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So true, who would have thought that in 2008 we would be reffering to Keynesian stimulous and doing something else all together. Keynes actually specifically addressed the idea of wasting money just for economic growth and pointed out why pursue "wastefull mitigations" when their are more...

This would not worry the government. They would throw everything at deflation. Also keep in mind we have a floating currency, this is quite handy in preventing deflation also. It is like a relief valve if the economy goes to the shitter I don't see the dollar at parity with US dollars and this...

Yes, I suppose it was. I do not have anything like this but even on lower levels saved the tax paid is cruel. The FTBs you give up moreso. You either stick the money in your spouses account who earns less and you give up FTB's or you stick it in your own and you pay big tax on it. Either way...

You do not need it to make it stack up on your PPOR. But sure if you get capital gains you are even more better off buying your PPOR. Over 25 years you will get capital gains too there is no question of it over this sort of period of time. Hence I am out and about looking to buy my first home at...

I am one of these feeling stupid don't worry.

Thats the point I am making, if you have the capital to buy a home outright buying your PPOR does beat a U bank deposit even if you completely exclude capital gains at all, so I am comparing the opportunity cost between a U bank and buying a PPOR and find that the PPOR wins even with our really...

It was a token effort what the government has put up. I think it is 30k per person you can keep without paying tax on the interest. The only good thing to come out of it is I feel rich now because up until then we kept all our savings in my wifes name due to the lower marginal rate of tax. Now...

Aussie also had one at lvrs below 60 I noticed. That was actually when I got thinking why don't the big banks do this. This is the pertinent question though. If you were going to lend someone money would you put only a 0.2% premium on the person with a 95% lvr? If it was me I would lend my...

I just suspect it would be better for everyone perhaps except the salaried top execs if things were done in a controlled manner now, a gradual ratcheting back in LVR's over time let incomes catch up aggregate savings and then we can all move on with a more robust financial system. We might even...

But instead of having it thrust upon them why does one bank of the big 4 at least say OK we are going to offer our loans at a 1% discount to the other banks and only lend to people with an LVR of 0.7 or less. There would be many here who would jump at it I imagine and surely it would be...

Aaron; Clearly it is selfish on my part to say this but I would rather them offer bullet proof loans only at say LVR 70 or better and reduce the interest rate on them the big 4 at any rate. Let the more exotic lenders do the 95% LVR loans and charge accordingly. Surely the big 4 would have...

From what I am hearing their cost of funding is increasing not decreasing so the market is certainly repricing the risk. Perhaps this is in response to banks going back to 95% mortgages. If it is not in response to it then I don't know how the international bond funds after already raising...

Their is very few homes their now there is however a large devel going on in the background. I imagine it is going to be pretty flash however and longpoint that whole area used to be my favorite fishing spot early morning and twilight so pretty handy place to live. I lived in Sydney for a...

Something I should add about the various capital cities I have lived; at least in Perth a family can buy a house somewhere if they are a middle but single income family. Places like Port Kennedy near the water, have fast rail access and you can get a 10y.o. 4br family home for 350k possibly a...

Originally it was at least 20% equity to avoid Mortgage insurance once I discovered it does nothing at all to protect the individual paying for it! We got to that about 6 months before the FHSA's were brought in and we were in the thick of the GFC so I thought waiting it out for 4 financial...

It is for most a means to an end. I do not put money in a deposit thinking that is where it is going to stay forever and start mapping my retirement out using a bank deposit as the way to get there. However it is a sure way of saving for the house you want with no risk. The way ther transfer...

Well unless the car is a truck and it is going to provide you with income in some way then as an investment no I cannot see how it is going to be better. Well thats the commodities cycle prices rise capacity builds prices fall capacity retreats slowly till prices rise and capacity is built...

The stupid part is a term deposit does not even pay more than an at call deposit at present anyway. Went through every option with combank the other day as my FHSA is going to mature soon they were talking to me about a home loan and asking what other funds I had. When I said we (my wife and I)...

No, believe it or not I hate statistics and hated them at uni. Have to use them on occasion but they are a tool which I actually spend little time thinking about till moments like this. I certainly would not prescribe for myself any more learning than that which was covered in my undergraduate...

I should preface this by saying my experience in investing is so bad that I now hold bank deposits and a bit of gold if only because any class of asset I buy into is likely to see it enter a period of dramatic upheaval. My success always seems to be limited to using other peoples money! I...