Devaluing the dollar will leave internal problems here with wages vs asset values and, via fuel and food, inflation.Interesting article. I never claimed a fixed deposit was 'safer' than a mortgage, just that the returns would be greater over the course of the next year. Safeness depends on the liquidity of the bank.

There are some things the government can't stop and some things, if it is forward thinking enough, that it will allow to happen. Like letting assets devalue, for instance. Federal governement can't come out and say, "I have the solution and it is a 30% devaluation of all material assets across the board." State governements make too much in fees o…[Read more]

Sci Fi Horror flick,In Scamps defense the interest rate thing hasn't finished yet….In your defense, yes, the reasonably leveraged should survive.

The change process will hurt as it occurs but the outcome will be an improvement.Think of a bushfire. Dangerous while its burning but makes way for new flora and fauna to flourish. The new life makes the decrepid memory of the burnt past seem like it deserved it.

Why does a bank folding or take over have to be the end of the world? America is still functioning and will do with or without the bailout. Wall street folding does not mean people won't trade with other people for needed items.There were only 30% unemployed in the Great Depression in Australia (one of the highest rates in the world). Not everyone…[Read more]

Loan defaults, bank sells property and mortgagee still owes bank difference. Loan was only future money anyway, so bank is better off with real money from property and debt sales. Defaulters are better for liquidity than mortgages.15% is a reasonable figure during recessions and economic corrections. 20% is extreme but not impossible.Banks use cr…[Read more]

I said I stood corrected learning that all banks gave a cut last time the RBA did. When are you going to admit that the only way globalized banks with a lot of dangerous debt can make good in a dire economy is by raising rates? What would you preffer, Australia to be like America, or 15% mortgage rates? I know which one I'd go for.As for ANZ……[Read more]

WJ Hooker,Yea, the maths in the report is at my limits of understanding. It's pretty complex.I fully agree with adding to assets values. I believe a house with a pool, deck (well made), rumpus room (again well made), landscaped garden etc should be worth more and am prepared to pay more for any of those things.What we have seen in recent years is…[Read more]

Hey Harb,This is what I've been talking about with intrest rates…http://www.news.com.au/business/money/story/0,25479,24434215-5016110,00.html

The fed govt. starts its first home saver thing next month. They'll give you $850 each year if you put $5000 in an account. Small numbers but guaranteed 17% interest on $20000 over 4 years. Better than the banks are offerring.Downside is you have to wait 4 years to use it as a deposit. Unless you have a partner ready to but, then you can add your…[Read more]

devo76 wrote:
This will not last forever. Sentiment will change, credit will free up and asset values will climb back to where they are now and a boom after that will see them climb up even more. This repeats over and over. Why the beliefe that this time is different. Sure the length and magnitude of the slump is hard to predict but the end…[Read more]

harb wrote:
Are you worried about the rich not being able to make the repayments now ? Ever heard of negative gearing ? That's where the taxpayer helps you make the repayments now and in 2020 when you become positively geared you pay some tax back.

I'm not worried for myself.Negative gearing is under review.

harb wrote:
When rents go up high…[Read more]

alani wrote:
if yields keep rising because of lower interest rates and huge rental demand, then wont house prices keep rising, resulting with the rich getting richer and the poor getting poorer? that is, by 2020 there will be a greater percentage of renters than todays percentage. basic economics really!

alani, how do the tenants afford the…[Read more]

If the dishwasher is happy to be called susan, I'll take it – but only at a 30% discount to factor in negative future growth:)

harb wrote:
Ok, pick the times then. Oh and the reason I didn't go before '85 – the house was only built then but a similar one across the road was going for mid $25K in 1980 if that would help. Lets compare using 2 end of recession prices then…1985 – $48K, 1993 -$110K…Nope that didn't work either. By using your points in time it more then…[Read more]

Why don't you offer 15% below the advertised price to start (unless 14K is:)). Never know, the REA might be all bluff.1st offer I ever put on was 15% under and to my surprise the REA took me seriously. Said that the vendor wouldn't go under 300K (was advertised @ 349k and still is). I would have played the game some more and will start again in 12…[Read more]

harb wrote:
Ok then, if you are going to remain in denial why don't YOU pick the time frame ?  Btw, wasn't there a recession in the late 80s early 90s or does that not count because we had to have it ? And why did you think the 2008 figure was a bit high ? Its actually over 40k below the 2007 price and is a real example of what it could…[Read more]

Fixed rates are going down but I thought only 2 of the big 4 had so far come good on the promise to lower variable rates? If they have all lowered variable then i stand corrected.

harb wrote:
Mid 5s RBA rate not the variable rate but it could even get to that by X-mas 2009  if things are not picking up over the next 9 months. Someone else told me it was funny when during last May-June while most of the "expert economists" were calling  a couple more rate rises by X-mas I suggested the possibility of a couple of rate c…[Read more]

Write to the tenancy advice service in your area. I believe that in 2005 it bacame (nationally) a requirement that such lists were kept by the government agencies (tenancy advice services) and moved away from any kind of private REA/landlord lists. The REA or landlord now has to apply to the agency to get a tenant on an official list. All you w…[Read more]