I'm also interested to understand the implications of the US 700 Billion bailout and now the announcement that the US government will assume other bad debts.........where is the money coming from? what implications will this have for the future?
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Now we have falling rates, and a crap stop market, but yields on property are not as attractive now, as they were then and I think sentiment will take a beating as this unfolds further, especially with rising petrol and decreases in retail sales, construction and the resulting job losses.
I'm a property bear and regular at GHPC, but if the AUD continues its decline it is positive for property. Remember - at the beginning of the boom the AUD was extremely weak, got to 0.47 USD one day. It made Australian property dirt cheap for expats, migrants and for those who live "internationally".
Thats true... 25% drop in AUD/CHF (almost there) + 25% drop in Australian property prices = 44% cheaper Oz properties in Swiss francs - nice, would encourage me to buy again, & we should be there soon enough.
That will be an interesting one. Mind you the spread between term deposit rates and mortgage IRs has been wafer thin lately. Not sure how they are making much money on that but I guess they haven't had many alternatives.
Agree, they pushed the rates up too much and have just realised it was resource business pushing the spending and borrowings, the aveage joe has been crippled for a few years.Personally I think it is an admission by the RB that they were wrong and things are pretty bad out there
Now that the AUD is off 25 percent we have already had our Australian house price crash. Someone go tell GHPC to put on their party hats.
Has there been news on ANZ and what they'll be passing on?
Cheers,
Jen
ANZ have dropped by .80%
I didn't say I would buy now, the statement was conditional on a fall in prices, which I still expect over the next 12 months. A falling dollar would make it even more attractive.You have me confused. You have said many times before that Australian property prices are over valued and will come down. Why would you now consider purchasing property that you have previously said will fall in value?
If you draw a trend line from 1991 to today, it looks like either gold is expensive or houses are cheap..... waddya reckonMaybe you need to be paid in gold
Attached chart shows house prices in oz's of gold.