Surely a rate cut is a boon for mortgage holders? Rates to go down will only come about from the mismanagement of the existing government who is currently causing inflation. There are too many mixed signals in the market to predict with any entirety IMO. Inflation going up usually means interest rates go up to curb spending etc. Inflation going up usually means house prices follow. NEITHER of these things have happened. The Phillips curve is about right with employment so what is driving house prices down when inflation is rampant? Inflation also constricts the velocity of the economy.
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Was't the talking point for the bulls "absent another global shock/GFC prices won't fall much"? Well I think we might have our catalyst.
It is very complicated indeed.
How about cost of funding increasing as credit markets get squeezed, and australian banks being over exposed to residential property, and manufacturing in australia in big trouble.... etc etc
On a lighter note, where is robots for comment, I mean he HAS predicted 175 of the last 10 property upturns, I wonder how he is feeling at the moment, with a broke government not giving megabucks to rich tradesmen (do they really need it, or a pay cut?)
Some of us true believers have seen this coming for a while,
Sunshine and lollipops.
Although the general mood of most of the followers on this thread is very bearish on property, twice we have had spells where the bears hit an all time high.
Both times has ended in share market crashs, and property remaining relatively firm,
Although the general mood of most of the followers on this thread is very bearish on property, twice we have had spells where the bears hit an all time high.
Both times has ended in share market crashs, and property remaining relatively firm,
Although the general mood of most of the followers on this thread is very bearish on property, twice we have had spells where the bears hit an all time high.
Both times has ended in share market crashs, and property remaining relatively firm,
What are you saying, the government didn't buy the electorate?Oh I forgot, they have spent all that was in the kitty, on plasma t.v's, pink batts and school canteens.
The Government should be reducing taxes to stimulate spending and inspiring confidence.
Oh I forgot, they have spent all that was in the kitty, on plasma t.v's, pink batts and school canteens.
Although the general mood of most of the followers on this thread is very bearish on property, twice we have had spells where the bears hit an all time high.
Both times has ended in share market crashs, and property remaining relatively firm,
You do realise you're contradicting yourself there....
Until a little over a week ago, most commentators had been tipping the next rates move by the central bank to be an increase following sharply higher inflation figures in the June quarter. That sentiment took a 180-degree turn during last week's global sharemarket rout, a slide that looks like continuing into this week.
While a rate cut might cheer borrowers, it would only come if the RBA took a very dim view of Australia's immediate growth prospects. A global tilt back into recession would likely mean rising unemployment and tumbling commodity prices - reversing two of the main reasons Australia managed to dodge a recession in the 2008-09 period.
Gidday robots. Shame the flamethrowers have made you stop posting.
Rates to drop by 0.5% ??? No wonder the banks were offering 15 year rates at 8.38%
http://www.businessday.com.au/business/double-rate-cut-tipped-for-september-20110808-1ii9g.html
RIGHT THEN ........ now we are getting somewhere. This could be the catalyst that I have been talking about. JOBS JOBS JOBS. If this happens then I can easily see a quickening slide on the 8 capital city average home price due to foreclosures.
Also means that investors will buy from the scrap heap and rent them out.
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