ItalianevaR at 10:38 AM - 27/08/2009
LOOKING FOR A GIRL TO SHARE A 2 BEDROOMS APARTM. IN SYDNEY!... more
weewen at 3:44 PM - 21/05/2009
2 bedroom for rent Carlingford... more
haarvey at 11:38 PM - 20/11/2008
Melbourne suburbs... more
Are we finally to see the end of all these interest rate hikes? According to Westpac,s chief economist we are. Westpac chief economist Bill Evans said the 23.9 per cent fall in the consumer confidence index over the past three months - as the Reserve Bank continued to raise rates to contain inflation - was the biggest in the 32-year history of the survey. "This indicates that the Reserve Bank's last rate hike, combined with further independent moves from the mortgage lenders, may have finally slowed demand such that inflationary pressures will ease," What does all that mean? well I bet we are all hoping it mean's the end to the madness and a return to the good old days. It might not be quite as quick and simple as that, but that is the general idea. David Layton Wedgetail Finance & Investments david.layton@wedgetailproperty.com.au www.wedgetailproperty.com.au
What we are looking at is a period where what is being factored into the inflationary figures is skewing the books. I mean .. the price of bananas, the price of electrical goods such as plasma screens, is NOT showing a true and accurate picture of what the inflationary pressures are like. I'd be more looking at standard items, a loaf of bread, a batch of eggs, cheese,cereal and services. Introduce into that mix the petrol increase (which MUST be factored into transporting costs) of 20-25% in a single year and you are looking at a situation where .. we are due for a period of inflation, like it or not. So, interest rates held at 9% +-.85 is actually still a reasonable figure as long as the property is going along at a steady rate of X% a year. The money movement means the money buys less, hence the money AS A MEASURE OF VALUE is worth less in purchasing power. However, with money at a lesser exchange rate, you can ask more for RENTS. Hence, do your figures for your next equation (purchase vs costs) and you can still do ok. Never BANK on capital growth, bank on being able to afford your propery and/or your gearing for it. And never bite off more than you can chew. Learn to chew.
"However, with money at a lesser exchange rate, you can ask more for RENTS." What has the exchange rate have to do with the local market where there is just the $aussie?
Monetary exchange baby. Buy a cow for $100 today .. pay $250 for the same cow tomorrow. Same currency .. less value. Not less cow.