Thanks so much Arjun! Incredibly insightful and love how logical your explanations are. I would also be interested in hearing your thoughts on the 18.6 property cycle if you havent talked about this already. Thanks!
Also, just a thought. I was watching the Big Short and was fascinated at how the American Banks were lending so irresponsibly pre-GFC. Would you be able to speak about whether Australia could experience anything like that? It made me think about how the RBA said that interest rates wouldn't start increasing until 2024 (or something like that - please correct me as I'm sure I'm wrong) and then interest rates started to skyrocket earlier than expected. As a result, some people were unable to meet repayments. It felt similar (in terms of irresponsible actions from government bodies) but on a much much smaller scale.
I agree with you and hope you’re right. But, amidst everything that’s been going on, the so called ‘perfect storm,’ I have been puzzled for quite some time as at the same time that I think the current rate of growth isn’t sustainable, everything seems to be functioning healthily and well just like it should. The one thing that might interrupt the current market though is a major financial collapse. And I’m afraid that may be looming. If something like that happens, I think that it will take the housing market with it as so many are overly leveraged. Just my thoughts, and hoping I’m wrong.
The current rate of growth definitely won't last forever, you are right there. After review of global events of the past, I can't say there is "no impact" here, however, what I have learned is domestic conditions far outweigh the global financial collapses on local impacts.
Short of going 100% gold i dont really understand the 'what if there is a global financial collapse' argument. Assets are always better than cash to hold and always have been. If the financial system collapses worry more about someone kicking in your door with a shotgun demanding your food and fuel than if your bank will be calling about your mortgage being in arrears. Just my 2c
@@TryABaconSlice you nailed it assets all the way. Cash should only be there for 3x things in my opinion. 1. Suitable personal and/or business buffer e.g 3-6-9 months. 2. Building up for the next investment until it’s ready to deploy. 3. Extra for some toys that heavily depreciate or some fun and leisure. Not financial advice, just my thoughts. After that the only other time cash is useful is when you’re in your consolidation phase to retire the debt if you aren’t doing it from liquidity moves like a sale
Good video! You made a very good argument, thank you 👍
Thank you my friend ! Really appreciate it.
Thanks so much Arjun! Incredibly insightful and love how logical your explanations are.
I would also be interested in hearing your thoughts on the 18.6 property cycle if you havent talked about this already. Thanks!
Thank you soo much for the kind words. Great idea, I’ll next quarter look to put that in the schedule and comment on it.
Also, just a thought. I was watching the Big Short and was fascinated at how the American Banks were lending so irresponsibly pre-GFC. Would you be able to speak about whether Australia could experience anything like that? It made me think about how the RBA said that interest rates wouldn't start increasing until 2024 (or something like that - please correct me as I'm sure I'm wrong) and then interest rates started to skyrocket earlier than expected. As a result, some people were unable to meet repayments.
It felt similar (in terms of irresponsible actions from government bodies) but on a much much smaller scale.
I agree with you and hope you’re right. But, amidst everything that’s been going on, the so called ‘perfect storm,’ I have been puzzled for quite some time as at the same time that I think the current rate of growth isn’t sustainable, everything seems to be functioning healthily and well just like it should.
The one thing that might interrupt the current market though is a major financial collapse. And I’m afraid that may be looming. If something like that happens, I think that it will take the housing market with it as so many are overly leveraged.
Just my thoughts, and hoping I’m wrong.
The current rate of growth definitely won't last forever, you are right there. After review of global events of the past, I can't say there is "no impact" here, however, what I have learned is domestic conditions far outweigh the global financial collapses on local impacts.
Short of going 100% gold i dont really understand the 'what if there is a global financial collapse' argument.
Assets are always better than cash to hold and always have been. If the financial system collapses worry more about someone kicking in your door with a shotgun demanding your food and fuel than if your bank will be calling about your mortgage being in arrears.
Just my 2c
@@TryABaconSlice you nailed it assets all the way. Cash should only be there for 3x things in my opinion. 1. Suitable personal and/or business buffer e.g 3-6-9 months. 2. Building up for the next investment until it’s ready to deploy. 3. Extra for some toys that heavily depreciate or some fun and leisure. Not financial advice, just my thoughts. After that the only other time cash is useful is when you’re in your consolidation phase to retire the debt if you aren’t doing it from liquidity moves like a sale
Waiting
Loooong wait ahead 😀