I'm very happy to have been shown this forum, I have enjoyed reading the various opinions on it to date.
I was watching the Channel 7 breakfast show this morning and they were talking about fuel prices, truckie blockades in Frances, Bulgaria etc and David Koch mentioned how in real terms fuel prices are now similar to those during the oil crisis (in the 70's). He commented that the high fuel prices triggered the rise in inflation which lifted interest rates to 17% and that it took 20 years for that to wash itself out of the system.
As someone who owns 95% of their own home and is looking to using the equity to buy IP's, these comments made me stop and think about the big picture.
Do I wait and see if we do get 10% inflation, 15% interest rates and then enter the market when prices have bottomed out. While the oil crisis in the 70's was resolved, with us allegedly passing peak oil is there a chance the fuel prices will continue to rise at the current rate, causing significant inflation over a longer period than in the 70's. Is it possible that the cycle we have seen over the past 70 years will be replaced by a different one? Maybe I just have to make sure I invest near the city with good access to bus routes and bike paths
Apologies for such a negative post for an initial one but I was midway through Jan's book and gung-ho about getting into the market until I gave some thought to what was said this morning, and I'm interested in others opinions of it.
Maybe I'm just letting fear get the better of me.
I was watching the Channel 7 breakfast show this morning and they were talking about fuel prices, truckie blockades in Frances, Bulgaria etc and David Koch mentioned how in real terms fuel prices are now similar to those during the oil crisis (in the 70's). He commented that the high fuel prices triggered the rise in inflation which lifted interest rates to 17% and that it took 20 years for that to wash itself out of the system.
As someone who owns 95% of their own home and is looking to using the equity to buy IP's, these comments made me stop and think about the big picture.
Do I wait and see if we do get 10% inflation, 15% interest rates and then enter the market when prices have bottomed out. While the oil crisis in the 70's was resolved, with us allegedly passing peak oil is there a chance the fuel prices will continue to rise at the current rate, causing significant inflation over a longer period than in the 70's. Is it possible that the cycle we have seen over the past 70 years will be replaced by a different one? Maybe I just have to make sure I invest near the city with good access to bus routes and bike paths
Apologies for such a negative post for an initial one but I was midway through Jan's book and gung-ho about getting into the market until I gave some thought to what was said this morning, and I'm interested in others opinions of it.
Maybe I'm just letting fear get the better of me.