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It's not too hard to see why investors may have moved out of TDs into other asset classes; (Including property) since the GFC
Topic Started: 12 Sep 2017, 01:00 PM (489 Views)
herbie
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Average term deposit rate history

Year (July)
2005 - 4.75% p.a.
2010 - 6.00% p.a.
2011 - 6.00% p.a.
2012 - 4.40% p.a.
2013 - 3.70% p.a.
2014 - 3.30% p.a.
2015 - 2.40% p.a.
2016 - 2.35% p.a.

Source: https://www.finder.com.au/historical-term-deposit-rates

So returns on term deposits have halved.

But rents on property (even in SEQ where I am) have gone up - Not all that much in SEQ; But at least a little bit.

So Yep, I'm glad I own some IPs - With them being pretty solid reliable little income earners; Compared to TDs at least, with them being subject to the machinations of tha RBA.

Sheesh, I might even have to consider going back to work if I didn't have my IPs.
Edited by herbie, 12 Sep 2017, 01:09 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Chris
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herbie
12 Sep 2017, 01:00 PM
Average term deposit rate history

Year (July)
2005 - 4.75% p.a.
2010 - 6.00% p.a.
2011 - 6.00% p.a.
2012 - 4.40% p.a.
2013 - 3.70% p.a.
2014 - 3.30% p.a.
2015 - 2.40% p.a.
2016 - 2.35% p.a.

Source: https://www.finder.com.au/historical-term-deposit-rates

So returns on term deposits have halved.

But rents on property (even in SEQ where I am) have gone up - Not all that much in SEQ; But at least a little bit.

So Yep, I'm glad I own some IPs - With them being pretty solid reliable little income earners; Compared to TDs at least, with them being subject to the machinations of tha RBA.

Sheesh, I might even have to consider going back to work if I didn't have my IPs.
Property is a no brainer in context of what has been, whether it remains that way only time will tell.

History might have TD's as the safe smart option?! Any things possible herb.
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herbie
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Chris
12 Sep 2017, 10:21 PM
Property is a no brainer in context of what has been, whether it remains that way only time will tell.

History might have TD's as the safe smart option?! Any things possible herb.
While it could be that anything is possible Chris, the most likely scenario in amongst it all is that investors will continue to seek returns - Balanced against the perceived risk.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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eloi75
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herbie
12 Sep 2017, 10:27 PM
While it could be that anything is possible Chris, the most likely scenario in amongst it all is that investors will continue to seek returns - Balanced against the perceived risk.
Peer to Peer lending is the way to go right now. Im currently getting 16.89% returns. You have loans that are insured by QBE insurance and are offering returns of 13%. Very low risk with high returns. No brainer.
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