Number37
Anyhow, have a Winfield 25.
- Oct 5, 2013
- 22,222
- 24,270
- AFL Club
- Sydney
Markets can dump together.
As long as the ROR > i , does it matter?
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Markets can dump together.
I don't understand your point.As long as the ROR > i , does it matter?
Neither does he.I don't understand your point.
The market's pricing in 3.75% cash by the end of the year and almost 4.5% by the middle of 2023. It's insane.US hiking rates by 0.75%, if the UK does the same we're on track for similar, if not .50% at the absolute very least.
The market's pricing in 3.75% cash by the end of the year and almost 4.5% by the middle of 2023. It's insane.
The cash rate should never have been cut anywhere near this low in the first place. Years of cutting rates to chop off the bottom of the business cycle has fuelled such a huge run up in household debt that the economy can't handle rates anywhere near the long-term average.Its insane that we will be back to our long term average in a year or 2 ?
We should have been heading upwards 6 months ago, but instead the RBA Governor was saying we wouldnt see rate rises for at least a year.
Central Banks everywhere got very lazy.
I don't understand your point.
I understand maths. I don't understand your point.You don't understand simple maths?
The cash rate should never have been cut anywhere near this low in the first place. Years of cutting rates to chop off the bottom of the business cycle has fuelled such a huge run up in household debt that the economy can't handle rates anywhere near the long-term average.
We will have 40 year mortgages by the end of 2029.
Interesting they only offer a 5 year fixed mortage. Huge de risk for them.
ATH property and stock prices during a pandemic never made any sense to me. You can only prop the markets up so long before something gives, and I for one would love to see a big dump in property prices so our youth can get their foot in the door.
if your return on what you borrow is higher than the interest you pay on what you borrow, its "all good"I don't understand your point.
if your return on what you borrow is higher than the interest you pay on what you borrow, its "all good"
Until interest goes up or rate or return drops, and you find that the capital is also of less value..
then if you have to sell, you have debt left over with no asset...
risks of leveraging imo.
if your return on what you borrow is higher than the interest you pay on what you borrow, its "all good"
Until interest goes up or rate or return drops, and you find that the capital is also of less value..
then if you have to sell, you have debt left over with no asset...
risks of leveraging imo.
Keeping rates too low fuelled the increase in household debt to truly astronomical levels. The housing market was a mess before covid.Lowering rates is fine but they waited way too long. We have known for months that inflation was going to go up a lot. And they sat on their hands.
The longer they waited the worse the housing market got.
The correction will be a fraction of the huge gains recently. Especially in blue chip areas. Press always put Mayo on it no matter the trend.
I reckon It’ll be 10% for an average correction and 20% if things get rough .One of my friends has recently boarded the doom and gloom train. I've only been in the market a decade or so and I reckon I've heard that I'm going to lose 20-30% maybe 4 or 5 times.
I reckon It’ll be 10% for an average correction and 20% if things get rough .
But if you can hang on 10 years it will come back and then it will go up even more
Nothing surer and making broad unfounded statements like I did is ridiculousEach market and each market segment is different. And each property in each segment is different. Etc.
I just think the 'x% across the board' type statements do nothing but create panic.
Nothing surer and making broad unfounded statements like I did is ridiculous
But I’m just conveying what I’ve seen in my 30 years in the work force and 25 years of property ownership
Yes.Treechange and seachange places had been pretty stagnant for a decade or more. There was an even bigger post pandemic boost there. First places to suffer when the R word comes around
One of my friends has recently boarded the doom and gloom train. I've only been in the market a decade or so and I reckon I've heard that I'm going to lose 20-30% maybe 4 or 5 times.