van hoogstraten Posted May 2, 2006 Share Posted May 2, 2006 Reserve Bank of Australia lifted rates by 0.25% this morning. 10 out of 14 economists got it wrong, and made themselves look even more foolish about spouting the silly nonsense about the rise in inflation being due to a rise in petrol prices which some how makes it irrelevant. When will these clowns learn that a rise in the price of oil/petrol ripples through everywhere in todays economy - an "inflationary" multiplier which cannot be ignored. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 2, 2006 Share Posted May 2, 2006 Oh No. My life is over. Time to raise those rents. What have we been saying Realist Bear, eh? Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted May 3, 2006 Share Posted May 3, 2006 (edited) It's not all bad news, I've just won a spread to the tune of £4.10, calm down now people. Edited May 3, 2006 by BuyingBear Quote Link to comment Share on other sites More sharing options...
HPCheese Posted May 3, 2006 Share Posted May 3, 2006 Those darn Australians, doing everything up-side-down. 10 out of 14 economists don't know their **** from their elbow. Quote Link to comment Share on other sites More sharing options...
Flat Bear Posted May 3, 2006 Share Posted May 3, 2006 Did they mention that 10 of the 14 economists had VI in the property market? Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 It's not all bad news, I've just won a spread to the tune of £4.10, calm down now people. Don't all rush at once ladies. Quote Link to comment Share on other sites More sharing options...
Prude Posted May 3, 2006 Share Posted May 3, 2006 (edited) Oh No. My life is over. Time to raise those rents. What have we been saying Realist Bear, eh? You'd have a job raising rates near me - huge oversupply of BTL and being sold off (well they're trying). Those sticking it out are lowering rates to attract a tenant. Reserve BoA clearly think that raising now will save them from greater pain later. Will the BoE take notice? Edited May 3, 2006 by Prude Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 You'd have a job raising rates near me - huge oversupply of BTL and being sold off (well they're trying). Those sticking it out are lowering rates to attract a tenant. Reserve BoA clearly think that raising now will save them from greater pain later. Will the BoE take notice? Like I've been saying, global house price boom, global house price bust. Coming soon to a town near you. Good thing my tenants have just signed up for another year. Must check what my new mortgage payments will be. Uh Oh. Quote Link to comment Share on other sites More sharing options...
HPCheese Posted May 3, 2006 Share Posted May 3, 2006 Like I've been saying, global house price boom, global house price bust. Coming soon to a town near you. Good thing my tenants have just signed up for another year. Must check what my new mortgage payments will be. Uh Oh. Any nice properties in West London? I'm on the lookout for a bargain. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 Any nice properties in West London? I'm on the lookout for a bargain. My property is in Australia, hence my very relevant and ON TOPIC post. Bargain in West London, good luck. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted May 3, 2006 Share Posted May 3, 2006 My property is in Australia Upside-down mortgage? Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 Upside-down mortgage? No, IO. Quote Link to comment Share on other sites More sharing options...
theChuz Posted May 3, 2006 Share Posted May 3, 2006 (edited) No, IO. Active bear on this site knowing the situation in oz and you have a IO mortgage? tut tut Edited May 3, 2006 by theChuz Quote Link to comment Share on other sites More sharing options...
van hoogstraten Posted May 3, 2006 Author Share Posted May 3, 2006 http://blogs.theage.com.au/yoursay/archive...6/05/rates.html sample of opinions from melbourne based newspaper Quote Link to comment Share on other sites More sharing options...
bennymac Posted May 3, 2006 Share Posted May 3, 2006 http://blogs.theage.com.au/yoursay/archive...6/05/rates.html sample of opinions from melbourne based newspaper I work in the residential development industry up in Brisbane. Moved over from commercial valuations about 6 months back. This is really going to hurt, margins are already way too tight, added holding costs on our construction sites bleh we can wear that but the change in sentiment will be the real worry; were taking 90+ days to flog our stock and with this rate rise resales are going to get hurt. The only upside i see is maybe we are going to be able to source raw sites cheaper, but bleh. yuck Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 Active bear on this site knowing the situation in oz and you have a IO mortgage? tut tut Very funny. The only difference being that I didnt buy with an IO and didnt have IO when I lived in it. The only reason I have IO is that the rent covers IO + some. I can't afford to supplement the rent at the moment, and that is with 50% equity in the place. Pha! And they think it can't happen here. Now you know why WAL is such a bear. Growl. Quote Link to comment Share on other sites More sharing options...
Warwickshire Lad Posted May 3, 2006 Share Posted May 3, 2006 Buy Low - Sell High. It's the oldest investment advice in the book isn't it... People are going to be through a lot more mortgage pain over the next several years as global IRs rise. Good job I haven't got a mortgage then isn't it. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 Buy Low - Sell High. It's the oldest investment advice in the book isn't it... People are going to be through a lot more mortgage pain over the next several years as global IRs rise. Good job I haven't got a mortgage then isn't it. Yeah, but if you had of bought two years ago when everyone was saying there was going to be a crash that still has not materialised, you would be 50 gazillion squid better off, property prices NEVER go down, bricks and mortar is always a good investment, blah, blah, blah, blah-dy, blah blah. Luckily I bought in London in 1996 and sold in 2002. My big mistake was thinking that the boom would go on. Buyer Beware. Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted May 3, 2006 Share Posted May 3, 2006 Very funny. The only difference being that I didnt buy with an IO and didnt have IO when I lived in it. The only reason I have IO is that the rent covers IO + some. I can't afford to supplement the rent at the moment, and that is with 50% equity in the place. Pha! And they think it can't happen here. Now you know why WAL is such a bear. Growl. So, do you just have the one BTL? Oh, and welcome to the board. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 So, do you just have the one BTL? Oh, and welcome to the board. Being nice now are we? That I'm on topic. It is not technically a BTL. I bought it as my home and lived in it for 3 years, circumstances dictated my return to UK. It's all good, I'm in it for the long term. Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted May 3, 2006 Share Posted May 3, 2006 Very funny. The only difference being that I didnt buy with an IO and didnt have IO when I lived in it. The only reason I have IO is that the rent covers IO + some. I can't afford to supplement the rent at the moment, and that is with 50% equity in the place. Pha! And they think it can't happen here. Now you know why WAL is such a bear. Growl. And you were so keen to tell me ages ago how your Aus property pay such a good rent versus your mortgage payments & leaves you with cash left over! It seems someone was bending the truth somewhat. It seems the truth would be more inline with my comments and that your cash return is very poor given your 50% equity which could be invested elsewhere. I hope you're keeping that place to return to live in it later. That would be the only fair reason IMO. Otherwise you'd be better off selling up & buying in London for a better yield! This is the difference between Aus & the UK. Low low Aus yields produce very little for the owner once the mortgage is paid. Mostly thanks to negative gearing & prices being driven up by tax savers in the past. My UK cash left over is a healthy 6% to 7% return on my equity in the places. In that case there is no reason to call it a bad investment, because selling up would result in (ignoring CGT reducing the sum) the unfortunate position of receiving a lower return on my equity turned into cash. Quote Link to comment Share on other sites More sharing options...
Flat Bear Posted May 3, 2006 Share Posted May 3, 2006 Yeah, but if you had of bought two years ago when everyone was saying there was going to be a crash that still has not materialised, you would be 50 gazillion squid better off, property prices NEVER go down, bricks and mortar is always a good investment, blah, blah, blah, blah-dy, blah blah. Luckily I bought in London in 1996 and sold in 2002. My big mistake was thinking that the boom would go on. Buyer Beware. Bull in Bears clothing eh! Why cant you lower price now and get it sold before it starts to take a dive and interest rates really start going up. People are doing the same over here and as prices go down get even more stubborn trying to get the price they could 6 months previous (chasing the market down) But its only an investment for you so doesnt matter (ive lost a lot on certain shares last couple of years on same reasoning, human nature) Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 3, 2006 Share Posted May 3, 2006 (edited) And you were so keen to tell me ages ago how your Aus property pay such a good rent versus your mortgage payments & leaves you with cash left over! It seems someone was bending the truth somewhat. It seems the truth would be more inline with my comments and that your cash return is very poor given your 50% equity which could be invested elsewhere. I hope you're keeping that place to return to live in it later. That would be the only fair reason IMO. Otherwise you'd be better off selling up & buying in London for a better yield! This is the difference between Aus & the UK. Low low Aus yields produce very little for the owner once the mortgage is paid. Mostly thanks to negative gearing & prices being driven up by tax savers in the past. My UK cash left over is a healthy 6% to 7% return on my equity in the places. In that case there is no reason to call it a bad investment, because selling up would result in (ignoring CGT reducing the sum) the unfortunate position of receiving a lower return on my equity turned into cash. No, no, no, no, no. Not sure how you are calculating rental yield btw. I did not say that it paid good rent versus my mortgage payments and have always been honest that it is IO (not ideal, but hey WTF). The calculation of rental yield is not based on how much my rent is and how much my mortgage payments are. I never said it was fantastic, just not as bad as it could be. The yield is around 5.5%, which I think is not bad considering it is not in a big city. Yes, I am keeping it to live in eventually. I'm not a btl investor like you TTRTR. I just had to rent out my house. I think a 5.5% yield is quite good. IMO London should be paying much, much higher yields than 6% for all it has to offer and the price of properties. You are so blinded by the 'streets are paved with gold' London ffs. What about the rest of the UK? How are your yields looking Landlords? Btw - hoping to see you so smug when UK IR's go up. Right back atcha TTRTR. Bull in Bears clothing eh! Why cant you lower price now and get it sold before it starts to take a dive and interest rates really start going up. People are doing the same over here and as prices go down get even more stubborn trying to get the price they could 6 months previous (chasing the market down) But its only an investment for you so doesnt matter (ive lost a lot on certain shares last couple of years on same reasoning, human nature) I was being sarcastic. Missed the boat on that one, prices have been sliding since 2004. Late 2003 was the last chance to sell for decent profit, and I had no intention of returning to the UK at that point. Sorry, crystal ball was out of action. It's not an investment for me, it is my home. I chased the market down for 12mths trying to sell it. Edited May 3, 2006 by Winners and Losers Quote Link to comment Share on other sites More sharing options...
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