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CPI Falls For First Time Since 2008

Discussion in 'Property Market Economics' started by 2FAST4U, 27th Apr, 2016.

  1. 2FAST4U

    2FAST4U Well-Known Member

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    Consumer prices fall for first time since 2008

    Consumer prices have fallen for the first time since December 2008, with deflation of 0.2 per cent in the March quarter.

    The Bureau of Statistics data show inflation was just 1.3 per cent over the past year.

    Looks like the RBA might be forced into cutting interest rates:confused:
    Even if they do cut rates I'd be surprised if the banks passed any of the cuts on (perhaps to PPOR only).
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Half way to a recession? We only need two successive negative quarters to have one.

    Plenty of indications that we are in a slump - lack of jobs growth, deficit, growth of spending, lack of business investment etc.
     
  3. MTR

    MTR Well-Known Member Premium Member

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    cutting interest will also impact on Au$ which is what RBA want, around 72 was the target, however we may see it break through on a downward trend, I am thinking 65 will happen again this year.
     
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  4. barnes

    barnes Well-Known Member

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    That is just the start. Strange that these figures appeared 2 months before the election. To me it only means that the situation is a lot worse than what is officially released. :(
     
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  5. MTR

    MTR Well-Known Member Premium Member

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    I am expecting 2017 will be a very bumpy road.

    I have also mentioned that property investors should not ignore the signs and if you have made some gains, take some money off the table because it will be a long time between drinks.

    MTR
     
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  6. 2FAST4U

    2FAST4U Well-Known Member

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    If population growth slows Australia could be heading there.
     
  7. MTR

    MTR Well-Known Member Premium Member

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    I agree.
    No need to panic if investors have managed debt levels they should be able to ride the bumpy roads.

    I saw the peak in Perth and sold down, saw the peak in Melb and sold down, saw the peak in Syd and sold down, 1 deve left on the table which I can hold.

    Yes, I am an old duck so I have seen it all before, except this time I am very much prepared, when I see the warnings signs I like to protect what I have made, cos it may be years before we see strong property markets. All markets will be effected regardless. If you are prepared then there wont be any need to panic.


    MTR
     
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  8. barnes

    barnes Well-Known Member

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    Agree with almost everything. Except I think we will NEVER achieve property growth more than inflation in the future. :(
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    But most under 30's haven't experienced a downturn let alone recession. The end is nigh - @Bargain Hunter time to come out of the woodwork.
     
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  10. MTR

    MTR Well-Known Member Premium Member

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    Depends on where you live, we are currently experiencing down turns in Perth, Darwin, Sydney and Melb is peaking, Adelaide well perhaps its close to bottom?, but it has experienced a down turn over the last 5 years. Brisbane also experienced down turn over the last 5 years and Gold Coast still not fully recovered.

    Just about every State has been effected somewhat, age has nothing to do with it, its basically dependent on whether you are an investor and watching property markets/cycles.
     
  11. MTR

    MTR Well-Known Member Premium Member

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    We will always have cycles and we can always achieve above inflation if there is a demand and not enough stock, this is why Syd West boomed. I dont believe it will be as predictable, there was a time we could pick inner city blue chip to boom first, not so with recent booms. Drivers/demand was immigration and affordability.
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    @MTR The economy is bigger than the residential property sector. Those with mortgages still need jobs especially if negatively geared.

    People will be buying pants with deeper pockets but sewn across the opening.
     
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  13. MTR

    MTR Well-Known Member Premium Member

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    Right:)
    I like that saying, can I steal this?
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Better than deep pockets short arms ;)

    Neither is a fashion statement.
     
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  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Looking at the stats every capitalcity other than Canberra went backwards.

    Negligible growth in Sydney, Adelaide & Perth since June.
     
  16. turk

    turk Well-Known Member

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    Are you mixing your CPI with yor GDP?
     
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  17. Scott No Mates

    Scott No Mates Well-Known Member

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    @turk - recession is defined as two consecutive quarters of negative growth (contraction of the economy).
     
  18. Northy85

    Northy85 Well-Known Member

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    I could be wrong but I don't think this is anything too serious. Oil has come down heaps which has made a lot of things cheaper and retail has been struggling for ages probably because they are competing with online purchases.
     
  19. turk

    turk Well-Known Member

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  20. scienceman

    scienceman Active Member

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