quite fearful (of taking on) debt."
In Sydney, the November clearance rate also fell, down four points from October to 42 per cent, 17 points lower than it was last November.
Brisbane recorded its worst monthly figures since January 2005. The clearance rate of 23 per cent was six points lower than the figure recorded for October and 33 points lower than November 2007.
In Adelaide, the clearance rate crashed a further 11 points from October to 37 per cent – 33 points lower than November last year, and the city's worst result since the turn of the century.
Mr O'Hara said the market needed to see significant improvements before mid-2009 – when the Rudd Government's first-home buyers grant is due to be reduced – if there was to be any hope of a revival next year.
"That's really where the point of no-return is," he said.
Read more in The Australian.
As it is proven time and time again a cough lolly does not fix a cold, There will be no 2009 recovery or 2010 recovery for that matter, If you can't afford to stay in the market for quite some years and take some big losses then you need to get out and liquidate while you can with minimum losses, Don't continue staking your life savings on never to come good fortunes anytime soon.
Well actually unless you have a signed agreement then he does not really have a leg to stand on.
I don't really know the full story So its hard for me to comment, But if you really think your in the right then I would just pay him the $600 that you agreed on.
And no, Dont tell him to get F&^%
would would you wack all your cash into a term deposit and loose 10%+ of its purchasing power per year ? Buy gold instead, and you will make nice profits in 2009
How do you borrow money at 15% to develop and still make a profit ? Why the hell would you borrow at 15% when you can borrow at less then half that. If the developers have to pay that much to get money then it sounds a bit dodgy to me.
Phase 3 costs a fortune to setup
See the thing is, People are waiting out for some magical big event, But that's not how it works, If you want a look into the future then look at America, We are very similar to them, Only a few years behind.
I don't think the property markets will suddenly drop down 40%+ next year, But overall if there's less then a 10% drop in 2009 then I will be very surprised. A few years of -10% adds up very quickly.
Marc Faber sounds a lot like Gerald Celente, He has been very successful in predicting the same things, His current prediction is food and tax riots by 2012… very scary stuff, But not really over the top when you consider all the facts. http://www.youtube.com/watch?v=46MEqEgdLTg
Also there is Peter Shiff who is a very well known guy who says the dollar will crash and we will probably experience hyper inflation. Go to Wikepedia and look at the list of countrys that have experinced it. http://en.wikipedia.org/wiki/Hyperinflation
Like I say in all my posts the economy's of the west are fundamentaly very bad, Based on consuming rather then producing and building of credit and debt, Its inevitable for them to be cease being sustainiable for much longer. Every day I read the news there is a big list of companys either going broke or having mass layoff's. The spring can't be held down any longer, But our criminal government is insisting on throwing us deeper into the depression pit by masking the symtoms and not allowing the problem to resolve itself, Each bailout/Interest Cut/Handout and Money Print puts the cancer into the next stage.
Then there are the greedy, slimy, smily liars who know the economy is headed for the pooper but tell everyone now is the best time to put all your money on the line because the "Mother of all booms" is comming, Our economy is "Awesome" fundamentals are "Great" and they discredit everyone who says otherwise dispite the facts by calling them Doomer and Gloomers, Negative, Ignorant ect ect.
My Advice is to absorb as much information as you can, Learn economics, trends and current events, Read books, Articles everything you can, watch documentaries and try and stay away from the crap spread accross the mainstream media, Use alternative sources of information as your main guide.
Maybe if the crisis gets much worse the queen will Disolve Australian parlament like she just did in canada and set up her own dictatorship ? Can anyone say Lord Rudd……or how about Lord Harry ?
One of the best ways to keep your house cool/warm is to have installation, What is generally used is Pink Batts, Though don't opt for the sound proofing one because its crap.
Yes your right about the ducted air con, Its crap, Costs a mini fortune to buy and sucks to much power.
A few reverse cycle split systems around the house are the way to go, Say one for the main area, And one in the Main Bed, ect ect.
IP Freely is right, One of the best ways to keep the house cool is the use of things like shading from Blinds, Patio's Trees, Even the direction your house is facing can save a lot of money on your power bill. Also the internal design of your house is very important, A good designed house will save lots of power, Think of where is the best place to put doors ect to shut of zones for heating/cooling.
We have tried many brands of air conditioners from Fujitsu, Sony, Panasonic ect ect and found that probably Panasonic is the best
Oh, One more thing, If your going to get split systems, Make sure each air conditioner is overpowered for the Area you need it to cool, A high powered air con running at idle will use less power then a little baby one busting its guts out all day.
1% interest and 20% inflation, Just what we need to fix our economy
Pay your 100k home loan off, Then start thinking about getting greedy
I don't think we have seen the bottom, I think the current trend is still the same
Also there is the baby boomers who's entire retirement savings is in the stock market, They need to sell there stocks to support themselves.
Also I think we will see more dives when it becomes evident that company's continue to make smaller profits and go bankrupt.
stSo, No I don't think the past few months of turbulence has released all the kinetic energy built up from the past few decades of compounded leveraging within the stock market
The western world has turned into a population of mindless consuming zombies.
Have you heard the story of the wall mart worker who was killed in the black friday sales ?
The Zombies trampled him to death to get there cheap Xboxes and then refused to stop shopping when police came
Maybe David Rockerfella and his nwo are right, Maybe we need to reduce the world by 80% to get rid of all the zombie scum
Well don't just blow hot steam, Start naming Economists !
They will be "ha ha ha" which a stich when they have to sell up there investment properties next year and sell there brand new SS for $20k
I dont think that includes the $200, 000 block of land.
I dont know how many people have debt, and what debt they have. I thought that seing this was a property forum that most people would NOT be in debt…
Yup, Eventually the NWO plan is to bann all sites except for a few thousand gov approved ones..
Its called Internet2
Free speech is a very dangerous thing, and cannot be allowed to prosper if there plan is to succeed
There are already similar programs to this being implemented in England and America.
