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The future of Australian property prices

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kincella said:
The average rate of tax....
for the current year 2012-2013
tax on $80,000 is $17547 / 80,000 = .219%
tax on $37,000 is $3572/37,000 = .0965%
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I give up. Good luck to ya mate. I hope you do well, if you can do it I'm gonna be just fine.

I'm gonna go eat an average of 1 slice of bread. I'm not going to cut it off the end, I'll just chew right through the middle of the loaf.

Might have the middle layer of lasagne too.

 
kincella said:
any comments on why CBA would take the rest of Aussie home Loans ? and what it means for the future of property
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Yes, they are trying to gain more market share and turn more profit as their greed consumes them further. The sort of action you would see before it all comes tumbling down. Shares up, profits up, confidence in the banking sector appears to be up, all is rosey.

dividends are a great source of income.....but who guarantees the capital behind my investment will remain in tact and not decrease.....
for eg what was the price of BHP in 2007 ? was it 55.00 or thereabouts
and what is the price now ?
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and who guarantees your property portfolio? there are no guarantees in investing, even though you may think you're safe.
 
jancha said:
No maybe not an investment but a safe place to have it sitting without being penalized when you do decide to take it out and invest.
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Vespura said "I don't see why you guys are arguing about 'offset' accounts. "


at least we have 2 other bright sparks here who understand the concept, and recognise an excellent new product, that can be used as a huge advantage
cheers
 
kincella said:
at least we have 2 other bright sparks here who understand the concept, and recognise an excellent new product, that can be used as a huge advantage
cheers
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I fail to see how the slight difference between this and a redraw account is a 'huge advantage'. Everyone i know with a mortgage overpays and then redraws it if needed as opposed to just having a seperate savings account
 
I guess if times get tough (if they ever really have been for 15 years) again, the government will not be able to afford another first home vendors boost...

another failed policy of kicking the can down the road by a failed government.


House prices to continue to fall in the short term.
 
An interesting and most important aspect that many on here fail to see is true value and the value of money.

Now I am talking about property and we will get back to that shortly.

Money used to be backed by gold, called "The Gold Standard" It was done away with by President Nixon so that nations could print money without being encumbered.

Gold for 4000 years has always been a solid intrinsic measure and still is to this day.

The money printing system has worked well for awhile and in 2001 gold fell to a price of US$260 an ounce from $700 in 1980.

Since then however it has risen to $1600 due to the devaluation of money. Up more than 600%

So if you purchased a property in 2001 for say $300.000 and it is worth today 1.8 mill then good luck to you. Of course with a rental property you would have made a bit more.

But the important aspect is that although the value of your property is going up against paper money, is it really in a tangible manner going up.

With Japan about to embark on the greatest printing spree ever we will soon be faced with increasing inflation.

Now I am not being a gloom and doom prophet, just stating some facts that should be considered in this current climate.

Anyone wanting to find real answers should start by reading up on the Austrian School of economics which will gradually open you to other leads of financial education. To make good decisions on any investment the more you can learn on economics the better.
 
Excellent points explod

Take this opportunity to mitigate risk
You'll be glad you did.
 
explod said:
With Japan about to embark on the greatest printing spree ever we will soon be faced with increasing inflation.

To make good decisions on any investment the more you can learn on economics the better.
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Could you give us a detailed explanation about how that will effect us in Oz and exactly what are they going to do with the " greatest printing spree ever"

Just so we are sure we all know your "economics ".
 

Agreed there Mr Plod.

I am confused however... The Austrian School is total incongruous with Watermelonism and the economics it espouses.

Cognitive dissonance?
 
Trembling Hand said:
Could you give us a detailed explanation about how that will effect us in Oz and exactly what are they going to do with the " greatest printing spree ever"

Just so we are sure we all know your "economics ".
Click to expand...

No that would take a book. You need to learn and know it for yourself, hence the reference.

DYOR My intent is to have some give it thought.

But on Japan,the hyperinflation resulting will merely make clear that it is upon us everywhere. A pack of beans is the same price as last year but the weight is now half. Just need to open the eyes, it is not for me to hold hands.
 
wayneL said:
Agreed there Mr Plod.

I am confused however... The Austrian School is total incongruous with Watermelonism and the economics it espouses.

Cognitive dissonance?
Click to expand...

Well perhaps I should have mentioned "Von Misers" on economics and value. http://mises.org/

Unfortunately its a bit like learning a new language with a different alphabet to get to a simple question like "
where is start"?

To invest a lot of money (hard earned) you need to know in my view.
 

Oh OK! Just thought you were going to call the tipping point for the end of the world or something ...... again!!

Just a bit un-sure and all as they have been doing the same thing for 30 years and they cannot even get their property prices to move let alone effect Australian property prices.

Was sure you would be able to add something to the mechanics how this time its different..... but hey maybe it is this time.

 
prawn_86 said:
I fail to see how the slight difference between this and a redraw account is a 'huge advantage'. Everyone i know with a mortgage overpays and then redraws it if needed as opposed to just having a seperate savings account
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Prawn, see post #9700. I think it explains the difference and the potential consequences.
 
explod said:
Well perhaps I should have mentioned "Von Misers" on economics and value. http://mises.org/
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Ludwig might have a been a miser, I don't know, but I'm sure your are referring to Von Mises.

The thing is Plod, The Greens are light years away from Austrian Economics.
 
wayneL said:
Ludwig might have a been a miser, I don't know, but I'm sure your are referring to Von Mises.

The thing is Plod, The Greens are light years away from Austrian Economics.
Click to expand...

And so are the other parties, and the US God forbid are light years away too. It is not a reason to not study the angles and get the powder dry.

At least the Greens canvass all of their members with survey forms to complete, in a lot of detail, to formulate policy. And that my friend takes time to get through, but practical change by consensus is on the way. That approach is also light years away with the other parties here. Ron Paul in the US was onto it but the Republicans repudiated him and his very good ideas.
 

I grant you that, but I never claimed any other party was close the the Austrians. The natural business cycle is disastrous to incumbents when it cycles down, hence the attraction to pseudo Keynesian/Monetist frankenomics.
 
wayneL said:
I grant you that, but I never claimed any other party was close the the Austrians. The natural business cycle is disastrous to incumbents when it cycles down, hence the attraction to pseudo Keynesian/Monetist frankenomics.
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Tick
 
oh dear, so a fixed income analyst, a competitor in the 'grab for cash', your cash, industry writes an article with graphs to show how bad it is for the average bloke to buy a home, put a roof over his head.
He wants your cash, simple, no more no less, so of course he will put up a scathing argument against housing.

it is no different to all the other stock tipster's articles, with the same agenda....they are all jealous of the amount of money ploughed into housing.
just imagine, if they could get you to go to the bank and borrow 90% to invest in any of their schemes...
truthfully their real fight should be with the banks...
it is easy to see why the banks will not lend against those assets.....the assets can disappear, as in the stocks....
the value or worth is gone, with just a few moves on a keyboard, nothing more required..

there is a bloke on another forum this week, bragging that he had made over 3 million in profits....
from trading stocks.....seems he started with $500...a simple labourer....he thinks he was just lucky...he had no trading rules, patterns or tips....just luck
and all the sheep followed his every word, praised him, bestowed much love on him, as if he was a new god, to be worshipped..
it is everyone's dream...from a humble beginning, a new guru arrives...
he said he had bought a house, paid cash, gave up his day job, and now just traded for a living....
wow
then finally, I posed a simple question.....had he paid half of his winnings to the tax man ? or had he in fact made 6 million in profits, and walked away with 3 million after tax...?
It is stories like this, that feeds and nourishes the dreamers. The easy life, easy money attitude.
Whereas with property, it is the opposite, it is viewed as hard yakka, the hard work, the slow road.
 
kincella said:
It is stories like this, that feeds and nourishes the dreamers. The easy life, easy money attitude.
Whereas with property, it is the opposite, it is viewed as hard yakka, the hard work, the slow road.
Click to expand...

I can't wait for this weeks story on ACA or TT about the average suburban single mum, with 6 kids, who has a $6M property portfolio in just 2 years. How does she do it?? Then the back-up interview with the 'property guru' who then proceeds to list all the suburbs that are about to EXPLODE because the next boom is about to start! I've seen more sincere and trustworthy speils from side show hawkers and used car salespersons.

See, even the sheeple can 'do' property.....it doesn't really take any brains does it?
 
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