Wizard of Aus

I appreciate well written english and punctuation and all that cr@p, but let's not forget that this isn't english 101. Let's stick with the good stuff - the financial commentary. I am with dstars - IO is for suckers. I haven't personally ever used IO and never will, but that choice is up to you personally to decide from either what you read here or read else where.

Just wondering where you got the 70% foreign owned figure? I thought it was more like 30%

With the amount of 'money' or credit being endorsed by governments at present, property is probably the main or easiest mechanism the majority of the herd can think of to preserve or create capital. Much to my frustration, while there are more zombies willing to pump their money into property on the promise of potential capital gains and without considering cash flow, it is unlikely that this gambling will stop any time soon. (Although there is nothing I would like more to see than these speculators crash and burn)

I treat inflation as being something more like the rate of money supply rate (M4), so it's about 12-13% at the moment. CPI or RPI are about as much use as tits on a bull.........

The old cycle theory suggests that rent should end up increasing when prices slow or stagnate to re-establish the price/yield equilibrium, but in my area (london docklands) there is an excess of flats for rent. My rent has barely budged in 3 years and I can't see it changing much in the future. There's going to be some speculators who have paid stupid money for flats here in trouble in the next few years. Housing shortage my @rse.......

He ought to be heading to cell 10 instead of number 10..........

I regard myself as neutral, and am renting, but right now it is a tough enough decision whether to even buy myself a "home". I certainly wouldn't buy an "investment" property at the moment though.

Good post PG. More people need to wake up to the benefits of positive cash flow investments.

Hi everyone, I have read a lot of interesting things on this site as a guest, so I thought I might aswell join so I can make a few posts.