HOUSING prices have a lot further to fall and investors should brace themselves for a hard landing, Reserve Bank governor Ian Macfarlane warned yesterday.
“We expect the housing market will continue to go through a much-needed cooling phase for some time yet,” he said….
http://finance.news.com.au/common/story_page/0,4057,9751611%255E462,00.html
Thanks wayne for posting that :o) When Ian McFarlane says it, people should listen, I reckon. Oh well, buyer’s market!!
Wayne, as a matter of interest, you invest in IP’s, yes? I know you do shares also, but are you into property? Will you be buying in this flatter market, wayne?
kay henry
WHat a load of crap, he says what he says to try to control the market just like the rest of the media.
It is all what you make of it and how you do itDid that say nothing?
Excellent!
kevI disagree, krazystyler… I believe McFarlane’s comments are reporting *on* the state of the market, not creating it… What are you worried about? If the market drops, you can buy more IP’s.
In an evidence-based way, krazystyler, why do you think his comments are “crap”? Have you not noticed a cooling of the market? Do you have any other comments to support your words besides it just being all “crap”?
kay henry
Ian McFarlaine is the Governor of the RBA, of whose responsibilities include amongst others
1. monteray policy
2. objective of achieving low and stable inflation over the medium term
3. maintaining financial system stability and promoting the safety and efficiency of the payments systemIf there is someone, who does not have a vested interest in talking down or talking up an investment class (eg property), it is the Reserve Bank and its Governor.
His comments are measured and informative, as he provides a broad economic view, without the spin that we endure from the politicians. However, I personally disagree with his views on reducing incentives from negative gearing. The costs you can claim against property is no different to those that a business has available to itself. We all saw the effect that flowed on from Keating’s attempt to take away negative gearing in the 80’s.
One thing that is overlooked,IMO, is if you have investment properties (or even PPOR), and their price has reduced, so what. As long as you can continue to service the repayments and other costs. Longer-term property is a good investment, so maybe the more immediate pressing issue is going to be the opposite of ‘wealth effect’ (refer Alan Kohler in todays Age & SMH).
James
Originally posted by georgisj:One thing that is overlooked,IMO, is if you have investment properties (or even PPOR), and their price has reduced, so what. As long as you can continue to service the repayments and other costs. Longer-term property is a good investment…
Give the boy a cigar!!! [cigar][cigar][cigar]
Thanks georgisj, I couldn’t have put it better myself !!!!
What is the big deal???? If you are a long term buy & hold type of investor, a reduction in price should not be of concern, unless….you have loan serviceability issues, and as such need to off-load the burden!!!Cheers,
Jo
The lull has settled, the prices will rise once again, but just slowly, that is until early next year anyway.
It all happens because i say so.
nerrKev[buz2]
KrazyStyler,
Nothing ‘Krazy’ about you my man, just all’STYLE’
Cheers,
Gatsby!“There are pockets where the landing is going to be very hard,” he said.
once again… depends which market you are looking at. Perth took a breather around jan – apr but is set to run again – the threat of first home owners swamping the market on 1st July actually seems to be driving the market pretty hard now, contrary to my prediction that there would be pause in the market. I am noticing many properties selling and enquiry levels really picking up in the last week or two. Properties that I wish to secure seem to be being snaped up very quickly. I doubt if places like Karratha are seeing a slow down either. Still I wouldn’t like to be holding a contract for an OTP apartment in inner Sydney/Melbourne at the moment – but that was written on the wall long ago so no surprises there.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Originally posted by kay henry:
[Wayne, as a matter of interest, you invest in IP’s, yes? I know you do shares also, but are you into property? Will you be buying in this flatter market, wayne?kay henry
Kay,
At present I don’t own any property at all. Sold up late last year. Missus owns three properties in England. Two 4 bed detached houses in Somerset, near Yeovil and an acre plot with a three bed detached in Horsham,West Sussex. She has been fortunate enough to inherit these and they won’t be sold.
I do my investing on a risk/reward basis and my opinion is that there is more risk than potential reward at the moment. (Thats just the way I see it and everyone is of course fully entitled to disagree)
However we are cashed up, waiting, watching… and when risk/reward becomes favorable we will be buying with ears pinned back…probably in the UK though. This way we can take advantage of the additional equity at our disposal…not to mention better yields.
I suspect this could still be 2-3 years away.
Meantime the stockmarket thing is chugging along to satisfaction, so feel absolutely no compulsion to buy now for funding retirement etc
Cheers
See……. I know all…….
This is happening in many places again already.
Read the market and sales, areas and specifics, not the blimmen media and people who are trying to controll the market.
I controll the market!
lol“There are pockets where the landing is going to be very hard,” he said.
once again… depends which market you are looking at. Perth took a breather around jan – apr but is set to run again – the threat of first home owners swamping the market on 1st July actually seems to be driving the market pretty hard now, contrary to my prediction that there would be pause in the market. I am noticing many properties selling and enquiry levels really picking up in the last week or two. Properties that I wish to secure seem to be being snaped up very quickly. I doubt if places like Karratha are seeing a slow down either. Still I wouldn’t like to be holding a contract for an OTP apartment in inner Sydney/Melbourne at the moment – but that was written on the wall long ago so no surprises there.
Ahahahahahah see im always right.
Kevbla bla bla……….just make sure you always have buffers in place and dont have all your properties in the one location. rates will rise, markets will plateau, just keep em rented and service the loans. have a buffer in place that will cover a few rate rises and its all good
if you have the buffer you will know in advance when its either time to refinance or get out.always know what you have up your sleeve, its simple
Looks like balanced commments to me.
There wouldn’t be much point in him trying to influence the market with those comments – if he was he’d be so slick most people would miss it
BenDo any of you listen to what happens in the US at all?
Unfortunately our markets are influenced by what happens there. Alan Greenspan has just announced he will take every possible step to curb inflation – I read that as putting interest rates up.
When he puts rates up it paves the way for NZ and Aus to put rates up. Rates go up, demand goes down and hence prices – (price elasticity of demand)
If our rates do not rise with the US our currencies get hammered.
In saying all this, Greenspan could just be talking inflation down.
The joys of crystal ball gazing. While the jury is out on this one I personally will not overextend myself, but I am still buying.
Cheers
Jeff
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