Sean K
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- 21 April 2006
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Yes, I agree.
Yes, I agree.many should start looking at themselves first
thankyou
robots
hello,
and people like kimosabi are classic,
they get on here and spruik how the girlfriend has a 20k credit card debt,
and because people cant afford something it has to drop, it cant be so, its bubblevision etc
many should start looking at themselves first
thankyou
robots
where are the properites that are renting on yeilds of 1.1%.
I have never seen properites renting on these yeilds
I would like to see an example of an area where properties rent on yeilds this low,... It's just not happening,
hello,
and people like kimosabi are classic,
they get on here and spruik how the girlfriend has a 20k credit card debt,
and because people cant afford something it has to drop, it cant be so, its bubblevision etc
many should start looking at themselves first
thankyou
robots
hahahahaha, nice try Bubblebots....
Number 1, the girlfriend has paid off her debt and number 2, it must be time for the Real Estate Rollercoaster....
Yeah, I know, when you analyse Australia, we are even more exposed than America, if anything happens to our Resources Industry, we are going to make the US crash look like a Walk in the Park...Take a look at the graph I attached a few pages back, and you'll see that the Australian bubble is even worse.
In Shanghai, an apartment that is located conveniently near the city can cost around 1 million yuan. A young Chinese couple with a modest combined salary of say, 120,000 yuan a year and a deposit of say, 300,000 yuan from their parents have to borrow around 700,000 yuan. From the anecdotal hearsay, it looks to us that like Australia, China is vulnerable to debt deflation too. Further hearsay tells us that the Chinese banking and financial system is relatively opaque and there are probably a lot of hushed up bad debts piling up. There are also widespread popular expectations that the Chinese economy will slow down after the Olympics.
Capitalism is a moral system, we pointed out yesterday.
In the long run, it pays to save your money…make your investments carefully…work hard and avoid unnecessary spending. Capitalism will reward you. It is a ’system’ that rewards virtue…and punishes lapses of judgment. But there are times when it seems like lapses of judgment pay off. When prices run up – as they did in the housing bubble of ‘97-’07 – you begin to seem like a bit of a fool if you stay out of it. It is as if a wild party was going on down the block…you feel left out if you don’t go. And the people who are having the best time are the people who have let themselves go. They’re drinking hard…and dancing on the tables. They buy houses they can’t afford…and make money when prices rise. They buy subprime debt…and earn higher yields than more solid credits. They speculate on Chinese stocks…and they seem like geniuses.
“C’mon…get with the program,” they say. “Get in the swing of things…buy a new house; just claim that you earn more than you really do…and don’t worry, the appraiser will go along…and you’ll be able to borrow as much as you want. Then, you can ‘take out equity’ just like everyone else.”
The guy who sticks to his principles feels like a hopeless fuddy duddy…a loser and a chump. He saves…and his savings lose value to inflation. He looks for value in the stock market – and can’t find a thing. He drives his old car…and holds on to his old house, while his neighbors splash out.
But then, comes the correction…and he doesn’t look like such a dope after all.
Always and everywhere, you can do what seems convenient…or you can do what is right. Sometimes it is hard to tell which is which; often it is not.
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Its really pretty simple, Australian owner occupied realestate has got to potentially be one of the worst investments on the planet currently, especially if your paying it off.
Person renting 350k from bank @ 9pc + rates/ins pays 3k a month.
Person renting 350k house from property speculator pays 1200 a month, investing 1800 diff (22k p/a) @ a very min of 7 p/c return.
After 5 years, renter saving difference has a min of 135k.
Person renting the 350k has made a small dent in mortgage principle and has paid out 180k already. approx 160k is interest.
After this 5 years property "owner" has a property that has cost him 510k, he will need to sell it for 645k just to break even with the renter. Make that 660k, to include realestate sharks commission - I havnt included Duty, loan app fees, conveyancing etc!
Big mistake property gamblers make is using percentages to calculate expected return, its no longer applicable because the numbers have got too large.
Your probably going to get rate rise after rate rise going forward, its only a matter of time until youve got people fleeing the property market if it keeps up. Gen-Y arnt buying this silly RE game, it sounds like the musics stopped but not too many have noticed, yet.
Fairly obvious that your not an accountant
Where did you get your username from? Not much in the way of number crunching going on there!
This is the best part. Everyone do what seems convenient, follow the herd because if everyone say it is the best thing to do, then it must be right. A contrarian would have look at the whole thing objectively and get away from the crowd. Of course, we suffer from not "partying" while the whole ponzi scheme is in intact.
Maybe some of these people are more interested in contributing to the Greater Good, rather than their own selfish ambitions.Thanks for bringing us to the heart of the issue. Those on the bear side of this argument seemingly have a vested interest in being right, and prioritise that above being wealthy. What many don't realise is that the doomsdayers who write this doom and gloom scripture like the bozos over at The Daily Reckoning, are probably already wealthy thanks to doing the wrong thing and getting away with it during a previous boom somewhere, sometime. They can afford to sit back and preach about such things. Can you??
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