notpom

Technically it is achievable, especially if you have got a special talent. Say build $20m house somewhere near Broken Hill. You will be lucky to get $300K if you sell. In Adelaide happens more often than in any other capital. People spend just under half a million to buy "brand new" in the housing estates. Only to find out that they have got housing trust tenants next door. This is instant reduction of minimum 20% in value. Units are a sad story as usual. Developers can build number of high rises nearby and create an awful oversupply before you can blink. But for people in their right minds who buy houses (or land) in established areas "negative equity" is a myth, yes. In Adelaide there is an additional rule - "never buy anything that does not have water views". Price wise Adelaide is 7-8 years behind Sydney. If you do not buy rubbish, you can rest assured what your house(s) will be worth in near future.

If you mean reduction in the median price, it often means directly opposite. Prices grow, but people first of all snap cheaper properties. The more cheap ones sold, the lower is the median. Real reduction in value is rare. When public toilet is built at front of your house, or house damaged by termites for example.

More than I would like. Wasting time on gatherings where people: 1. Overeat 2. Overdrink 3. Yapping about nothing 4. Whinge about lack of money is kinda boring. You have got one life after all. Why turn it into misery by setting yourself such a petty goal like being on the "party demand list"? You shall worry if you are. That means that you are spending way too much time pleasing other people instead of doing right thing by yourself.

Please read this. http://www.bloomberg.com/news/articles/2015-12-22/extreme-oil-bears-bet-on-25-20-and-even-15-a-barrel-in-2016 In a nutshell, more and more people are buying oil's put options on the market as low as $15 per barrel. There is plenty of explanations on the internet wabout option trading, but what you need to know is simple 1. People spend their money to make money, not to lose money 2. People would not make any money if oil price does not drop below the mark they bet on. 3. If you do not trade oil options and do not know anyone who does, you can safely assume that people who bet have done their homework. Why it would be a Christmas present? First, ACCC is actually grinding their paper tiger teeth at the petrol retailers. Dollar is still high, oil price plunging - but petrol prices ... Well, with the current level of oil prices and a dollar they shall be no more than 70 c per liter for unleaded. Of course, saving at the bowser is a great thing. But fuel price is the thing that affects the whole economy, because bulk of transportation is automotive. Which translates into cheaper prices across the board. Cheaper prices translate into drop in the "inflation" (how it is understood by RBA). Inflation dropping below RBA target translates into interest rate cuts. Interest rate cuts translate into many things, like smaller interest on mortgages, improved housing affordability and soaring property prices. Last year if lived in Sydney - your house would have earned 3-4 times the amount you earn at your day job. If you do not have a house - you earned nothing, and house has slipped further out of reach. In other words, if you are the homeowner, I do not wish you Merry Christmas, you would have it anyway. Renters - you would need a LOT of wishes to feel slightly better.

Thanks Tamara, Merry Christmas to All. If you get thousand people they would make out of this article thousand of a different things. Margaret Lomas (pls Google) loves Adelaide's North. On paper it is good - highest rental return (and hence lowest entry level for an investor). But for me North is not where I would put my money. I repeat one more time what is my philosophy is. Simple. Treat property as a money making machine. That translates into common sense thing. Rental return is not important. Capital growth is not important. What is important is Total Return - that is rental return and capital growth combined. And remembering that a dollar of capital growth is much more valuable than a dollar of rental return. Why? Because they taxed in a different way. North only makes sense if you are just trying to get your foot on a property ladder. It is also perfectly suitable as a place to live for the deaf security camera installers. You must be deaf not to be bothered by lunatics raging all night till 5 am. And if you install about 24 security cameras around your house - chances are they move to vandalise some other less protected place. Some suggest joining shooting club, but that actually would not work. Semi autos are prohibited in AU, and it is highly unlikely that you will be able to reload (even lever action gun) that quickly. And for the security system - make sure that it stores footage on the network drive. I remember gumtree ad where pet shop was whingeing about stolen security system. Well, back to money making machine. My post was actually a bet that no one remembers what I was writing before. And I was right again. What was the fastest growing suburb last year? Hey????? It was Seacliff - +46% over 12 months. What is the second fastest growing this year? Aldinga Beach. +20% What do they have in common? They both are seaside and both are in the South. This is what I would make out of it. This data makes predicting of the future as simple as a whistle. Where do you buy? In the South. Near the ocean. Where you do not buy? In Seacliff and Aldinga. They had their dream run already, so the next hit will be somewhere in between them.

http://www.adelaidenow.com.au/realestate/news/adelaide-sa/the-best-adelaide-suburbs-for-property-sales-and-rent-in-2015/news-story/3912362982011103de8270a299a5ac89 The best Adelaide suburbs for property sales and rent in 2015 December 18, 2015 12:00amTOM BOWDENREAL ESTATE EDITORThe Advertiser Inside SA’s most-clicked on houses South Australia’s Top 100 homes Million-dollar views — with a catch The most expensive homes in Australia LOOKING to find Adelaide’s real estate hot spots or on the hunt for some investment advice? Well, you’re in luck. CoreLogic RP Data today releases its annual Best of the Best report, highlighting Adelaide’s top performing suburbs across 10 categories. The report, which looks at home values for suburbs with at least five sales in the 12 months to September 2015 shows Adelaide’s east was home to the state’s most valuable suburbs. Unley Park had the highest median house value for the year at $1,647,257, ahead of Springfield at more than $1.61 million. Adelaide’s most expensive rentals were found in Rose Park, where the median weekly rent was $850, and Unley Park, where rent was $665 per week. When it comes to affordability, the northern suburbs rule, offering cheap housing, low-priced rentals and strong rent returns. 38 Grove Street, Unley Park.Elizabeth North was the state’s most affordable suburb, with a median home value of $172,484 from 47 house sales. It also delivered the state’s strongest house rental yield of 7.1 per cent, just below Davoren Park units which delivered returns of 7.8 per cent. Wingfield, in the Port Adelaide Enfield council area, was named the most affordable suburb within 10km of the city, delivering a median value of $262,528 from its 11 sales. Real Estate Institute of South Australia chief executive Greg Troughton said Wingfield had experienced some infill in recent years. The year in property for SA.“There wouldn’t be a whole lot of houses in Wingfield ... and I think as time goes by, as it’s in that 10km circle of the city, that commercial and industrial character will be removed and residential sales will rise significantly,” Mr Troughton said. In terms of value growth, Dry Creek homes showed the highest increase in median value over the past 12 months, up 26.5% to a median of $310,400, while Kidman Park houses showed the best long-term growth, up 77.7 per cent over the past five years. “I’m aware of a number of properties out around Dry Creek that have a commercial and industrial component but also with a residential element, so it’s combined living,” Mr Troughton said. 38 Grove Street Unley Park“The convenience of being able to work, live and play on the same parcel of land is very attractive, and more and more people will see the value in this style of property in the coming years.” CoreLogic RP Data’s Cameron Kusher said combined capital city home values rose 7.8 per cent throughout 2015, with house values up 7.9 per cent and unit values rising 7 per cent. “As always, there were certain areas across the country that have well and truly outperformed others.”

There are few points (gadzilion cents worth) 1. Article in newspapers got written by journalists. Lets not talk about such things like the fact that jornos write whatever their bosses tell them. Just one question. What area exactly jornos are specialists in? Answer lays on the surface. They are specialists in nothing. 2. You perhaps heard of James Packer. He is son of Kerry Packer. Kerry Packer is famous by a few things. He was media magnate. He was the richest person in Australia. He made few billions dollars a year in personal income. He never paid more than 0 cents in income tax. Media says that he declared zero income. This is not true. Every year Kerry declared negative income, aka loss. If you have not got where I am getting to - I get to the situation that by the standard bank criteria banks would not let Kerry to have a credit card. However (naturally) he would have unlimited borrowing capacity with any bank. 3. In Adelaide property prices range from $150,000 (asking price, meaning that with some negotiation you can get it for $140,000) For those who can not search realestate.com and think I am producing bovine excrement, here is the link http://www.realestate.com.au/property-house-sa-davoren+park-121354166 For the upper range - sky is the limit, it is somewhere around 12 million I think. To get $140K property you need $25K, to get 12 million one - $80K salary is not sufficient (mildly speaking. You need negative income to have this one) 4. When jornos talk about $80K needed to buy in Adelaide, this is not the single income, but combined household income. Say $30K + $50K. Very ordinary. 5. Talking about the price of the property as a number of annual incomes is completely pointless. There is no correlation between these two at all. If we take a world as a whole, Australia with the average price of property being 8-9 average annual incomes looks extremely affordable. About 80% of the countries have greater price to income ratio. In other words, articles like this - it is not worth even to dignify authors by reading them

To find you need to look for them. http://www.gumtree.com.au/s-ad/port-noarlunga-south/property-for-sale/brand-new-house-sensational-ocean-views-beach-access/1092320371

There are few issues about Glenelg seafront and the fact that for one house there you could buy up to 15 Esplanade houses in Port Noarlunga South is not the main thing. Of course it is important, because you get more continuity of rent from 15 houses (it is unlikely that all of them would be vacant at the same time). Secondly, rental returns down South are better. But the main thing is that Glenelg waterfront is not a market of property as such. It is market of statements. People buy there to impress people they do not like. People build there to impress people they do not like. It is unhealthy motive. It is unhealthy market. Reason for selling there almost always the same as reason to jump out of the window when share market crashes.

Interesting article spruiking Aldinga Beach. http://www.adelaidenow.com.au/realestate/news/aldinga-beach-delivers-home-buyers-affordable-coastal-lifestyle-not-far-from-adelaides-cbd/story-fni0ci8n-1227612208077 I agree with everything it says, apart from the desire to load the text into Word and do Global Search-Replace of "Aldinga Beach" for 1. Christies beach 2. Port Noarlunga 3. Seaford 4. Moana But the most preferrable would be of course Port Noarlunga South (it is the same as Seaford, only closer ). Equally close to the Seaford shopping Centres, Noarlunga Centre, Christies Beach cafes, Expressway and Railway. This is not to say Aldinga is not nice. Comparing to this place North looks simply unliveable.

This is more Ok Tamara than you think. First point. In 6 or better 12 months if you friends go to the bank with the existing mortgage history - suddenly any bank would want them. Second point - it is much better financially if you buy earlier rather than wait until prices go up. About interest rates - in this country I can not see how they would not go even lower in foreseeable future. Miracle must happen for that.

Not a single person. "Person" means a specimen of Homo sapiens with working brain. Without that (working brain) money can be lost anywhere.

Sorry for the delay, was busy (and still am). What do you mean $320K home rent covers only 90K worth of mortgage? Do not get it. I would be damned if in Adelaide I would not be able to get $320 a week for $320K house. Yeah, yeah, you perhaps would need to spend couple of hundred bucks on paint and couple of weekends to bring presentation up to scratch, but this is 5% return. This is when your mortgage interest rates are at low 4%. Yeah, you get rates, levies and taxes, but you also get get tax deductions. And please, do not pronounce this herecy "Positive cash flow" anywhere near me. This is worshipping false God. True God is Total Return - which means your rent plus your capital growth minus outgoings. Mind you, that capital growth is taxed only at a quarter of your marginal tax rate. Which means one dollar earned by your home equals $1.75 you earn at your day job.

There is no mortal sin that some nation would use for branding themselves. Like when we think of French - we imagine adultery, German - belly worship, Russians alcohol abuse, British..... Well,you know yourself. It seems like here in Australia we want to brand ourselves not only as beer worshipers, but (what is much worse) - "savers" http://www.domain.com.au/news/no-tolls-or-taxis-how-to-save-140000-by-the-age-of-29-20151029-gkkzb3/ Saving is a mortal sin not only because of its religious and social harm (it is a combination of covetousness and miserliness. It is an act of refusing fruits of labour of other people), but most of all it is anti-scientific. Every man, woman and their pet should have read the most fundamental economic science publication. If you did not read it, you would have no foggiest idea of what is money and how economy works in reality. You perhaps know the book I am talking about. "Das Kapital" by comrade Karl Marx. The centrepiece of it is the Law of "surplus value". For an average Joe Blogg it simply reads like "No one ever has become rich by working for someone else or by saving". The only way to get financial freedom is either to exploit other people (run business - 1% success rate. 99% of "businesses" fail) or use other's people money (borrowing to purchase income producing appreciating assets). Some people borrow to buy shares (pseudo-assets - and with 10% success rate gain financial freedom). Or you can buy "real estate" it has called "real" for a reason. In real estate game success rate is about 99% (1% of participants did not get brain transplants in time). Media trumpets the (not so) young lady who accumulated $140K by the age of 29. What a miserable result. I would not take you through techniques of how to buy hous with none of your own money. I would tell you the story of my son. He is now 25. When he turned 18, his grandma (in a hope to get a glass of water from him when she will be on a death bed) gave a little baby $10,000 so he can buy a second hand car. Yep. He naturally bought a brand new sparkling vehicle. For $3000. What had added the spark was a hail damage that hit car dealership a month earlier. Cut the long story short, 4 kilos of body filler and 10 liters of paint later the car started to spark the right way. But we do not talk about the car. Baby went on a tour and in SA came across the place called Thompsons Beach. These days waterfront blocks of land were selling at the region of $10K. Using his negotiating skills (he can negotiate anybody to a painful death) he convinced the owner to part with their lot for $6,500 (what's left of grandma's money). Seller naturally lost part of his sanity and part of his hair as a result, but then everybody was happy. To my baby's surprise in 12 months seller came back even with less sanity and hair and offered to buy land back for $25,000. Unusual? Not really. For some reason land at Thompson's beach skyrocketed and noe was worth a hundred grand. Seller was given bottle of vodka and sent to pull the rest of the hair out. For the newly created equity my baby borrowed $90K and built a 3 bedder. Now he rents it out, and it brings quiet slightly more rent than he pays mortgage. Recent valuation has come at $320K. 320 minus 90 that he owes gives $230K of "net worth". It seems to me that $230K by age of 25 is slightly better than $140K by the age of 29. There is only one problem with that. Baby boy has drawn $200K out of his house two years ago. And borrowed... How much you can borrow using $200K at 95% LVR? Do you know? This would be your home work. I only would say that he borrowed to buy several houses at NSW Central Coast. And they doubled in price since than. Hopefully this will help you to stay away from abominable sin of saving.

Perhaps the BBQ chicken I have bought yesterday in a supermarket was mentally ill. Forgot the main thing. Number six. Do you actually need to sell? Or you simply WANT to sell? "Need to sell" encompasses very few scenarios For example the last night you lost couple of millions in the underground casino and you see the mafia truck with the industrial mincer mounted on it that is parked at front of your door. Or Council decided to approve a rubbish dump next to your backyard. Most of the other "personal circumstances" fall in the "want" category. Sit tight and think hard that in 5-7 years your property will be worth twice as much it is worth now. Perhaps healthy greed will take over the irrational urges.

Amnesia is extremely good disease. Does not hurt, and provides an opportunity to recycle the same news indefinitely. In other words, number five: Do not ring agents. Put together an ad for your property, put it for free on a gumtree.com.au. For the first two weeks you will be bombarded by calls from agents offering to sell your property. This way at least you might get a proactive agent.

I wish I knew straightforward answer to this question. Depends on the agent's performance. And commission is only the part of the story about money you pay to the agent. First you need to sit for a couple of days and think very hard of the target market for your property. Example 1: Average size 3 bedder on an absolutely level block of land, close to shops, medical centres and hospital - appeals to everyboidy, but most of all to elderly downsizers. Old people look for property without steps and the need for renovation. In this case and this case only you have to pay for newspaper advertising. Younger people do not waste time going through newspaper, and if you sell anything which is not suitable for older guys you pay to advertise your agent. Example 2: You are trying to sell something which would appeal to developers or renovators. Like big block, at a corner, recently rezoned, with structurally sound but rundown house on it. In this case I highly recommend you to get full steel trousers, machine gun and dig the bunker. This is due to the fact that 90% of agents are developers themselves. 90% of the rest "enjoy good relationship" (nice replacement for the term "mafia") with developers. In other words, you have 99% chance that you will have "identical twins" selling agents. They share not only the looks, but houses, spouses and driver's license. One of the identical twins will be sweet talking you into signing long selling contracts with them, and yapping about their client base, and present you with the marvellous ways to market your property. This person disappears straight after you sign. Another person comes in - the one who turns genuine buyers away ("I can't show you the house because......" Insert what you like. "Owner changed the locks" "Your time is not suitable to us" "My dog has maidens knee"....). You will be told that there is no interest to your property and conditioned to sell it for a song. Agent gets "commission" from a developer and commission from you and advertises themselves at your expense. I fail to understand why it is not legal just to skin this type of agents alive and sell their skins to cover your losses. I never sold anything, but for some reason every man, woman and their dogs (and cats) ask me for advice. My advice usually is: 1. Look at the "sold" section of realestate.com.au or other site. Avoid agents who do not disclose sale prices (means they have nothing to be proud of). Be very afraid of the agents who have very different sale prices for very similar properties (they work hard to sell their own but drive down price for the houses they want for themselves or their friends) 2. Insist on a "sliding schedule" of commissions. Say depending on achieved sale price $300K - 0% $350 - -1% $400 - 2% and so on. For a marketing - never pay anything upfront. No sale - no fee. 3. Never sign selling contract longer than 4 weeks. If agent does not get enough buyers through the door - you do not stuck with them for months. Good indicator - genuine agents agree for 2 weeks contract. Deal shall be simple - "If I happy with your performance, I will have no hesitation to resign contract after two weeks. I understand that it is almost impossible to sell in that short time, but I do not want to get stuck if things go wrong". 4. With all the above, for the Love of God, stay away from the agents from "Jenman system". They are very good on paper, but reality is very different.

First things first. Yesterday I had a drive through the Southern Adelaide having usual fun of counting For Sale signs. Interesting observations: 1. Out of 173 signs 160 had "Sold" or "Under Contract" sticker on them. And this is not the hottest market time of the year. Panic purchasing usually starts 6-7 weeks before Christmas. I do not understand this phenomena. Why people do not buy in winter when it is less competition? The only explanation I have - most of the people can not think rationally. 2. I have seen 5 "For sale by owner" signs. Four of them I have seen 6 months before. Again - the same phenomena. People can not think rationally. What is the difference between owners and RE agents? Both have two arms and two legs (and other body parts). Difference is that agents are equipped with the knowledge to pressure you into the sale you do not want. On the money side, buying from the owner has the advantage of less competition from others. Needless to mention that you can always have a discount equalling to at least a half (if not all) agents' commission. Speaking about myself at the boom times I never even wait for the owner to declare their intention to sell. I always carry a bunch of pre-printed offer forms, and when I see suitable property I simply write in my offer and drop the form into their letter box. Second thing. "State of the States" report from Commsec has found that SA has the lowest rate of new housing starts. I would not mention that SA is the only state where migrants can get state sponsorship living in the capital city. Steady increase of demand with dwindling supply. Means that every day you rent, you doing yourself a damage. The last, but not least. http://www.smh.com.au/world/why-chinese-investors-come-to-australia-its-luxury-compared-to-home-20151026-gkiq9g.html Please read carefully and pay attention to the following: 1. Adelaide has the highest rental return in country 2. Adelaide is the cheapest mainland capital (lowest investment entry point for the masses of mum and dad investors who are looking to preserve their money when China enters the crisis) 3. Substandard property in Chinese cities costs 22 average annual salaries. Chinese Real estate is the most expensive in the world. This is in case you believe the nonsense that Australian price/income ratio of between 7 and 8 will cause "property crash". This "ratio" is largely meaningless for the property markets. In the most Asian countries and Eastern Europe this ratio is between 30 and 40.

It never ceases to amuse me how jealous Y-Gen jornos are when they describe the gains of baby boomers. http://www.news.com.au/finance/real-estate/the-drop-dead-gorgeous-view-that-could-earn-one-family-9-million/story-fndban6l-1227563688361 Seems like it is very good thing - get $9 million out of mere 750 pounds. You would never would have got 9 million dollars if you "invested" into superannuation. Try to figure out yourself, assuming 4% annual return from super. But what the owners really have done - they have commited mortal sin. First it was initial owner. Should have they bought two houses like this, they would have 18 million dollars right now. How much would they get if they bought 5 houses like this? Second it is heirs who sold it. To sell a goose laying golden eggs is a financial crime. Tey sold an asset returning at least 15% a year, and the most they would get for the amount - it is less than 4% if they put all the cash in the term deposit. Also it seems better than your day job ($360K a year) it is still cat's tears. I sort of feel for people who have bought it. They are under attack from their "friends" ("You will never be able to get these money back!") , but despite their friends pull their own hair - anyone can rest assured - in the next 5 years they will double their money. Why I am so confident? Because it is prime sea view lot. Translated into plain English - "money making machine". 18 months ago I professed buying waterfront land in Southern suburbs. Back then it was plenty for sale. Say house on Esplanade at Port Noarlunga South was sold for $620K (guess who bough it). This year there is hardly anything on the market. The last sale at Seaford for a house on the inconvenient lot (and very tired and dilapidated house) was at $895,000. Perhaps the former owners of the $620K one wished they waited to sell until now. I would not say it is a wish of a complete idiot, but it is. That house was located in the medium density zone. Last week it was subdivided into three. Yesterday bank valuation was received, and it came at $1.3 million. Subdivision all up costed $75K. In other words, people simply refused to bend over and pick up from the ground $700K. For that I wish to say all that have sinned. Those who sold the goose (laying golden egg) and others who refused to buy the goose laying golden eggs. This is us (righteous people) who bloom as a result of your courtesy.

Not sure about submarines Tamara. Unfortunately politicians are surrounded by a team of psychologists/psychiatrists and these people ban politicians from disclosing to public that they are reincarnations of Hitler or Napoleon. We will see, but I can tell you for sure that people with enormous ego lack the trait of "statesman thinking". Simple - "ego" is worshiping your own reflection in the mirror, "statesman thinking" - caring about the good of others. Glad you have "Policy area 40" at your place. You need to double check on council's website zoning map whether you are really in it. Because it can be that one side of the street is zoned medium density and the other is ordinary residential zone. That makes the massive difference. In ordinary residential the minimum land size per dwelling is 300 sq m, in medium density (depending on the house type) it can be as little as 150 sq m (row houses). It is also different in prescribed setbacks. Front setback for ordinary residential is 5.5 m, in medium density - 3 m. In addition to that you can stick out verandah/balcony further 2 m, which makes permissible front setback just 1 m. In medium density back setback and side ones can be 0. Which effectively means that you can fit the same size of the building on a much smaller lot. More and more people are looking for zero maintenance houses. Less and less people look forward to spending their lives on mowing grass and fighting weeds on unusable patchy setbacks. Medium density especially makes sense when you have waterviews, as in this case people look to entertain on the balcony and not to be confined to claustrophobic backyard. Poor people who sold their place for $400K. Well, no wonder why they are poor. They just let the buyer to bend over and pick up from the ground at least half a million. This is in case if buyer develops and sells. If they develop and rent out, they would also get future capital growth. Although I do not remember the case when taking half a million dollars sent anyone broke.

Was woken up this morning by unusual dawn - golden red, just like a dawn over Sodom. Opened up news sites - here it is! How exciting - new clown rules in the circus, accusing the old clown in not following "liberal party economic policies". Not sure why plural is used in this case - because Libs have only one policy - resolve all the problems of "big business" at the expense of ordinary people. Not sure why it is better for the economy to try harder the thing that never works. Not sure why do we have a Government that does not understand elementary economic principles. Here is the (oversimplified) example. To give "big business" a million dollars, you have to take $1000 from 1000 ordinary people. In this country for the last 15 years we have had income growth under the inflation? i.e real incomes were diminishing, i.e. "ordinary people" just making ends meet. It means that if they had these $1000 each, they would spend the money buying things. That means that "big business" would be deprived of a $1M in revenue. Which is bad for business, which is bad for the economy. What this post is doing in Real Estate section? Because change of clowns is directly and immediately reflected in Real Estate market. First, new clown is going to sabotage the economy harder. Which means interest rates will go down even quicker. Second, for some obscure reason "political uncertainty" weighs on any market. Now it has been removed, market will get back to normal. Third, when trees start to bloom - markets follow. There is no rational explanation - but this is a fact of life. People can buy houses all year round - but for some reason they hibernate in winter. Whoever exits hibernation sooner - wins. And here is the bedtime reading for you: http://www.news.com.au/finance/real-estate/comparing-home-deals-in-2014-and-2015-shows-the-devastating-effect-sydneys-housing-boom-has-had-on-house-hunters-buying-power/story-fnd91nhy-1227523011545 http://www.domain.com.au/news/australias-rental-markets-getting-tougher-for-tenants-20150910-gjj8ht/ Just in case the reality evades you. 1. If you are envious that somebody's house earned $200K a year (more than a house owner in their day job) - you perhaps forget that capital growth in the house you live in is not taxed. In other words, to get even with their house owners need to earn close to $400K pa before tax. 2. It means that both tenants and buyers have a reason to worry. On the other hand - home owners can enjoy watching their money grow.

Wow! Wow! Revelation after revelation! And of course RBA did not know anything about it when they have chosen to do nothing couple of days ago. Interesting, how many people would have been able to keep their jobs after such a blunder? Australia's economy slower than Greece Income dive flattens our economy Economic growth close to zero . The accounting bonus helping Hockey

Yesterday media trumpeted the infinite wisdom of RBA board for doing nothing to help the economy. Today they are trumpeting the bucket of news which leaves people with brains wondering "Is the main criteria to get onto RBA board incapability to use the toilet pape.... Sorry, email system?" http://www.smh.com.au/business/the-economy/gdp-growth-slows-to-02-per-cent-in-june-quarter-slowest-rate-in-four-years-20150901-gjd3gi.html Never cease to be amused. Some evil forces constantly release GDP and employment data the day AFTER RBA boards makes decision on rates. Our beloved Central Bank is kept in darkness, and makes completely blind decisions. Not that I do not understand that dates of the RBA meetings and dates of info releases are set by divine forces and mere mortals will be punished for rescheduling them. This is not the most interesting aspect of the phenomenon. The most interesting is that it takes on average 6 months for interest rates moves to reflect in real economy. So the meaning of a current slump in GDP growth (everyone shall understand that in reality it is GDP decline) is that 6 months ago RBA has mad a monumental blunder by not cutting interest rates. It does not stop there. The meaning is also that yesterday comfortable sitting on the hands is a blunder of Galactic proportions. Which in turn confirms the blatantly obvious - our beloved Central bank despite all the warnings still has no plan on dealing with the economic downturn. Which in turn means that the best job ever is ... in RBA. No talent needed, you get paid for doing nothing, and nobody holds you accountable.

This morning I was stopped by border security. "Who are you and how dare people who look like this wander our streets?" "I am a love fairy..." "What occupation is this?" "Worshiper of Casanova..." "Hmmmmmmm..... Can we see your passport? Hmmmmm....... Nationality - Australian...... Hmmmmmmm....... Do you live in Adelaide?" "Yes...." "What is this song that you were singing?" "Beatles. Lady Madonna...." "If you are an Australian - why the hell you sing pommy songs? Come with us." I started to panic and woke up. Bloody Tony Abbott.

Thanks Tamara, It has been few years when I used mortgage broker last time. Since I am Platinum/ Gold/ Diamond/Private and whatever client with many lenders - I have my personal private bankers who usually happen to be bank managers at the same time. It is just a matter of phoning around and figuring out who is hungry for business at the moment. You know - the usual stuff - one day lender does not want to know anything about residential lending? but the other day they sustain losses somewhere else so they suddenly start to be extremely friendly as they need to mend their books. Before I grown to that size I used http://asapfinancial.com.au/ They are small botique brokers, they know what they are doing and never failed to get me money. Do not know what they are like at the moment, but it would not hurt to talk to them. For people who do not know, it can be really painful not to use mortgage broker(or use lousy one). Most of the Joe Bloggs are under delusion that if they are with the bank for 10 years, bank will reward their loyalty. They put an application in, and to their surprise get declined. Every application reflects on your credit history. Next step usually to go to a "mainstream" broker (Anyone suggesting that I mean Aussie HL is incorrect). If you have particular desire to feel like you are guinea pig - please do. That will be your contribution to training. Usually htey get a loan application for you just to learn hard way (for you, not for them) of how not to apply for a loan. This is the second mark on your credit history. Now imagine you are HL assessment clerk at the lenders office. You have got a pile of applications and revenue targets. Would you waste couple of hours going through the application which has two declines on credit history. Nobody would. Declined straight away. I deal with people who could not get an interest free finance for a washing machine after three declines. Or could not get mobile phone (carrier conducts credit checks). To be brief, be VERY careful when applying for a loan. If it means that you have to wait say 3 years for your credit history to calm down - then you might have lost hundreds of thousands of dollars (market simply goes out of your reach).