... plus you'll KEEP paying rent your whole life, where as people who buy will atleast be free of the cost of housing in their life time.
Most buyers, but not you. You will be paying until the grave because you bought at the top and then lost your job cleaning toilets on the mine site. I really hope they won't put the interest rate up on you, but they will timmy boy , they will.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
When the Finance Minister isn’t channelling Arnie, he might be taking an interest in Reserve Bank minutes and speeches, inflation figures, Chinese growth numbers and Wall Street’s mood as corporate results roll in.
This wouldn't help the government sell its proposal to index age pension increases to the CPI: one bank's economics team is tipping Wednesday's consumer price index will show no increase at all in the September quarter.
That's definitely a minority opinion, a rather lonely outlier in the Bloomberg survey of 26 economists.
But coming from NAB, it's a possibility that deserves to be considered seriously.
With zero movement for the September quarter, the CPI would have increased by just 1.9 per cent of the year. The median forecast in the Bloomberg survey is for growth of 0.4 per cent for the quarter and 2.3 per cent for the 12 months.
Factors arguing for a low (or no) CPI score include lower petrol, fruit and veg prices, plus the impact of scrapping the carbon tax – if anyone noticed that.
NAB will look like geniuses if proven correct, but it's a brave call straying so far from the pack.
On the other hand, TD Securities runs its own monthly inflation count, trying to copy the Australian Bureau of Statistics, and is tipping the median 0.4 per cent for the quarter.
Outside the small world of economist's boasting rights, NAB being right would result in plenty of headlines about inflation being so low, the lowest it's been in five years.
Cue stories about deflationary fears and the Reserve Bank needing to cut interest rates. Someone might even mistakenly mention that it's the RBA's job to keep inflation in the 2 to 3 per cent band.
But annual CPI growth of 1.9 per cent wouldn't really matter much to the RBA – our central bankers trim off the wilder swings of the CPI to get a core figure and they look through one-off factors such as imposing or removing the occasional tax.
I guess we're lucky real debt is falling faster than real wages so mortgages is getting easier and easier to pay off every year despite "real wages falling"
I guess we're lucky real debt is falling faster than real wages so mortgages is getting easier and easier to pay off every year despite "real wages falling"
I guess we're lucky real debt is falling faster than real wages
Wrong. The service cost of debt is falling but the debt itself remains constant. Falling wages only makes it worse because the full principle needs to be paid off from those falling pay packets. Now add to this the fact that 89% of Australian investment property loans are interest only and you have a real recipe for disaster. In the years ahead those loan principle's will have to be repaid as well, but out of falling rents as we are now seeing.
It's a ticking time bomb so get out of investment property while you still can, and god help you if you have loaned against your PPOR.
Wrong. The service cost of debt is falling but the debt itself remains constant. Falling wages only makes it worse because the full principle needs to be paid off from those falling pay packets. Now add to this the fact that 89% of Australian investment property loans are interest only and you have a real recipe for disaster. In the years ahead those loan principle's will have to be repaid as well, but out of falling rents as we are now seeing.
It's a ticking time bomb so get out of investment property while you still can, and god help you if you have loaned against your PPOR.
Just because there was a crash in a couple of seriously overheated economies 7 or 8 years ago does not make investing in property a ticking time bomb. It is not a ticking time bomb at all. What a rather silly dramatic claim. People have been investing in property and people have been needing rental properties for thousands of years.
You gotta look longer term when you risk manage or you might end up one of those old folk humphing a pile of gold bars stuffed in a mattress out to the boondocks as they age and get priced out of city rentals.
Wages are not falling BTW and mortgages do deflate whereas rents do not.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
I guess we're lucky real debt is falling faster than real wages
Wrong. The service cost of debt is falling but the debt itself remains constant. Falling wages only makes it worse because the full principle needs to be paid off from those falling pay packets. Now add to this the fact that 89% of Australian investment property loans are interest only and you have a real recipe for disaster. In the years ahead those loan principle's will have to be repaid as well, but out of falling rents as we are now seeing.
It's a ticking time bomb so get out of investment property while you still can, and god help you if you have loaned against your PPOR.
Your point is competely moot as it would only make any sense if wages were actually falling - ie in nominal terms. They are not - this thread is about wages rising, but not as fast as CPI. In this scenario, Trojan's comment is 100% correct. Please do try and keep up.
Your point is competely moot as it would only make any sense if wages were actually falling - ie in nominal terms. They are not - this thread is about wages rising, but not as fast as CPI. In this scenario, Trojan's comment is 100% correct. Please do try and keep up.
Firstly the thread is about,'real wages falling'.
Secondly real wages are falling ,that's why the thread was started.
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