Housing bubble

not even close, sentiment is a fickle thing. If it's not Greece or a mining collapse it's a property bubble. what's the next hobby horse? Tibetan junk bonds?
 
It should be very concerning, the Sydney market is on fire at the moment. As soon as there is a sniff of an interest rate rise things will pull back very quickly.

The question is, will the pull back be more than the potential gains in the mean time.
 
lewis said:
It should be very concerning, the Sydney market is on fire at the moment. As soon as there is a sniff of an interest rate rise things will pull back very quickly.

The question is, will the pull back be more than the potential gains in the mean time.
Click to expand...

It's just the normal cycle. Not concerning at all.
 
skater said:
It's just the normal cycle. Not concerning at all.
Click to expand...

Yes, after many years stagnating since Bob Carr and his never to be seen again mate...hmmm, whats his name ???, Treasurer who abdicated same day as Mark Latham, but at 7.30am to avoid the spotlight as it went straight to Latham, it's due for the normal cycle to move to the uplift stage.

Dont worry about affordability, my mate said many years ago that the market will pull back and that's when he will buy. That was back in the 90's and he's still renting with no investments.

The kind of mate you have to work out what NOT to do.;) God bless him.:)

Michael Egan was the Labor bloke who slipped out the back door after trashing the market and Investors with the Vendor duty and axing of land tax threshold.
 
Agree with Skater and Fence,

Its very normal. This is the time when the past sowers will reap and the dreamers will continue to dream.

Quite normal.

Sesster.
 
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Question

The question is if people buy now, will they be able to afford 10% interest rates? Yes you can always raise your rent, but it still will have an impact. I remember a few days ago reading a post on another website where a reader asked: Can you afford 10% interest rates. Another reader got very defensive and responded by saying he would probably get a payrise by that time. I think we should just work with the sitution we are in now and factor in rate rises.inflation may suck up any pay rises.
 
Jo1984 said:
The question is if people buy now, will they be able to afford 10% interest rates? Yes you can always raise your rent, but it still will have an impact. I remember a few days ago reading a post on another website where a reader asked: Can you afford 10% interest rates. Another reader got very defensive and responded by saying he would probably get a payrise by that time. I think we should just work with the sitution we are in now and factor in rate rises.inflation may suck up any pay rises.
Click to expand...

There will be no 10% interest rates for as long as i have a hole in my ar$e.
 
Jo1984 said:
How do you know? We have nearly been there before. Could happen in the next 5 years.
Click to expand...

When did it nearly happen? Highest i have paid even at the peak in 08 was 8%. The period ahead will be all about low inflation, high debt, low rates. Look at where 5 year fixed rates are at, that gives you a good indication of where we are headed.

Just looked in my pants. Hole in ar$e still present.
 
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