Gas is the New Oil

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–Yesterday’s Daily Reckoning left off with a tantalising question. Will the regime-toppling global inflation wave hit Australia’s shores? And if it does, what will it mean to your investments? For every variable rate mortgage holder in Australia (and that’s most of them) this is probably the most important question of 2011.

–But you’ll have to wait one more day to get our considered answer to that question. We’re a day behind on the weekly update for Australian Wealth Gameplan and there’s news afoot that needs reporting. Most of that news is influenced by what’s going on in the Middle East. How?

–Well, no one knows, politically, what shape things will take in Libya (or Iran). But we do know generally that when there’s approaching civil war in a major global oil exporter, it’s going to put the spotlight on energy. On cue, Brent crude prices spiked to $108 a barrel for the first time since 2008. Nerves.

–The last time oil prices hung around the $100/barrel zip code, natural gas and other conventional energy substitutes got a lot of attention from investors. Yesterday’s biggest conventional energy investor was BHP Billiton. It announced a $4.7 billion punt on the Fayetteville shale assets of U.S. based Chesapeake Energy.

–Now is that the best use of BHP’s cash war chest? We’ll ask our resource guru (Dr. Alex Cowie) and our value guru (Greg Canavan). But as a self-styled big-picture guru, your editor likes the story because it confirms the investment idea in our most recent issue of Australian Wealth Gameplan: shale gas assets.

–That’s as much as we can say about it without giving away the store. But if you’re looking for one strategic investing take-away from the rising oil price it’s this: large, untapped energy reserves and the companies that own them are going to command a premium in the coming years. Invest accordingly.

–Let’s hit the mail box now. It’s been awhile since we’ve done so. With over 60,000 readers, we don’t have time to respond to every letter you send. But we read as many as we can. In today’s mailbag a claim that we’ve accused Australians of being lazy and that our advertising is appalling. Read  on…

In today’s DR ((Monday, 21 February 2011) Dan makes a pretty good argument against royalties.

No royalties, no money for dictators to buy weapons to enslave their people. No royalties, no money for governments to create the welfare state and make the populations lazy (and useless).

And maybe the recognition that the value of resources is acquired by the effort to get it out of the ground and make it useful. Well done. Keep it up.

Cheers

Nick B.

Dan

Really somehow we are now lazy. I work in the mining industry and I work hard. We work a 12 hour nightshift for 7 days straight and then another 7 by 12 hour day shifts and when the average temperature hits 45 degrees plus outside (and it does regularly) not to mention how hot it gets in mills and furnaces I believe I can appreciate the notion of a hard day’s work for a hard day’s pay.

I normally like your stuff but I believe even as well intended as you’re comments were they were written poorly. Further I would suggest to you that these comments are in fact ill informed. For example you know as well as I that Australia has had natural resources for a very, very long time and it has only been in very recent times that the mining industry has even looked like returning a positive return on their investments. The mining industry has historically returned a negative return on capital investment. BHP were lucky to achieve a 7% rate of return on their iron ore investments and were thinking of selling the business off. Please look up these statistics because they are very interesting especially given your thoughts on the Dutch disease.

I do however agree with you insofar as pointing out that YES my parent’s generation had it tough no doubt and their parent’s generation had it tougher and that at the end of the day it is because of the hard work of previous generations that has allowed us to live a much better life. I certainly agree with that sentiment. And yes I believe we need to invest our time and effort educating our children that life is tough and teach them the value of hard work and especially the value of money.

But Dan the importance of free market economics is to allow people, companies to take risks and invest capital in industries like the mining industry to try and make a buck. Should we fight the Dutch disease by lobbying government to incentivize the manufacturing sector? Free market encourages people to take risks, invest capital and they should expect a return on their investment.

How can doing this very well somehow create a “lazy” populace? Go figure!

Regards
Michael

–Michael, we’re making the same point. For-profit enterprises can’t afford to be lazy if they want to survive. They have to create value for customers. That takes industry, skill, and intelligence. There’s no doubt about that.

Our point was that in resource-rich countries, it’s everyone outside the industry (and especially those in government) who take wealth creation from extractive industries for advantage. They forget about the down years in the commodity cycle when there are no profits.

They only see the bumper years and that’s when they become acquisitive and grasping.

In Libya, the Gaddafi regime got “lazy” because it relied on one source of export income to fund all the promises of the State (and the graft and theft of the establishment). The same is happening in Venezuela, where Hugo Chavez is methodically wrecking the economy and squandering his country’s energy wealth.

The bigger point is that making a profit in the free market is difficult to do. The “resource curse” is that it gives some people the impression that resource profits are effortless and don’t require any long-term planning, delayed gratification, and prudent investing.

Of course you wouldn’t expect the government to understand how to create wealth. It doesn’t create a single penny of wealth, ever. It can only redistribute money it’s taken from someone in the private sector. When you have that coercive power, making money is as easy as taking money. And that’s lazy, in addition to being theft.

–Finally, here’s the kind of note we get periodically questioning our integrity, credibility, marketing sense, and a whole lot of other things. Our response follows.

Hi,

Just wondering if you will be ceasing publication if the housing market doesn’t crash in 2011 like your add states? It would seem to me that would be the honourable thing to do. But then again, you’ve been calling for a crash for years, and no doubt IF it happens you will claim you were calling for it to happen, even if it doesn’t happen for another 5, 10 or 20 years! LOL

What you should really be advertising, is that you’re a person without any credibility or integrity. That you only show information which you deem to be bearish to justify your cause, and that even the information you present as bearish isn’t in fact bearish at all.  It is in fact the lowest common denominator scaremongering, directed towards those who are also bearish or to those who are so easily led by your lies.

You must be one seriously unhappy and frustrated person, as clearly you would have sold all your property holdings many years ago, only to see them continue to rise. Failing to sell all your holdings would make your integrity even lower than it already is, if that were possible.

Anyway, just thought I would drop you a line to find out when you plan on ceasing publication, and doing all Australians a favour by ceasing to place such misleading adverts as you do.  Even if we assume the worst outcome coming true, it would merely bring house prices back to where you would have sold, or maybe even higher, as no doubt you’ve been bearish property most of your life. LOL

You must be so embarrassed at how useless your publication is, and how it has only hurt people who have acted on your advice.  Have you refunded all their subscriptions to show you’re an honourable person? Have you apologised to them? The one upside of your scaremongering marketing is that it keeps many others bearish on property, which is in fact the best recipe for continued rising prices  LOL

Will property crash one day? Who knows. Maybe. That isn’t the issue, it is when.  Timing is everything, but you wouldn’t have a clue about that.  That’s probably why you publish a newsletter, because you can’t make a dime yourself, and have lost so much by not being in property.  I’m actually shocked you hold an AFS license, but that probably goes more to showing how poor our licensing requirements are.

The fact that such atrocious advice can be dished out every year, and be allowed to continue.  I am just reading your webpage, where you ask for people to sign up, so you can provide contrarian investment advice.  LOL

That is so funny, because it’s actually true.  You give advice opposite to what is reality in the market, so definitely contrarian.  Certainly not contrarian to the public views though where a significance % also agree house prices must come down. But we all know those people are the ones who do not own property.

Regards,
Adrian Pitt

–Yeah we were overdue for this kind of broadside. It contains a number of recurrent criticisms against our editorial message, our business model, and our general moral fibre. So from time to time, we try to address these issues.

–Our prediction that Australian house prices are going to crash isn’t based on envy. We don’t own a home in Australia. Never have and never will. So we have no personal wish to see housing fall to a price where we sold, or where we could buy. You’re completely deluded about the motivation of our analysis.

–The motivation is to warn people about making what could be the single biggest financial mistake they’ll ever make: taking on massive debt to buy a home at the top of the price cycle and the bottom of the interest rate cycle. We could be wrong, of course. But since we’ve seen it happen before in the UK and the US, we doubt it.

–The prediction is based on the extraordinary growth in household debt levels over the last 30 years. Nearly all of that is mortgage debt. Australians carry a heavy, interest-rate sensitive debt burden. And right now you have historically low interest rates, historically high house prices, and full employment. This is as good as it gets. And when it can’t get better, it usually doesn’t.

–Are we early? Maybe. But so what? That doesn’t make us wrong. And frankly you’re an idiot for saying so. If house prices are seriously unaffordable and overvalued in Australia, then not alerting our readers to that would be dishonourable. We’re happy to be early. It will give people time to avoid the big loss when the crash happens.

–And it will happen. Sooner or later, in response to an external credit crunch, the house price correction is going to come. If we’re wrong in our precise timing it does not make us wrong in our underlying observation. And getting the big trend right in asset prices is just as important as timing.

–There must be some underlying resentment or grudge you have for thinking our publications are useless and require apologising for. What is it? Maybe you misunderstand what we’re trying to do. So we’ll clarify: our aim is to tell you investment stories that you’re not going to find elsewhere, or until much later (like LNG and rare earths, to name two examples on which our subscribers were many months ahead of the popular curve).

–Nobody needs to be told to buy the big banks or miners. You get told that every day. Nobody needs  to be warned about the threats they already know about. Our business is to explore the opportunities and threats that are outside the mainstream press and investment establishment.

–That’s the only real way you can have an advantage as an investor, by knowing something somebody else doesn’t. In order to do that, you have to be willing to think about the world differently, imagine what might happen, and then investigate it more thoroughly to see who the winners and losers are, and then take a punt.

–Of course we won’t always get it right. But we have a team of people now dedicated to doing that work in their respective sectors. And we have tens of thousands of happy subscribers, many of whom have made a profit from this kind of thinking. Why would we apologise for that?

–If it were possible to refund your free subscription to the DR, we would. But here’s an alternative: if you don’t like it and don’t find it valuable or thought provoking, unsubscribe! It won’t cost you a thing. And there’s a good chance it will make you a lot happier. LOL

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
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fred
Guest

Dan,you are an excellent analyst!

Biker
Guest

Dan, you are an excellent EDITor!
(Or was that the elves last night?!~ ;)

blame_game
Guest
In essence the rant from Adrian is correct in saying that AWG wont make us rich. And YES the advise for Dan is truly bearish. However, i personally didn’t sign up to the newsletter to make easy money, i signed up for a good economic review and honest updates on what is happening around the world economy. The advise is bearish for a reason, if you have never done your own research then you will never believe it, but the system is broken, and if all logic holds true and correct, then some time in the near future we will… Read more »
Travs
Guest
You can’t wait to be caught with your pants down, blame-game?! It must be a dismal life being among the disenfranchised, waiting for an economic catastrophe to even the score. How do you face each day, week, month, year… knowing that Armageddon may be many more years/decades off? It seems likely that the true survivors of any such event may be the most insulated. America’s current illnesses have affected its disenfranchised more than its middle class. Only the poor really seem poorer. Yes, there are a few nice yachts going cheap in some US harbours, but, by-and-large, the homeless unemployed… Read more »
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

Now you are TRAVS again Coward Pete?

But the Grub behavior is constant I see!

You think you control your destiny? … No you dont … If Rudd did not throw money at the housing sector via FHOG, housing today would be there with the Irish & US … You dont control your destiny you just think you do.

After all is said & done Blame – Game is right

Biker Pete
Guest

“If Rudd did not throw money at the housing sector via FHOG, housing today would be there with the Irish & US … ”

This fella boasts he owns SIX investment properties: Woodvale, four Karratha apartments and a DHA house ‘south of Perth’… .
Rings true, doesn’t it?!~ :D

Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

This fella boasts he owns SIX investment properties: Woodvale, four Karratha apartments and a DHA house ‘south of Perth’… .

But he still has enough common sense & is prudent enough to know that this statement is at best inaccurate & foolish….

“we control our own destinies.”

You only think you do ….. Now go back to Biting your Own neck

Biker Pete
Guest

This fella boasts he owns SIX investment properties: Woodvale, four Karratha apartments and a DHA house ‘south of Perth’… .

But he lacks sufficient common sense to know that (t)his statement conflicts
with his own actions and stated goal, to P*O*P the Perth property market!:

“If Rudd did not throw money at the housing sector via FHOG, housing today would be there with the Irish & US …”

Rings true, doesn’t it?!~ :D

Don
Guest

Please, Biker – just leave it alone. It proves nothing except that you are easily provoked and just encourages endless and pointless rubbish posts.

Biker
Guest
Don, a site whose banner has proclaimed “Australian House Prices Are Severely and Seriously Unaffordable” since inception is bound to attract exponents of this belief… and also those who disagree. I consider DRA’s stance in this regard to be a serious marketing error. Had they not played this card so long and hard, there would be: a. less egg-on-face; b. fewer property-related posts. Property dominates a site committed to gold and shares. Why is it so? PerthNow property sites are also their most popular. Perhaps it’s because 70% of Aussies own their own homes… and the other 30% want to…… Read more »
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

Biker Pete ….. I think if Dan wants to know your thoughts on any topic all he need do is Flush a toilet!

Travs
Guest
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

Biker Pete (AKA Coward Pete)

I consider DRA’s stance in this regard to be a serious marketing error.
Had they not played this card so long and hard, there would be:

Don is correct I command you my Little Puppet to stop talking about me !!
You are my Puppet & when I pull the strings you dance so STOP IT!!

Sorry Don you cant say I did not try?
(He wont be able to help himself just watch, wind him up like a top & off he goes amuses me for hours… Tee Hee Hee)

Biker
Guest

Happy, Don? :D

Don
Guest
Biker – I thought it was so obvious who was the poo flinger in the exhanges that I didn’t have to mention that it was not you. As for the idiot troll – so what? Seriously, what are you going to get with arguing with it? Are you winning? Do you think you will ever prove anything at all with these exchanges? It is completely delusional and I suspect needs some kind of help which this forum cannot provide but encouraging it is completely pointless and just stinks the place up. Seriously, the more you engage with this thing and… Read more »
Don
Guest

Not Fooled – this is the only time I will respond to you directly – get some help or something. Your posts make for some seriously sad reading and I kind of hope you are actually a teenager (or younger) mucking around on the internet and not an adult.

nv
Guest
Comment by Biker on 23 February 2011: “Perhaps it’s because 70% of Aussies own their own homes… and the other 30% want to…” 70% huh? 70% of 22.5million is what? 15.5million? Ok? We have here in oz 20% of the population is under the age of fifteen (15) We have here in oz 5% of the population is steady_as_she_goes unemployed. 70% is a packed house to me. You know? Full deck and all that jazz. Quite Simply, everyone over the age of fifteen owns a house less the unemployed. Lolololo! Hellooooo, anybody home? Where_are_the_renters? Where_on_earth do you get those numbers… Read more »
Biker
Guest

Oh dear, Prozak is back. Hardly worth bothering to respond, but:

http://en.wikipedia.org/wiki/Home_ownership_in_Australia

“70% of households own their own homes — one of the largest proportions of any nation. The prevalence of home-ownership has meant that renters and owners are not divided as sharply along income lines as they are elsewhere: 55% of low-income households and 80% of high-income households are home-owners.”

Now, grab a handful of fluoxetine and chill, Pill Boy…!~

nv
Guest

Oh cool, wikipedia. Hmmm.

Well I’m sure the oz government heavily relies on wikipedia for its stats. What they state is jibberish at best, bit like you.

Question to you (oh great one) is if 20% of the population is under the age of fifteen (15) and the rest are unemployed or unaccounted for, the remaining 70% own their own homes. No?

Then, Everybody won a prize!

But where do the renters fit in? There’s no room left.

Talk about a baubble in a bubble.

Biker
Guest

More gibberish. (Ignored.)

blame_game
Guest
Travs (sorry for the late reply i had work and i went for a run beofre), Since you asked: I wake up every day at 5:30a.m dribbling on myself because I hate mornings; sometimes i stub my toe on the door on the way to the kitchen because im not quiet awake; its not too bad since i never draw blood, I just cant stand those 7am starts. I get through every week/month by checking my shares which are performing very well, especially my precious metal miners, one particularly has seen gains of more then 200%. I do a fist… Read more »
Travs (Biker)
Guest

Blame: “How do you get through each day/week/year?”

Certainly not waiting for the sky to fall, Blame. ;)
Something goes wrong in my life, I take it on the chin…
I don’t blame others for my own failures (or successes… !)

Travel continually. Not waiting for anything, except my big Super payout, clearing all debt. No complaints at all.

Looking forward to seeing how you cope being PM, though!~
Good luck with that… . :D

Travs
Guest
“Travs (sorry for the late reply i had work and i went for a run…)” No drama. I’ve responded and my reply has gone into the ether. My fault this time… ;) OK, you’re our kids age. They’d agree with much of what you’ve said. Not sure they’d want to run the country, though… . Rarely enraged. I enjoy the forum. Travelling continually, I think we’re pretty lucky to live in Australia. Can’t see that changing. Raised in a family which forecast Armageddon and prepared for it(!) for the last 63 years, I’m starting to doubt I’ll see it any… Read more »
mike
Guest

…great bear picture…that ba-bear looks russian…and she can taste the gas in the air with her nose…

Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype

Dumb Kluck … just when do you get out in the fields & look after this fantasy hobby farm of yours? … spend day & night on here & Perth Now?

Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype
Mortgage Choice Survey of FIRST HOME OWNERS who bought housing in the last 2 years with the assistance of a Govt First Home Owner Grant of either $14K or $21K… 8% said they are selling because they cant afford the repayments, B*U*T on top of this 10% of FHB in the past 2 years have already sold .. {funny the survey left this bit out} … so shortly almost 20% of FHB in the past 2 years will have sold out because they cant afford OWNERSHIP? … Half of these home buyers have chalked additional DEBTS of $20K PLUS!!! (Using… Read more »
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype
REIWA listings for sale are currently @ 16,959 … (25/02/2011) Now based on current sales of around 1,480* per month Perth has over 11.5 months stock on hand for sale … (3-4 months stock is considered healthy) So is this good or bad? Lets see how this compares to Jan last year?…Jan 2010 10,300 listings, with sales of 1713 = 6 months inventory for sale … Interesting in 12 months housing inventory for sale has jumped 65% !!! to 16,959 … yet the actual months of inventory actually jumped close to 100% due to sales declining while stocks were actually… Read more »
nv
Guest
Biker Pete
Guest

Let’s see… What do we have here? Investor N Fool Punter of ‘Mindarie’, with six properties (Woodvale, Karratha (4), DHA south of Perth) talking the property market down. Why?

And I quote: “Greed, greed and more f…..g greed”

Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype
You can never go wrong buying property in Perth? … or can you? …. Take #9 Donabate Rd Ridgewood….. Bought by a Fool in March 2007 for $510,000 + Stamp Duty & selling costs it would owe them about $550,000 to break even??? …. well this house sold 21 / 01 /2011 for just $420,000 ….. 4 years paying twice as much as what it would cost to rent & the purchaser of this property sells it for $130,000 less than what it owed him!!! ….. MIND BLOWING? …. 2007 was a peak in the market & we are back… Read more »
Biker
Guest
I prefer your own example, N Fool Punter of ‘Mindarie’. We recall you boasting that the property you ‘live in’ trebled in value between 2002 – 2010… from $250K – $750K, ‘unimproved’. $500K gain in eight years. Also recall you stating that you kind of ‘own’ it, an arrangement you describe as ‘far tooooo complex’ for those rolling about on the floor laughing, to understand. Happy to post the links for the amusement of others. If you really do ‘own’ it, you’ve scored a major capital-gains-free (and rent-free) win. Others doubt that _any_ of your claims are true. It’s possible… Read more »
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype
Lets use my example in Woodvale ….. (promise not to roll around laughing on the floor too much I dont want you to break bones at your age) I bought in 2002 & the price was fair value @ $250 K now wages went up 30% roughly in these 8 years so my property should have only gone up 30% to about $350K … however it is $750K & there you have the bubble …I dont deny gaining the benefit of sensational one off windfall however I am not that naive to think that it will keep happening … nor… Read more »
Biker
Guest
There, that didn’t hurt at all, did it? After 31 queries about whether you OWN or RENT it, we learn that you bought it! Why the repeated attempts to dodge this simple question? What’s _that_ all about? And why was it ‘…far toooo complex…’ for us to understand? Pretty simple: 1.) It was for sale; 2.) You bought it. Investors like me? A fortnight ago you claimed I’m a speculator. Fact is, you know very, very little about me. To you, I’m a Yank when I’m not Canadian; I’m a bank johnnie, mate of Dogmans; apparently we’re golf buddies; I… Read more »
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype
You have me confused with Punter but wont accept a bet to settle the issue? Never called you a Yank or anything else … Know your enemy is a good rule … whilst you have Dullsville / Punter / Aaron / Joel confused as me I sit here smug in the knowledge you clutch at straws still with doubt in your convictions because you dont accept the bet I made no prediction on property in 2009 I challenge you to find a single post prior to Oct 2009 by then it would have been too late to put in a… Read more »
nv
Guest

jarbage.

Biker
Guest
I agree. Gargage. ‘Jibberish’. Typically: * No explanation of the 31 attempts to elicit a OWN or RENT response (Why obfuscate so long? Ducking and weaving 31 times?! Silly… .) * No explanation in regard to your (‘far toooo) COMPLEX’ity comment * No explanation of the ill logic of attempting to crash a market in which one ‘owns’ six properties * No explanation of the ‘keep talking about me’ irony * No response to the mid-2011 9.5% interest rate prediction * No explanation as to why identical posts have emanated from N Fool and Punter; or why WannerRoo is continually… Read more »
Stillgotshoeson
Guest

http://www.theage.com.au/business/house-prices-sag-as-demand-sapped-by-floods-20110228-1ban2.html?comments=21#comments

Clutching at straws… blaming the floods, market was turning before the floodes…

Biker
Guest

A warm hello to all our PerthNow visitors.
Great to see DRA getting a lot more hits!~

Nice to see you using the links… .

nv
Guest

It’s ‘diffrent ear’ shoes!

‘Worst ever’ property dive after disasters

http://www.news.com.au/money/property/disasters-knock-property-market/story-e6frfmd0-1226013426709

Stillgotshoeson
Guest

@Comment by nv on 1 March 2011:

It’s ‘diffrent ear’ shoes!

‘Worst ever’ property dive after disasters

http://www.news.com.au/money/property/disasters-knock-property-market/story-e6frfmd0-1226013426709
VA:F [1.9.5_1105]

From link above….

Economists are unanimous in excepting no change in rates tomorrow but Dr Dale said governments needed to “up the ante” on delivering policy reform to tackle a range of supply-side constraints, including the lack of affordable land and the dire shortage of available credit for commercially viable residential projects.

Banks have heaps of funds, they are not lending to commercial residential projects because they fear a collapse… period..

Floods in Queensland and Victoria are the cause of Perths drop in prices. HAHAHA

Biker
Guest

Tomorrow, Shoes? Never mind, consider _this_ Fool’s guesses:

Almost exactly a year ago, 4th March 2010, our mate N Fool Punter of ‘Mindarie’ stated: “If you cant afford 8% plus rates SELL NOW…”

By 13th December 2010, he was predicting “…they can ALL look forward to extra payments around $9000 PA…”

Still certain that rates would return to their ‘traditional 10.11%’
The N Fool stated, 18th February 2011: “Melbourne Cup Rate Rises are starting to kick in…”

A little early to consider equally ludicrous guesses by others here… . ;)

Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype
Well Biker its good to see that you do agree with me that the biggest mistake people will make in this market is to think they are getting a bargain when prices are down 5% or 10% … When this happened in the USA in 2006 American Realtors were warning people to buy in now before it was too late & prices went back up again.. (Yeah Right!!!) … people jumped in thinking they were getting bargains only to see prices fall a further 30% – 60% …. a house is worth 3-4 times incomes or 11 times rental return… Read more »
Biker
Guest
N Fool Punter, you’ve been consistently wrong since you first posted: * Interest rate predictions? Wrong. * Crash predictions? Wrong. * Investors’ panic? Wrong. * FHBs mass exodus? Wrong. * My situation? Wrong. What has become increasingly clear to all who digest your posts is that: * You’re an investor: six homes. * Your goals are highly speculative: Crash the market, buy more. Pretense that you have any other purpose is laughable: “…my kids will be able to buy a house 3 – 4 times their incomes and not be slaves to the Banks? … Your kids too!!!” Yet you… Read more »
prozak
Guest

Hello all.

Didn’t think it possible that this site could go further downhill.

I see biker is still accusing people of being me even when its pretty obvious they don’t share the same opinions.

Cheerio.

Biker
Guest

HaHa… You just accelerated the decline, Pill Boy!~

Claytonator
Guest
Hey Prozak, Long time since I last posted too. I’m probably you too though eh…? I just sit back and let Stillgotshoes do the fighting now. I think this question of how many percent property will fall over what period of time will probably evolve into an argument of whose inflation figure is right or wrong. Most of us know that reported property decline figures are probably understated and government CPI figures are undoubtetbly understated. Don’t even discuss wage increases or housing affordability data either. What would we know anyway? Most of us are just retarded renters with vested interests… Read more »
Biker
Guest
Claytonator: “Most of us are just retarded renters with vested interests in a property collapse right?” No idea if you’re a tenant or not, Claytonator. While some of your past posts suggest you’re not the sharpest tool in the shed, ‘retarded’ is probably a little extreme. A site which posts as its banner:”Australian House Prices Are Severely and Seriously Unaffordable” is going to draw opinions from all stakeholders: tenants, investors, FHBs, speculators, the homeless, conmen, landlords, financial advisors… the whole gamut. It’s extremely rare to find a bloke with six houses calling for: * Property crash 40%+ * Higher interest… Read more »
Biker Pete
Guest
Where were we? A site which posts as its banner:”Australian House Prices Are Severely and Seriously Unaffordable” is going to draw opinions from all stakeholders: tenants, investors, FHBs, _SPECULATORS,_ the homeless, conmen, landlords, financial advisors… You’re better off looking at what N Fool _does,_ rather than what he says. He’s a speculator with six rentals: “I also stated that I own 1 x DHA House South of Perth Lease expires 2011 July I think but dont hold me to that … Made a MOTZA … But fear I may be too late to put it on the market to get… Read more »
Not Fooled By Property Spruikers Hype
Guest
Not Fooled By Property Spruikers Hype
You are so good for my EGO … talking about me all the time as if I really matter that much? Meanwhile I get on talking about the issues that will affect property….. Colin Barnett said on ABC Talkback Radio this morning (2-03-2011) that he is against any STATE GOVT boost to the Federal Govt First Home Buyer Grant … He confirmed that his Govt has been lobbied by both the HIA & REIWA … But he said he was not convinced that a State Govt Boost would do anything to help the housing market … in fact he confirmed… Read more »
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