August 18th, 2022Kyle’s Rant
I watched in disbelief as the newsreaders banged on about the subject of house prices to alarm the viewers and get the most valuable of all currency, ratings.
These characters are the same bunch of dimwits that told us to kiss our arses goodbye in March of 2020 and extrapolated data from “experts” that predicted an up to 40 per cent price crash on the housing market.
I won’t be specific about the news desk as it doesn’t really matter which ones I saw; you could jump to any news panel discussion on any TV channel and hear the same beat-up terrifying analysis.
One nong of a “journalist” said that he “would be terrified if he was about to sell a house”, but what these guys don’t understand, is that if you sell and buy in the same market it makes no difference. Most level-headed folk understood that even when the property prices were red hot, if they divested themselves of their homes and re-bought another they weren’t suddenly nouveau riche jetsetters.
The ultimate party trick would have been to sell in the hot market then rent and then rebuy now, and there goes that hindsight millionaire brain of mine, besides, there is nothing much to rent.
I also heard from the news desk plonkers that some people would have bought with a small deposit on low interest rates and now if they sold their home, it would not be worth what they owe – duh.
The thing about home ownership is that it is just that, a home to own, a long-term investment to rear your family, create a life or pursue whatever makes you happy. I am not talking about investors – those people have to look at a longer-term view as well, but their investment is not their home, that is on them.
The Reserve Bank of Australia or RBA told anyone who would listen, and even put it in print, that interest rates weren’t going anywhere until 2024. Are the good old boys and girls at the RBA sailing by dead reckoning with a sort of a guesstimation?
So, when it comes to turning the screws up and down on Joe Public, one can only hope that this crew are right across the needs of our economy on the world stage.
My personal thought is that it will be alright in the end and if it isn’t alright, well, perhaps it’s not the end yet. That will come in October 2027 when all the cheap interest rate packages expire exactly 20 years after the last recession and exactly 40 years after the one before 1987, 2007, 2027.
Chin up, rant over…
(Oh, if you are thinking of selling your home, don’t forget to insist it goes in the spring edition of House.Land.Home.Premium. Out in time for the Grand Final long weekend – so read by many visitors to our region dreaming of a tree change. You’re welcome! While we’re at it don’t forget our spring Visitors Guide. Plug part of rant over.)