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the last major nation to default which was Argentina with $95bn-worth of public debt. They went through this exact process not so long ago.
so it has happened in the past… The people who held real assets and not paper money were the big winners in a massive wealth transfer.
Most American products and manufacturing has moved to India, China and other developing countries because it is much cheaper to manufacture these goods. This is why everyone is confused why the USA isnt recovering..a big part of it is all their manufacting jobs have moved overseas. The same thing has happened here in Australia over the last 10 years.
If the U.S does default it will mean the country is bankrupt. That means all its banks will go bankrupt, there would be no cash in the ATM's. The people would use goods such as coffee or rice as barter as well as gold and silver. US housing would plummet again and it would be horrible.
China who holds a large part of Americas debt will not get there money back which means many chinese banks and companies may also fail.
With the two biggest economies down and out, it will effect us here in Australia. If china turns inwards it will not need out resources. We would certainly face recession at best.
But luckily this is all hypothetical…for now, but interesting to think about.
Some well respected economists are now saying it is mathematically impossible for the US to pay its debt and will have to default…how long they can string it along is another question all together.
that certainly puts things in perspective!
I'd rather get a library card, read these forums and take a 5k holiday
lol well said!
excellent article!
Here is the next article from the same author.
I’m about to buy my first investment property – where do I start?
Making the transition from buying your first home to property investing is all about changing the way you think. You will need to start thinking like a true investor focused on the numbers rather than how a property feels to you. It’s now all about what your tennants want, not what you want.
Read the rest here: http://propertytoolbox.com.au/property-update/?p=446
Do you agree with his strategy for buying investment property?
rich is just a crude work to mean wealthy
I know a few people who use this site:
http://www.rent.com.auits great especially if you manage any of the properties yourself as it allows you to create your own adds.
6k for a course. What a joke.
This information is not worh 6k, its not even worth 1k. You can get all this info plus more through books, online courses and this forum.
Keep your money.
just a bit of an update, our courses have been well received and we are getting just under 1000 people to the website a day. It has really blown us away!!!!
We have set up a promotion code for forum users. Please enter YES10 to receive a further 10% off your whole order in the promotion code section.
happy investing!
i forgot to mention we have a free course, it is a basic one but there is still some interesting info in there for first time buyers nad investors.
hope you find it useful!!!
https://propertytoolbox.com.au/coursecms/course/view/?name=Real_Estate_Rewards
plus now is a buyers market, they they have been in the past a rare event.
A house does not necesserally go up in value as soon as you finish a renovation or complete building a new home. It all depends on your suburb/towns performance. For example i just finished a renovation in a inner city suburb of Brisbane, but currently i cannot increase the rent to what it should be worth because many people who rented in those areas have now bought their first home thanks to government stimulous.
Becasue demand has droped so have prices. But it all goes in cycles and this time next year the values and rents will be where they should be.
Personally i never saved a deposit and paid LMI when i first started. Im a shocker at saving so it would have taken me many years to save 20%
investors provide a service. If you take away all the property investors you would be left with alot of empty houses in which you could not rent.
I understand your point but the free market rules and sets prices not investors.
Hi,
this may be a little out there for some people but it is really easy and has very low risk if you understand how it works
any spare cash i have i have been not putting in a bank account but investing in physical gold and silver. The reason is simple 'inflation'
Today i believe gold is quite expencive but its little brother silver is still very cheap and has many gains to go even at $25 ounce.
I started putting my cash into silver when it was $12 ounce 2 years ago. Obviously the price has doubled since then. No bank account will give you those returns. In addition when you account for the inflation level of 2.8% your really only gaining 2% interest in most savings accounts. Not the advertised 5%.If you want to know more i sugest you goto http://www.goldsilver.com to read up on investing in precious metals.
there is one thing i dont understand. If we have a true under-supple of property, then why arnt there buyers fighting for homes in the street.
I must say this whole under-supply statement has some flaws.
yeah i have to agree with you there Intrigue, the pros of property investment are made very clear to you while the risks are usualy never mentioned in seminars or books i have read.
we all know risk and reward are related
Whats interesting is that these are the same guys that predicted the credit crisis and bank folds. Now there predicitng a much worse crisis where countries fold.
All empires from the roman empire to the engligh empire all fell because of economic troubles. The question is not if the US will fall, but when?
Hi realcandy,
I am somewhat still bearish on the American market and wouldnt be suprised if prices will fall again there. Especailly now that there is talk of a double dip recession. All their leaders are saying there in recovery and the problems are over, but really all the issues that cause the first recession have not been touched and in some cases have been made worse.A friend of myn recently wrote an article comparing the US market with ours.
http://propertytoolbox.com.au/property-update/?p=50I am currently investing in Southport on the goldcoast. There is currently an oversupply of properties there and alot of new infrastructure going in. So there are pleanty of great deals locally.
If the contract fails you get back your deposit.
well thats been my experience anyway in QLD.
It would be nice to use a formula to work out exactly what your investment property is worth.
Bottom line is your property is worth what the market says it is at time of sale. Sure its great to work out what price point you need to sell in order to make a profit or break even, but it always comes down to what someone will pay. They will not take into consideration your holding costs when putting the money down.
