I expect Gold will possibly take another leg down to $1150 here it represents great value, if you believe Central Banks and Governments will stop at nothing to produce inflation.
So if house prices fall 40% from peak its called a crash but if gold prices fall 40% from peak, its called great value?
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
Precisely, housing would be a great investment after a 40% crash assuming the cost of capital is not too high, is this too hard to understand?
Enjoy The Ride!
The case for individual freedom rests chiefly on the recognition of the inevitable and universal ignorance of all of us concerning a great many of the factors on which the achievement of our ends and welfare depend. It is because every individual knows so little and, in particular, because we rarely know which of us knows best that we trust the independent and competitive efforts of many to induce the emergence of what we shall want when we see it. Humiliating to human pride as it may be, we must recognize that the advance and even the preservation of civilization are dependent upon a maximum of opportunity for accidents to happen.” ― Friedrich A. von Hayek
"I, on the other hand, am a fully rounded human being with a degree from the university of life, a diploma from the school of hard knocks, and three gold stars from the kindergarten of getting the shit kicked out of me." Blackadder.
I think the RBA has not always targeted inflation and was not always independent of government. If so when did the RBA gain independence and when did it start targeting inflation?
I think the RBA has not always targeted inflation and was not always independent of government. If so when did the RBA gain independence and when did it start targeting inflation?
RBA became independent and targeted inflation since 1993
You can see the cash rate and inflation rates has been low since then
RBA became independent and targeted inflation since 1993
You can see the cash rate and inflation rates has been low since then
Yes, the period of independence and inflation targeting is the relevant one. It is clear to all but the wilfully blind that cash rates are at extremely low levels. Take away the punchbowl and see how the property market performs then? They would never have the balls.
Yes, the period of independence and inflation targeting is the relevant one. It is clear to all but the wilfully blind that cash rates are at extremely low levels. Take away the punchbowl and see how the property market performs then? They would never have the balls.
Unsubstantiated supposition on your part. It was only 5 years ago that the cash rate was 250% the current level; how was property doing then???
Unsubstantiated supposition on your part. It was only 5 years ago that the cash rate was 250% the current level; how was property doing then???
Property prices and clearance rates fell nationally in response to the RBA's previous cycle of interest rate increases. So the RBA cuts rates, and prices turn around. Coincidence? I doubt it.
Property prices and clearance rates fell nationally in response to the RBA's previous cycle of interest rate increases. So the RBA cuts rates, and prices turn around. Coincidence? I doubt it.
Did they??? So you are claiming clearance rates and prices fell nationally from 2003 through 2007 when the RBA was raising rates the whole time? Are you sure about that?
For Aussie property bears, "denial", is not just a long river in North Africa.....
Did they??? So you are claiming clearance rates and prices fell nationally from 2003 through 2007 when the RBA was raising rates the whole time? Are you sure about that?
Im not sure exactly how you have invalidated Watsons point.
All you have said is that prices can rise in spite of interest rate increases. So what?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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