RBA to cut another 1%?

unloadmymind said:
www.abs.gov.au

If it looks like a cliff, it probably is a cliff

Also you may want to read about the RBA Board's psychology by reading their quarterly Statements on Monetary Policy.

http://www.rba.gov.au/publications/smp/2015/may/html/index.html

See if their economic projections are still valid when subsequent data is released by the ABS. For example last year when the GDP was released after the November RBA meeting, it was a catastrophic result and was worse than the RBA forecast. So the RBA reevaluated their forecasts downward. It would have been awkward for them not to cut rates when they are saying the GDP will be worse than expected. So indeed they cut the rates in Feb.
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You clearly have read a lot about the economy, how have you used this knowledge to increase your wealth?
 
Simple. I keep doing what I do best using my employer's resources, in the credit derivatives and securitisation markets, so I get bigger bonuses each year. Last year I got a six-figure bonus, bought my first home (I'm Gen Y btw) and maxed my super salary sacrifice with full allocation to international investments. Now I'm evaluating if it's worth buying property investments this time but I may have to wait for clarity of where the market is going with this APRA action. In the meantime I can dip into extra funds to buy good shares. And no, I'm not a fan of negative gearing.
 
Fair enough, you're obviously good at what you do if you got a 6 figure bonus. it doesn't sound like you have too many investments so it's a little cheeky to be preaching with a somewhat condescending attitude, especially to people who have a lot more investment experience and success than you.
 
Condescending?
Touch??

Of course I'm young, but I make more money than most oldies.

Time to break some old habits. More money in the financial markets than in flipping houses, without the same effort. Oldies only know investment properties as making money. Or they leave money in the bank to earn interest.

How boring.
 
Hooray said:
Lucrative, though.
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Not all are lucrative.

If someone is still NG cashflow in this period of low rate, he must have bought a dud property.

I make decisions based not on tax consequences, but the net present value of the cashflows after tax over the lifetime of an investment. And asset may double in values in X years, but after adjusting for inflation and interest, does the increase in value make a big margin over the NG CF over the years? Many fail at this calculation.
 
unloadmymind said:
Condescending?
Touch??

Of course I'm young, but I make more money than most oldies.

Time to break some old habits. More money in the financial markets than in flipping houses, without the same effort. Oldies only know investment properties as making money. Or they leave money in the bank to earn interest.

How boring.
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You don't think you have been condescending?

Not sure who you're referring to as oldies, I'm 32 and delta berry is well under 30 from memory. You aren't the only young person doing well and making money, there are plenty of others.
 
Don't get yourself in a crowded trade. When the APRA sh-- hits the proverbial fan, your CG gains can be over while you lose the time value of money.
 
unloadmymind said:
Don't get yourself in a crowded trade. When the APRA sh-- hits the proverbial fan, your CG gains can be over while you lose the time value of money.
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Thanks for the tips, much appreciated. If it wasn't for you none of us would know what to do.

Be sure to come back and share your wins (once you actually have some that is)
 
sanj said:
Thanks for the tips, much appreciated. If it wasn't for you none of us would know what to do.

Be sure to come back and share your wins (once you actually have some that is)
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Well I win every day. Last week my trade gave me commissions greater than the rental income of 5 properties. Anyway. . .
 
To be fair, at least you're making bets.

What I can't stand are pessimists who don't have any skin in the game. What's the point of spending so much energy researching and learning if you're not at least going to place a bet against the people you're saying are wrong.
 
And property investors are always on the wrong side of the trade?

Keep giving people advice, unload. Its stresful when your the smartest guy in the room but nobody notices.
 
unloadmymind said:
Well I win every day. Last week my trade gave me commissions greater than the rental income of 5 properties. Anyway. . .
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You win every single day with your own money? Excellent work, you must be some kind of genius


You'll be retired in no time at this rate
 
sanj said:
You win every single day with your own money? Excellent work, you must be some kind of genius


You'll be retired in no time at this rate
Click to expand...

Not my own money. LoL thats the beauty of it.

It's like investment property. You use the banks' money to buy 80-90% of them. The beauty of leverage.

Well even if I retire today I would be too bored I'd go back to working!
 
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