Australian sub prime mortgage market.

wifey in the mortgage belt still needs that LG plasma goobs

 

At least in a SMF you have the choice / control over where your money is invested, the majority of the population are in super funds which they have little control over ( and many dont care anyway) , and these look like taking a substantial hit in their returns

 

yes but when all said and done, people buying a home theatre system and tacking it onto the mortgage are on a road to ruin

 

thats it chief

just tack an extra 50k onto the mortgage to cover low grade consumer electronics and a new santa fe to get the kids around, as the trusty old mazda 626 aint flashy enough parked outside the spec home

 

Did you see the analysis which showed highest sales of Plasmas by postcode in Australia, compared to highest recipients of family assistance and other benefits?

Guess what - they match perfectly!

 

god bless the subdivisions

 

Quite a bit, I am told that when the market went through approx 5500 the next support line is around the 4800 mark. Mind you, this would only take the market back about 2 years, so thre is room for a lot more falls. The trend now appears downward, but there will be upward bounces along the way.

Michael

 

no rush to jump out and buy up big simply due to these rather quick falls

 

I had the worst experience buying a new BMW last Saturday, perhaps a drought will make them less arrogant.

 

I recently met a former mid level employee, and commented on the nice new X5 she was getting in to. Question to her: How could she afford that ? Had she got a promotion? Answer, no, they decided they could never afford to buy a house and so may as well induldge themselves and buy nice new car.
Excellent wealth creation strategy NOT.

 

It will take a month or two for them to realise things have changed.
Why are you buying a BMW ? I thought that period was "over"

 

they could die in a plane crash tomorrow , so maybe not a bad idea . we all think we are going to live to 100 + , most of us won't. would hate to get to 65/70 , then start to enjoy it then die.

 

not by the way you drive

 

if you can do it fairly comfortably i guess why not...but no point stretching yourself for the toy, then having sleepless nights wondering where the next payment's coming from..and your lack of cash!

 

hookers are alive and well

 

yea , must be a tough gig in touring hey ?

 

Choice and control is the primary reason for a self managed fund. You need about $300k in it before the returns cover the increased administration costs and the average man in the street probably isn't switched on enough to be doing it anyway. Since PAYE employees have been able to choose funds and direct their investments to sectors within those funds they have a defacto SMF arrangement to a point anyway.

 

unscathed would be a better choice of words, and didnt do touring in 07, again your facts are wrong

 

My wife bought a new X3. It was quite interesting observing the salesmans training as they all did exactly the same thing at the 3 different dealers we went to over the last month. She got the car she wanted at the price she wanted; but it sure wasn't a fun experience.

 

why not fun?

 

She is eary thirties, so not close to retirement. The chance of dying in a plane crash is very, very slim. While very few get to be 100, most people will get in to their 70's at least. From my observations, it's not fun to be old and poor (old is bad enough !).

Michael

 

Yes, no fun for the salesmen. Thats because Veena all made them suffer. I've met your wife.

Michael

 

"better to die on your feet than live on your knees" peter garrett, minister for saving the world and left wing socialist

 

I have a theory about that. Do you use your credit cards for as much business related debt as possible and then pay it off at the due date? In my industry most suppliers are happy to take credit cards as they get the funds immediately, consequently I spend rather a lot on credit cards. That shows up as credit card debt on the stats; but it is totally different to buying a plasma TV and paying it off on the never, never.

 

strictly business, always pay off by due date, get lots of rewards, and especially with commercial property outgoings allows for getting an extra 55 days to pay.