it certainly is hard to know where to put your money at the moment. The Sydney property market is in limbo, interest rates look like they are coming down alomg with commodity prices and the share market is set to take a hit if the profitability reports are as bad as this article suggests. Maybe the current down market in Sydney property prices is a buying opportunity?
http://www.brw.com.au/freearticle.aspx?relId=13968
http://www.megainvestments.com.auJohn Carroll
It would be nice if interest rates were going to come down, but I cant see it. Imagine the message that would be sent out to all those credit addicts in Australia.
The down market presenting a buying opportunity, who knows, but I’d rather wait a little while longer after it’s come down more and get an even better bargain.
As a subscriber to BRW and a regular reader of Gerry’s contributuions, it always amazes me of the analysis he comes up with. But who am I to comment, I get lost after the second paragraph.[wacko]
ahh ! the crystal ball!!!! as i look into through the murky haze I see the Australian Reserve issuing a warning of pending doom and leaving rates on hold!
This should all happen in about 10 minutes time?
Cheers
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
For all those thinking lower interest rates mean a renewed property boom should realise that the only reason the RBA would lower rates is if the economy struck trouble. i.e. a slowdown (or recession) and higher unemployment. This is not an environment where property prices rise.
This is the most interesting comment in the BRW article:
The Australian economy will take a cold shower on April 1 next year, when many large commodities contracts will be renegotiated down in price.If the rates drop i can see another buyer confidence back into the market. The biggest portion of the market is UNsophisticated look at what happens when u offer interest free periods on store items etc.
lower interest rates on credit cards results in more spending and a future result in this is greater consumer debt.
Nothing will change in this country until we educate children about the fundermentals of money management. Today we have 90/100% housing loans and now the introduction of equity lending to help first homes owners get a property.
IMHO this is totally wrong and we will see the effects in 20 years, please put me on record as this will be a major future problem.
My answer is save like heck, resist credit card dept, if u can’t afford it forget it, go shop at actions, live in a unit before u buy a house, stay at home longer, etc etc.
The above may be boring but it will work!!!
resiwealth
firstly, are you guys speculators, forex traders, or property investors?
2) fear and greed are great motivators used by people who sell seminars to get bums on seats.
‘don’t get burned when the bubble bursts!’
(fear)
‘we’ll tell you how to make lots of money out of the carnage that’s coming!’
greed, and speculation
skillful investors know how to make money in property in ALL markets. if you don’t, then you are just an unskilled victim, waiting for the market to be perfect for you. good luck waiting
I’m with you mini,
skillful investors know how to make money in property in ALL markets. if you don’t, then you are just an unskilled victim, waiting for the market to be perfect for you. good luck waitingI remember when rate’s where up at around 18% there were property investor’s back then doing as we are today making a dollar.
Regardshttp://www.owner.com.au/phototour/listing_phototour.cfm?listingid=20440
Even if the prediction is materialised it wouldn’t necessarily going to be good for places like WA. Lower commodity price means lower job rate, we are so dependend on mining industries over here.
Hi MiniMogul,
I certainly agree what you said about skillful investors. Just to further asking your opinion, do you think that skillful investors don’t waste their time reading or even stay away from all these predictions/speculations about property market?
Or do they still need to follow closely what others think about the market? But what’s the point then?
Just questions from newbie…
From FUNResi,
I agree with your last paragraph. If you haven’t got the nut’s and bolts down on just obvious save and ‘If you can’t afford it, don’t buy it’, then you’re dreaming.
I’m still amazed by friends of mine (and it is entirely their right and decision)to ‘borrow money they haven’t got, to buy things they don’t need, to impress people THEY DON’T EVEN LIKE!
Cheers,
Gatsby.“Sometimes the hardest thing to do in life is often the best thing to do.”
Hi FUN,
and BTW I love your name!“skillful investors don’t waste their time reading or even stay away from all these predictions/speculations about property market? “
Let’s say Steve is skillful. Damn right he reads stuff. And if I am skillful then I only got that way by reading, seminars, talking to other investors, keeping up with the market by subscribing to magazines, internet news feeds, and so on. On our CD we talk about the ways we find out where demand will make rental yields and values go up in the near future ahead of everyone else.
“do they still need to follow closely what others think about the market?”Depends on who the others are. Most others have an agenda. A lot of ‘articles’ in i.e. the Sydney Morning Herald are just press-releases from a company. Masquerading as ‘news’! For a clue, check out who’s quoted and see what they might be selling.
A lot of times the stats don’t come out about what the market’s doing until it’s too late.
3 months too late – the time it takes them to gather the data.If you spend say 6 weeks studying the market (or ‘a’ market) – if starting out, narrow it down to say one area for a bit – then you’ll be able to learn that market. You still might not be able to tell what it’s going to do tomorrow, but you should be able to spot a deal which in relation to others of a certain type seems good value. If you buy one of these (for whatever reason, things sell cheap. divorce, overseas, death, etc) – and you buy that one, you to a certain degree built yourself in a market safety buffer. If you can buy some property with an upside to improve, then you can make capital gains right away even if the market ain’t making them for you.!
cheers-
MiniHi MiniMogul,
Thanks very much for your advice, it’s very insightful!
From FUN
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