If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You may have to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.
The reality is that yes some institutions are deleveraging because they have too much and then there are others who are actively going out and borrowing money so at the end of the day each person or business is different and therefor what they do themselves may not exactly be what others should or could be doing.
For example if you had say 1 IP and the capacity to get a nother one now whilst still keeping your overall LVR below 60% why wouldn't you go out and get some of these bargains.
On the other hand if your leveraged up to the eyeballs and struggling to meet payments then you certainly should not be buying more, you should be deleveraging.
I like vanilla ice cream. My son likes chocolate ice cream.
So I eat vanilla and he eats chocolate.
Last edited by Perry; 21-02-2009, 03:57 PM.
Reason: fixed typo
Smart investors buy when the market is busting or at a low and sell when it is booming or high.
...apparently so, yet I dont see the bottom as being in and printing money dosnt address the underlying fundamentals especially as far as resources are concerned, growth economics needs a never ending supply...
The reality is that yes some institutions are deleveraging because they have too much and then there are others who are actively going out and borrowing money so at the end of the day each person or business is different and therefor what they do themselves may not exactly be what others should or could be doing.
I disagree, those seeking credit have become used to a system operating on perpetual debt, I experienced this scenario whilst being a self employed builder always owed and owing money...
Before easy credit most business worked on a 3 month cash positive float. Private individuals were recommended to keep a 3 month cash balance on hand to account for unexpected events, such as losing your job.
The only business thats different is banking they dont have to cover there liabilities at the end of each month, you do.
For example if you had say 1 IP and the capacity to get a nother one now whilst still keeping your overall LVR below 60% why wouldn't you go out and get some of these bargains.
Id be wondering about how many unemployed people may be around to make it viable, and just how long low interest rates will last 1, 2, 3, years or perhaps 6 months, so far no politician has explained where the magical resources are arriving from for more growth, that is something else Id be looking at to make things fesible in the long run not just for next week...
On the other hand if your leveraged up to the eyeballs and struggling to meet payments then you certainly should not be buying more, you should be deleveraging.
I like vanilla ice cream. My son likes chocolate ice cream.
So I eat vanilla and he east chocolate.
I like both. Ice cream melts when the heat is on though.
Actually so do I badger, I like strawberry too ....hmmmm best not get onto the topic of ice cream because there are so many flavors and I like most of them....id didn't like the pea and spinach ice cream Rebecca made though for some reason.
Comment