Road Blocks and what next - 2015

I received this today, think its a good summary, of course you may think otherwise Thoughts??

My main concern is this

APRA introducing macro-prudential controls on lending amounts which could limit investor finance


The Economic climate and potential road blocks

Interest rates are predicted to be very stable this year (ie expect no change) so this is ideal for borrowers to work out holding costs. Our natural population growth and immigration intake will continue to see the population grow and the majority of this increase will be seeking to live in capital cities.

Gradually rising unemployment and low income growth are causing fragility in the economy and will impact consumer confidence this year. Low interest rates have fuelled a substantial rise in investors seeking loans and buying investment properties.

The main challenges for the economy is transitioning away from dependence on mining to other sectors and investing in infrastructure so that the economy can be made more productive. The falling value of the Australian dollar is making our exports more competitive and also creating a win for expats and foreign investors looking to purchase property in Australia. It?s come down from around $0.95 USD last year to around $0.80 today (so this represents a 15% discount factor on the currency front).

The areas of concern for our property market in 2015 include:

? Lower income growth reducing affordability and demand for housing,
? APRA introducing macro-prudential controls on lending amounts which could limit investor finance,
? Restrictions on rules for borrowing for property investment in Self-Managed Super Funds, and
? Media speculation on property bubbles bursting and the fear factor that is perpetuated from this scenario.


MTR:)
 
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? Apartment living is continuing to become a more mainstream and accepted way of living. Apartments in ideal locations close to shops, transport and schools will continue to be highly sort after by both investors and owner occupiers this year and make ideal investments.

MTR:)

They lost me at sort instead of sought
 
They lost me at sort instead of sought

Maybe I should have proof read it before posting, but I am a sh@t speller anyway.

Back to topic, don't like the article at all??

I am really only interested in the items raised as CONCERNS.

OPPORTUNITIES, not sure, requires more homework (going to delete this section) DONE
 
I received this today, think its a good summary, of course you may think otherwise Thoughts??

I like what Warren Buffet was quoted as saying in this link: www.news.com.au/finance/money/the-m...nvesting-secrets/story-e6frfmdr-1227182304217

"The most important thing to do is just do it. Pay no attention to the headlines in the paper or people on television. Just put aside a little money every month, put it in a very low-cost index fund.
If you do that throughout your working career you're bound to have substantial capital in the end. Don't try to time it, don't try to pick individual stocks, just put X dollars per month away and you'll live a very comfortable life."

Even though Warren was talking about stocks, I think this can apply to other asset classes such as property, just as well.
 
Thanks WM
I read this, very interesting.

I was investing in the days of lo doc and no doc and at the time there were rumours that this was going to be abolished, I never believed it would ever happen, many investors got cut at the knees.

Is finance tightens it will certainly impact on investors I believe.

MTR:)
 
I like what Warren Buffet was quoted as saying in this link: www.news.com.au/finance/money/the-m...nvesting-secrets/story-e6frfmdr-1227182304217

"The most important thing to do is just do it. Pay no attention to the headlines in the paper or people on television. Just put aside a little money every month, put it in a very low-cost index fund.
If you do that throughout your working career you're bound to have substantial capital in the end. Don't try to time it, don't try to pick individual stocks, just put X dollars per month away and you'll live a very comfortable life."

Even though Warren was talking about stocks, I think this can apply to other asset classes such as property, just as well.



Hi PU
Unfortunately, I can not open the link, but this is pretty much what I do.

I invest in various markets all the time, though I must admit its much easier to make money in a rising market from my experience, but most important factor I believe is to have a positive attitude.

I love this quote

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty"
Winston Churchill
 
Meh

ALWAYS Plan for surviveability in tough times.......... but work towards thrive.


There will always be a dollar or 3 for those willing to get out of their comfy zone

ta

rolf
 
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