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Kenneth, Two very good posts, kudos to you... You need to steer your own course, and not let prevailing sentiment overwhelm reason. I'm not saying that you must stand strong in the face of overwhelming negative consequences, just that you need to determine for yourself the implications of...

Hi Kenneth, Does anyone else get the world's biggest smile when they read all this fantastic news! :D A falling AUD, global fear, the risk of a short sharp recession and the RBA plans to ease rates to 4%! Add 200bp odd for the bank spreads and we're talking 6% interest rates. Happy days...

True, but intentionally so as its just a rough guide as to where the city is at in its property cycle. I tend to follow the wave theory, whereby prime suburbs in a city lead the boom and the wave rides out to pick up the others in time. But they all follow the same cycle. These guys seem to...

Hi Guys, Just a bit of a quick reality check. Here's an example of a commonly understood economic cycle using the property clock: http://www.quartile.com.au/Market%20Data/propertyclock.htm That one is from the Quartile group, but most are similar. OK, so is anyone in disagreement that...

Don't forget that Sydney house prices have already been stagnant for 5 years. Another 10 would be pretty unprecedented. But another 5 is certainly on the cards if the macro-economic environment remains nasty. I think it is more likely to be 2-3, but so long as interest rates don't explode...

You could be right, but with demand/supply where it is you could equally be wrong... I'm just crystal ball gazing based on what I feel is happening out there. Whatever actually happens, I will respond to it. For now, I want to hold my premium site and wait for signs of strength in that...

OK, here's a tad more doom and gloom, but this one with a silver lining: http://business.smh.com.au/business-conditions-slump-to-5year-low/20080408-24in.html Business conditions slumping to a 5-year low! Which resulted in the NAB pulling forward their projection of the RBA cutting rates...

Me too Alex, That's basically my old tipping point hypothesis in a nutshell. i.e. Its all about rental yield relative the prevailing interest rate. I argued there's a small premium that buyers are willing to pay to secure a property of their own and the security that comes with doing so...