wayneL
VIVA LA LIBERTAD, CARAJO!
- Joined
- 9 July 2004
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Agree, but we Anglo Saxons don't seem to thrive doing that. It's a fault in our culture for sure, but a fact nevertheless.
hello,
actually you only have to go to local jewish area, chinese area, vietnamese area in most countries to see the benefit of shared living,
thankyou
robots
Agree, but we Anglo Saxons don't seem to thrive doing that. It's a fault in our culture for sure, but a fact nevertheless.
any property bulls got a comment?
It's an extremist arguement, and therefore the weakest kind. I don't see the point. If people stepped out of the market in anticipation of some kind of crash, which is yet to manifest, it stands to reason that we can expect to see this kind of huffing and puffing from their corner. They'll either get what they want or blow themselves out.
ASX.G
Property Bulls,
So retail variable mortgage rates will now get to 9pc, Your average 400k property renting for $400 a week, must surely by now be looking a little dicey, what happens at 10,11,12 p/c , just keep passing it onto the tenants until they become squatters ? What happens when we get to 12pc and your property sits vacant with 1000 pw interest bill ?
I hope people know there are laws that protect existing tenant.
IE you can increase a maximum of 15% on rental price on existing tenant
but most people wont get the full 15% more like between 5%-10% if they lucky.
Interest rates will affect all asset classes,.... Interest rates really only affect you if you are leveraged investor, so a share investor who is leveraged to 80% will be affected to a similar extent as a property investor at 80%.
What to you think will happen to the share market with interest rates at 12%?
Interesting story on ACA tonight called " Interest Rate Gurus "
Usual suspects, at end of article they summarise with 5 major points, one of which is " Dont Lock into a Fixed Rate "
Same advice they where giving 10 interest rate rises ago, maybe theyll be right this time
The media and the men that pay their wages are not your friend
http://aca.ninemsn.com.au/
Interestingly enough, working that calculation to give Sydney's current average house price (~ $540K) comes in at 5.1% per annum coumpounded.
This means a doubling every 14 years over a 119 year sample.
Wonder wait the average inflation is over this same period?
Even if we take your very conservative figure of a 5.1% growth rate, we still get overall return of greater than 10%.
add a 5% rental return on to that 5.1% growth rate and you have a 10.1%p/a return,....
Theres a story in the news today that once the price of Iron Ore and coal is increased Australias exports should increase from 42 Billion PA to around 70 Bill PA
Tell me how can we have a crash in house prices when australias resource sector is about to start making a lot more money which will inevitabily lead to higher wages and more jobs.
On top of that El nina is bringing drenching rains to farmers so food prices are going to go down and our agriculture exports going up.
Interest rates aren't enough to help cool our economy I believe Oz will continue to have a strong economy well into the future. House prices will keep rising. Even with rates goingg up and morgage stress increasing we have yet to see any real broad based decrease in prices in any state.
As the oz dollar goes up the cost of imports comes down, when the US hits the wall oil could be $80 a barrel. I can only see inflationary pressures decreasing in the medium term while our profitability as a country goes up.
If life were so simple, but things never work out as they seem.
Sure a few more jobs, but the trucks etc are getting bigger. And where do the profits go, some royalties and taxes, the rest to shareholders, a lot of them overseas.
What we really should be looking at is refining the ores ourselves, even extruding rail tracks etc. Our resources are large but finite and secondary industries should be growing from them. Now that would be jobs.
Income inequality grew significantly in 2005, with the top 1 percent of Americans ”” those with incomes that year of more than $348,000 ”” receiving their largest share of national income since 1928, analysis of newly released tax data shows.
While total reported income in the United States increased almost 9 percent in 2005, the most recent year for which such data is available, average incomes for those in the bottom 90 percent dipped slightly compared with the year before, dropping $172, or 0.6 percent.
The new data also shows that the top 300,000 Americans collectively enjoyed almost as much income as the bottom 150 million Americans. Per person, the top group received 440 times as much as the average person in the bottom half earned, nearly doubling the gap from 1980.
Its certainly hows it working in the US , and seen as Howard/Costello worked dilligently to model us on them Im assuming we are not far off the following article.
http://www.nytimes.com/2007/03/29/business/29tax.html?ex=1332820800&en=fb472e72466c34c8&ei=5088&partner=rssnyt&emc=rss
Im not saying Australia is exactly the same as this, but Im certain there is more than a passing resemblance.
But we would'nt dare subtract the holding costs, bank Interest etc , now would we
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