alan kohler

[pieman]

Did anyone see the ABC news tonight, Alan said that personal debt levels had retreated over the last 18 months at the fastest rate ever.
Source : commsec I think

I thought the end of the world was fast approaching and that we were destined to have 40% decline in house prices as a result of the ever increasing personal debt levels.
Something doesnt add up.

 

[bluestorm]

You are reading it the wrong way. No one said prices would fall because of every increasing debt levels. I can't speak for other, but I know I've said quite the opposite in fact. Prices will drop 30% over the next 2 year, precisely because people are starting to shy away from every increasing debt levels. You will no longer get the continuous flow of lemmings getting ever higher and higher loans to pay more for a property than the last guy did.
As prices start to fall, more and more will sell up. Should be good buying in 2013.

 

[meconium]

The fact that the FQ2010 median for Melb touched a record high suggests that the world is not about to end anytime soon.

The doom and gloom naysayers will argue otherwise, as they did during the GFC. They are wrong, once again.

Unlike those who are blindly bullish, I'm not saying prices will skyrocket - far from it; I'm merely saying that prices are unlikely to fall sharply. Things are a lot brighter than most would suspect.

Some of the d&g brigade will have to eat humble pie in a few months time.

 

[Rockstar]

Did anyone see the ABC news tonight, Alan said that personal debt levels had retreated over the last 18 months at the fastest rate ever.

Just another one of the many graphs that Alan shows that tells me nothing and has no bearing on my future prospects. Despite this I enjoy watching the guy for his presenting abilities.

Bluestorm - you don't need to wait as there are bargains out there every day. Buyers market in my area at present. Can't see it dropping in value but prices are stagnant with, as always, the occasional distressed sale cropping up.

 

[bluestorm]

Bluestorm - you don't need to wait as there are bargains out there every day. Buyers market in my area at present. Can't see it dropping in value but prices are stagnant with, as always, the occasional distressed sale cropping up.

A buyers market now does not mean prices falls won't happen over the next 2 yrs.

You can invest how you like. I'm reading 30% falls in 2011/2012, so paying down debt (as the ABC story says), with LVR at 28% currently. Then will be picking more up cheaply in 2013.
Not every year is a good buying year. Sometimes better to consolidated and sit on the sidelines and wait.

I agree, I like Alan Kohler presentations. A lot of the tidbits have no relevance to most people, but he manages to present it in an interesting way.

 

[pieman]

You are reading it the wrong way. No one said prices would fall because of every increasing debt levels. I can't speak for other, but I know I've said quite the opposite in fact. Prices will drop 30% over the next 2 year, precisely because people are starting to shy away from every increasing debt levels. You will no longer get the continuous flow of lemmings getting ever higher and higher loans to pay more for a property than the last guy did.
As prices start to fall, more and more will sell up. Should be good buying in 2013.

I don't buy that doom n gloom stuff, I first starting hearing it in 1995 when I first got redundancy and a "fin advisor" said to keep and eye on things because he had heard that the beginning of the decade(2000) there is a major chance of a depression. Fortunately I didn't listen.