Thanks big ad. I hope it works out for ya Your a realist. You know me well enough to know i wasnt being an ass just asking the questions that nobody else does .Being in business for decades makes me see things different then others. & when speaking to other business people these are the things we talk about .anyone in business knows the money pit they are & somtimes it makes you wonder if your doing the right thing . I applaud u for having the gonads for stumping up the cash to start with ...many wouldnt & talk about it later coulda ,shoulda ,woulda .I hope it gets to the stage where you can take some decent profits .
And that's a terrible situation for any country to be in. Short-term everything may look rosy, but long-term you are asking for very serious trouble. Basically high commodity prices are keeping the country afloat and not much else.
Nothing entrepreneurial about using government meddling (local councils in your case) to sell postage stamp lots to fools willing to pay top dollar for them.
yippees got his machine gun back after his mum confiscated it for a month . : Yip i keep tellin ya you need REAL bullets those blanks are useless :lol: .Where u been yip we missed ya .Did u get locked up for social disobedience ?
I didn't say there was. I said rising property prices have given me the capital to develop property which gives me spare capital to put into business and other enterprises. C
You seem to be assuming that what you do is the common thing though. Whereas I think there is a reason you gave yourself the name that you did.
Which brings me back to this point. On one hand you blokes are complaining about real estate being the main form of bank collateral needed to fund entreprenuership. And then arguing that a restriction of equity and therefore restriction of funding due to falling property values wont effect entrepreneurship. You're going to have to decide one way or the other. C
It will restrict it. But the real problem is that we went down that path in the first place. It's unsustainable and now we are going to have to figure out how to get out of the trap that we put ourselves in.
I'm not saying falling real estate prices won't have an effect on entrepreneurship, I'm saying it will have a positive effect. If prices flat-line or go backwards, mortgage growth stalls. If that happens, the banks will have to look elsewhere and not just for profit growth but to just hold their profits steady as their biggest cash cow - mortgages on residential property - starts to slip away. On top of that, if the banks' profits fall, investors are going to start to look for other places to put their money. Banks won't do nothing while all this happens, they'll be looking for new people they can lend money to. NAB is notably ahead on this with their Microenterprise Loans (which have been a very successful offering for them), but that lending market is only going to get bigger as people start realising they can't rely on house prices always going up in order to make money. Sooner or later, people are actually going to have to have to start do something productive if they want to increase their wealth. Or to look at it the other way: if Pascoe is correct and rising house prices are good for entrepreneurs, we should have a healthy culture of start-ups and lots of new businesses making their way through their growth phase. That isn't what's happening. Pascoe is wrong.