I know everyone's been saying gold for 12 mths but I don't trust gold . Maybe a few quick spikes but I don't think it's going far from here let alone the 1100 business .
Owell , I've got my hands full nursing RIO at 108 so I wouldn't listen to meCheers
Hi Harb, just to let you know your common sense is appreciated. I'd far rather have water than gold bars, USD/AUD no matter how septic than cowrie shells, pesos or rupiah even ringgit.
Same old same old. It's blowing hard outside. 4 walls protect me from the storm. Day I give up property as an investment is the day I see the number of houses overtake the number of people who have to be housed. I'll appreciate who can tell me when that day is.
A lot has been said about baby boomers. Subjectively, the stats can be viewed like this: The absolute number of 'older' 60+ people is around 1.8M the bands below 25-59 collectively is close to 5M. These are from memory & not exact but the ratio is more or less correct.
User pays. The electrician charged me $120 call out fee to change flouro tubes. I cringed but paid. Plumber ditto. Same young men would be in the 5M group paying either rent or their mortgage.
I can't buy or sell property now we're in a sideways mood. I gossipm make opinions & speculate what'd happen. It's free.
Have a good week, everyone.
KYharb wrote:Sounds wonderful in theory and I'm sure you could come up with formulas to prove your point , too bad life doesn't work this way and people sometimes make irrational decisions.
Like investing in overvalued property
http://www.news.com.au/business/money/story/0,25479,24452030-5013951,00.html
So should the property investors in sydney wait for a couple of more months before the prices really drop? Or you can start buying now because it's the right time?
I keep getting confused is it the right time to invest or wait?
I believe in gold and for thousands of years it has always stacked up, also I watch where the wealth goes in the ethnic communities and learn from some very wealthy chinese and italian migrants and gold is where it goes when shares, stocks and currencies are in trouble and not guaranteed.
So Im putting next week some cash and my SMSF will buy some gold and have it stored
I have watched the movement of investments, have some great mentors in USA and OZ, and they are stacking up on gold now, and also buiying up as much property as they can if the deal is right and margin or opportunity in it.
If the shit hits the fan, Ive got a tent, will go bush with the dog to the hill of my farm in Bega, grow veges, and if gold goes up the river also, Ill have a party and melt my gold bars.
I think you have to look back at hard times and ask those that survived what did they do, how and what stood up- and most of the people tell me they survived as had gold, and some land to grow things to sell, or sold cattle/ dairy products, as most could not borrow any equity from banks, and their real estate was not selling at all. Also many people think they will be ok if they have a lot of equity in their property, or lines of credit- but dont forget the bank can stop this or recall it at any time, or change their criteria for release of funds.
Bye
Kylie,
Why is everyone talking about the end of the world as we know it?
I also think the economy is in bad shape and getting worse, but its not quite to the end of the road just yet. Lets all just hope it doesn't get to the pack up my swag and head for the hills stage!Have to prepare for the best and worst case scenario, then their can never be any suprises!!
Im positive as bought another block of land today to build a house, so Im not negative.It is not the end of the world, Im certainly not trying to convince anyone of that, The sun will still rise everyday no matter if the dow jones is 10 000 or 2000
What I am trying to warm people of though is that the central banksters and the many many many corrupt people in western governments (Including) Australia are trying to bring us apon ecconomic martial law, This collapse is not just by random chance, This is all planned in a bid to take over the whole financial markets.
Just think about it, The banks that create money out of thin air are going bust and governments are forcing through laws so that all the taxpayers have to bail them out…. The banks have been creating huge inflation and using it to by up all the real assests of the world, Gold mines, Oil fields, Roads, Factories, Local Banks, Governments, Everything ! And now they are going to create money to lend to us (The Taxpayer) so we can give it back to them, and we will pay interest on it ! this is insanity and corruption of the highest level!
Today our dollar has sunk to 74c And everybody should be expecting to see it fall even further every time the privately owned Reserve Bank Australia decides to lower interest rates, and ruin our ecconomy!
WJ Hooker wrote:Kylie,
Why is everyone talking about the end of the world as we know it?
I also think the economy is in bad shape and getting worse, but its not quite to the end of the road just yet. Lets all just hope it doesn't get to the pack up my swag and head for the hills stage!Its just the standard over reaction from the negative nellies out there. And when they dont understand why everyone else isnt following them to the hills. They start preaching to gather followers.Yes bad times are coming but these blokes want us to melt down our wedding rings to sell,shoot the dog for food and prepare for the second coming of the big man upstairs.I am a middle man i guess. I have been shown both the best and worse case outcomes on forums like these and logic tells me the truth will be in the middle somewhere. My dog is safe for now
Im not negative, if I was I wouldnt have bought another property today up in Bowen!. All I stated was I am ready for whatever is thrown at me- good or bad, and if anything really terrible does happen, Im not too worried, Ill just go to my farm, grow veges, milk my cows, and take my dogs, take a few gold bars and have a party.
Im an optimist, I think in difficult times you just work harder, smarter, and be prepared for all situations, so Im not too worried.
Most of my properties are positive ++, or have very good equity in, so Im not too worried as Im there for the long haul regardless.Can you say cheese ?
Hint : Look at the red line, then think back when the depressions / recessions were.
Then, think about what happens to houseprices in those depressions / recessions…
It doesn't take a genius to figure out what is about to happen to the property markets.
There are plenty of other charts ( sold houses = 0 , offered houses = 2400 etc.. )
I'm tired of pointing out I am right. This chart is my last gift to you. If you don't believe me, then feel free to buy property. I won't feel compassion when I buy your investment property at 50% less than you paid for it, sorry.Even if vals went down 50% I still wouldnt need to sell and I could hold as have quite a few businesses that will always be going well,so no you wont be buying my properties and we wouldnt be selling. We have strong Irish and Greek blood and we are survivors of all circumstances and has been proven over hundreds of years in our culture, so whilst others are worrying, Im still buying, selling and finding opportunites out there, the suns still shining, my health and mind is going strong, and if all goes doom and gloom tomorrow we are prepared.
Life goes on, and if you loose money or assets, just get up and start again, its not the end of the world.businessglobal wrote:I believe in gold and for thousands of years it has always stacked up, also I watch where the wealth goes in the ethnic communities and learn from some very wealthy chinese and italian migrants and gold is where it goes when shares, stocks and currencies are in trouble and not guaranteed.So Im putting next week some cash and my SMSF will buy some gold and have it stored
I have watched the movement of investments, have some great mentors in USA and OZ, and they are stacking up on gold now, and also buiying up as much property as they can if the deal is right and margin or opportunity in it.
If the shit hits the fan, Ive got a tent, will go bush with the dog to the hill of my farm in Bega, grow veges, and if gold goes up the river also, Ill have a party and melt my gold bars.
I think you have to look back at hard times and ask those that survived what did they do, how and what stood up- and most of the people tell me they survived as had gold, and some land to grow things to sell, or sold cattle/ dairy products, as most could not borrow any equity from banks, and their real estate was not selling at all. Also many people think they will be ok if they have a lot of equity in their property, or lines of credit- but dont forget the bank can stop this or recall it at any time, or change their criteria for release of funds.
Bye
Kylie that's the coolest post I've read in this place – cheers.
But hey good point , I grew up in suburbs full of migrants and if anyone knows how to hang on to mooler it's those guys your spot on .
We had one guy – the original property guru when I was growing up . He did shift work , stinkin factory – came over with nothing. Just worked his shift work and kept on keeping on but he use to disappear allot . About 15 yrs later as I grew up it came out that he'd been buying up houses and when he disappeared it was usually working on his houses.
He'd bought 30 houses in the 15 yrs we found out. Started one year after he got here with one , jazzed it up and rented it out , and on from there . His probably got a 100 by now .
He never seld one which was how we found out actually . When I first moved out of home his at my girlfriends place and offered us a place to rent . We said well yeah if you have something – he says what sort would you like ?
Huuu !
So he drove us around to them all and we took our pick., jaw dropped to the floor . He had all sorts and some quite expensive for the time .Cheers.
PS hows gorgeous Bega going , lived there for 3 yrs.
gold has also traditionally been a hedge bet when inflation has been high. when the credit crisis is over and oil goes back to $150 a barrel, the price of gold will probably go through the roof.
alani wrote:gold has also traditionally been a hedge bet when inflation has been high. when the credit crisis is over and oil goes back to $150 a barrel, the price of gold will probably go through the roof.Yes. Gold is a good investment. Banks are too, but not yet.
alani wrote:gold has also traditionally been a hedge bet when inflation has been high.You mean like now ? Could it be that gold has lost its traditional shine in recent times ?
Quote:when the credit crisis is over and oil goes back to $150 a barrel, the price of gold will probably go through the roof.Sorry but don't you mean through the floor ? When the credit crisis is over and everything goes back to normal what exactly is the point in buying gold ?
Scamp wrote:Can you say cheese ?Beemster ?
Quote:I'm tired of pointing out I am right. This chart is my last gift to you.Scamp, I'm sure you think you are right but so far the rates have gone in the opposite direction you said they would, then you got us all excited about September which btw turned out to be a fizzer, then went in denial about banks passing the previous rate cuts and now you show us charts going back to the time of Burke & Wills and want us to believe that property prices will fall 50%
Quote:I won't feel compassion when I buy your investment property at 50% less than you paid for it, sorry.I'm sure you're just saying that and not really mean it and since you gave us such a nice gift I'd like to return the favor.
Wouldn't you need to get a job first and then a mortgage? If things are going to be as bad as you think then its very likely that there won't be many jobs around and definitely not in IT. With the economy going down fast there will be a lot of cost cutting which means most of the remaining IT jobs will move to Bangalore & Mumbai where a good IT specialist (as opposed to a cyberloaffer blogging all day long ) earns from $9K a year. You could arrive here only to find that you can not get a job, can't get the dole either and have to rent an overpriced dump because you don't have any previous local landlord references. By the time the economy turns around you could end up spending all your house deposit on rent and will not be able to afford to buy a place at any price. I don't have a nice chart to show you but if I'm correct we'll see at least a 20% increase in house prices by the time the economy starts to recover in about 2 years time. Yes the prices are quite high right now and I'm sure you would like to see falls of 50% BUT most of us bought them when they were A LOT cheaper hence they are affordable to us and can ride the storm specially with rates falling and rents rising. Before stepping on that plane think very careful, with world economies collapsing all around you do you think this the right time for you and your girlfriend to migrate to a new country where you'll have to live on your savings while hope to land a job, get a mortgage and buy a house ?harb wrote:Scamp wrote:Can you say cheese ?Beemster ?
Quote:I'm tired of pointing out I am right. This chart is my last gift to you.Scamp, I'm sure you think you are right but so far the rates have gone in the opposite direction you said they would, then you got us all excited about September which btw turned out to be a fizzer, then went in denial about banks passing the previous rate cuts and now you show us charts going back to the time of Burke & Wills and want us to believe that property prices will fall 50%
Quote:I won't feel compassion when I buy your investment property at 50% less than you paid for it, sorry.I'm sure you're just saying that and not really mean it and since you gave us such a nice gift I'd like to return the favor.
Wouldn't you need to get a job first and then a mortgage? If things are going to be as bad as you think then its very likely that there won't be many jobs around and definitely not in IT. With the economy going down fast there will be a lot of cost cutting which means most of the remaining IT jobs will move to Bangalore & Mumbai where a good IT specialist (as opposed to a cyberloaffer blogging all day long ) earns from $9K a year. You could arrive here only to find that you can not get a job, can't get the dole either and have to rent an overpriced dump because you don't have any previous local landlord references. By the time the economy turns around you could end up spending all your house deposit on rent and will not be able to afford to buy a place at any price. I don't have a nice chart to show you but if I'm correct we'll see at least a 20% increase in house prices by the time the economy starts to recover in about 2 years time. Yes the prices are quite high right now and I'm sure you would like to see falls of 50% BUT most of us bought them when they were A LOT cheaper hence they are affordable to us and can ride the storm specially with rates falling and rents rising. Before stepping on that plane think very careful, with world economies collapsing all around you do you think this the right time for you and your girlfriend to migrate to a new country where you'll have to live on your savings while hope to land a job, get a mortgage and buy a house ?Spot on. Even if we did reach this mythical 50% drop. I would still be ahead. My total commitments now are around $300 PW on both IP and PPOR together. And also the massive buying spree once the gloom is over on these 50% properties will mean they would be at that level for about 1 day. I genuinlely feel for people who bought at the top at there max borrowing capacity. Its easy for the gloomers to burn them but many are just your average Joes that dont sit on computers all day reading the market. They believed the hype they were told and bought feeling they would be ok.But this is still a small percentage of morgage holders at present.
OK so now I am really going to show how green i am in this space…
So with the 1% drop in official rates and the big 4 banks passing on 0.8% what does that mean for the market? and the possibility of more rate cuts in the future – what is the outlook?
I know most people are saying prices are going to fall but I cant get my head around how this is so…
Less people will be forced to sell so less properties on the market.. Prices rise?
Finance costs will be more affordable – people will be able to borrow more.. prices rise?What drives prices down, other than the obvious which would be unemployment should our unemployment rate go up…
Rates went down to 2% in America, Did that stop the market collapse ?
Cutting the rates will create massive inflation, Wages will stay the same but the cost of living will hit through the roof
This is just another step in the direction of world slavery, Take note to what I say now, Kevin Rudd will address the public at some point in the near future, probably 2009, and tell us that in order to save our ecconomy we need to embrace a one world bank and one world currency in a cashless society using microships to record your money.
If you protest against this, the newly armed police will zap you will 50 000 volts from there tazer guns and say your with alkida, you will be charged as a terrorist (Because you disrupted public orer) and then your chip will be turned off and you won't be able to purchase anything. anyone remember Sir Johannes Bjelke-Petersen ?
You can believe its far fetched as much as you want, But this is the future. And no, Im not trying to stir panic or fear just education people to reality, This plan has been publicly known since the 70's
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