How will this affect the residential property market in Australia specifically?
For the approx 70% of owners who are using thier home as shelter, how will it affect them.
And for the approx 30% that are owned by landlords, what's ahead?
ANZ Bank Tips 2 More Interest Rate Cuts - More Fuel For Positivity
- Thread starter Lord Shanghai
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How will this affect the residential property market in Australia specifically?
For the approx 70% of owners who are using thier home as shelter, how will it affect them.
And for the approx 30% that are owned by landlords, what's ahead?
For people who have plenty of equity, and have healthy cashflow, record low interest rates and potentially distressed sellers represent an opportunity of a generation.
That's the thing, will we have such a high number of distressed sellers?
I would think a massive rise in unemployment could be the only trigger.
If people still have jobs and interest rates go lower, servicing debt gets easier.
I'm not an investment guru. Never have been never will be. My game is business because I can get in and out reasonably quickly with low cost and high returns. I don't like assets but that's a personal thing and doesn't suit me at my time of life. I want cash flow and lots of it.
I'll be dead in less than 20 years (I'm 57).. moar isn't my goal...enough is the target and I'll be highly p!$&ed off if I die with even a dollar in my pocket.. preferably in debt to the banksters..
This thing isn't hard to get a handle on. Economy after economy is falling off the perch and the 4 biggest economic blocs are up to their ears in debt and failing fast. Markets need $250B/mth to stay afloat. ECB's turn to go all in now. That'll kick the can for maybe another 6 - 12 months. They're looking at punching $1T into the system over the year ...probably won't be enough.
My guess is that if a GFC hits again assets will get crushed. That'll vary from place to place and asset class to asset class. Gearing will be everything and how well demand picks up afterwards (it will be uneven) will be key to survival.
If I was in property I'd be screwing gearing down as hard as I could and buying in the very bottom of the market. When things go bad everyone legs down a few rungs. The bottom gets the most demand.
It's likely the middle class will take the brunt although the top end usually moves down the most as the wealthy clear the decks on margin calls and deleveraging. That's probably where the opportunity is. It will fall the most but likely recover the fastest. As soon as the systems restored the wealthy will get back to making money again.
All speculation of course. Plan according to your own tastes and strategies.
Jeez how long's a piece of string. How things unravel depends of what the polly's and CBsters do.
For the average bloke in the street keeping his job is the key to survival. The value vs leverage of his/her property won't be the deciding issue
It'll depend on leverage, and class of property. The closer to the bottom I would expect to see a diminishing effect as everyone affected moves down. Rents will be an issue for many. Depends how employment pans out. There's lots of variables.
My advice to PI's is to have a plan in case. If nothing happens great! If it all goes to hell in a handbasket at least you've done what you can. Better than no plan at all.
How you play it will depend on your tolerance to risk and where you are in your investment timeline. Those nearing their goals I would expect to be conservative while the young, 10' tall and bullet proof types will go for the doctor and ignore any warnings. Doesn't really matter in the end. All stuff has owners and whoevers holding the bag will either find gold in it or brown smelly stuff.
Current status on distressed property. Currently low but some areas are still quite high as a percentage
Article on SQM research report
It was always worth sticking with. People just don't like hearing what is being said.
Thanks Crusty but living to 80 isn't really a goal of mine. Just trying to jam in as much as I can and help my lads get set.
Heart attack 6 years ago and two stents put in. The reality is I have arterial heart disease. Seems to be genetic not environmental. Always been as fit as a buck rat most of my life but I did smoke a cigar or two and Jim Beam was a good mate.
Most of us are dead by our mid 70's. That's just the way it is and I'm planning accordingly. If push comes to shove I might even do the honors myself
I'm wishing you a sense of elation as you get closer to and outlive your projections with a healthy mind and functional body.
Bugger all that hippie nonsense. Live fast, die young.
I already died?
Are you dumb?
She means you are already old therefore live fast die YOUNG does not apply to you anymore.
Phar Lap, two questions:
1. Who are you?
2. Why should I care?
1. Who are you?
2. Why should I care?
More rate cuts, yes please. Not that we need it but will take it just the same.
Will only improve cashflow that is already very good. The rich get richer.
Not sure why I'd be concerned about anything like freckle is going on about. Does not apply to me or anyone else on here that has their risk mitigation in order.
At least that's what I've been able to discern from the more experienced PI's on here.
Sure, the high LVR types are playing with fire right now, but reading over the last 12 months I see many have balanced their portfolios and decreased risk accordingly. Nothing to get uptight about, just simple strategy when the sellers market is playing out.
Will only improve cashflow that is already very good. The rich get richer.
Not sure why I'd be concerned about anything like freckle is going on about. Does not apply to me or anyone else on here that has their risk mitigation in order.
At least that's what I've been able to discern from the more experienced PI's on here.
Sure, the high LVR types are playing with fire right now, but reading over the last 12 months I see many have balanced their portfolios and decreased risk accordingly. Nothing to get uptight about, just simple strategy when the sellers market is playing out.
Looks like interest rates cuts are now almost a certainty.
This won't bode well for the EU: http://www.theguardian.com/world/li...tion-syriza-confident-of-victory-live-updates
This won't bode well for the EU: http://www.theguardian.com/world/li...tion-syriza-confident-of-victory-live-updates
Additional rate cuts are only going to result in further property speculation, and further reductions to the interest earned by retirees, pensioners etc for their savings. One hand, as an investor that's great. On the other, I also understand that what goes up too quickly can also come down, and I'd prefer stability over volatility, so I'd rather they kept their powder dry for when it's actually needed.
Conditions for investors are already excellent. Rates are at historical levels. Banks are lending freely. More broadly, petrol is down significantly and this will buffer the economy somewhat as it will flow through to groceries and many other goods produced locally, as transport costs fall significantly.
All that being said.... who knows what they'll do? I don't.
Conditions for investors are already excellent. Rates are at historical levels. Banks are lending freely. More broadly, petrol is down significantly and this will buffer the economy somewhat as it will flow through to groceries and many other goods produced locally, as transport costs fall significantly.
All that being said.... who knows what they'll do? I don't.
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