Just wondering from a borrowing power perspective, does going I/O still make sense?
I'd prefer going P/I (forced savings) but don't want to limit borrowing power. Does all these new rules with assessments of debt treated differently change this?
Interesting thread.
I do think there are longer term limits on house prices and how far they can move above wage growth. If you believe the stories about low productivity growth capping wage growth, i think house prices are a natural extension.
What about the rest of Canberra? There seems to be a lot of new supply (apartments) coming on in the south as well, Kingston, Woden, Wright, Coombes etc.
Do people think the oversupply of apartments is true across almost all of Canberra?
So what does everyone think the case is now? Can people still grow large portfolios in the 'new world'? Or are people going to need increasingly large incomes (for servicing) in order to accumulate?
Agree. In many ways I think the regulators are still finding their feet in this type of space, and quite rightly don't want to overstep.
However I think it could be something we see more and more of. It's not a bad way to try limit the transmission of interest rate changes to credit growth...
I think there is sufficient competition in the market to ensure banks will keep offering IO on higher LVR's. My take on this was it was as much about bank's capital as lending products. There has been growth in risker lending products (in APRA's view) so they want to make sure bank's capital...
Has been getting some coverage in the mainstream press today too - especially its comments on the younger generation being less wealthy than 10 years ago.
Growth forecasts seem to have been over the odds for a while now. The days of chucking 3% in your forecast and then making a few tweaks up or down are over.
Personally I don't see where the growth (to get back to the 'long run average') is coming from, so I think this could continue for a while.
What are your thoughts on PM? I'm looking a potentially purchasing somehting there. From a cap growth perspective I'm not too fussed, do you have any insights on vacancy rates / likely vacancy risk? The vancancy rate data seems pretty good over a long period, but I'd be interested in the...
Nice thread strongy1986!
I don't think theres any need to panic. My view is theat things are still along way from a sector wide response like lower LVR's etc. I think APRA would be looking to do something as targeted as possible - maybe limited to IO loans like Redom suggested - or even...
I see you've found Wiki's definition! Thats a good start! Geopolitics is a broad term that encompasses analysing how countries act in the context of their geographical region, history, culture etc etc. As the days of major territorial expansion are thankfully mostly over (Russia aside), economic...