rates to be cut in 2015?

[Cruskits]

It will always bounce back

Watching certain stocks/resources slide over the last 12 months makes me think when will it hit the bottom....

Just like property there is the right time to buy and people who buy at the right time usually make money.

Going against the AUS dollar has done some people very well and I am insanely jealous of those that took the leap and purchased US property. Getting the double whammy of increased house prices and falling AUS dollar... WELL DONE!!!!

Much like watching the Sydney market looking for the right time to sell. I am looking at the resources etc looking at the right time to buy.

Eventually it has to turn and head back up just a matter of time. months, years, who knows but it will be fun trying to pick the bottom. Jumping in and enjoying the ride back up......

 

[perthguy]

Easystreet and CU Credit Union are offering honeymoon periods at 3.75.

I'm going to pass out...

 

[perthguy]

Eventually it has to turn and head back up just a matter of time. months, years, who knows but it will be fun trying to pick the bottom. Jumping in and enjoying the ride back up......

I know it is early days but I don't have a diversified portfolio of shares with good dividend yield potential. My shopping list includes the likes of BHP/Rio, Woolworths, a major bank or major lender and maybe a retailer like JB Hi-Fi or equivalent. I would be looking to buy with the view for a long term hold and build a nice earner portfolio to supplement my retirement. It's one of my three pillars: personal resi investment, shares and super. Resi is going well, super is great, shares are not so great. My problem is that I like property too much. I wish I could develop a greater interest in shares.

 

[Deltaberry]

If there is a rate cut, time to cash out.

 

[ZachAnSel]

If there is a rate cut, time to cash out.

Amen!! that's why we wait until Feb to off load one western sydney property..

This to increase more reserve buffer.. better safe than sorry

And when the time is come, we have money to re-invest better quality asset in lower price.

 

[Deltaberry]

True. Can't win them all

 

[Freckle]

Going against the AUS dollar has done some people very well and I am insanely jealous of those that took the leap and purchased US property. Getting the double whammy of increased house prices and falling AUS dollar... WELL DONE!!!!

Time to clap is when you get the dosh in your hot little hand not when you get nominal balance sheet gains.

Prediction for ya... US property has recovered somewhat but it will turn out to be a dead cat bounce as the economy tanks again. US dollar will potentially fade over the next 5-10 yrs as its reserve currency/petro dollar status evaporates. The Venezuelan Bolivar might be worth more in ten years

For the most part it's actually difficult to find anyone who's done ok out of the US over the last 5 years. The odd success story but horror stories are the norm.

 

[Freckle]

Amen!! that's why we wait until Feb to off load one western sydney property..

This to increase more reserve buffer.. better safe than sorry

And when the time is come, we have money to re-invest better quality asset in lower price.

I smell a bit of fear in the market. A lot of naive investors piling in but the old hands sense there's problems brewing. By mid 15 you could see a significant change in investor sentiment. Better to be a year early than a day late as they say.

 

[Silent]

http://mobile.abc.net.au/news/2014-...laims-first-wa-victim-red-fork-energy/5962020

 

[The Fence]

I smell a bit of fear in the market. A lot of naive investors piling in but the old hands sense there's problems brewing.

So the person says they will wait til Feb to sell into a rising market and you call that fearful ?

Syd has been rising for a good while now and if someone wants to take advantage of that then yes, anytime from now is the time. You would agree It won't rise forever, no ?

Calling that fear of problems brewing is rather dramatical.

It's your call and don't we all know it.

Good luck with it, I wonder if you will be buying in 2015 then?

 

[Freckle]

So the person says they will wait til Feb to sell into a rising market and you call that fearful ?

It is if you grab the wrong end of the stick.

But lets be more specific so that you aren't under any misconceptions.

I sense there is an element of fear in the market in general albeit small. That's supported by individuals like ZachAnSel strengthening their balance sheets because they fear they may be left exposed if all the talk about a correction proves correct.

There's also another type of fear but less pronounced. Fear of missing an opportunity when the dust settles.

Dramatical.. LOL luve the choice of words

 

[spludgey]

If there is a rate cut, time to cash out.

I'm not sure I follow the reasoning here. If the rates are cut, it's going to become cheaper to hold the property, so you'll end up with more money than you have now.
Or are you assuming that a rate cut will increase property values?

 

[Jaggannath]

I'm not sure I follow the reasoning here. If the rates are cut, it's going to become cheaper to hold the property, so you'll end up with more money than you have now.
Or are you assuming that a rate cut will increase property values?

If the interest rates are cut, in theory your payments go down, which maximizes your ability to withdraw equity.

 

[ZachAnSel]

It is if you grab the wrong end of the stick.

But lets be more specific so that you aren't under any misconceptions.

I sense there is an element of fear in the market in general albeit small. That's supported by individuals like ZachAnSel strengthening their balance sheets because they fear they may be left exposed if all the talk about a correction proves correct.

There's also another type of fear but less pronounced. Fear of missing an opportunity when the dust settles.

Dramatical.. LOL luve the choice of words

Fear is good as long as make money.. At least that for me
When I bought it, everyone fear.. They said the area is flat dead market, will be worst $220k spend. But I can sense chunk profit whatever the sold price is
Few property in the area sold for low $400ish last month

From there we can re-invest in brissy or adelaide..
Time will tell if that wise or dumb call

I dont expect anyone will agree, since the market still hot. Few friends actually advise me to hold, but I also can't see Sydney will grow the same speed on 2015.
Then again for better quality of asset, I can leverage better now since we have stronger asset to support. This just subtitute asset for the same of money (less if you include tax)

Back to fear, my view is Sydney in general still okay till end of 2015, but I expect price will be down on 2016-2017. Then 2018 or 2019 will be good chance if I want to re-entry the market. Hopefully we will see the headlines by then

 

[kathryn d]

Canadian rates are a bit lower than Australia.
Our personal lowest mortgage is 3.09 %.

That's good..and I'm happy.

Was reading where the government (Canadian) is a bit concerned, when the economy does get better, and the rates naturally increase, it will be a double edged sword.
Many people have strained their budget, and that is at these all time low rates. They really can't afford to have rates return...and when it does, many will lose their homes.

 

[Rolf Latham]

For the most part it's actually difficult to find anyone who's done ok out of the US over the last 5 years.

almost absolutism will almost always land One in doubt.

One will see what one needs to see.


ta

rolf

 

[Freckle]

almost absolutism will almost always land One in doubt.

One will see what one needs to see.


ta

rolf

I have no idea what you're trying to say. To oblique for me today..

 

[Scott No Mates]

Shhhh don't tell anyone but the deals for our miners who export are done in $us. Their profits will be buffered by the dropping AUD.

 

[Scott No Mates]

Shhhh don't tell anyone but the deals for our miners who export are done in $us. Their profits will be buffered by the dropping AUD.

 

[Deltaberry]

I'm not sure I follow the reasoning here. If the rates are cut, it's going to become cheaper to hold the property, so you'll end up with more money than you have now.
Or are you assuming that a rate cut will increase property values?

If rates fall, prices presumably go up more. I'd consider cashing out some to reallocate to something else. Not saying I believe in doom and gloom from some other users, but if there is one more property run, I wonder how much more it can go up by in another 5 years.

I'd probably keep the AAA-class locations though since they only tend to come up once every 50 years, but just get rid of the A-grade, B-grade ones as they're not easy to get rid of in a flat or falling market.