Preparing for the worst - Existing Property Owners 101

Nah. You make assumptions based on your own narrow view. Your comments would only apply to a small minority. Having equity reserves and income and growth producing liquid assets is way better than having cash reserves and dead money. Climate varies in different location Just because their is two localized storms doesn't mean the climate is bad ,but it does mean scarce capital will move to a sunnier places. Some markets have the perfect climate with low interest rates, increasing rents, capital growth, very low vacancies and a credit squeeze . The perfect storm.. I am increasing spending ( otherwise what is the point) I have increased rents by 25/30% over the last 5 years and have given notice to all tenants rents are going up again. Loans should always be optimised now is not the time to do it, it is too late. The best rate may not get you the best loan It is naïve to say 5% commission is to much every-where, if they aren't worth 7% they are probably not worth 5% either. It is very false economy not fixing repairs and even fatal. You should remove deadwood all the time

 

Most of the macroeconomic indicators lag by a few months. Latest GDP numbers have already started showing weaknesses as a result of property markets coming to a sudden halt.

- interest rates are bound to go up
- China will not be able to rescue us
- dismal wage growth (biggest issue I think)
- dwindling immigration numbers
- massively and rapidly ageing population and dwindling national productivity (that’s more long term though)
- poor retail performance (our retail has been badly damaged as a result of lack of innovation and inability to keep up with the world)
- political uncertainty

Ignore the propaganda by politicians, if our economy was indeed in a strong position, both our property and stock markets won’t be sinking at the same time.

If more people are employed and earning than ever before, where is that money going if retail, stock market and property are all depressed.

 

The current “depressed” real estate market has nothing to do with our economies performance. It was a deliberate and well documented plan of action to reduce household debt and risk. Do you think if APRA didn’t get involved the household market would be declining?

The market is declining simply through people’s ability to service debt and overseas investment. Keep in mind that other property markets in Australia are still recording growth, some record numbers (Hobart). Melbourne and Sydney decline were inevitable.

 

- China will not be able to rescue us. (China has huge Government powere to ramp up economy)
- dismal wage growth (biggest issue I think) ( will not change this is the new norm. Efficiency and technology means this is not going to change and should get worse with time)
- dwindling immigration numbers (still pumping 200,000+ migrants per year every year. Historically a high number)
- massively and rapidly ageing population and dwindling national productivity (that’s more long term though) Dont know enough to respond
- poor retail performance (our retail has been badly damaged as a result of lack of innovation and inability to keep up with the world) Same around most pasrts of the world
- political uncertainty Same around most pasrts of the world

 

Dont forget the huge (State based) additional stamp duty on foreign buyers that was introduced.

 

Yeah i bundled that into overseas investment.

 

Give it a few years and individual states will start to tax ip owners that live in other states.
Vancouver has already started taxing property owners that do not earn their income in B.C.

 

I think he's referring to unprecedented price falls in Melb and Syd.

7. Bring lube?