Hi All,
After watching the hard economic news - jobs, retails sales, housing start, interest rates, and exhange rates....and also the
soft economics news - current affairs programs about how families are struggling, power bills, Baby John's march to Canberra to let Jooliaa know how hard it is live on $364pw for pensioners, doom and gloom news...
BELIEVE IT OR NOT WE MAY SEE AN UPWARD ON PROPERTY NEXT YEAR!
Why? Well for the following reasons based on crystal ball :
1. I think we have hit the peak in terms of interest rates...I am of the view that interest rates will head down during Aug-Oct period later this year (2011). You know what happens to demand for housing once rates drop...particularly NSW which is highly rate sensitive.
2. The cost living has increased to the point people are at breaking point and the government and more business savy companies (i.e. Coles) will start addressing this. Other sectors will follow suit driving down prices. I also reckon Oil prices will drop as I suspect the Libya situation will cool off ...maybe not resolved.
3. Labour has about 18 months before an election ....they need to ensure the current economic situation is turned around. If they don't the Libs will win. I think the Carbon Tax and tight budget will be the last straw. If Bazz in NSW does the opposite and borrows against the coffers he is going to look like a super hero if he kicks off infrastructure spending in NSW.
4. The Housing stats are pointing to a drop in housing starts and people taking loans. This means more renters...thus better rent returns. As I said in a previous thread. I paid 232.5 for a repossessed newish 3 brm T/H in Wyong an expect to get $330-$350pw.
5. A drop in interest rates will probably also stabilise our high dollar.
6. The immigration rates will edge up again out of necessity as there is a labout shortage emerging. We should see migrant rates go up to 300k from 180k on the quiet as we are scratching at the bottom of the barrell for local skills.
The key here is interest rates...once this drops we could see demand jump for properties.
I have put my money where my mouth is....I have already bought 2 properties well under market and intent to make another 2-3.
I know this is going to awaken the BEARS on this forum...I can already hear their growls......don't worry...I am sitting on my porch with a shotgun!
Would be good to hear what others think....
After watching the hard economic news - jobs, retails sales, housing start, interest rates, and exhange rates....and also the
soft economics news - current affairs programs about how families are struggling, power bills, Baby John's march to Canberra to let Jooliaa know how hard it is live on $364pw for pensioners, doom and gloom news...
BELIEVE IT OR NOT WE MAY SEE AN UPWARD ON PROPERTY NEXT YEAR!
Why? Well for the following reasons based on crystal ball :
1. I think we have hit the peak in terms of interest rates...I am of the view that interest rates will head down during Aug-Oct period later this year (2011). You know what happens to demand for housing once rates drop...particularly NSW which is highly rate sensitive.
2. The cost living has increased to the point people are at breaking point and the government and more business savy companies (i.e. Coles) will start addressing this. Other sectors will follow suit driving down prices. I also reckon Oil prices will drop as I suspect the Libya situation will cool off ...maybe not resolved.
3. Labour has about 18 months before an election ....they need to ensure the current economic situation is turned around. If they don't the Libs will win. I think the Carbon Tax and tight budget will be the last straw. If Bazz in NSW does the opposite and borrows against the coffers he is going to look like a super hero if he kicks off infrastructure spending in NSW.
4. The Housing stats are pointing to a drop in housing starts and people taking loans. This means more renters...thus better rent returns. As I said in a previous thread. I paid 232.5 for a repossessed newish 3 brm T/H in Wyong an expect to get $330-$350pw.
5. A drop in interest rates will probably also stabilise our high dollar.
6. The immigration rates will edge up again out of necessity as there is a labout shortage emerging. We should see migrant rates go up to 300k from 180k on the quiet as we are scratching at the bottom of the barrell for local skills.
The key here is interest rates...once this drops we could see demand jump for properties.
I have put my money where my mouth is....I have already bought 2 properties well under market and intent to make another 2-3.
I know this is going to awaken the BEARS on this forum...I can already hear their growls......don't worry...I am sitting on my porch with a shotgun!
Would be good to hear what others think....