Hello all,
Please go and buy "The Australian" newspaper today and read whats on the front page.
The big question and prediction is … if interest rates rise will the first home owner scheme become the Australian sub prime of the future.
D
This is probably not the full article, however some indication of its contents are provided.:
http://www.theaustralian.news.com.au/story/0,25197,25839599-601,00.html
If that's correct, my opportunity eyes are on already
and with very conservative current LVR's…..it may be time to go shopping again.I have been sitting on my hands………….but not idly……have been researching my next foray and am waiting for cap rates to rise further before I venture out and commit..
If they are wrong I am still researching and will buy only a value add (with several twists) that is washing its own face and preferably is +ve CF.
thanks for the post Michael.
I think this will happen. I have been saying as much to anyone who will listen.
Michael 888 wrote:I have been sitting on my hands………….but not idly……have been researching my next foray and am waiting for cap rates to rise further before I venture out and commit..
If they are wrong I am still researching and will buy only a value add (with several twists) that is washing its own face and preferably is +ve CF.Same here. We been enjoying debt free living for over the year now, and searching to upgrade PPOR for couple of years. To date, I came across 3-4 properties that interest me, price was good but not as low as we wanted. Top end is down a good 30% in Bayside Brisbane (comparing to 2007), I am aiming for another 20-25%.
Been straggling to find any +ve CF properties at low end (below 400K), like D mentioned. Not many in Brisbane by the looks of thinks. And I like them to be close to me, so I can look after them.
Gradual hike in IR will be lovely. Many will welcome increase payout to savings in the bank account and low end of properties catching up with top end in the trend. Economy, like any business, must be self sustainable. At the moment it is not, been poorly regulated .
The property bubble in Australia needs to be popped asap. People are spending to much money on houses and not enough consuming and investing in businesses. We will need serious inflation in earnings and consumer products to get back to a normal state of affairs. It's making me consider moving overseas so I can earn in a different currency,
ajaydee73 wrote:The property bubble in Australia needs to be popped asap.
Not yet, I need to find a buyer to offload a few things first, cash-up big and then get started on a new round of investments when there's the correction we needed to have corrected.
I agree with all the above comments. Good times are ahead for the patient ones. If we're wrong, no great loss IMHO.
Did I miss something ? Many here speak like there has been no correction. I live in a regional city in nsw and our values are still below 2004 values. Add inflation and things get worse. I didn’t cry about it . Instead I took acalculated risk and bought at well below 2004 values both in 07 and right now. Yes I understand that some segments of the market and some areas have not corrected much but come on. This is a big country and there are good buys around now as well as in the future. If your not careful you may be waiting for ever. Well that’s my view on things anyway
CheersSome areas have had a correction, but on average Australia is still waiting for it. Some places are even booming at the moment because of low interest rates and the FHOG. This is very dangerous as low interest rates and the boosted FHOG will not last.
and with very conservative current LVR's…..it may be time to go shopping again.
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