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- 28 October 2008
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I've seen a number of TV ads recently promoting housing finance on little or no deposit.
from my personal opinion id wait for interest rates/cash rate to bottom and possibly have its first up tick, otherwise you could be catching a falling knife in terms of prices, the overhang of private debt burden and the balance of people willing to pay down debt compared to take up new debt means imo that potential cap growth will be restrained. Mortgage finance is predominantly refi market which doesnt put any upward pressure on prices, however with every central bank replicating helicopter Ben im assuming growth in asset prices.
I've seen a number of TV ads recently promoting housing finance on little or no deposit.
You won't see growth here in aus as a result of the reserve bank action until there has been a solid correction though. They aren't going to deliberately inflate housing prices more than they currently are(in my opinion more than well into bubble status) for the hell of it. jmo of course. completely agree with you on the growth of capital
How benny boy thinks that fixing the biggest collapse of a debt and housing bubble ever seen, with a new housing bubble is a good idea I will never know.
So long as this dark cloud looms Ill sit on the side-lines. From what I've seen current yields aren't even going to allow you to break even once inflation, expenditures and potential vacancy etc is taken into account.
im the same boat, property is off my radar in Aus till I see something, when i refer to asset prices above, im more specifically talking about stocks where i think CB policy specifically heli Ben will be more present in our own market
+1.You won't see growth here in aus as a result of the reserve bank action until there has been a solid correction though. They aren't going to deliberately inflate housing prices more than they currently are(in my opinion more than well into bubble status) for the hell of it. jmo of course. completely agree with you on the growth of capital
How benny boy thinks that fixing the biggest collapse of a debt and housing bubble ever seen, with a new housing bubble is a good idea I will never know.
So long as this dark cloud looms Ill sit on the side-lines. From what I've seen current yields aren't even going to allow you to break even once inflation, expenditures and potential vacancy etc is taken into account.
Depends where you are looking. As I've commented before, where I live prices have fallen by around 25%.But from what I have seen so far prices are quite inflated also,
So long as this dark cloud looms Ill sit on the side-lines. From what I've seen current yields aren't even going to allow you to break even once inflation, expenditures and potential vacancy etc is taken into account.
So what does one do? Sit on bank interest?
My wife is bored to death with bank interest...
CanOz
From a pure investment standpoint, emotions shouldn't come into the equation.
If you ask me, hand-picked equities scream buy to me, but my financial position is different to yours...
This is part of our funds we set aside for property eventually, just wondering of the timing...
CanOz
If that's the case, then I'd suggest that if you can afford the place you want with those funds, go for it.
Investment decisions are one thing, but if you can afford a house you'll be happy with and it won't put you in a difficult financial position, why not do it?
Screw timing!
Yeah, I'm the one i guess that is a little afraid of buying too high....
I don't really want to leverage this much though.
thanks mate...
CanOz
So what does one do? Sit on bank interest?
My wife is bored to death with bank interest...
CanOz
Sydney has been ranked the second most expensive place to live and do business in a survey that measured economic opportunity in 27 cities.
Sydney was ranked as the second most expensive city, behind Tokyo.
The Sydney Business Chamber's Patricia Forsythe says the harbour city has been let down by a lack of investment in infrastructure over the past decade.
"And it is clear that on issues around transport and cost of housing and cost of doing business in the CBD that we are slipping."
After all, the only reason they cut interest rates is because they believe the economy is/will be struggling soon. Thats JMO though, it's no secret that I'm bearish
Yeah, I'm the one i guess that is a little afraid of buying too high....
I don't really want to leverage this much though.
thanks mate...
CanOz
News is reporting that 1/3 of mortgage written since 2008 are in negative equity.
http://www.news.com.au/realestate/n...an-loans-on-them/story-fncq3gat-1226497332060
News is reporting that 1/3 of mortgage written since 2008 are in negative equity.
http://www.news.com.au/realestate/n...an-loans-on-them/story-fncq3gat-1226497332060
The report defines negative equity as any house that has seen its value grow by less than 10 per cent - below inflation - in the past four years.
I am not sure about the accruracy of that report or the article.
the artical says the following
This is not the criteria I would use to workout if a property is in negative equity.
Indeed.
What's the feeling out in the mortgage belt I wonder?
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