real estate agenst love change in the market, just as stockbrokers do. They don’t care if prices are going up or down, so long as there is a deal. I would expect the mortgage broking business to be linked to these sales.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
I love it when some one posts a new topic and it goes side ways!!
Matt R when i was 19 i owned my 1st investment property, why haven’t u done the same.
Most lawyers i know have their hands in some one elses pockets and not their own (just kidding)
And who was the idiot that paid $2,500.00 for a 30min chat, what a load of crap how about faxing the invoice?? i use several barristors and they don’t charge that – r u 4 real …
resiwealth
Originally posted by The Mortgage Adviser:dmichie,
A few questions…
Why are you in a property investng forum if you are so against property investors?
Are you jealous because you cannot afford to buy any property or do not have the knowledge to find a way?
I’m interested to hear your long-winded, statistically-enhanced answers to these questions
Robert Bou-Hamdan
Mortgage AdviserShorter, interesting post. Your point???
Robert Bou-Hamdan
Mortgage AdviserHi Robert
My point was to show that with all the facts and figures being spruiked by dmichie, your questions didn’t get answered and I was wondering the same thing – why would you “hang around” a property investing forum if your so negative about property investment?
Shorter, I don’t think The Mortgage Adviser can answer that because he is an expert with no real investing knowledge.
An expert is a drip under pressure … show me you portfolio or get mum to tuck u into bed.
Hi Resiwealth
Actually I was asking why dmichie hadn’t answered Robert’s questions about being involved in property investing forums.
Sorry for the confusion
Originally posted by resiwealth:Shorter, I don’t think The Mortgage Adviser can answer that because he is an expert with no real investing knowledge.
An expert is a drip under pressure … show me you portfolio or get mum to tuck u into bed.
Hi Resi,
You seem to know me so well. I wonder if you are Mr Philip Sigglekow of Residential Wealth Pty Ltd himself or just some tosser stealing someone else’s name to promote yourself as the almighty investor.
Either way, in the scheme of things, you mean absolutely nothing to me.
Have a nice night.
Robert Bou-Hamdan
Mortgage AdviserOriginally posted by resiwealth:I love it when some one posts a new topic and it goes side ways!!
Matt R when i was 19 i owned my 1st investment property, why haven’t u done the same.
resiwealth
Hi resi. thanks for the welcome. The reason i didn’t buy a property at 19 is because i graduated froms school at 17, and went straight onto uni. Hence no income. I have had a part time job, but it was literally just enough to get myself a car, and to pay for running costs. My brother on the other hand went straight into the workforce at 18, and now has 10 properties (this occured over 3 years). So it really makes you wonder which way is the right way. Once again thanks for the welcome.
Matt R (Gold Coast)
Hahahahaha this is great slapstick [biggrin]
One point… there are bulls and there are bears. Do you think a property investment forum should only have bulls? The topics would be rather banal don’t you think? And a bear forum would be worse than dull, it would be down right depressing. So stop questioning peoples motives for posting, they have as much right to as you. If you want nothing more than rally cries, create a new forum. Call it http://www.propertydoublesevery7years.com. But last time I checked, this site was more generically named propertyinvesting.com
Bulls and Bears are not the same as Wishful thinkers and manic depressants
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Originally posted by resiwealth:I love it when some one posts a new topic and it goes side ways!!
Matt R when i was 19 i owned my 1st investment property, why haven’t u done the same.
Most lawyers i know have their hands in some one elses pockets and not their own (just kidding)
And who was the idiot that paid $2,500.00 for a 30min chat, what a load of crap how about faxing the invoice?? i use several barristors and they don’t charge that – r u 4 real …
resiwealth
I assume you are referring to me – I haven’t paid it so can I reclaim my intellectual abilities if you don’t mind? not sure what your drivelling on about faxing or something? But yes I am for real and it has happened, not sure why you are having so much difficulty grasping this.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Sorry, been away for a couple of days. I’ll answer these questions:
Why are you in a property investng forum if you are so against property investors?I believe the Australian economy is in serious trouble, and that property speculation is one of the root causes of our economic problems. Sure, on the surface everything looks rosy; unemployment is low, economic growth is strong, inflation is under control (as long as you don’t include house prices in the CPI). But have you ever asked yourself where all this wealth is coming from? We don’t seem to manufacture much (everything we buy comes from East Asia). We don’t have a high-technology industry to speak of (that happens in America). Indeed, we don’t sell much to the rest of the world (as can be seen by our horrific trade deficit figures) so why is our economy so strong? The answer is debt, and most of that debt is housing debt. The Australian economy has been relying increasingly on debt to a point where we now have a negative savings rate. We are literally using our houses as ATMs to borrow more and spend more in a manic spiral of debt that can only end in disaster.
When the debt bubble bursts the consequences will be devastating, and a lot of struggling home owners will be saddled with debt for many years. They will learn the harsh lesson that their debt is real, but the value of their house was illusory.
The CEO of Westpac (David Morgan) had some interesting things to say today:
“The downturn will come at some stage and when it does, there are going to be some ugly pockets of adjustment in the housing sector.”Morgan has been around long enough to have experienced the bust of the early 90s (more than I can say for some of the people on this forum) and is being extremely cautious at the moment.
Some articles to read (sorry for endlessly posting links to support my arguments)
Economic gloom as deficit blows out
http://smh.com.au/news/Business/Economic-gloom-as-deficit-blows-out/2005/05/05/1115092628743.htmlWestpac keeps its powder dry
http://smh.com.au/news/Business/Westpac-keeps-its-powder-dry/2005/05/05/1115092628749.htmlTough times for retailers
http://www.abc.net.au/am/content/2005/s1360713.htmShocking trade numbers have markets stunned
http://www.abc.net.au/worldtoday/content/2005/s1360777.htmAre you jealous because you cannot afford to buy any property or do not have the knowledge to find a way?Its not exactly difficult to borrow money these days. If you have a pulse someone will lend you money. About 12 months ago I had some vague interest in an investment property. For a giggle I thought I’d find out how much the bank would lend me. To my astonishment I walked out of the branch 15 minutes later with a pre-approval for $1 million. That’s when I knew things had gone haywire.
BTW, the “jealous” remark was unnecessary and uncalled for.
There is that forum sensitivity again.
The ‘jealous’ comment refers to property investors who actually make good money in all economic climates. Instead of preaching doom and gloom and sitting there with money in the bank earning nothing, they get on with it and have an educated go.
Instead of regurgitating other people’s negative economic commentary, why don’t you tell us what you consider to be a good investment and show some positivity and originality for a change?
Robert Bou-Hamdan
Mortgage Advisersorry to depress you even more, but thought this was in the spirit of the moment:
http://www.theaustralian.news.com.au/common/story_page/0,5744,15194375%255E2702,00.html
I don’t see over investment in property as the source of all woes in this country. Contributing factors include: lack of access to capital, small population hence insignificant on the world scene, no entrepreneurial culture, shocking tax rates, obsession with giving farmers a fair go, tall poppy syndrome, lack of respect for white collar achievements, too much focus on sport… could go on all day actually. But I could also list as many positives.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
ps – thank god you are back dmichie – was getting a bit quiet around here
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Here’s some more grim news for good measure:
http://www.henrythornton.com/article.asp?article_id=3275The ABS today told us that the trade balance (sa) in the March quarter was -A$7072m, up from -A$6700m in the December quarter.If the net income deficit rises as it has in the last three quarters, net income in the March quarter will amount to -A$9100m. The current account deficit would be A$16172m.
If GDP rises from A$214031m in the December quarter to A$220000m (a big increase), the CAD/GDP in the March quarter will be 7.35%. If GDP is unchanged, the CAD is 7.55% of GDP.
December quarter was 7.1% (but may be revised down a touch if the ABS is right in its new seasonal adjustments), September quarter 6.75% and June quarter last year 5.65%. The four quarters to the March quarter 2005 (my preferred measure) would be 6.7%.
Alex Erskine comments: “This is a huge CAD by any standards, and makes us think RBA will not be able to ease up on its rhetoric on needing to restrain a growing imbalance between supply and demand that will fuel inflation (and put the economy at risk of external crisis – not that the RBA would say such a thing) if the gap is not closed. The rise in iron ore and coal exports – which is yet to flow through to the export data – is desperately needed.”
This monster CAD has come despite recent evidence of falling housing approvals, weak retail sales, “acceptable” inflation and record terms of trade.
The general conclusion about this unholy conjunction is that the Australian economy is far less competitive than we like to imagine.
If domestic demand remains weak, competitiveness may not deteriorate from here and import volumes may decline, or at least stop growing.
If global growth continues then export volumes may rise.
If the export/import balance improves and the terms of trade stay high, or rise further, the CAD may improve. Remember that global interest rates are rising and this makes Australia’s debt service – already large because our international debts are large – larger.
If international investors decide Australia’s CAD is too big, the exchange rate will drop and market rates of interest will rise. This will eventually restore competitiveness, but if the necessary movements are large there would be considerable damage to prospects for growth and jobs.
It is white knuckle time for the economy, and our leaders are fighting for control of the steering wheel.
Further commentary, 6/5.
Tim Colebatch points to Australia’s rising international debt; this will create a further deficit as global interest rates rise..
Note Westpac chief David Morgan’s cautious tone, and his suggestion that we’d have been better off if the Reserve Bank had raised interest rates sooner. Hear, hear, Dr Morgan.
Let’s all hide our money under our matress and committ suicide shall we?
Shock me… try answer my earlier question.
Robert Bou-Hamdan
Mortgage Adviserfrom the ABC article above: “ELEANOR HALL: So, what do these figures then say about the Reserve Bank’s decision this week to keep interest rates on hold? Does it say that it was the right thing or the wrong thing to do?
STEPHEN LONG: Well, I think that for those who read these figures as suggesting that there is a fundamental weakness in the economy, they’ll be glad that the Reserve has stayed its hand. And it does lend support to the Reserve Bank’s decision in that sense.
On the other hand, if you read the figures that way, that they are showing a weakness and a slowing in the economy, and fundamental structural problems, they raise questions about the Reserve Bank’s decision to lift rates in March.”
It seems the RBA may have jumped too soon to raise interest rates. next move may be down?
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Instead of regurgitating other people’s negative economic commentary, why don’t you tell us what you consider to be a good investment and show some positivity and originality for a change?Just because I don’t have a positive economic outlook at the moment doesn’t mean I don’t have original thoughts. As I’ve said before, I think the next few years will be about preservation of capital rather than maximising capital growth and yields. Now you might consider bank returns “lame”, but +6% in the bank might look pretty good compared with -20% in property (and it could be worse)
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