It’s hard to predict the future…Ravi makes on balance good content…and yes…just because it hasn’t rained…yet, doesn’t mean that winter has been canceled
He's also the only one that's saying rate cuts won't happen at all in 2025 🤣🤣 (I know he made a mistake at the start and is supposed to be saying 2024 but just pointing out the lack of attention to post production editing)
Hey Ravi, I’m a little conflicted about buying my first property because I’m from Sydney, I want to have a home in the future new my family in Sydney. My borrowing power is limited and I know I could easily find a better preforming property interstate but if I wait any longer I won’t be able to ever buy here. Even if I invest in a property that outperforms sydney it will continue to rise and I’ll end up taking a step backwards for an overpriced home once I do decide to buy here… can I get your opinion?
Predicting interest rate movements is never easy. His job is not to predict them, his job is to create a feeling in his audience that 'something is going to happen' and you 'need my team to support you'. That is an effective sales technique and salesman use it in all industries. Kinda goes like this. Position the audience to think they are better than the rest, instill a sense of money to be made but there are pitfalls and u need to act fast, mention that you could do it yourself but you are too busy doing your thing and you need the A team because after all you are someone who is not like the rest (circle back to the first point). Only one thing can break that selling cycle - questioning and information. For example, why does it cost me 2k to get a lawyer to look over pages and pages of legal pitfalls but 15k for a property selection? Why does a buyers agent cost more than stamp duty on a 500k house? Etc
What’s your prediction for the football on the weekend Ravi. Ravi: win…no, lose…no, draw. *lose* Ravi: if you look back at my previous comments I predicted that.
4:50: You talk about mass FOMO Ravi. What I don't understand, Brisbane prices are up a staggering 68% since 2018. In 2018 the RBA rate was at 1.5%. Today it's at 4.35%. It just doesn't seem like interest rates are the defining factor in house prices? Even if rates fell to say 3.5%, that's still so much higher than 2018.
Supply and demand - higher interest rates impact the ability to borrow and therefore the number of purchasers in the market, resulting in lower demand overall but this is dependent on which state you are looking in and from what borrowing caps are etc. Lower prices in QLD made it more attractive and doable to buy (in comparison to Sydney, Victoria etc) which has lead to increase demand for QLD and pushed up prices. Also good returns based on the purchase price with the rental market - we are seeing this in SA and WA also. Overall there is now lower supply of properties which continues to push up the property prices - less new builds, less existing properties from heated market and recent sales activity etc. When rates go down there will be more people who can borrow and therefore more demand again which will continue to increase prices.
Also add high immigration increasing demand and buyers in the market - a lot moving to more affordable places like QlD WA SA etc. Likewise, factor in tax cuts as Ravi notes which means more borrowing power artificially input into the market, leading to more buyers and even more demand for housing. All likely to continue pushing up prices.
Well, after today's CPI data, there's every chance no rate cut is happening this year. It's even possible, although unlikely in my view, that rates may still need one more 0.25% increase.
It's all swings and roundabouts. The only thing that has any major impact is immigration, which pushes up prices across the board for all assets, goods and services.
Would you say it is better to let 80K sit in an off set account against your loan or should you pay the loan off or go further into debt and buy another property?
There's no simple answer, beyond doing the numbers and making them work for your situation. If you're saving $5,000 per year by using the offset account then factor that into your cost / benefit decision. If you're cashflow restricted ( like most of us ) you would need to factor that into your decision. Much depends on how you can adapt to higher cash outflows, if you buy another property. You might have to consider positive to neutral cashflow property ( more difficult to find ) if you don't have enough cashflow to service new investment property increased debt. Depends on your situation and risk tolerance. Capital growth on a new rental property should more than cover that bank offset account amount you save, but again it depends in your cashflow situation and tolerance to higher cashflow demands ( i.e. interest rates and other costs ).
Sorry what's your risk mitigation? Most of the time when reserve banks cut rates it's because there's something breaking in the financial system. This can lead to a huge spike in unemployment. Why don't you discuss this as a possible outcome?
No economist has got it right sofar and will continue to be the same. 3 of the 6 biggest economies in recession and essentially without gov spending Australia is in recession also. Our impact of rate increases is significantly higher to us than the US due to 15 and 25 yr fixed rates in the states. Every increase in rates as high as this has been followed by a hard crash landing that no economist saw coming, followed by much higher cuts in rates that no economist saw coming. US rates and our rates have little to no impact on our currency
Predict with Ravi. Just want to know your perspectives. I find my own prediction is always more negative than yours. Hence, knowing your prediction can help me adjust my own prediction. 😂
You made a video 3 months ago about how rate cuts were coming sooner than expected….😂
He's one of the most reactive RUclipsrs lmao should just stick to tips on getting into the market
It’s hard to predict the future…Ravi makes on balance good content…and yes…just because it hasn’t rained…yet, doesn’t mean that winter has been canceled
It has been rain just about all day in Queensland
He's also the only one that's saying rate cuts won't happen at all in 2025 🤣🤣 (I know he made a mistake at the start and is supposed to be saying 2024 but just pointing out the lack of attention to post production editing)
@@PNGheeI Noticed that too
though if it turns out to be true
then he accidentally foretold the future.
Australia can’t cut rates until US does, otherwise the loss in value of the AUD would raise costs and hence inflation.
Not true. The domestic indicators of consumption and disposable income have been incredibly resilient in USA, but they have tanked in Australia.
Hey Ravi,
I’m a little conflicted about buying my first property because I’m from Sydney, I want to have a home in the future new my family in Sydney. My borrowing power is limited and I know I could easily find a better preforming property interstate but if I wait any longer I won’t be able to ever buy here. Even if I invest in a property that outperforms sydney it will continue to rise and I’ll end up taking a step backwards for an overpriced home once I do decide to buy here… can I get your opinion?
Predicting interest rate movements is never easy. His job is not to predict them, his job is to create a feeling in his audience that 'something is going to happen' and you 'need my team to support you'. That is an effective sales technique and salesman use it in all industries. Kinda goes like this. Position the audience to think they are better than the rest, instill a sense of money to be made but there are pitfalls and u need to act fast, mention that you could do it yourself but you are too busy doing your thing and you need the A team because after all you are someone who is not like the rest (circle back to the first point). Only one thing can break that selling cycle - questioning and information. For example, why does it cost me 2k to get a lawyer to look over pages and pages of legal pitfalls but 15k for a property selection? Why does a buyers agent cost more than stamp duty on a 500k house? Etc
What’s your prediction for the football on the weekend Ravi.
Ravi: win…no, lose…no, draw.
*lose*
Ravi: if you look back at my previous comments I predicted that.
4:50: You talk about mass FOMO Ravi. What I don't understand, Brisbane prices are up a staggering 68% since 2018. In 2018 the RBA rate was at 1.5%. Today it's at 4.35%. It just doesn't seem like interest rates are the defining factor in house prices? Even if rates fell to say 3.5%, that's still so much higher than 2018.
Supply and demand - higher interest rates impact the ability to borrow and therefore the number of purchasers in the market, resulting in lower demand overall but this is dependent on which state you are looking in and from what borrowing caps are etc. Lower prices in QLD made it more attractive and doable to buy (in comparison to Sydney, Victoria etc) which has lead to increase demand for QLD and pushed up prices. Also good returns based on the purchase price with the rental market - we are seeing this in SA and WA also.
Overall there is now lower supply of properties which continues to push up the property prices - less new builds, less existing properties from heated market and recent sales activity etc.
When rates go down there will be more people who can borrow and therefore more demand again which will continue to increase prices.
Also add high immigration increasing demand and buyers in the market - a lot moving to more affordable places like QlD WA SA etc. Likewise, factor in tax cuts as Ravi notes which means more borrowing power artificially input into the market, leading to more buyers and even more demand for housing. All likely to continue pushing up prices.
10:40: Buying that one more property...
Borrowing capacity is crazy tight right now. I know from experience why so many investors stop at 1 property.
Well, after today's CPI data, there's every chance no rate cut is happening this year.
It's even possible, although unlikely in my view, that rates may still need one more 0.25% increase.
It's all swings and roundabouts. The only thing that has any major impact is immigration, which pushes up prices across the board for all assets, goods and services.
Would you say it is better to let 80K sit in an off set account against your loan or should you pay the loan off or go further into debt and buy another property?
Everyone situation is different. Not financial advice, but imo buy another property if you can afford to
@@dmoo8121 Thank you very much - not taken as advice.
You don't need to risk it
Buy if you can make the numbers work in a positive cash flow for you. Otherwise keep looking or research another asset class.
There's no simple answer, beyond doing the numbers and making them work for your situation. If you're saving $5,000 per year by using the offset account then factor that into your cost / benefit decision. If you're cashflow restricted ( like most of us ) you would need to factor that into your decision. Much depends on how you can adapt to higher cash outflows, if you buy another property. You might have to consider positive to neutral cashflow property ( more difficult to find ) if you don't have enough cashflow to service new investment property increased debt. Depends on your situation and risk tolerance. Capital growth on a new rental property should more than cover that bank offset account amount you save, but again it depends in your cashflow situation and tolerance to higher cashflow demands ( i.e. interest rates and other costs ).
Sorry what's your risk mitigation? Most of the time when reserve banks cut rates it's because there's something breaking in the financial system.
This can lead to a huge spike in unemployment. Why don't you discuss this as a possible outcome?
No economist has got it right sofar and will continue to be the same. 3 of the 6 biggest economies in recession and essentially without gov spending Australia is in recession also. Our impact of rate increases is significantly higher to us than the US due to 15 and 25 yr fixed rates in the states. Every increase in rates as high as this has been followed by a hard crash landing that no economist saw coming, followed by much higher cuts in rates that no economist saw coming. US rates and our rates have little to no impact on our currency
Ravi l, do you mean a rate cut in all of 2025 or 2024
He meant 2024 I think
He says no rate cut till 2025 😂
Predict with Ravi
A little nugget of gold? 😅 where was that
This title pisses me off. You are clickbaiting and fear-mongering. We don’t know what the RBA is doing yet. Shame, bc your vids are usually good.
If the global conflicts get worse
or even WW3 starts
then the money printing might increase
& Inflation goes even higher.
You wouldn’t know if you are Arthur or Martha.
Predict with Ravi.
Just want to know your perspectives.
I find my own prediction is always more negative than yours.
Hence, knowing your prediction can help me adjust my own prediction. 😂
In other words buy the dip
Predict with ravi
predict with ravi
Predict with Ravi
Predict with Ravi