Political & social debates about HECS is one thing. Ultimately it is the best ie cheapest loan at the best terms you will get anywhere.

If you can, go to uni, have the experience, live the life. You’ll never have a job where you finish in November, have summer holidays and come back in March!! Get it while you are young (Women are good value too!!)

Someone who works professionally would have the income to rent their own premises. And if they wanted to share, they would rent with a colleague or friend of their own choosing.

Based on experience of renting my properties and renting myself, I think the concept is not reading the needs of your prospective tenants. However, I am happy to proved wrong if it works for you.

I am no expert, but any of the major managed funds groups like BT, Commonwealth and there are heaps others. All have different share funds with different risk/return profiles.

Try google (share funds) it will point you to hours of more reading!

so looks like i need to read more, – boring!

Sorry, the grunt work is not exciting….Maybe as a first active step…share funds (possible overseas?) might be a good first step.. Start off with a few thousand and an a small amount from your pay to start the ball rolling….

It will start your investing now, get you in the habit to saving and allows you time also to research and yes…read…

Can’t see why you cannot do both. Study should be priority though (sorry to sound like your parents!)

You will have plenty of time between lectures, days off & weekends to undertake research without affecting your study or social life. In addition, univeristy experience is invaluable in dealing with different people and developing a critical mind. You’ll need those skills in investing…

Plus, it would be quite boring doing research on IP full-time….

Historically Australia has always run a CA deficit, admittedly not as large (as a % of GDP) that we have now.

Last time, this was deemed at a critical state, in the mid to late 80′, the increase in rates had little effect on the CAD. In fact at least initially, it increased it. The recession did though.

Interest lag effects IMO make this policy instrument ineffectual to address trade imbalances without unnecessary collateral damage.

You might find some more motivated vendors as a result, but on the flip side there will be motivated investors like yourself….

I am not sure the great bargains will materialise as much as some might epect, if we are talking 0.25 or even 0.5% increases. Might be different if it is 1%+, although from all the commentary around this seems very unlikely.

Unless of course you are from BIS Shrapnel! Whatever happened to their predictions?(and credibility?)

Even the news of an impending interest rate hike is enough sometimes to spook the market…..

had an approximate $34 increase per month per $100k. This precipitated a fall in the market depending on what figures you read of between 5-20%…

Are you refering to a specific property type, geographical location? This will have some impact on how much interest rates may impact its price.

Actually working backwards, baby boomer investment fuelled investment surge caused by realisation that pensions will be insufficient to sustain lifestyles in retirement. Governments paying less in real terms for pensions because of ageing population, which is caused by fall in fertility rate….So the ultimate blame to rest on people not having enough babies…Maybe Peter Costello was right!

Reminds me of the mantra from the Curtin Government, populate or perish….Of course we could increase immigration, but it would help if we didn’t lock them all up in camps!!!!!!!!![wink2]

I’d suggest inflationary expectations….as evidenced by Ian McFarlane’s comments today. Increase in rates will come in line with RBA’s expectation that inflation will increase..

In testimony to the parliament’s economics committee , Mr Macfarlane said while growth was slowing to annual rates below 3 per cent, the bank was concerned that bottlenecks could threaten the bank’s 2-3 per cent inflation target.

“It is up to the board to decide on the timing. But the public are aware that at this stage of the cycle it’s more likely that interest rates will go up than they will go the other way,” the governor said
AFR RBA flags rate rise despite slowdown 18/2/2005