What's your prediction on the Australian Dollar?

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.
Not sure I understand why some people borrow more than they can afford. For every success story there are hundreds if not thousands of failures.

Property and shares are fantastic in the middle of a boom. Try to sell in a downturn and you can be in trouble.
 
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.

Yep. And with 2/3(ish) of "investors" negatively geared and thus reliant on their day job to cover costs, expect it to play out a lot more as the economy slows and unemployment rises over the next few years.
 
Yep. And with 2/3(ish) of "investors" negatively geared and thus reliant on their day job to cover costs, expect it to play out a lot more as the economy slows and unemployment rises over the next few years.
Mine is roughly around neutral, and I've been told in the past years that I really should be buying another one (or more). These people have all kept quiet now.
 
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.

The old adage - "A rising tide lifts all boats" comes to mind.

In 1987, at a "Twilight Seminar" ion Sept 30 (I think it was) one of Australia's top 3 wholesale financial consultants to super funds etc recommended shifting your super fund (corporate or then industry fund) to Equitilink, Security pacific, ANZCAP, Morgan Grenfell and one other.

All but Equitilink were out of business following their loses of up to 75% in the Dec qtr 1987. SPAL's Aust equity holding were approx 1/3rd in tasmanian 2nd board stocks of which over half did not trade in the Dec qtr post October 20, 1987.

Leverage and penny dreadfuls are like betting on black for each spin of the roulette wheel - do not work all the time and more often than not leads to tears for the majority.

One corporate Super fund advised by said consultant, took all their money from us as at 30/6/87 and gave it to one of the above. Three years later I calculated how much they had lost vs leaving it with us - it was more than their entire pre-tax profits for those three years.

Experts and consultants/brokers/real estate agents are worth the money they lose investors...
 
If there is global turmoil forget about access to money on share markets including superannuation. You might get a fraction of what you think you had.

Think it's time to cash in everything and be safe.
 
If there is global turmoil forget about access to money on share markets including superannuation. You might get a fraction of what you think you had.
True - locked up in Super = can't get to it anyway - and no guarantee that some politician get their hands on it before you do also.

Think it's time to cash in everything and be safe.

Are you talking into cash accounts or gold bars underneath the bed JohnK ?
 
All well and good to say put it all in cash but what if you need a higher return than 2-3%? Not to mention you are effectively locking in your losses. It gets even worse if ypu are not in the pension phase and have to pay tax on this meagre return.

Sure there is volatility in the market but that creates opportunities. If you don't need the capital now surely holding on for the medium to long term is a much more prudent strategy.
 
If there is global turmoil forget about access to money on share markets including superannuation. You might get a fraction of what you think you had.

Think it's time to cash in everything and be safe.

There might be a problem with cash ........ Our dollar is falling!
 
True - locked up in Super = can't get to it anyway - and no guarantee that some politician get their hands on it before you do also.



Are you talking into cash accounts or gold bars underneath the bed JohnK ?

Ahhh gold is actually going up investors a piling into it like no tomorrow. Seeking shelter from negative interest rates. Prices are up 18% this year. Anybody see the signs?

Which brings me to negative interest rates ....... We are still the cash rate King so why is the Aussie going down?
 


Write your reply...

Become an AFF member!

Join Australian Frequent Flyer (AFF) for free and unlock insider tips, exclusive deals, and global meetups with 65,000+ frequent flyers.

AFF members can also access our Frequent Flyer Training courses, and upgrade to Fast-track your way to expert traveller status and unlock even more exclusive discounts!

AFF forum abbreviations

Wondering about Y, J or any of the other abbreviations used on our forum?

Check out our guide to common AFF acronyms & abbreviations.
Back
Top