Economic outlook slips 'from bleak to recessionary'
- Thread starter ross100
- Start date
Any supporting evidence?
I've been dooming and glooming and chicken littling about the economy as an overall for a while....is this going to happen, just want to pick some brains
Folks here will say that I have this outlook only because my little place is not going that flash.
But it's not that at all - it's from talking to loads of different folks in loads of different industries (my customers and sales reps - who are from all parts of Vic with their respective jobs) on a daily/weekly/monthly basis.
Very few are crowing about much at all.
Some tradies are busy - due to lower rates no doubt.
Others are having to quote almost cost price to get any work....this would suggest a lot are quiet, and having to low-ball to get some cashflow.
But, if you look at factors such as the lower rates themselves, the unemployment rates currently, the recent noise about tightening of lending policies at the Banks, slow wage growth, and so on....
The rest of this year will be a bit of a fizzer in my opinion (more rate cuts to come).
It'll be interesting to see the next lot of figures after the recent small business $20k incentive.
If that didn't make much of a dent - hold on to your backside and give it a big kiss..
I don't agree. Things can change in a person's life extremely quickly - for the worse.
We are in a fairly unstable economic climate right now - noone's jobs are safe, so don't get arrogant or complacent about future anything.
My recommendation is to prepare for worse, but plan for best...reduce debt is a good first step while rates are this low.
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I think, you are agreeing, by where I have highlighted what you've mentioned.
As, what I mention, you're doing what you perceive, and as Keith mentions, getting your risk mitigation in order.
Most people we know who own businesses are not doing well and are not at all optimistic for the future.
At the moment trades in Brisbane are buffered by the huge amount of repair work resulting from the severe storms over the last 6-8 months.
And, as said, make sure your Plan B is in place.
Marg
At the moment trades in Brisbane are buffered by the huge amount of repair work resulting from the severe storms over the last 6-8 months.
And, as said, make sure your Plan B is in place.
Marg
Ha... I just started to respond in a similar vein.....
While I have the greatest respect for people taking risks & responsibility for their actions, buying houses in mining towns which need (hard to find) maintenance, buying large PPORs, buying businesses at the peak of the cycle in which they have little experience, needs excellent risk management and also a little luck.
No-one is suggesting complacency, just to expect an unstable economic climate at some stage & protect the downside.
Diversify, fix rates, buy in areas with lots of OOs & good history of steady growth, get insurance, use a good Prop Manager, keep cash buffer, ensure your personal skills are desirable & portable, make your hobby profitable, build networks, diversify across asset classes, don't pay down debt, keep a good view of the big picture, expect the unexpected, plan for unstable environments....
There's lots of threads about risk with lots of good ideas.
Multiple sources of income, assets spread across various classes, learn to value add in various ways, doesn't have to be property. Value adders will always be in demand
Always keep a decent buffer too, borrow money when you don't need it etc.
I think regardless good/bad times, I like to keep LVR/debt at a manageable level.
It's easy to lose your head in booming markets, if you have been fortunate enough to have made some gains perhaps look at selling some/keeping some, reducing debt.
This could also help with servicing future loans, finance is going to get alot tougher/tighter, and perhaps harder to access equity from what I have been told. No finance, no investing, no fun.
MTR
It's easy to lose your head in booming markets, if you have been fortunate enough to have made some gains perhaps look at selling some/keeping some, reducing debt.
This could also help with servicing future loans, finance is going to get alot tougher/tighter, and perhaps harder to access equity from what I have been told. No finance, no investing, no fun.
MTR
is this going to happen, just want to pick some brains
It is true but we shouldn't be using this as the show stopper for investing.
Especially in the new area that is just opened like in Sydney western suburb like in Schofields or Edmondson Park.
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