the next boom, page-4

Why does it matter what property prices do in the short term?

If you invest in property....u should always invest for the long term.....so as along as you do your homework.

LONG TERM

70% of people are homeowners.....and most of them have the lowest mortgage rates since the 60's....and going lower...

so how people think things are getting worse im a tad puzzled by.

Its getting cheaper to service debt.....not more expensive.

Anyway....

it means absolutely zero to me if properties around me drop 10% or rise 10%....as I havent sold......and wont be for at least 30 years.... if ever.

...sure the one up the street may have sold for 10% less or 10% more....but again as I state....unless your selling who cares?


My Uncle bought a LJ torana in the late 60's for about $2000 and 5 years later it was worth $500.

Its now worth about $20,000.....mint condition.....I bet people were calling him a mug for keeping it at the time....seeing the value drop so quickly.

perhaps not the exact science as property but it sure has some similarities.

All I care about are....

massive interest rate cuts
lower mortgage repayments
higher rental yields
more income in pocket

For some reason people associate a falling asset value with the cost to service a debt.

In fact....servicing is getting cheaper by the month while the cost to the renter is going up.

Then they bandy around "7% unemployment rate" possble by some date by some nose dribbling economist in some crackpot office suite.

Well 93% of people will still be employed.

And last I heard even the unemployed live somewhere.