Will interst rate cuts = Property boom?

[Brocky89]

The RBA cut interest rates today. The media think it we will have a surge in property prices. What's everyone's thought on if it will happen and what will be the hot spots?

 

[spludgey]

You're a little late, this has been going on for a while now.
Some of the definite hotspots since the boom started are Western Sydney (2770 for example) and Brisbane.

 

[Aaron_C]

Yep there is already a boom. I am trying to buy again but I am wary of paying too much atm.

 

[joeExpat]

Cuts could just be postponing declines or inflating the bubble a little more in some areas.

 

[Brocky89]

I don't think I've missed the boat I have my town house now which I bought in 2011 and I have a 1/3rd share in a 1020m2 block with a house on it in annerly which we will be developing on in future. I was more thinking could this be a good time to buy,Reno and sell (quick turn overs) or is it still a market to buy and hold?

 

[dog]

Yep there is already a boom. I am trying to buy again but I am wary of paying too much atm.

Unfortunately not everywhere. Again, its all about position and buying the right stock to start with.

 

[ok180]

Borrow up big and then sell everything before the correction!!!

 

[JASA]

I am no expert in property or economics but have watched the market for the past 30+ years. I could never have predicted the past ten years. My gut tells me that property increases for the next 5 years at least will be in line with inflation. It will be a while before we see another boom. I could be wrong but that's what I believe. I would welcome another boom soon though so I could retire early

 

[JASA]

Come on Aaron.....there is no boom anywhere right now. If you are talking mining towns then that is a tightrope to hell..good luck to the brave hearted among us.

 

[Aaron_C]

Come on Aaron.....there is no boom anywhere right now. If you are talking mining towns then that is a tightrope to hell..good luck to the brave hearted among us.

I'm not talking about stuff like that. Just check out Western Sydney or inner-city Melbourne.

 

[devank]

Lower interest rate => Higher borrowing capacity
Lower interest rate = Higher return => Higher valuation
Lower interest rate => Movement from other investments to real estate


Higher borrowing capacity + Higher valuation + Movement from other investments to real estate => BOOM

well that is my wishful thinking

 

[westminster]

Come on Aaron.....there is no boom anywhere right now. If you are talking mining towns then that is a tightrope to hell..good luck to the brave hearted among us.

cough cough Perth development sites cough cough. Many up 20% this year.

 

[JASA]

Higher borrowing capacity + Higher valuation + Movement from other investments to real estate => BOOM

well that is my wishful thinking [/QUOTE]

Well mine too, but not holding my breath

 

[jeffb5ltr]

Lower interest rate => Higher borrowing capacity
Lower interest rate = Higher return => Higher valuation
Lower interest rate => Movement from other investments to real estate


Higher borrowing capacity + Higher valuation + Movement from other investments to real estate => BOOM

well that is my wishful thinking

I guess you could also add to the above Lower A$ and a surge of overseas investment as well

 

[oc1]

I'm not talking about stuff like that. Just check out Western Sydney or inner-city Melbourne.

It has started hitting the middle rung suburbs off Melbourne too.

Oscar

 

[Edmond Dantes]

Come on Aaron.....there is no boom anywhere right now. If you are talking mining towns then that is a tightrope to hell..good luck to the brave hearted among us.

Jasa you must be living in a cave!! Western sydney is going nuuutsss

 

[JASA]

It has started hitting the middle rung suburbs off Melbourne too.

Oscar

I need it to start hitting Cairns, port Douglas and Adelaide

 

[JASA]

Jasa you must be living in a cave!! Western sydney is going nuuutsss

No in a desert

 

[JASA]

Really $&@# off because I predicted Redfern 15 years ago!

 

[JASA]

Really $&@# off because I predicted Redfern 15 years ago!

Predicted Port Adelaide 30 years ago and still waiting for that baby to come home.....I know it will eventually.