The RBA, Interest rates and house prices

[Monopoly]

Hmmmm, this thread was posted yesterday morning and we are already up to page six.

Just imagine how useful it would be if, instead of navel gazing about the future, we could get the same level of involvement from the experienced investors here in discussing deals that can be done now, in today's market, that make money regardless.

Just my wishful thinking i guess!

Back to the thread...

Nothing wrong with wishful thinking but...

I always find this request intriguing, because if those so-called "experienced investors" that you hope will discuss the(ir) deals, there will always be the knockers (and no I'm not talking body parts ) just itching to complain yeah but...."it doesn't apply to me" or "it can't be done" both very negative attitudes which frankly I get tired of hearing, because it's just not conducive to moving forward (financially or otherwise, personally).

I know most people DO appreciate the time seasoned investors put into "sharing" but it is never without its costs. I have seen far too many good people leave the boards because they have been shamelessly criticised for trying to explain what they did and how they did it. I think "deals" are not a "one size fits all"; sure the fundamentals may be the same, but how they pan out is very much reliant on individual factors, negotiation skills, circumstances, the weather (okay, maybe not the last one) but I think you know where I'm coming from and/or what I'm getting at, don't you????

I have NEVER not answered anyone's question if they come to me directly, but I am reluctant to air out my investment laundry so-to-speak only to be criticised for doing something that I've done (not always well of course) but successfully. It may not be for everyone, but it is right for me, and more to the point, IT WORKED for me. If you want to follow, that's great, if not, go out and do your own thing, and I really do mean it when I say, I wish you the very best of luck because if I can do it, so can you.

Rant over....

 

[Dazz]

Just imagine how useful it would be if, instead of navel gazing about the future, we could get the same level of involvement from the experienced investors here in discussing deals that can be done now, in today's market, that make money regardless.

Just my wishful thinking i guess!

As per your signature....we are all ears on your investment deals.

You are without a doubt, one of the experienced members to which you refer, but as you have said many times....you just can't bring yourself to divulge any numbers. Perhaps most others are like that as well.

Let's not be bashful. Let's hear the full and detailed version from Hi Equity.


I think it's something to do with the multitude of John Deere harvesters who roam the forum, as to what Monopoly refers to above in her post.

 

[Monopoly]

I think it's something to do with the multitude of John Deere harvesters who roam the forum, as to what Monopoly refers to above in her post.

Spot on!!

BTW Hi Equity, I wasn't inferring you are one of those roaming aimlessly, but rather as Dazz said, as a more seasoned investor.

 

[aussierogue]

Jonril

Quick tip - you are not a bad man nor are you unique. Every 2 months or so we get similar posts from any array of different people over the years.

 

[Sunfish]

I doubt I'm considered a seasoned investor so does that make me a vacuum cleaner? I'm still trying to figure out Mono's real meaning.

 

[Deltaberry]

Hmmmm, this thread was posted yesterday morning and we are already up to page six.

Just imagine how useful it would be if, instead of navel gazing about the future, we could get the same level of involvement from the experienced investors here in discussing deals that can be done now, in today's market, that make money regardless.

Just my wishful thinking i guess!

Back to the thread...

If people could tell you, the deal would no longer make money very soon as everyone rushes off to do it

 

[Monopoly]

I doubt I'm considered a seasoned investor so does that make me a vacuum cleaner? I'm still trying to figure out Mono's real meaning.

Well I guess that too is open to interpretation Sunfish, but for the most part I suppose (IMO) it's an investor who has run around the block a couple of times and knows their "stuff" be it shares, property etc.

Now sit down and suck it up!!! LOL (just kidding)

 

[Sunfish]

If people could tell you, the deal would no longer make money very soon as everyone rushes off to do it

So when the dogs start barking it, the contrarian moves on. The dogs have been barking "buy res property" for years now.

 

[HiEquity]

"Making money" involves the future. How can you invest without having an opinion about the future?

Even saying "nothing will change" is an opinion and you should be able tell us why you think that.

Hi Sunfish

I'm not saying we shouldn't discuss the future and the broader economic context. I have done plenty of that here so saying that would be a bit hypocritical.

I am merely pointing out there is a relative lack of input regarding specific investing ideas for today's conditions.

Nothing wrong with wishful thinking but...

I always find this request intriguing,

Hi Monopoly (and Dazz)

I think you misread my statement. It was about "deals that can be done now, in today's market, that make money regardless."

It wasn't about the path that led each person to this point. I acknowledge that is an interesting subject in itself and one which I could probably contribute more to than I have but I personally find it of relatively limited value compared to the questions "As an experienced investor, with all your knowledge and experience, what are your next moves likely to be?". Or "Where do you see value and upside at the moment?" rather than where did you see it two / ten / twenty years ago

Again, I was merely trying to point out the relative lack of input on these subjects compared to the massive input on these overall economic situation threads. I am also guilty of this tendency and I should probably lead by example but for now I'll content myself with just pointing it out!

But this is a good thread so we'll just get back to it shall we?

 

[Ausprop]

I think you misread my statement. It was about "deals that can be done now, in today's market, that make money regardless."

It wasn't about the path that led each person to this point. I acknowledge that is an interesting subject in itself and one which I could probably contribute more to than I have but I personally find it of relatively limited value compared to the questions "As an experienced investor, with all your knowledge and experience, what are your next moves likely to be?". Or "Where do you see value and upside at the moment?" rather than where did you see it two / ten / twenty years ago

The market is back to older times that will require more skill. Buy n die will require more selection, value add and cash flow are king.

 

[travelbug]

I was reading an article the other day Sunfish, where it stated over the next 20 years or so, a massive amount of wealth shall be transferred from the BB Gen down to the X's.

Yeah my kids told me that. Dream on kids (not that I've got a massive amount to hand down). But I'd like to help the kids later. Probably something out of the inheritance I'll get.

 

[Deltaberry]

So when the dogs start barking it, the contrarian moves on. The dogs have been barking "buy res property" for years now.

Yea well there were ups and downs during the 'years' yea so I don't know how to respond to that.

But a few too many people certainly told me in late 2008 it was all over and that it'll dip a fair bit.

 

[Ausprop]

But a few too many people certainly told me in late 2008 it was all over and that it'll dip a fair bit.

I wish I had headed these warnings earlier - I should have pushed the sell button on pretty much all my dog resi's

 

[keithj]

Back on topic....

From Business Spectator

Australian home prices rose a further 1.4 per cent in February to reach fresh record highs

...

Hedonic Australian Home Value Index rose by 1.4 per cent in February on top of an upwardly revised two per cent in January. Home prices are up 12.7 per cent on February last year, the fastest pace in 25 months.

Looks like we all got a bit wealthier last month .

 

[Ausprop]

disagree completely. all this means is that cheaper houses aren't selling (or more to the point demand was dragged forward and is now satisfied) - not sure if anyone benefits from this?

 

[dunno]

Please forgive my deranged opinion I am a very bad man.

TL;DR sorry dunno, I dunno either... but I am enjoying the journey.

What are the Objectives of Monetary Policy?
The Reserve Bank Board sets interest rates so as to achieve the objectives set out in the Reserve Bank Act 1959

the stability of the currency of Australia;
the maintenance of full employment in Australia; and
the economic prosperity and welfare of the people of Australia.
Since 1993, these objectives have found practical expression in a target for consumer price inflation, of 2–3 per cent per annum. Monetary policy aims to achieve this over the medium term so as to encourage strong and sustainable growth in the economy. Controlling inflation preserves the value of money. In the long run, this is the principal way in which monetary policy can help to form a sound basis for long-term growth in the economy.

 

[Jonril]

Here is more wisdom from Steven's

words of wisdom from Steven's

"If you're a Christian, God has given you certain capabilities to do a job, to earn a living," he said.

Apparently you're all good if you are Christian... to work hard for a living... I wonder if non-Christians should be worried?

 

[Deltaberry]

It's a concern our country is being run by these zealots.

 

[alexlee]

the stability of the currency of Australia;

Clearly that has not been the case. The RBA's objective is financial stability, not currency stability. It is perfectly happy to just let the currency bounce around to achieve it's economic objectives.

 

[Jonril]

What are the Objectives of Monetary Policy?
The Reserve Bank Board sets interest rates so as to achieve the objectives set out in the Reserve Bank Act 1959

the stability of the currency of Australia;
the maintenance of full employment in Australia; and
the economic prosperity and welfare of the people of Australia.
Since 1993, these objectives have found practical expression in a target for consumer price inflation, of 2–3 per cent per annum. Monetary policy aims to achieve this over the medium term so as to encourage strong and sustainable growth in the economy. Controlling inflation preserves the value of money. In the long run, this is the principal way in which monetary policy can help to form a sound basis for long-term growth in the economy.

Yes, I thought I mentioned that in my ramblings. excuse me for quoting myself.

"Australia's economic best interests is currently defined, as far as I can tell, is not to sink into a pit of debt and to keep inflation at +3%"

I didn't mean above 3% inflation I meant 3% positive inflation apposed to negative inflation which would be deflation -3%. Maybe I should have just said 3%.