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"The housing downturn we had to have"; RBA Governer throws RE under the bus
Topic Started: 11 Aug 2018, 12:23 AM (418 Views)
yankinoz
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https://www.afr.com/personal-finance/rba-chief-gives-lowedown-on-getting-cheaper-interest-rates-for-property-buyers-20180809-h13s5k

The message for property investors: this is the housing downturn we had to have. Prior to the recent declines, price growth had outpaced incomes for quite some years, accompanied by a steep increase in credit.

"I was quite worried about that," Lowe said.

To address that over-extension of prices and borrowing, "I think we do need a period of moderate house prices or some declines," he added. And if we are going to have falling house prices, better now when Aussie and global growth is robust and everyone has jobs, he said.

This of course means any property investors hoping that the RBA might save their bacon with a rate cut shouldn't hold their breath.

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Tommy
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yankinoz
11 Aug 2018, 12:23 AM
https://www.afr.com/personal-finance/rba-chief-gives-lowedown-on-getting-cheaper-interest-rates-for-property-buyers-20180809-h13s5k

The message for property investors: this is the housing downturn we had to have. Prior to the recent declines, price growth had outpaced incomes for quite some years, accompanied by a steep increase in credit.

"I was quite worried about that," Lowe said.

To address that over-extension of prices and borrowing, "I think we do need a period of moderate house prices or some declines," he added. And if we are going to have falling house prices, better now when Aussie and global growth is robust and everyone has jobs, he said.

This of course means any property investors hoping that the RBA might save their bacon with a rate cut shouldn't hold their breath.

Glen Stevens created the bubble and if he were in charge it would be his responsibility to manage it....but he's not :to: so they won't :)
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Bardon
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It's just a breather whilst Brisbane and regional areas catch up, then we have lift off!
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Crunchie
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yankinoz
11 Aug 2018, 12:23 AM


This of course means any property investors hoping that the RBA might save their bacon with a rate cut shouldn't hold their breath.

How do rate cuts "save bacon"? Do you think the cost of debt will be whittled away? Rate cuts can actually represent acute sickness in economies.
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Jimbo
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Bardon
11 Aug 2018, 01:19 AM
It's just a breather whilst Brisbane and regional areas catch up, then we have lift off!
Why? Because people in England are paying higher rents? A car park in Sydney sold for lots of money?

What's the reason today?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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herbie
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It'll suit me nicely if we never see interest rates any lower than they are again in my lifetime.

Like sheesh, even me dear ole Ma looks at me maybe twice a year (with a bit of a sad/perplexed look on her face) and says "Interest rates are really low aren't they?" - And she's just not a woman who's inclined to whinge about anything much at all really.
Edited by herbie, 11 Aug 2018, 08:50 AM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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