Will Federal Budget have an impact?

[Philby]

Was just wondering if the 2003 Federal Budget will slow down all you gurus or is it just the doomsayers having a whinge that the property market will burst?
Have seen a few articles saying as much and so was curious if anyone out there in forum land had started to rethink their strategy?
I am still a newbie to the economics of it all(market forces etc), so should I be scared, very scared, run for cover or go look for that second IP?

 

[WillG]

Never stop looking for that 2nd, 3rd , 4th ....... nth IP. The fact that you are looking and analysing deals will hone your skills ready to pounce on the next bargain.

I reckon the budget was a non event (unless you are a Uni student)

 

[Aceyducey]

I agree with WillG - totally non-event budget.

Ignore what the media sez, just look at property facts such as historic sales prices and population figures.

Greed & Fear exist in the property market as much as they do in shares & the media loves a good blowup

Cheers,

Aceyducey

 

[Philby]

yeah I agree with you Aceyducy about the media running the hype. I suppose it would scare new/novice PIs away tho?
Thus leaving it for those still in there?

 

[mort the frog]

I had a thought today at work, I personaly don't see rates rising for a while.

But how many people here would be forced to sell urgently if rates rose 2 or 3 percent in the next 12-18 months.

My thinking is if you have a property and your just getting by when rates rise you'll have to sell if that accurs on a wide scale an over supply will occur and prices will fall.

I don't think property loans are wise if you can't afford a 3-4 percent rise in lending rates.

 

[Brenda Irwin]

Our lender actually factors in the rate rise up to 8.5% to establish our ability for debt servicability. It's a pain with rates so low at present but cuts out the need for quick sales during interest rises. If you get cold feet worrying about it then there's always fixed rates available.
Cheers Brenda