What's your prediction on the Australian Dollar?

[marki]

I totally agree the current super low emergency rates are just cough!

 

[marki]

Australia is the cash rate King!! Apparently we are clinging on to 2% when compared to others.

Some how the dollar is still down despite its status amongst others.

 

[RAM]

The quote used (first heard by me in the markets in mid 80s or so) is "low interest rates are as effective as PUSHING on a piece of string".

All it does is reward people with debt and punish people/companies that are financially/fiscally prudent.

So the people who generally spend the highest proportion of their income (retirees) are the hardest hit - for example.

I first heard that phrase when the 'low' interest rates were 5% in Japan. Now Japan has negative short term interest rates, a declining population, concreted rivers and Govt debt so high that interest rates of 2% or more would require the entire Japanese budget spending to pay the interest. BTW - Japanese property indices (inflation adjusted) are below their levels in 1960.

Allowing a debt bubble to grow is just the politician's way of making the problem erupt (hopefully) on someone else' watch.

Cue video showing most men and their dogs praising Alan Greenspan.

GFC anyone!

 

[whatmeworry]

Allowing a debt bubble to grow is just the politician's way of making the problem erupt (hopefully) on someone else' watch.

Cue video showing most men and their dogs praising Alan Greenspan.

GFC anyone!

For some reason, can't convince my mother that the time to buy real estate now, is not the right time.

Anyway back to topic, Aussie battler roaring back up again.

Australian dollar surges 2 per cent on soft US data and US dollar weakness

 

[JohnK]

For some reason, can't convince my mother that the time to buy real estate now, is not the right time.

Why not?

I have been trying to sell my unit for ~4 months. Only 3 offers and offers getting lower. I want to sell but not giving it away.

 

[trixydoza]

I have been trying to sell my unit for ~4 months. Only 3 offers and offers getting lower. I want to sell but not giving it away.

Annoying when people arbitrarily decide a price is obscene, isn't it?

 

[whatmeworry]

Why not?

I have been trying to sell my unit for ~4 months. Only 3 offers and offers getting lower. I want to sell but not giving it away.

Annoying when people arbitrarily decide a price is obscene, isn't it?

It's only worth what someone is prepared to pay for it. There is a bubble in the two major cities which might not collapse at the moment but is definitely slowing deflating.

 

[JohnK]

It's only worth what someone is prepared to pay for it. There is a bubble in the two major cities which might not collapse at the moment but is definitely slowing deflating.

That's fine. I'm not selling but now could be a good time to buy if you can find a bargain.

 

[Flashback]

For some reason, can't convince my mother that the time to buy real estate now, is not the right time.

Anyway back to topic, Aussie battler roaring back up again.

Australian dollar surges 2 per cent on soft US data and US dollar weakness

Noticed the same against the Stirling. We gained back 4-5c of the recent 10c loss over only a few days.

 

[Foreigner]

Did a conversion of Euro to aussie this week.

 

[marki]

Ohhhhhh 0.6333 euro cents for one AUD

 

[Flashback]

Ohhhhhh 0.6333 euro cents for one AUD

Yes, Euro seems to be strengthening day by day! GBP is now only getting 1.30 for every £1.

 

[cove]

Yes Flashback it was still ok to buy some British pounds around 0.49. Should have bought more when we were trading in the 0.65 to 0.68 range. My next thought is can I make some easy UK pounds and then I fall asleep.

 

[marki]

Any idea what's happening with the Euro with the ECB having negative rates? Why is it getting stronger is Greece getting richer and paid off its bills?

 

[moa999]

Think it's more the US weakening

 

[drsmithy]

It's only worth what someone is prepared to pay for it. There is a bubble in the two major cities which might not collapse at the moment but is definitely slowing deflating.

There's a bubble across the whole country with pockets of affordability starting to appear where local economies are tanking (eg: Moranbah).

Most locales need 50-75% price collapses to bring their housing markets into "affordable" territory (ca. ~3x median income).

It's going to be a painful decade. The entire country will be burned to the ground trying to keep property prices inflated.

 

[whatmeworry]

There's a bubble across the whole country with pockets of affordability starting to appear where local economies are tanking (eg: Moranbah).

Most locales need 50-75% price collapses to bring their housing markets into "affordable" territory (ca. ~3x median income).

It's going to be a painful decade. The entire country will be burned to the ground trying to keep property prices inflated.

Funny you mention Moranbah.

Kate and Matt Moloney, 2012 Property Investors of The Year, now bankrupt with $3M negative equity

+ In 2012, at the age of 24, Matt and I were crowned Australias Property Investor the Year (Your Investment Property Magazine)

+ Three years later, if we were to sell our properties, we would still owe the banks about three million dollars (not including arrears interest and selling costs). We are currently in the process of sorting out the debts. The outcome at this stage is uncertain (despite living with financial cancer, happiness is a choice we make every day)

+ Life has been tipped upside down in the last two years. Goodbye success identity, can I have a new one, please? Ideally, my real one.

+ I live in Moranbah, QLD. Have been here for six years. The towns real estate market has dropped approx 75% in the last three years. The vibe is ... depressing. Right now my mission is to shine a light on it.

+ I have written a book called Bright Yellow Happiness its due out in 2016. I never wanted to publish it, but it feels like the right thing to do.

+ Despite "living with financial cancer" I am happy and empowered. I believe whole heartedly in personal development and empowerment. When they are combined with your everyday life, you become powerful, even in the face of challenging adversity.

+ Who knows whats around the corner. At the moment, I am taking life day by day. My intention is to share Bright Yellow Happiness with the world in a soulful way, thats true to me.

Professional Bio

Kate Moloney is an empowering motivational speaker and author. She loves combining entrepreneurship and property investing with personal development and empowerment. In Kates own words, you can’t have one without the other. She draws from her experience, training and intuition to teach personal empowerment to others in a down-to-earth and easy-to-understand manner.

Kate’s first venture in property investment left her as a three million dollar debt disaster at age 27. She knows how to handle adversity in a calm and centred manner. A natural born leader, with an affective communication style, Kate loves empowering people to become their own leaders.

http://australianpropertyforum.com/topic/10413741/1/

https://www.reddit.com/r/australia/comments/455wso/kate_and_matt_moloney_2012_property_investors_of/

 

[anat0l]

Funny you mention Moranbah.

I'm not sure how to read into that story. No really, I'm confused.

 

[whatmeworry]

I'm not sure how to read into that story. No really, I'm confused.

Short story, this couple invested in Moranbah, in multiple properties, which was caught up in the mining boom. Got awarded property investors of 2012 by real estate agents. Market has now collapsed and the couple now owe more money then what their properties are worth.

 

[Awesom Andy]

Short story, this couple invested in Moranbah, in multiple properties, which was caught up in the mining boom. Got awarded property investors of 2012 by real estate agents. Market has now collapsed and the couple now owe more money then what their properties are worth.

A few years ago, there were quite a few articles on how some youngsters "bought" and "owned" multiple properties at a young age, and how it was possible to "make" a lot of money with properties. I'm sure most of these people will once again have articles written about them in the near future, similar to the above posts.