Now is the time to buy

[hobo-jo]

It was a pretty sad comment on your behalf. I mean trying to belittle $80k?

It's more than I earn in a year via employment.

There's users on here quibbling about whether to raise their rents by $10-20 per week.

What did your comment add to the thread? Perhaps that's something to ask yourself before each post you make.

 

[Aaron_C]

It was a pretty sad comment on your behalf. I mean trying to belittle $80k?

It's more than I earn in a year via employment.

There's users on here quibbling about whether to raise their rents by $10-20 per week.

What did your comment add to the thread? Perhaps that's something to ask yourself before each post you make.

Technically I earn below $80,000 too hobo-jo - your point? You pick gold trading etc as a means for you to generate extra income for yourself - good on you for doing so and hopefully you make money from it. I did the same thing when I was on my pathetic student wage in university and through my success from it I'm able to afford so much more.

The $80k itself is irrelevant - what counts is the mindset. Simply put, I think it is a bad strategy to move around, sell your assets just because you want to save a few dollars over a 2-3 year period. Of course, I don't know your particular financial circumstances but that is how I see it.

 

[Shadow]

Today's ABS housing finance data showed home loans in South Australia rose 7.6% for the month. Buyers are a lot more confident since rates have started to fall. Might be futile expecting much more in the way of price falls in Adelaide.

 

[silverx]

Technically I earn below $80,000 too hobo-jo - your point? You pick gold trading etc as a means for you to generate extra income for yourself - good on you for doing so and hopefully you make money from it. I did the same thing when I was on my pathetic student wage in university and through my success from it I'm able to afford so much more.

The $80k itself is irrelevant - what counts is the mindset. Simply put, I think it is a bad strategy to move around, sell your assets just because you want to save a few dollars over a 2-3 year period. Of course, I don't know your particular financial circumstances but that is how I see it.

well i did that and it really was a strategy as the rent generated cover my repayments and i move to rental property to save me 120 dollars weekly

it might be small minded trying to save few dollars but to me it's a strategy so i can save up more money to open up more possibilities in the future (buying more properties?)

 

[hobo-jo]

Today's ABS housing finance data showed home loans in South Australia rose 7.6% for the month. Buyers are a lot more confident since rates have started to fall. Might be futile expecting much more in the way of price falls in Adelaide.

So you are attributing falling interest rates (November) to changes in Septembers finance data?

Which buyers are a lot more confident? We've had a week so far, are you on the ground measuring this with a survey? Are you an agent taking offers? How do you know buyers are more confident?

Auction results are not reflecting more confident buyers:
http://www.news.com.au/money/proper...all-on-rate-rise/story-e6frfmd0-1226187305475

well i did that and it really was a strategy as the rent generated cover my repayments and i move to rental property to save me 120 dollars weekly

it might be small minded trying to save few dollars but to me it's a strategy so i can save up more money to open up more possibilities in the future (buying more properties?)

silverx, we can't all be billionaire finance brokers with no care for small change , if I could make a change to save $120 per week that I thought was worthwhile I would do it as well.

 

[locko24]

If you swing it right you don't pay stamp duty.

We paid maybe $80 or so (no, I'm not forgetting any zeros) on a house that'd be worth high $200s, maybe low $300s once we have a garden not just all that mud.

Care to elaborate, RE?

 

[Shadow]

So you are attributing falling interest rates (November) to changes in Septembers finance data?

Yes, partly. It's been expected for a couple of months now that rates would soon fall... personally I thought they should cut in October, but they waited for the inflation data, which is fair enough.

Back in November 2010 the RBA raised rates by 0.25% and the banks added another 0.15% on top. It wasn't just this rate rise that killed the market - it was the RBA jawboning that went along with it. The RBA gave the impression that there were many more to come. Inflation was supposedly out of control. The market at the time was pricing in another six rate hikes. The general public were staring down the barrel of a further 1.5% rise in official rates plus whatever the banks decided to add on top... maybe mortgage rates were going to rise by 2%. Some commentators at the time were saying we'd have double digit mortgage rates within a couple of years. This completely killed sentiment. The market froze and house prices started to fall.

Around six months ago sentiment gradually started to change. It was becoming clearer than interest rates were not likely to rise by as much as previously expected. After another few months, people were starting to talk about interest rate cuts. The previously expected future rate hikes were no longer on the horizon. The general public relaxed. Rates had peaked and would soon start to fall. Sentiment lifted and housing finance started to grow.

Auction results are not reflecting more confident buyers:

Auction results are pretty steady, usually around the mid-fifties in Sydney and Melbourne. I think we'll see an uptick shortly as the interest rate cut encourages more people to jump in. It takes some time following the rate cut for people to find a place they like, get finance approve, and then bid at auction. You can't really expect an immediate impact to auction clearance rates.

 

[Deltaberry]

It was a pretty sad comment on your behalf. I mean trying to belittle $80k?

It's more than I earn in a year via employment.

There's users on here quibbling about whether to raise their rents by $10-20 per week.

What did your comment add to the thread? Perhaps that's something to ask yourself before each post you make.

Why you so angry? He's not belittling $80k. He's just saying it's not big money, which I agree.

Gee we can't be too politically correct in this country can we?

If you thought $80k was big money then you must have much big money, since in a few years I'm sure you've earned more than $80k

 

[Ausprop]

The RBA currently has an explicit 2-3% inflation target.

This requires it to devalue the currency.

The goal of positive inflation targeting is currency devaluation.

? a devalued currency will push inflation thru the roof - the strong AUD has saved us all from a lot of pain

however - if you mean retard the economy so that the dollar falls, that's a different issue. the carbon tax is a form of this. If you clobber anythign enough it eventually gives up the fight

 

[hobo-jo]

Around six months ago sentiment gradually started to change. It was becoming clearer than interest rates were not likely to rise by as much as previously expected. After another few months, people were starting to talk about interest rate cuts.

Everyone except for the bullhawks, including poor old stubborn Christopher Joye who pumped the same rate rise rhetoric all the way up until the new inflation data came out lol

You can't really expect an immediate impact to auction clearance rates.

I agree, but I think it will take more than a single rate cut to have much effect on the low clearance rates and falling prices we have.

None of your post covered how you came to the conclusion that: "Buyers are a lot more confident since rates have started to fall".

 

[RumpledElf]

Care to elaborate, RE?

That's just the stamp duty you pay to the lands and titles office when you register a title on subdivision.

In total fees, we paid about $12Kish for our block of land, so big saving overall.

 

[Shadow]

None of your post covered how you came to the conclusion that: "Buyers are a lot more confident since rates have started to fall".

Consumer confidence rose by 6.3% in November to a six-month high.

Google 'Westpac Melbourne Institute Index of Property Sentiment'

 

[Samwise]

"confidence" is up 6.3%

its a bit like those shampoo ads that claim to make hair "67.2% more radiant". What SI unit is radiance measured in?

gotta love statistics

 

[Samwise]

p.s. now is the time to buy

 

[zed_kid]

"confidence" is up 6.3%

its a bit like those shampoo ads that claim to make hair "67.2% more radiant". What SI unit is radiance measured in?

gotta love statistics

Lumens i think

 

[vaughan]

Lumens is light intensity.

Radiance is the quality of light reflecting from a beautiful person in a beautiful place at a special moment in time.

[OK my imagination just ran out, being Friday arvo and all. Any suggestions as to an appropriate SI unit for Radiance? Maybe the Sigh? As in, XXX is 4 sighs?]

 

[vaughan]

p.s. now is the time to buy

Buy confidence? I'm waiting till 6.4% then I'm selling the lot.

 

[hobo-jo]

Buy confidence? I'm waiting till 6.4% then I'm selling the lot.

The crowd (retail level sentiment) is usually wrong. If confidence is high then the next disaster is probably just around the corner

 

[Indifference]

The $80k itself is irrelevant - what counts is the mindset. Simply put, I think it is a bad strategy to move around, sell your assets just because you want to save a few dollars over a 2-3 year period. Of course, I don't know your particular financial circumstances but that is how I see it.

Wow.... when I read this I was stunned....

Honestly, locking your capital up in one asset class and being too rigid to contemplate moving it into another asset class when cyclic market changes indicates high probability of better returns is not financially intelligent...

Seasoned investors do NOT restrict their capital to one asset class and they do NOT baulk at the opportunity of rolling capital into another asset class that indicates solid fundamentals moving forward.....

I also couldn't help but notice your Sig block.... I really hope you manage to separate your personal opinions from business interactions.... I do NOT intend to be personally insulting but to be honest, I can not fathom how someone in the finance industry can talk about the importance of mindset (which I agree is vital...) and then espouse such views on not moving capital with a straight face.... I am truly shocked.

I have personally moved capital between asset classes and would encourage others NOT to dismiss the idea as it can preserve capital in volatile markets, provide better ROI and capitalize upon extent market conditions.

 

[tcocaro]

On that logic whats your view when sentiment is low?

The crowd (retail level sentiment) is usually wrong. If confidence is high then the next disaster is probably just around the corner