Costello warns home buyers

[sbe]

From the Herald Sun....

21may03

FEDERAL Treasurer Peter Costello has said the Government will work to keep interest rates low, but home buyers should still be cautious.

Mr Costello said interest rates were at 30-year lows, but looking back over the past 20 or 30 years interest rates were generally in double figures.
"The point I'm making here, we are in a period where interest rates are very low and that's been part of Government policy to keep them low," he told ABC radio Today.

"What I would say to people, when they're buying homes, you've got to think in a 30-year mortgage things won't always be the same as they are now and you've got to make an allowance for that.

"It's a bit like the stockmarket. Stock prices go up and stock prices go down.


"A lot of people thought they would never go down.

"I just say to people. Bear in mind when you're looking at private expenditure that these are 30-year lows, so have a bit of a cushion."

 

[XBenX]

but Mr Costello think of our investing as increase the household savings ratio... is that better ?

ps stop being a wuss

 

[Aceyducey]

Good on you Mr Costello, talk all the new & inexperienced investors out of property so us serious investors can find the bargains & still buy them at bargain prices!

How many IPs does Mr Costello have?

Cheers,

Aceyducey

 

[sbe]

Hey, the more he chases away, the more it leaves for us !!!

 

[multi]

Originally posted by sbe

"It's a bit like the stockmarket. Stock prices go up and stock prices go down.

How many times property market actually went down in recorded history and by how much in percentage terms? How many times shares crashed over the same period?

 

[peelsman]

multi

try a 13% decrease to the median house price in sydney in 1990
HT

 

[multi]

Originally posted by peelsman
multi

try a 13% decrease to the median house price in sydney in 1990
HT

If we ought to compare property market to the share market, we have to do better than just Sydney. What about Australia wide?

Then, it seems it was not "in 1990", this was more like in 1987-1990, i.e. over 3 years which makes for average 4% yearly fall.

Would 4% decrease pa on the sharemarket constitute "crash"?

Then please pardon my ignorance - can you do better than just one example?