With the current negativity, what are your current thoughts?

[want2bewealthy]

Personally, Im not phased in the slightest and occasionally have a little chuckle about what the media are saying and the sheep that are taking their word as gospel.

From my current point of view, my local PI economy is still growing steadily so I believe we (being Darwin) will work in a much more productive way than most other local economies will,

we have Inpex and possibly Dow confirmed
very low unemployment and high wage earners
a shortage of housing and building
one of the fastest local growing populations in the country
good Governemt budgets and planning for infastructure
A new Harbourtown shopping complex planned for 2010
dropping interest rates
increased FHOG

All is looking quite rosy despite the looming recession and most products set to rise around 15% on RRP$ by next month.

In times like these it seems the sky is falling for those who watch the news and current affair programs religiously but I always remember what Ive learned from the professionals and mentors, plus past data, that property has never fallen in its entire history over the long term and has always grown steadily, and that there have always been recessions and those recessions have always been followed by boom times, its the ecenomic clock.

What are your thoughts?

 

[Ausprop]

why do you see a shortage of housing as a good thing? isn't it a failure of government? The misery it inflicts on the community is huge.... go to karratha for a holiday and see for yourself - but you will need to sleep in the back of your car

 

[want2bewealthy]

why do you see a shortage of housing as a good thing? isn't it a failure of government? The misery it inflicts on the community is huge.... go to karratha for a holiday and see for yourself - but you will need to sleep in the back of your car

I did have a look at Karratha a few weeks ago, the missus is from there and prices and rents were quite astounding to say the least really. .

But, from an investors point of view I see it as fantastic.

I dont believe that things will ever get anywhere near that out of control here for obdvious reasons like its not a strict mining town and the population isnt making thousands per week in wages, the majority are working class citizens.

My aim in this game is to make a profit, otherwise I wouldnt be here in the first place, I do see and respect your point though, thank you for your input.

 

[islandgirl]

Like any business it all comes down to cashflow. Make sure you are forecasting for the worst senario and you have enough cashflow to ride out the storm

 

[GoAnna!]

I vote for a little worried and that I hope I ride it out. I think we will but life can present unexpected challenges and I don't our situation is quite strong enough yet to weather too many unexpected occurances. But cashflow inproving on a monthly basis so each month I feel a little more optimistic than the one before.

 

[boomtown]

We are pretty busy at work. We hired someone new (and expensive) today. TED spreads are falling.

Yup looks pretty rosy from here.

 

[craigb]

why do you see a shortage of housing as a good thing? isn't it a failure of government? The misery it inflicts on the community is huge.... go to karratha for a holiday and see for yourself - but you will need to sleep in the back of your car

Their is nothing stoping anyone building their own home apart than wanting too!
perhaps they like the convenience of four wheels.

 

[Ausprop]

Their is nothing stoping anyone building their own home apart than wanting too!

well there are a couple of things beyond will that you need to make a house... like finding a block of land for sale, then a builder that can build it, materials availability and trades and a big enough cheque book to pay for it. Karratha has no land, builders are struggling and far apart, materials are a logistical nightmare, trades are off earning the big dollars with the resource companies and average people can't afford $850k to build a very average house anyway. Meantime you are forking out $2000 a week in rent which unless your company is paying for, is unlikely that you can afford... if you can find one. Hence unless you work for a bog resource outfit you are locked out of town. So if you work for Woodside, good luck finding the butcher, the baker and the candle stick maker

 

[HiEquity]

well there are a couple of things beyond will that you need to make a house... like finding a block of land for sale, then a builder that can build it, materials availability and trades and a big enough cheque book to pay for it. Karratha has no land, builders are struggling and far apart, materials are a logistical nightmare, trades are off earning the big dollars with the resource companies and average people can't afford $850k to build a very average house anyway. Meantime you are forking out $2000 a week in rent which unless your company is paying for, is unlikely that you can afford... if you can find one. Hence unless you work for a bog resource outfit you are locked out of town. So if you work for Woodside, good luck finding the butcher, the baker and the candle stick maker

Seconded - Karratha is a completely dysfunctional town. It's hard to understand without living there. Luckily there are a few (very few!) shopkeepers who bought their own homes way back and so can keep living there themselves, even if they can't afford staff. However this is nothing on the situation in nearby Roebourne - when you look at those two side by side and the amount of wealth that is so close, it is truly a blight on our society.

All of this is somewhat made up for by its proximity to one of the world's most beautiful archipelagos, if you can look past the shiploaders...

Dampier without the development would be a truly magical place, although I'm sure that wouldn't go anywhere near creating the Fed govt revenue that the place currently generates!

 

[marg4000]

Eek!!

How do the tourists get on? We are hoping to visit WA next year and drive from Perth to Broome.

Maybe we had better get a car big enough to sleep in?
Marg

 

[Red Car]

Wow, a huge percentage of people on this forum are looking good to ride this out. That is great!

I am nervous because I dont think my job is recession proof

 

[Peter 14.7]

Whilst I am also "see it as good thing" I think the overwhelming positive response if probably more a statement on the mindset of SStians than a perfect sampling.

The ability to see positive in all aspects is termed as "resiliance" and often quoted as the single key aspect to sucess in any career, venture, investment, etc.. We are a postive bunch!

I think a better poll would be "do you think your cashflow is going to be compromised by the downturn" being it job, rents, dividends, etc..My answer is yes. Client will spend less, rents may stop rising and dividends are shot. Probably 20% less.

Peter 14.7

 

[MichaelW]

I think a better poll would be "do you think your cashflow is going to be compromised by the downturn" being it job, rents, dividends, etc..My answer is yes. Client will spend less, rents may stop rising and dividends are shot. Probably 20% less.

Peter,

Would have given the same response, i.e. ride it out OK.

My cashflow is improving daily:

My salary just went up 5%
Tax cuts to come in June
Section 221D WHTV approved and in place
Rents up 10% last review
Interest rates down 1% with more to come
Kay is thinking about going back to work part time because she's getting bored, so that would be a huge spike to our income
And, my job is virtually recession proof

So, interest rate costs coming down whilst all sources of income on the improve. My cash flow hasn't looked this good in ages. Oh, and I don't hold shares any more so dividend yields are irrelevent.

Cheers,
Michael

 

[steveadl]

So, interest rate costs coming down whilst all sources of income on the improve. My cash flow hasn't looked this good in ages. Oh, and I don't hold shares any more so dividend yields are irrelevent.

Spot on Michael. My cashflow is getting better by the month:
- Rents looking good for increase at next renewal dates (although this doesn't mean a huge deal for me).
- Business revenue increasing.
- Tax bill lower than I had planned for.
- Interest payments dropping much more than I had expected a few months ago.

Life is good.

 

[Bill.L]

Hi all,

I think in all probability, we are entering a period of golden opportunities. Lower interest rates and higher inflation reminds me of the mid '70's.

Everything looked really bad, but prove to be a fantastic time to invest in both property and shares.

I also think that because of much faster communication, especially the internet, the climb out will be faster. It probably helps that the market and govt reactions (world wide), are also faster.

Michael.....

Kay is thinking about going back to work part time because she's getting bored

Are you trying to tell us something about your personality??

bye

 

[MichaelW]

Michael.....

Are you trying to tell us something about your personality??

bye

Touche!

Guilty as charged. Too much time in front of the computer on SS and reading the financial press I guess...

Cheers,
Michael

 

[Kennethkohsg]

Hi all,

Everything looked really bad, but prove to be a fantastic time to invest in both property and shares.

bye

***************
Hi Bill,

1. Do you not think that it is bit too pre-mature to re-invest into the ASX at this point in time, when it has only dropped down to 3869.4 today?

2. This is despite the ASX hitting its 4-years record low, at this 3869.4 level.

http://business.smh.com.au/business/shares-near-4year-low-20081024-57m4.html


3. With the present global financial crisis which is fast turning into a global Recession in 2009-2010 period, I will personally expect the ASX to fall even lower than 3500 points before it is said to have properly bottomed out.

4. This is especially so when we can soon expect to see more profits cuts by the other ASX-listed Companies in Australia.

5. Many members here are also forecasting that ASX200 are likely to bottom out, reaching below the 3500 points level, at this point in time.

http://www.somersoft.com/forums/showthread.php?t=46785


6. For your further comments and discussion, please.

7. Thank you.


regards,
Kenneth KOH

 

[craigb]

well there are a couple of things beyond will that you need to make a house... like finding a block of land for sale, then a builder that can build it, materials availability and trades and a big enough cheque book to pay for it. Karratha has no land, builders are struggling and far apart, materials are a logistical nightmare, trades are off earning the big dollars with the resource companies and average people can't afford $850k to build a very average house anyway. Meantime you are forking out $2000 a week in rent which unless your company is paying for, is unlikely that you can afford... if you can find one. Hence unless you work for a bog resource outfit you are locked out of town. So if you work for Woodside, good luck finding the butcher, the baker and the candle stick maker

they have been building homes in india , brasil, and africa for years , and why do you need a builder to build a home, at least your own, no one was born to be able to tie our laces, or ride a bike.

 

[BoatBoy]

they have been building homes in india , brasil, and africa for years , and why do you need a builder to build a home, at least your own,no one was born to be able to tie our laces, or ride a bike.

Have fun with that, heard of rules, something that the countries you mention may not have, as well as effective sewerage, power, drainage, etc etc.

While they may possibly get away with it in the country in those countries, am I really allowed to turn up in the city and start banging some bits of wood and a few bits of tin together and then crap in a bucket and throw it over my neighbors fence?

Dave

 

[HiEquity]

they have been building homes in india , brasil, and africa for years , and why do you need a builder to build a home, at least your own, no one was born to be able to tie our laces, or ride a bike.

I'm guessing the council has probably learnt a thing or two from being located in the world's highest frequency cyclone region (a joint title with the Gulf of Mexico!).

Whacking any old house up is indeed frowned upon in these quarters...