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Can the RBA save investors from their greed?
Topic Started: 3 Oct 2014, 02:10 PM (795 Views)
Ex BP Golly
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With the RBA finally recognising the dangers property investors pose to the economy, we need to ask, can they save the bulls from themselves?

Should they protect property investors, or hang them out to dry?

Surely this segment have had it too good, too long.

With news of neg gearing grandfathering - why should young people once again be damaged to protect investors?
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Dr Watson
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Ex BP Golly
3 Oct 2014, 02:10 PM
With the RBA finally recognising the dangers property investors pose to the economy, we need to ask, can they save the bulls from themselves?

Should they protect property investors, or hang them out to dry?

Surely this segment have had it too good, too long.

With news of neg gearing grandfathering - why should young people once again be damaged to protect investors?
What they got in store for us, d'ya reckon Golly? LVR caps? More conservative repayment buffers? Or a slap with a wet lettuce leaf (maybe). What's this shiny new stick they about to unveil?
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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Ex BP Golly
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Dr Watson
3 Oct 2014, 02:18 PM
What they got in store for us, d'ya reckon Golly? LVR caps? More conservative repayment buffers? Or a slap with a wet lettuce leaf (maybe). What's this shiny new stick they about to unveil?
RbA says it will be APRA that does the deed, but im inclined to suspect it might be the ATO that goes hardest.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Chris
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Ex BP Golly
3 Oct 2014, 02:24 PM
RbA says it will be APRA that does the deed, but im inclined to suspect it might be the ATO that goes hardest.
I'm predicting they will do sweet FA. The recent talk of macro prud measures is just that, talk. The RBA have long held a position that this is all sustainable, their current outlook is that the market 'may' overhear if it stays on the same trajectory. They are jaw boning to get investors to go 'whoa, I better back off a bit' therefore scaring the market into submission.

This shows total ignorance as to the mechanics of the australian market and its intricacies. It will go higher and they will sit on the side lines pointing a finger at investors going 'don't you make me come over there' all the while knowing they will do nothing.
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doubleview
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Chris
3 Oct 2014, 06:48 PM
I'm predicting they will do sweet FA. The recent talk of macro prud measures is just that, talk. The RBA have long held a position that this is all sustainable, their current outlook is that the market 'may' overhear if it stays on the same trajectory. They are jaw boning to get investors to go 'whoa, I better back off a bit' therefore scaring the market into submission.

This shows total ignorance as to the mechanics of the australian market and its intricacies. It will go higher and they will sit on the side lines pointing a finger at investors going 'don't you make me come over there' all the while knowing they will do nothing.
The RBA have no choice, they will eventually have to align with international rates, which will be low for atleast another 5-10 yrs perhaps 10 +yrs.

Macro pruds are the only chance that they have to portray to the public that they have the reins.

The imported inflation is keeping these inbred fucks up at night!

They RBA will prob raise rates for a very short cycle and then its down down down!!

This is a given, you can take this to the bank!
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Admin
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Quote:
 
Go for growth

October 14, 2014 - 12:07PM
Sue Williams

The record number of investors piling into the housing market shows no signs of letting up this spring, as the favourable conditions that attracted them - strong prices growth and rock-bottom interest rates - look set to continue for some time.

In fact, their numbers only look to be increasing. The latest Australian Bureau of Statistics' figures on housing finance out this month showed investment finance increased in July by 6.8 per cent.

Their numbers are now pushing towards 60 per cent of all housing loans taken out in NSW, something that is unprecedented, says Domain Group's senior economist Dr Andrew Wilson. "Vacancy rates are still low, price growth is the strongest of the last decade, and investors are chasing that capital growth rather than yield as rents can't rise as fast as prices."

So with more of us thinking of becoming a landlord, here are some tips about making a sound purchase this spring.

1. Go for property price growth, rather than rental yields. "While rental returns help pay the mortgage, it's really capital growth that gets you out of the rat race," says Michael Yardney of Metropole Property Strategists.

2. Too many people limit themselves to just their own suburb or the areas they know well, believes property author and adviser Margaret Lomas. "But you should do your research so you can try to find what will be the next hot spot."

3. Try to buy in a great location in an established suburb, with infrastructure and within walking distance of local shops and public transport, advises David Johnston, managing director of Property Planning Australia. "And think about buying as close to the CBD as you can afford."

4. If you're going for an apartment, an older one in a smaller block on a bit of land will generally be a good investment as it'll have lower running costs, says Johnston. If you're looking at a new apartment in a big complex, make sure there's something special about it that marks it out from the rest.

5. Don't fall in love with a particular house or unit, warns Lomas. Go for the area first, and the property last.

6. Pick something that will be in continuous strong demand by owner-occupiers, because they're the ones who push up property values, says Yardney. That means a level of scarcity, maybe something you can improve through renovations or development or maybe an apartment or townhouse as an increasing number of people love that lifestyle.

7. If you go for professional advice, make sure the person advising you isn't someone getting a kick-back for selling you a particular property, says Johnston.

8. Don't mix up your objectives. Don't buy a place in Noosa you want for occasional holidays. "That's almost always not the right investment," Lomas says. "Buy a property to rent out, and rent someone else's weekender for your holiday."

9. Don't focus on bargains, says Yardney. "You make your money not by buying cheaply but by buying the right property. In today's sellers' market, don't look for bargains; you won't find them."

10. Most people buy a single investment property and then stop, says Lomas. But you should have a solid portfolio of investment properties in diversified areas to create an income and growth.

Read more: http://smh.domain.com.au/real-estate-news/go-for-growth-20140930-10nyfw.html
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Dr Watson
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Chris
3 Oct 2014, 06:48 PM
I'm predicting they will do sweet FA. The recent talk of macro prud measures is just that, talk. The RBA have long held a position that this is all sustainable, their current outlook is that the market 'may' overhear if it stays on the same trajectory. They are jaw boning to get investors to go 'whoa, I better back off a bit' therefore scaring the market into submission.

This shows total ignorance as to the mechanics of the australian market and its intricacies. It will go higher and they will sit on the side lines pointing a finger at investors going 'don't you make me come over there' all the while knowing they will do nothing.
The RBA is happy when house prices go up. When house prices get another leg up, someone somewhere calls their bank manager to discuss a small business loan. John Howard used to say that if we could get each small business to employ one more person, we'd solve unemployment. Well, the RBA takes a similarly enthusiastic view. Higher house prices equals more borrowing and investment equals more employment. That's the RBA view.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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Elastic
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Dr Watson
7 Oct 2014, 11:42 AM
The RBA is happy when house prices go up. When house prices get another leg up, someone somewhere calls their bank manager to discuss a small business loan. John Howard used to say that if we could get each small business to employ one more person, we'd solve unemployment. Well, the RBA takes a similarly enthusiastic view. Higher house prices equals more borrowing and investment equals more employment. That's the RBA view.
At the moment when house prices go up, a property investor calls his bank manager and asks to use the increase in equity to buy another house.
Only a rat can win a rat race.

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Sweetdish
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Chris
3 Oct 2014, 06:48 PM
I'm predicting they will do sweet FA. The recent talk of macro prud measures is just that, talk. The RBA have long held a position that this is all sustainable, their current outlook is that the market 'may' overhear if it stays on the same trajectory. They are jaw boning to get investors to go 'whoa, I better back off a bit' therefore scaring the market into submission.

This shows total ignorance as to the mechanics of the australian market and its intricacies. It will go higher and they will sit on the side lines pointing a finger at investors going 'don't you make me come over there' all the while knowing they will do nothing.
Exactly. They hope that the talk of retiring NG alone will soften prices. And it might.
Negative gearing is not inherently wrong. its great for poor people and rich people with poor understanding of financials but I doubt negative gearing alone has caused the current situation.

My money is on Chinese investors and historically low interest rates. Either of which can easily be fixed.
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Foxy
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Zero is coming...

Ex BP Golly
3 Oct 2014, 02:10 PM
With the RBA finally recognising the dangers property investors pose to the economy, we need to ask, can they save the bulls from themselves?

Should they protect property investors, or hang them out to dry?

Surely this segment have had it too good, too long.

With news of neg gearing grandfathering - why should young people once again be damaged to protect investors?
Try being the publican in one of the most violent hotels in the world.
Cut the giggle juice off at midnight.
I have had grown men on their knees begging me to never let them drink that amount of alcohol again.
I said no problems but at the time you wanted more and would not listen to reason.
"please no matter what I say do not give me any more"
So a fire is hot only after the first time you touch it, before it is not hot.
It's different this time.
Just one more, please.
We all know what happens to Cinderella after midnight when she is full of piss and pills.
Peter

http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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