Interesting point.
When rates were 17%+ the average loan was about $80K.
So whilst wages have increased somewhat the major difference today is that the average loan in larger cities is approaching $300K. Many people in Sydney have borrowed $500K+.
So a rate rise doesn’t have to be as it was in the late 80s or early 90s to really hurt.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yeh and add to that the higher leves of credit card and other debt that the average Joe Bloggs has and we can see why there must be some rather concerned people out there.
I can’t resist popping my tuppence worth in on this thread. My gender definately impacts on how my family invests money. Trust me, if I don’t like the attitude of the real estate agent we do not buy the house. [exhappy]
My husband is resigned to the fact that unless the agent knows how to treat me as an equal human being then they don’t have a chance with a sale. Same goes with the tradies when it comes to building work and renos.
Any investment advice given by another woman is usually welcomed by me. I know she will present the information so that it can be assimilated into my full and demanding schedule. I’m not saying I haven’t had some good avice from men. I have. But usually its been from men who appreciates that women enjoy the process of learning as much as the end goal.
[suave2]Sorry Simon i disagree with you that the average loan was 80k when interest rates were 17%+ – we had a 240k debt when the rates started going crazy, i don’t know how old you are or what experience you have in going through this type of situation but it was not pleasent for us and our friends.
Good business people went under because of the Keating era and not because of bad management, i hope you never have to experience it but it does build character in some ways.
Only 3% of people will make it financially to retirement including the members in this site, just read the responces to the posts and you can get the drift of what is going going on out there.
As i have said on my other post 95% are doomed to fail, if i’m wrong prove it to me or do a site survey. Property prices are falling and the average person is scared to invest in multiple properties.
We own multiple properties including commersial and industrial and vacant land for land banking, but the most important asset is cash flow to continue.
D
Tizzy you need to talk to Simon (moderator) about what womens needs are towards information and investing stratagies or read his responses in another post, your experiences are not alone from other womens experiences.
a lot of women i know will only deal with women professionals, brokers, agents, planners etc … men should take note to this IMHO
D
I have read most of Robert Kiyosaki’s books. It’s all getting a bit tiring. Most of the books have basically the same message which is a good one, don’t get me wrong, but how many books do you need to say it? Repitition is a good way to learn, but in his case I think it is a little overdone.
He has just kept pumping out educational products and people worldwide lap it up. The man is a money-making machine. Give him his due, he is smart and knows how to make money. However, I won’t be supplying him with any further profits. I believe there are many other better investment books around that are better aimed at specific investment areas.
Wes.
I just read that 46% of homeowners questioned in a survey said they would be in severe financial hardship if interest rates increased by just 1%!!! Also, just under 20% said they would be forced to sell there home if such an interest rate increase occurred.I wouldn’t argue with that statement – after living on the northern beaches in sydney for a few years. Why do people resist the idea of fixing debt particularly for a PPOR that they know they will hold and can’t afford to pay more off if they wanted too. Is it the slick marketing.
As for gender specific investing traits — don’t we wish it was all that simple to figure out.
cheers
I Buy Property http://www.cashflowproperties.co.nz
just wanted to add – as for the kiyosaki books, what is the harm in churning one out every now and then. Most of the stuff i have read by that group is light hearted, motivational and mostly useful.
I Buy Property http://www.cashflowproperties.co.nz
Originally posted by wealth4life:Sorry Simon i disagree with you that the average loan was 80k when interest rates were 17%+ – we had a 240k debt when the rates started going crazy, i don’t know how old you are or what experience you have in going through this type of situation but it was not pleasent for us and our friends.
D
I am wrong because your loan was larger than the national average?
That argument is also fatally flawed logicwise.
Might I direct you to
http://www.aph.gov.au/library/Pubs/rn/2000-01/01RN22.htm
Which shows us that in 1990 the average NEW mortgage was just over $80K. Remembering that there would have been plenty of existing mortgages smaller than this I suggest to you that the average loan of this time was well under $80K.
As for my age – well lets just say I also owned property during this period – but I do still retain my boyish good looks [blush2]
Have a super weekend.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for the link Simon i will have a read, as to your boyish good looks it must be all the women in your life that keep you looking young – or an old photograph, oh sorry bout that one, very naughty of me.
Take care Simon i enjoy your input,
D
Better late than never. I am going to agree with both Simon and D in some issues. Simon you are right about average mortages at that time. We borrowed $70k at the end of 1987 and it was a little higher than average at that time. As to women dealing with women only. The only real estate agent I refused to do business with was female. She directed all of her discussions, questions etc to my husband. I deal with the decisions, the finances and eventual running of the property, usually agents pick this up and I don’t have a problem. As to separate financial advice for women, isn’t this adding to sexism? It equates as well with me as “Women in leadership groups” they should be banned.
Kate
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