That was mentioned in NZ. The retail grocery chains claimed that fuel costs represented little more than fractions of a percent;
"For example, for every $100 a customer spends in our stores, 18c is related to fuel," she said.
ANZ Bank Tips 2 More Interest Rate Cuts - More Fuel For Positivity
- Thread starter Lord Shanghai
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That was mentioned in NZ. The retail grocery chains claimed that fuel costs represented little more than fractions of a percent;
It's all BS. The big box stores like WW screw the logistics suppliers like Toll down to pretty tight contracts. Large tpt co's then screw their subbies who bear the brunt of price increases and just have to suck it up. When the screws turn the opposite way I certainly don't blame them for not giving back. It's rare for substantial cost centers to contract like they are doing.
Cost savings don't usually get passed onto customers. We're the last to see any relief. The shareholders and execs get the cream. Competiton forces prices down not widening margins.
Hi
Hi,
That's why when investing you need to ensure to be realistic.
I have a few investment properties and one is paid off and the others have LVR under 50% and only one at 90%.
What is the point of having a property if you are just choking in debt??
Hi,
That's why when investing you need to ensure to be realistic.
I have a few investment properties and one is paid off and the others have LVR under 50% and only one at 90%.
What is the point of having a property if you are just choking in debt??
Yes. I think your point contextualises this discussion making it more relevant. Surely this is the main point. I would actually like more live debate/discussion about this.
To me, there are very few disadvantages to having property paid off and the rent supporting further deposits and purchases and lifestyle.
I'm sure there are a lot of investors who have become wealthy by paying down their loans either before or at the same time as they accumulate more. I wish they would speak up more.
To me, there are very few disadvantages to having property paid off and the rent supporting further deposits and purchases and lifestyle.
I'm sure there are a lot of investors who have become wealthy by paying down their loans either before or at the same time as they accumulate more. I wish they would speak up more.
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Hi
Hi,
I guess every one has a different few on things. For me it has personally worked out quiet well. I am on 30 and was able to pay off our PPOR because of the way I have been investing.
Its also gave me the lifestyle where I can venture out into other projects....
Hi,
I guess every one has a different few on things. For me it has personally worked out quiet well. I am on 30 and was able to pay off our PPOR because of the way I have been investing.
Its also gave me the lifestyle where I can venture out into other projects....
Whether the debt is investment or not; it is always better to decrease it as fast as you can.
The whole point of investing is to become financially free and as fast as possible - I speak for everyone I hope.
Therefore, the greater the volume of nett passive and earned income you can generate, the quicker you will arrive at the point where going to work is not a necessity, but a choice.
Also; NG is available to everybody.
So, why get rid of it?
The only crying about its existenece seems to be from those who don't enjoy it currently and are (seemingly) disadvantaged when trying to buy a property.
They (wrongly in my opinion) assume that investors are the cause of pushing up prices because they have the NG carrot.
From my experience investors are looking to decrease the purchase costs in order to increase the ROI....less emotionally driven in the purchase than the normal PPoR buyer.
Yes and no. You have to remember that 80% of PI's are absolute amateurs and only own one property. It takes time to develop an unemotive approach to buying. When it's all said and done I doubt there's a PI out there that didn't pay too much for one because they 'liked' the place.
While it's somewhat of a fallacy that PI's in general are more sensible buyers the sheer weight of numbers (almost 50% of buyers) is in itself a price driver.
I don?t know how you can think this, many markets in Australia are now dominated by investors and speculators (aided by NG). They are the force pushing prices up, nothing else.
The most powerful emotional force in all bubbles, Greed.
I don't think this is accurate. Think about how many people you know in your life who are investors. In every market there are some investors, but most buyers are O/O's (or holiday home buyers).
I do agree that at times, in certain areas, the sales will have a higher proportion of investors - mining towns, areas where the rent returns are abnormally high at the time - Tasmania some years ago for example.
Exactly, and how many folks do we - as a collective group here on SS - know who are investors? The number is not that large. It may be slightly higher than in previous decades due to higher advertising of seminars and lower interest rates, but otherwise the number is not that high - it is too scary and hard for most folks to bother with. They all talk about gunna do it, but never act.
Exactly, and hence the percent of multiple property investors is very small.
I haven't seen too many properties sold which were above asking price in my lifetime. It is usually a matter of how far under. Auctions are a different scenario, and in demand areas and properties can sometimes go over the advertised price and over the reserve. Investors are not often at these auctions.
Where does the stat of 50% of buyers are investors come from? That seems extremely high to me.
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You need to keep up. It used to be 18%. PI's make up 50% of all new mortgage money.
Ok, assume you're right; which price ranges are these evil price-wrecking investors buying in, mostly?
There are currently lots people living in tents or in other outside places in Sydney . For some it's a conscious decision . A growing community . Some as patients who otherwise couldn't afford to live on northern beaches .
We used the boat ramp at Brooklyn a while ago and the bush on one side was littered with camp sites ( not holiday makers )
Cliff
If you read that article again I'm sure you will realise it's a typo. It's ment to say $18. Just above it, it says that fuel costs equate to about one fifth of the costs of running a transport business. It's definitely a typo and fuel costs do make up a very large cost of business.
For example it costs me $40 to get grain worth $250 into Sydney. A big part of that cost is fuel. Then there is more fuel used in growing the product, producing the fertilizer, drying the grain, turning the grain into a saleable product, it goes on and on.
One fifth sounds about right. Definitely not "a tiny fraction".
See ya's.
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Inflation figures just out. Head line CPI down but the trimmed mean figure (the one that excludes big changes in prices i.e. Petrol) was as expected.
The case for a rate cut not really changed either way. Singapore has also just eased their rates so maybe that will influence the RBA a bit.
If I was a betting man I would say they will lower them next week.
The case for a rate cut not really changed either way. Singapore has also just eased their rates so maybe that will influence the RBA a bit.
If I was a betting man I would say they will lower them next week.
Any real reson as to why drop?
Or are we just keeping up (down) with the Singaporeans?
Fuel may be 20% of cost of running a transport business but that's not what freckle is saying, he's referring to grocery chains and his figure of 18c would be closer to the truth than $20 as fuel would be a small % of the total cost of running a supermarket chain
For bulk purchases of soft commodities like yours it has a big effect on costs I agree but not when you're talking higher value groceries (compared to grain)
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