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Recession

Discussion in 'Property Market Economics' started by giswal22, 4th Sep, 2015.

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  1. giswal22

    giswal22 Well-Known Member

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    what does everyone think of this supposed recession building for next year? I did say supposed because I'm not too sure how to take it. How would one invest keeping that in mind? Would you wait with cash ready to buy after it crashes? I understand there are varying views on this topic, I'm just throwing it out there as I havnt read much here about it.
     
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  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Recessions come and recessions go. Mining booms come and mining booms go. House prices go up, go flat, go down, go up again. If you are holding property for the long term you will experience all of this (along with high, medium and low mortgage interest rates).

    If you are trying to "time" your entry into the RE market based on a possible recession coming - good luck with that! Most people are very bad trying to time the market. If we get to having a recession, when do you buy? How do you know we are at the bottom? Will it fall some more?

    Who picked rising IRs for investor loans due to APRA's recent intervention? If we were any good at it (timing) we would have locked in rates beforehand wouldn't we?
     
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  3. Tekoz

    Tekoz Well-Known Member

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    @giswal22 Yes, we are slowly going into recession, My feeling is that most people are still not fully aware at just how dire the situation really is.

    China is just the tip of the iceberg, its very visible stock market collapse and economic slowdown have dominated the financial headlines. This has caused nervousness over China’s ability to continue doing the heavy lifting is causing these jitters.

    This week’s news of our sluggish GDP growth, current account blowout, dollar falling briefly below 70 cents, China’s slowing manufacturing sector and continued share market upheaval bought forward the usual news coverage from the TV channels’ resident financial experts.

    So the best way to invest is to look at the property clock here and nvest where it is not at the peak:

    [​IMG]

    Good luck man.
     
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  4. larrylarry

    larrylarry Well-Known Member

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    Hi @Tekoz I just bought one. When are you getting yours after extensive research. Pull the trigger mate. I agree @Propertunity.
     
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  5. LibGS

    LibGS Well-Known Member

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    Is there more than 1 Rockhampton? On that diagram it is both at the bottom and peak of the market.
     
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  6. Zeehan

    Zeehan Active Member

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    I agree, recessions come, recessions go. Some people ride it out, some cash up, some find opportunities. If you are invested long term I don't think you can lose. Mind you our super fund has still not fully recovered from the global financial crisis!

    Financial commentators on TV and in newspapers will sound a warning, more so they can't be accused of missing the signs altogether, as happened when the GFC hit. Many red faces there.
     
  7. WinDyz.

    WinDyz. Well-Known Member

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    Hi Tekoz,
    no one in this world knows when and what is the top and what's the bottom.
    Everyone has their own opinion and prediction. If you're investing, aim for long term as propurtunities said and stick to your goal.

    Last year everyone predicted that Sydney is at the peak, but..... At the same time lots of expert predict interest will start to increase end of this year.. but it's more likely to come down one or two more times.
     
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  8. jaybean

    jaybean Well-Known Member

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    I look forward to the onslaught of people saying "no but you see, it's different this time."

    Yes it's different this time. It's always different this time. Except that it never is.

    I'm ready to be educated about how it's different this time. Bring it on, bring it!
     
    Last edited: 4th Sep, 2015
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  9. Azazel

    Azazel Well-Known Member

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    Next year? Hmm:
    "Was it felicitous timing or a happy coincidence?
    A surprise 41.5 per cent jump in government spending on defence equipment helped Australia's economy grow by 0.2 per cent for the three months to June.
    If it wasn't for that spending, the economy wouldn't have grown at all."
    http://www.smh.com.au/federal-polit...nt-keeps-economy-growing-20150902-gjdgdw.html
     
  10. Tekoz

    Tekoz Well-Known Member

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    Yes, bring it please :cool:
     
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  11. Azazel

    Azazel Well-Known Member

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    Tekoz is a metal fan, this forum is always full of surprises ;)
     
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  12. Bran

    Bran Well-Known Member

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    I think a China slump is important, necessary, timely and ultimately for our own good. They need to be transparent from here. We should be gearing up to export.
     
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  13. Perthguy

    Perthguy Well-Known Member

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    I am expecting a recession too. I have seen the slow down on the ground. I'm not expecting to see things pick up any time soon.
     
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  14. willair

    willair Well-Known Member Premium Member

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    The simple question to ask is?,how many in this site have been in a recession?,and what happened inbetween ,the last 24 years in Australia has only been one way..
     
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  15. Leo2413

    Leo2413 Well-Known Member Premium Member

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    1. Don't over commit and invest according to your risk tolerance.
    2. Buy with exit strategies in mind.
    3. Make sure you have cash buffers.
    4. Would be good to have cash/equity ready to buy some great deals that will come.
    5. Doesn't matter if the world falls apart, invest according to your financial situation and buffers in place so you can ride out the waves.
    6. Buy in places that you project to be in good-high demand.
    7. Buy at great prices or don't buy at all.
    8. If there is add value potential even better.
    9. Enjoy the ride, there will always be ups and downs. This is the nature of the beast imo.
    10. The larger your portfolio, consider locking in quite a few at low interest rates.
     
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  16. Bayview

    Bayview Well-Known Member

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    First I've heard thew "R" word mentioned on here or SS for a very long while...

    Look out?
     
  17. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I look forward to it.
    Bring some doom.
     
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  18. Bayview

    Bayview Well-Known Member

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    Yes, must admit; I'm feeling very selfish these days; given my lot the last 5 years; I want the stockmarket to crash in a major, major way - and the property market to crash even bigger.

    A-shopping I will go, a-shopping I will go, hey ho the dairy-o a shopping I will go.

    "I'm dreaming of a 1929 Christmas....":p
     
    Last edited: 4th Sep, 2015
  19. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Lol...your wanting to snap up my properties do ya.....:mad::mad:
     
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  20. Hanison

    Hanison Well-Known Member

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    At 1929 prices we'll be buying out entire streets or suburbs.
     
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