Will not affect the market at all - absolute twaddle.
The level of unemployment is skyrocketing - not sure which part of that is escaping you. The level of demand for Ore and Coal is dropping.
Employment and economic confidence are the long term determinant factors in buying a house - short term incentive is only for the FOOLS who do not understand the long term reality of purchasing a house.
Even the effect of the FHOG has come home to roost as it has become popular knowledge that it was a ruse.
Wont do shit.
It was all of the pundits and economists wetting their pants with pure unadulterated joye because of a lousy half a percent rate cut that confirms it for me!
Sadly even the financial markets have a taste of the middle class welfare, and don't mind flaunting it in their desperation to fleece the sheeple!
Gorn kiddies, get a home loan quick, its never been so good!
And now the RBA looks like Julias lapdog!
Shiiite. What a mess!
Next stop the budget..... What a hoot!
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
First home buyers bonus scrapped in Melbourne; thousands of job losses in both Govt and in the private sector. House prices remaining stagnant is at best wishful thinking. Like the Coles ad...down...down...staying down..is where house prices are heading.
I find it interesting that the banks are all still predicting house price falls this year despite yesterday's rate cut.
Could that be because we simply can no longer service the debt required to maintain those levels? Possibly. Do the banks have records of our incomes? Most definitely. Do they know the average income of its customers and the ability of them to service debt? Highly likely. Have they seen that in order to maintain debt levels and keep expanding books that they need income from either taking it from high risk areas which they already do with 97% loans? Yep. Have they recognized that if they introduced 100%+ loans that the govt will stomp on them for irresponsible lending and also the fact that every man and his dog knows that if 100% loans are given out then its time to run the fk away from housing as an investment? Big tick there. They know that their books are now capped. Incomes simple do not match the requirements for buying a home for first home buyers who are the people who ultimately support a market. When credit growth starts to fall like ours has quite hard theres no way for anything to go but down no matter how much they cry about it. I got a feeling the govt will throw a 'first home buyers boost' out on the market mid year. 21k again. but even with that, who wants to buy a place that at best will be worth the same as it was 7 years from now? You would have to be stupid to buy a house and believe that its going to double in value these days its an investment and people sell bad investments. I still cant believe the amount of people claiming that 9k losses each year are a good thing. You may as well take your money and give it away. Why not keep your money in the bank, or get some shares in apple or buy some gold. Get something that actually keeps your money safe of at least have some value. Absolutely insane to have a house and negative gear it. 'Hey australia, invest in me, give me 1 trillion dollars and I will pay you back -9 billion a year.! ' "Sure thing housing sector! I love being poor and stupid!'
You may well be right that they have the greatest insight into our borrowing habits but there have ben times in the past when they have been bullish about house prices and got it wrong. I'm suggesting that if they are bearish about the prospects of their major asset base then it would be a brave bull who suggests prices are going anywhere but down this year(Perth excluded).
You may well be right that they have the greatest insight into our borrowing habits but there have ben times in the past when they have been bullish about house prices and got it wrong. I'm suggesting that if they are bearish about the prospects of their major asset base then it would be a brave bull who suggests prices are going anywhere but down this year(Perth excluded).
You think Perth is set for a rise this year?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
I'm suggesting that if they are bearish about the prospects of their major asset base then it would be a brave bull who suggests prices are going anywhere but down this year(Perth excluded).
I don't think Rastus2 nor myself are brave bulls for suggesting prices are likely to rise in line with inflation of 2-3% this year.
The only way that rate cuts will stimulate the economy is if they encourage a surge in borrowing which will spread money through the economy. Most mortgage holders will keep repaying the same amount and pay down their principal a bit faster. Deposit holders will be getting a reduced income stream sucking money out of the economy. The greatest beneficiaries are property investors with IO loans. However many of these are negatively geared so their losses are partially reduced and their tax breaks are reduced also.
State governments are under increasing budget pressure nationwide and this will flow onto job losses.
So once again the benefit of IR cuts will not be significant unless it encourages a surge in borrowing. Is anyone keen to be buying while house prices are falling. It doesn't appear that way.
The only way that rate cuts will stimulate the economy is if they encourage a surge in borrowing which will spread money through the economy. Most mortgage holders will keep repaying the same amount and pay down their principal a bit faster. Deposit holders will be getting a reduced income stream sucking money out of the economy. The greatest beneficiaries are property investors with IO loans. However many of these are negatively geared so their losses are partially reduced and their tax breaks are reduced also.
State governments are under increasing budget pressure nationwide and this will flow onto job losses.
So once again the benefit of IR cuts will not be significant unless it encourages a surge in borrowing. Is anyone keen to be buying while house prices are falling. It doesn't appear that way.
Loans in Australia are used for more than to purchase homes ... Interest rate cuts could encourage a business to borrow and invest/expand.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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