looking we may have highest interest rate in 2009 and 2011 as well ...
http://business.theage.com.au/bracing-for-the-new-china-flu/20080216-1slf.html
High inflation, no more cheap chinese import, Petrol at record high it's building into an atomic bomb
Cash is king save up, go bargain hunting in a couple years ahead...
AFTER years of filling Australian shops with cheap products, China's latest export is inflation, with the price of goods set to rise over the next six months, economists say.
Soaring energy prices, higher labour and raw materials costs, and new environmental and tax rules are forcing Chinese manufacturers to increase the price of their exports, which, in turn, is being passed on to consumers.
"It's simply demand and supply," said Richard Evans, the head of the Australian Retailers Association.
US consumers are already feeling the pinch as prices from everything from clothing to toys soar ”” some by as much as 50% ”” and economists warn that over the next six months Australian shoppers will also start to feel the impact of higher Chinese prices.
Wouldn't it be better to stock up now on those items expected to increase by 50%. Your cash will buy a lot less next year.Cash is king save up, go bargain hunting in a couple years ahead...
Wouldn't it be better to stock up now on those items expected to increase by 50%. Your cash will buy a lot less next year.
Wouldn't it be better to stock up now on those items expected to increase by 50%. Your cash will buy a lot less next year.
Exactly, its time to go mental and stock up on a couple of years worth of presents, bulk supplys , clothes , electronics, gizmos , gadgets etc etc.
Ofcourse this behaviour would be highly inflationary with enough people doing it, but a win win situation, (Might not be so good for people with mortgages on over inflated assets) Get all you goodies at a huge discount and help force some more rate rises to benefit your savings. Im on a spree at dealsdirect as we speak doing my bit of microeconomics, free postage till midnight as well (Im in no way affilated with these folks btw, but they are cheap compared to tomorrows prices)
What are you saving for Robots, any smart Real Estate Investor should be leveraging themselves to the hilt...hello,
I am on the same gig as you NC, save save and save
ride bicycle to work, get a latte and a couple of donouts on the way for inflation
thankyou
robots
Have the distressed property auctions started?
Thursday, 14 February 2008
James Frost
Rising interest rates are expected to place 750,000 Australians into mortgage stress by June. Inevitably, some of their properties will make their way back on to the market, which could tempt investors. But does distressed property make a good investment?
As sharemarket returns lose their lustre, it’s only natural that investor attention turns to the property market.
Early indications from the Real Estate Institute of Victoria support this; the institute is expecting a jump in the number of properties coming to market in the coming months.
Historically, agents have seen about 700 auctions listed on the average weeks through February and March but this year the levels are soaring. Following a record of 700-plus auctions listed for 23 February, more than 1000 properties are expected to be offered at auction over the following two weekends.
Not all of these sales will be made in the happiest of circumstances. Just as margin calls became a fact of life for many investors in January, the notion of the distressed sale is becoming increasingly common. Figures on mortgagee repossession cases heard by the Supreme Court are on the rise. Between 2005 and 2007 these have risen by 12% in NSW, 35% in Victoria and 107% in Western Australia.
The idea that these sales are just happening in the outer suburbs is just not true, according to Peter Kelaher of PK Property Search and Negotiations. “You absolutely do see distressed property at the top end of the market,” he says. “Often you find that a marriage has gone sour and both parties just want to get out of the property.”
Anyone see anything unsustainable in this equation ?
http://www.news.com.au/business/money/story/0,25479,22717645-5013951,00.html
chatty said:should have invested in the property in 1990. 340% up...not bad at all. good return on investment...really..
does anyone here bought investment properties in 1990 and still have it?
Germany is a totally valid example for the point I was making - i.e. that urban planning and high population density do not necessarily equal massive house price rises. Germany also has had relatively high rates of immigration over the past 15 or so years, so in my view it serves as a reasonable comparison.
Ireland had received massive amounts of EU subsidies, but they also significantly freed up their economy and reduced taxes.
The Irish housing bubble is pretty much over now; it's just a matter of how quickly it will deflate. A bit like next door in Britain.
Besides, Ireland still retains quite a few places with a lot lower prices than Dublin, which is where the majority of the massive increases in house prices were located. Overall, it is nowhere near as unaffordable as Australia.
I'm sure almost every home owning baby boomers here and a number of Gen X ppls have got the bulk of the trend.
hello,
this is from the Victorian Office for Housing (rental report)
*rents across melb up 12.7% in 12 mths
*inner melb up 13.3% to $340/wk
*nort-east melb up 13% in 12 mths
rents have a long way to go, and would comfortably say that every year now people are going to see these sort of rises
thankyou
robots
need to be more daring with our investments. And more nimble too, since we don't know when the music will really stop. Think: exit strategy. And we may not be able to tell immediately that it's already stopped. In which case if you are over-committed it could be be too late.
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