It's interesting reading the new posts since the rates are rising and the news is doom and gloom for the aggregation business.
Rams lost 32% of their share value … and this is only the beginning
Other major banks are predicting more trouble …
Governments will introduce more tax on wage earners to compensate the battlers … this government is nervous that we could have another crash like 1990 and they will spend all our tax dollars to try and stop it.
So my question to you is simple … lets take a vote and predict what will happen over the next 4 months … if the stock market gets worse and FEAR prevails will the property market boom or will people sit back and put their money into fixed investments and funds earning 9% … lets face it what is happening in the USA is going to effect the Aussie market.
D
Not sure. Over four months? I think maybe some house pricing will start to creep down other than for 'up market/seaview' type property. Sharemarket could be in for some major ups and downs, but my inexperienced (share wise) gut feels that within four months it should be somewhere between todays close and what it was a few weeks back. ….quite managable for long term investors. Property? I think even another rate rise will still not affect the majority of home buyers and investors…..only those highly geared. I genuinely hope something will soften a bit property wise anyway, as so many people are struggling to buy property as owner occupied, but having owned homes previously, there are no concessions from the government to help.
($20,000 'cash' is needed to buy a $300k house even at 100% finance!)
BUT…..in the next four months, there will be a percentage of people that panic sell property and or shares, making it a great time to have ready cash or equity to buy up sensibly. I guess that was probably not as specific opinion as you may have been chasing wfl but best I can do….
Property prices flat – impacted by Interest rates and election
Property rentals – going bollistic
Shares – Recovering from correction – greater certainty around sub-prime issue
I would say next 4 months:
1. One more 25 point correction by RBA
2. Labor party to rule
3.Real estate prising to flatten (generally)
4. Rent to keep creeping up
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