theasxgorilla
Problem solved... next bubble.
- Joined
- 7 December 2006
- Posts
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Yes, because you and I both know that property price (on the whole) STILL haven't gone down.
They did and do.
Mortgage insurance picks up the difference between what the property is sold for and what the Mortgage is left owing.
Why would they be "feeling the pinch" then? (genuine question)
This seems to be self contradictory.Good property is never to expensive.There are many good property deals out there. Idiots dont do the numbers.
If I can positively gear for a great passive income return (And I can often right now ) I'll buy. In time (This varies ) I'll also have capital gain.
In 10 yrs Ill have massive return on initial investment.(Not only from Capital gain but passive income relative to initial investment will be staggering.)
let me know if you want an example.
Wayne
Good property will have numbers that stack up.
Good meaning I guess (to me right numbers) right numbers it will never be TOO expensive---not to the buyer (me) the rest of the world may disagree.
Lucky.
Yes.
I develop property,among other things.
The people who are really going to get rich in the next cycle are those that don't have debt now.
ABN fears world housing crash
Daily Mail
11 June 2007
Soaring borrowing costs could spark a housing slump on a 'global scale', investment bank ABN Amro has warned.
Families have taken on 'unsustainably large' mortgages, leaving them vulnerable to the sharp increases in bond yields and official interest rates seen in recent weeks, wrote economist Dominic White.
Britain is one of the most exposed markets thanks to rampant speculation over the past decade, though it is by no means alone.
Claims that shortfalls in the supply of new homes will lead to an inexorable rise in UK property prices in coming decades have 'as much credibility as Britney Spears' latest comeback,' he wrote.
'The decline in global interest rates has now been largely reversed,' White said. 'Rising real interest rates could result in greater economic volatility. I believe this leaves housing markets vulnerable to a correction on a global scale.'
Central banks have raised interest rates to the highest level since 2001 across the 30 members of the Organisation for Economic Cooperation and Development.
Meanwhile yields on government bonds - a key measure for the cost of borrowing - have increased in recent days, sending shockwaves through financial markets.
Although fears for the health of the US housing market have captured headlines, the degree of over-valuation is more 'severe' in Britain, Australia, Spain and Ireland, ABN Amro calculates.
A note by the bank in April found that UK residential property is 50% overvalued, whereas US houses are 25% too expensive.
The research comes ahead of a slew of key data that will expose the health of the British economy.
Among the most significant reports will be official inflation numbers due on Tuesday. Economists expect consumer price growth to ease to 2.5%, but even a larger drop is unlikely to prevent further hikes by the Bank of England.
http://www.thisismoney.co.uk/mortga....html?in_article_id=421199&in_page_id=57&ct=5
Seriously...you can't tell me that the sharemarket is going to go up for 4 consecutive years at the rate of knots that it has and that the wealth effect that that has created would not eventually filter through into property.
Not like '97-'03, but its always seemed like a fairly reasonable join-the-dots conclusion to me.
It is not so much the wealth effect of the share market, as the availability of credit and loose lending standards.Seriously...you can't tell me that the sharemarket is going to go up for 4 consecutive years at the rate of knots that it has and that the wealth effect that that has created would not eventually filter through into property.
Not like '97-'03, but its always seemed like a fairly reasonable join-the-dots conclusion to me.
It is not so much the wealth effect of the share market, as the availability of credit and loose lending standards.
Tightening of credit will put a serious dent in this market as it has in the US and as is starting to happen in the UK.
It is not so much the wealth effect of the share market, as the availability of credit and loose lending standards.
Tightening of credit will put a serious dent in this market as it has in the US and as is starting to happen in the UK.
Not so much interest rates, lending standards.I see a Labor government as a bigger catalyst for a serious dent than interest rates...interest rates seems to translate to mere dips.
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