btw, it will take at least 10 years before your prices return to current prices. I'm just talking about the bottom of the market between 2011 and 2021, not the return of 2007 prices, that will take much longer.

The property market will not go back up until at the very least 2010. This is a very optimistic already. Expect the housing market to bottom out around 2011-2021, depending how much the government is planning to mess with this crisis. The more messing , the longer it will take. Average houseprices = 4* average income.Sydney average houseprices =…[Read more]

I wonder how stu_macca's investment properties are doing now.I guess the dropping dollar didn't magically add 30% to the profits of the mining companies after all , did they ?Sincerely though stu I hope you're doing ok m8, I don't wish misery on anyone : Let us know how you're doing please.

Building now you can get 30-50% off the price of tradies. Tradies are DYING for work, and you can get your house cheaper than ever. Also commodities have come down so raw materials are cheaper. I think now is a good time to buy if you have the cash and means. Don't buy anything , wait till at least 2010 at least. Depending on which intervention…[Read more]

Agreed with Crashy. This warning comes 2 years too late Steve…There were others ( including me ) who said this would happen over a year ago. We even explained why it would happen and how long it would take before we would see the results.Our warning came 1 year ago and predicted this thing to the exact month ( January 2009 ).

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the bottom of the propertymarket will be when property prices dropped 50% from 2007 high prices. when that is, noone can say. Depends how much money the government is going to spend delaying the inevitable.Initially the bottom would have hit around 2009. The bailouts have now delayed that to mid 2010. Maybe some more bailouts or law changes will…[Read more]

why ask for historical data when you can have data in the future ?in 2010 , houseprices will be back to 3 times average income, which means average home will cost 120.000AUD$ – 200.000AUD$, depending whether you're in sydney or not. Anyone who questions this is biased or has a property already and doesn't WANT the prices to come down. Just wait,…[Read more]

what you should be worried about negative gearing, in particular the fact that it won't exist for much longer.Can you still afford it then ? If you can't you obviously are in deep trouble.

James62 wrote:
What do other investors think? 

what I think ? I think you should have taken my advice 6 months ago when you could still have sold your house for 360K. Houseprices will fall 50% overall. Some might drop only 30% , some will drop 90% or even a 100% ( you will be able to buy it for 1 AUD$ ). Yes, that's what I think. Read my…[Read more]

devo76 wrote:
All crap aside. These are very interesting times and if you are under 30 you are about to see a environment that who have not seen before. Am i worried. Yes. It would be stupid not to be. Am i happy with my position. Yes. I have a good buffer,secure job,50% LVR and loans approved to buy more if a bargain appears.Fact is life goes…[Read more]

harb wrote:

Scamp wrote:
yep , me too, positive about the sharemarkets in the future. Much more money to be made on shares than on property. Renting and investing is a much better option than buying a property.

And how would you go about investing in the sharemarket if you had no money ?

Quote:
You cannot invest what you don't have. Banks…[Read more]

god_of_money wrote:
Hi Kevin… That is what exactly I was doing over the last 12-18 months pluging cash into PPOR loan.. my understanding the market has changed and in the current market… as IR is falling  and dividend yield is more appealing in the next 12months.I still don't understand why people are selling while the market is c…[Read more]

stu_macca wrote:
Must admit that one confused me Scamp.  Just looks like a straight 30% margin gain.  Reduced demand for steel caused by a recession could be a worry though (lots of coal gets used in making steel).  Still, 80%+ of our energy generation comes from burning coal (unfortunately), and China still seems to have an insatiable ap…[Read more]

god_of_money wrote:
I am confused…. interest rates on the way down.. with prediction of some economist predict further cut next year…Used to be lots lots of bullish comments about investment when the interest rates reaching its peak…bla bla bla long term value…dividend yield 10% and rental price still on the way up (better than 3-4…[Read more]

Ajax wrote:
Scamp,explain your logic here"AUD has fallen 30% already over the past few months. It will drop more because of the interest rate drop. This is 30% less profit for mining. "If the AUD has fallen by 30% and continues to fall then all other things being equal mining revenue received for contracts priced in $US commodity prices would…[Read more]

CHIS wrote:
Other countries in the world are on a totally different economic cycle to America. America sent itself broke on needless wars and ridiculous lending to sub primers.Russia is boomingAsia is boomingAustralia is booming

oh.. wait a minute. Russia is booming : Is that why they stopped trade on the sharemarkets twice because they were…[Read more]

yep , me too, positive about the sharemarkets in the future. Much more money to be made on shares than on property. Renting and investing is a much better option than buying a property. Why lose 50K a year and even more on capital losses, if you can make 100K a year with the same investment ?Doesn't make a lot of sense to me. I'd rather invest my…[Read more]

ErikH wrote:
My views:The 30% drop in AUD had NOTHING to do with interest rates, but everything with the carry trade unwinding, that is institutions borrowing in low interest JPY and investing in high interest AUD/NZD. These trades were unwinding because of risk in the financial markets as a result of the credit crunch. This became a self…[Read more]

mortgage resets are a problem. The fact that it's not visible yet means nothing. Everything takes time. The fact that the US dollar has risen has to do with the offselling from hedgefunds as requested by ( amongst others european ) banks. This is done in dollars which will be shed very soon. The dollar is plunging , and will plunge much deeper.…[Read more]