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how difficult would it be to make the payments if the aussie dollar dropped to 50c US again, on a 30 year loan you have to consider that it will happen
The future of Australian property prices
- Thread starter Joe Blow
- Start date
how difficult would it be to make the payments if the aussie dollar dropped to 50c US again, on a 30 year loan you have to consider that it will happen
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When I was a youth, a bunch of local wealthy folk borrowed low interest loans denominated in Swiss francs.
Some time after that, an adverse currency movement resulted in their near ruination, and there was a long court case, regarding lack of warning to them etc.
That was a long time ago, but I dont know whether you could mitigate that risk somehow these days
prawn_86
Mod: Call me Dendrobranchiata
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You could take an option or a forward contract, but that effectively then would negate the benefits due to the pricing of both these products taking the interest rate differential between the 2 currencies into account.
Christ mate,
reminds me of that film where the dude they bullied at school has the " to be murdered" list on his bedroom wall:
hello,
yeah thats bullying, amazing
have been gathering lots of "data" over the years, and with Kincella as star witness i am ON i reckon
oh well, big weekend ahead on the auction front although in my neighbourhood not much around, must be out in the suburbs
thankyou
associate professor robots
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Can't wait for the ABS figures to be released on November 1st for the House Price Index. http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0
ANNUAL CHANGES (JUNE QUARTER 2009 TO JUNE QUARTER 2010)
Preliminary estimates show that the price index for established houses for the weighted average of the eight capital cities increased 18.4% in the year to June quarter 2010.
Annually, house prices rose in Melbourne (+24.3%), Sydney (+21.4%), Canberra (+19.6%), Darwin (+14.6%), Perth (+13.0%), Adelaide (+11.6%), Hobart (+10.8%) and Brisbane (+8.5%).
Wonder what will happen on November 2nd with the RBA? Up or stagnant? Banks have indicated that irrespective of RBA decision they will be raising rates to cover the cost of the OS funds they are so committed to. This will curb appetite for home ownership and the rental market will become undersupplied. Rates rising will be forcing investors to increase rents to cover borrowing costs etc etc.
Haven't we had this conversation before??
I am still waiting for this "alleged" massive Ponzi scheme to come crashing down around the collective ears of the home owners of Australia. Wait a minute? 70% home ownership since 1971?? This can't be right?? What about all the other world crises we have had in the last 30 years??? Why didn't this whole house of cards falll down then???? Banks have been screwed on the international borrowing front before? Wage to price ratios have not changed that dramatically. Interest rates have been above 17% previously. Not many went weak at the knees then and bailed out??? Dollar is almost at parity. Employment is strong. Economy is in good shape. National debt is manageable whilst the mining boom is on ..... ad infinitum.
Home ownership rates have been fairly stable at around 70% for many decades. As measured in the ABS Census of Population and Housing, in 1971 the home ownership rate was 69% and in 2006 it was 70%, with small fluctuations around 70% in the intervening Censuses.
http://www.abs.gov.au/ausstats/abs@...~2010~Chapter~Levels of home ownership (5.4.3)
WHERE IS THE PROBLEM PEOPLES??? FLAME ON !!!!!!!!! :bigun2:
ANNUAL CHANGES (JUNE QUARTER 2009 TO JUNE QUARTER 2010)
Preliminary estimates show that the price index for established houses for the weighted average of the eight capital cities increased 18.4% in the year to June quarter 2010.
Annually, house prices rose in Melbourne (+24.3%), Sydney (+21.4%), Canberra (+19.6%), Darwin (+14.6%), Perth (+13.0%), Adelaide (+11.6%), Hobart (+10.8%) and Brisbane (+8.5%).
Wonder what will happen on November 2nd with the RBA? Up or stagnant? Banks have indicated that irrespective of RBA decision they will be raising rates to cover the cost of the OS funds they are so committed to. This will curb appetite for home ownership and the rental market will become undersupplied. Rates rising will be forcing investors to increase rents to cover borrowing costs etc etc.
Haven't we had this conversation before??
I am still waiting for this "alleged" massive Ponzi scheme to come crashing down around the collective ears of the home owners of Australia. Wait a minute? 70% home ownership since 1971?? This can't be right?? What about all the other world crises we have had in the last 30 years??? Why didn't this whole house of cards falll down then???? Banks have been screwed on the international borrowing front before? Wage to price ratios have not changed that dramatically. Interest rates have been above 17% previously. Not many went weak at the knees then and bailed out??? Dollar is almost at parity. Employment is strong. Economy is in good shape. National debt is manageable whilst the mining boom is on ..... ad infinitum.
Home ownership rates have been fairly stable at around 70% for many decades. As measured in the ABS Census of Population and Housing, in 1971 the home ownership rate was 69% and in 2006 it was 70%, with small fluctuations around 70% in the intervening Censuses.
http://www.abs.gov.au/ausstats/abs@...~2010~Chapter~Levels of home ownership (5.4.3)
WHERE IS THE PROBLEM PEOPLES??? FLAME ON !!!!!!!!! :bigun2:
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Do people enjoy the inflation play going on?
Food and Electricity is also going up in price. So are the counsel rates
link is giving an error 404
hello,
goes up every year EM, its a given bro like the sun coming up in the morning
no big deal really, oh well
thankyou
professor robots
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Hello Robots,
I found the auction clearance rates for melbourne for 17/10/10
Sitting at 61.8%.
What does this mean?
And what do you think they will be like this weekend?
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All of this is out of our hands.
It all depends on how the limitless printing of money flows through, the effects of inflation and access of our banks to cheap funding.
We have guarantees from the government for the ponzi scheme.
We have a strong dollar which will impact our industries.
Our government is in debt, and we are wasting $43 billion dollars on an investment which will not increase prodcutivity, but for which we will all have to pay off.
We have a government which is penalising our successful companies with a mining tax
We have a government which is going to help cripple our competitiveness with an ETS
And america is bleeding again.
We are not out of the woods yet.
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Reality check in today's fin,
Read all about it !!!
Read all about it !!!
wayneL
VIVA LA LIBERTAD, CARAJO!
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Linky linky?
Hello,
i wouldnt have a clue MW, i just post them up like Bigdog does the wall street report
then people make all sorts of judgements about me, bully me, lay the smackdown on me and all sorts of other degrading actions towards me
oh well, what a great day on chapel st, joint pumping, went up to Victoria st on the bus (246) just great and then back home on the tram, sun was out
thankyou
professor robots
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lol robots
your loitering in my home turf
plenty of sun this afternoon, and record auctions
will they spend up big
great front cover story in the fin review..
i agree they lay into you, but when you chalk up list of whom you say you have slayed, then like buffy, you have to keep a close watch over your shoulder
keep your chin up and maybe we should have a ale together in chapel..
your loitering in my home turf
plenty of sun this afternoon, and record auctions
will they spend up big
great front cover story in the fin review..
i agree they lay into you, but when you chalk up list of whom you say you have slayed, then like buffy, you have to keep a close watch over your shoulder
keep your chin up and maybe we should have a ale together in chapel..
explod
explod
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Dont' like your chances, I have been trying to line em up for a coffee down here at Mount Martha for years, and I'm shouting, so what's wrong.
Record number of auctions this weekend, sounds like a lot trying to get out, hope they dont' start getting jammed at the gates. Next quarters figures will be very interesting IMHO.
hello,
the problem is Explod,
after the guy from the socialist party slammed me into the ground at the same sex marriage rally, laid the boot in and finished me off with a squirt from his water bottle
i have been very hesitant to meet up with people who share similar ideology for fear of my safety, i am still scarred from that incident and i was just talking to him about real estate
oh well
thankyou
professor robots
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Hard to put a price on that isn't it!!
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Keep fighting the good fight Professor robots. I admire your positivity for property and calling the game as to how you see it. Living the Great Australian Dream is as easy as 1,2,3. All you have to do is get on the bus and watch the world go by. Too easy man. RESPECT ! I will be in Melbourne early November for a quick overnighter before heading to Brizvegas for a fundraiser. PM me if you want dates for a coffee.
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hello,
good morning, great day
i am available any Sat or Sun, i am not in Melbourne Mon-Fri for the next 4-5 mths, will keep you posted on mon & tues of Cup week, yeah thanks no worries
oh well, auction day went as expected yesterday and the RBA will no doubt like the figures reported, parardise
thankyou
professor robots
good morning, great day
i am available any Sat or Sun, i am not in Melbourne Mon-Fri for the next 4-5 mths, will keep you posted on mon & tues of Cup week, yeah thanks no worries
oh well, auction day went as expected yesterday and the RBA will no doubt like the figures reported, parardise
thankyou
professor robots
