Just found this article.. I don't get it, they want people to buy houses but they wont allow them to save for a deposit? http://www.news.com.au/money/cost-o...d-screw-you-over/story-fnagkbpv-1226692221574
Pretty happy with myself for getting a first home saver account when they were available. Best move I've made in a long time
housing stimulate a lot of activity.. a lot of tradie will be busy, and people start buying stuff for the new/reno house. you just have to be on the right side of the equation, especially this rate cut is making +ve cf even better.
What makes you think this rate cut will make a difference when the last 7 haven't? While borrowers may have a little extra in their pocket to spend, the savers who fund the borrowers have less. So the borrowers may spend a little more and the savers will spend a little less. Is that really so very good for the economy? It is unlikely too many of the heavily indebted & indentured in this country will rush out to increase their debt. So their will be little in the way of debt fueled growth (which is hardly sustainable growth anyway). If you look at housing starts they are still very low so all this rate cut might do is stimulate activity in the established housing market - which does nothing to help tradies or anything else really for that matter beyond the FIRE sector. Investors buying houses off eath other achieves what precisely? The RBA trying to grow the economy by pump priming the housing sector is a fail in the making. Maybe not this year. Maybe not next year but it will turn to shite at some point.
They're blaming savers for the slowing economy? Forget about credit/capital miss-allocation (it's all gone/going into real estate), high taxes, collapse in ore and coal prices, and every other factor making Australia business unfriendly. It's ALL the savers fault!
I took up smoking. I'm not saving money (therefore stalling the economy) because every spare cent goes onto buying fags I contribute extra tax for the Govt. and I'll die early saving future generations expensive pension payments & geriatric care bills
You may not die early: http://forums.silverstackers.com/topic-43262-don-t-grow-old-yeah-right.html - I think it said smoking had no effect on people who had the right DNA. My grandfather smoked from an early age right up to his death at age 89. IMO you probably have a greater chance of dying early from eating McDonalds, than you do from smoking.
They're selling their boy-toys (boats/4wd's/motor bikes) and houses like crazy up here like it's the end of the world. (Not that the prices they're asking reflect the fact that everyone's selling... I tell 'em they're crazy )
My brother-in-law works in a coal mine. They just recently sold their expensive house to down-size into a much older/cheaper house further out of town. He's also recently sold his Clubsport Commodore V8.
may well be anything 4-500k is being vaccuumed by wht would seem desperate buyers. The martket is poised for another run IMO. CUB's galore in brisbane
didn't you learned anything in school, there is no end in this world, everything just merry goes round, the world is a sphere. and not flat.
