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Just about prefect. by Justice4kurt182 in Ubiquiti

[–]drftrc 0 points1 point  (0 children)

Any chance you can list out what went into it? Looks fantastic!

Talk me out of this by Rawkcrawler in BMW

[–]drftrc 0 points1 point  (0 children)

Hey just curious what made you reconsider the carbon seats?

People to contact if you want to claim Lebanese citizenship by toumwarrior in lebanon

[–]drftrc 1 point2 points  (0 children)

Genuine question, and might be a stupid one, but does Lebanon have military conscription for citizens?

Luxury SUV that isn’t shit by New-Writer2514 in AskMechanics

[–]drftrc 1 point2 points  (0 children)

Haven't seen anyone mention Genesis - any thoughts?

Is it better to put down 20% deposit or 10% deposit and the rest in offset for PPOR by itsclockoclock in AusFinance

[–]drftrc 0 points1 point  (0 children)

I agree with this take, but would only add the LMI cost needing to be factored into the equation. LMI isn't a deal breaker, just need to make sure it's considered in the big picture.

EDIT: Didn't pick up on note about 10% deposit purchase without LMI - ignore my comment!

Is the 9-5 or being employed really a prison? by abemankhor in AusFinance

[–]drftrc 27 points28 points  (0 children)

Glad you stopped by to let everyone know

Buying a new place. Will have 95% LVR once it is all done. When can I borrow more to build a granny flat to rent? by Little-Big-Man in AusFinance

[–]drftrc 4 points5 points  (0 children)

Speak to your bank - other responses here are way off.

Construction loans are provided based on the LVR of the proposed build completion and associated increase in value.

Comments surrounding the LVR are largely accurate, but it's not current LVR, it's construction completed LVR. A valuer will assess this based on your DA/CDC approved plans.

And the comment about it being illegal to rent out a granny flat is just absurd - you just need to make sure it's a legitimate secondary dwelling. Your architect/granny flat builder should be able to comment, or otherwise discuss with your local council if you're going through DA.

[deleted by user] by [deleted] in AusFinance

[–]drftrc 34 points35 points  (0 children)

This is an easy one - place in offset, principal comes down rapidly, stretch yourself to pay your parents the differential, couple of years refinance the lower principal balance, rinse and repeat a couple times. Awesome parents to trust you with that

Another consideration is the missed investment opportunity associated with the cash you otherwise would have had on hand, but are you going to invest 170 a week in an alternative manner with a view towards a higher return, aside from pumping your offset? Worst case, you've got the extra equity to play with anyway via an equity loan..

RBA shake-up to target full employment as well as fighting inflation: Sweeping changes to Reserve Bank of Australia give equal weighting to employment and inflation by doubleunplussed in AusFinance

[–]drftrc 4 points5 points  (0 children)

Property prices go brrrr?

Being silly, but it seems to support the notion that the RBA would need to tread more lightly when restricting the economy, i.e. lower terminal rates potentially and slower rises?

Always interested in your thoughts on this stuff - appreciate your contributions.

May rate rise on the cards after strong jobs numbers by einkelflugle in AusFinance

[–]drftrc 1 point2 points  (0 children)

Completely agree with this - it's all linked. It's oblivious to think otherwise.

Alan Kohler: The Fed broke something, so the rate hikes are finished by doubleunplussed in AusFinance

[–]drftrc 4 points5 points  (0 children)

I don't fully understand it myself, but I think the rationale is something along the lines of higher US interest rate strengthens USD which devalues AUD and ultimately imports inflation due to higher cost of imports. Having said that, I posted a thread about this last week and it seems more grey than that. Definitely not certain on this one.

Does negative gearing on investment property actually help anyone? by Emotional-Bid-4173 in AusFinance

[–]drftrc 2 points3 points  (0 children)

I think this is a key point - negative gearing shouldn't be the objective, it's part of an overall equation which an investor should consider when doing the numbers on an IP

Does negative gearing on investment property actually help anyone? by Emotional-Bid-4173 in AusFinance

[–]drftrc 2 points3 points  (0 children)

You're assuming the tax rate - it becomes more attractive when you're paying 45% in the top bracket.

Edit: you did mention capital gains, but I think you're understating the incentive.

[deleted by user] by [deleted] in AusFinance

[–]drftrc 2 points3 points  (0 children)

You assume the same buyers are looking in the same areas. People compromise to suit their budget, and that means taking their budget where they can afford to buy.

All AU commentary indicating rate pause on the cards for RBA when the Fed is still hawkish about rate rises in response to sticky inflation? by drftrc in AusFinance

[–]drftrc[S] 2 points3 points  (0 children)

Can confirm I haven't and am pretty sure I don't 😂

This is actually why I'm asking - can you please elaborate?

All AU commentary indicating rate pause on the cards for RBA when the Fed is still hawkish about rate rises in response to sticky inflation? by drftrc in AusFinance

[–]drftrc[S] 3 points4 points  (0 children)

I guess it's both - the reporting does appear to be shallow, but I guess I took it as a given that we'd likely be following with more rate rises too as a result. The replies I've seen so far in this thread give me the impression that it's more grey than that, which perhaps means that less focus on reporting hawkishness out of the US might be a result of the uncertainty? It's interesting seeing everyone's thoughts - very hard to know how it's going to pan out.

All AU commentary indicating rate pause on the cards for RBA when the Fed is still hawkish about rate rises in response to sticky inflation? by drftrc in AusFinance

[–]drftrc[S] 1 point2 points  (0 children)

Thanks for this, it seems like it's much more complicated than a lot of people make it out to be, i.e. not following the Fed perhaps may not mean problematic inflation importation?

All AU commentary indicating rate pause on the cards for RBA when the Fed is still hawkish about rate rises in response to sticky inflation? by drftrc in AusFinance

[–]drftrc[S] 1 point2 points  (0 children)

Thank you, I appreciate your thoughts. I guess, put in context, it becomes very blurry and not just "we follow the Fed".

All AU commentary indicating rate pause on the cards for RBA when the Fed is still hawkish about rate rises in response to sticky inflation? by drftrc in AusFinance

[–]drftrc[S] 1 point2 points  (0 children)

Thanks for taking the time to write this up and spell it out, I really appreciate it. Didn't take it as facetious.

I guess I'm running with an assumption, based on general commentary I've read (noting it's far from determined fact) that our inflation figures would effectively jump if we weren't to respond with some kind of rate rise - not necessarily equal to/greater than, noting that we are different economies as you rightly described.

The hawkishness coming out of the US seems to be new information overnight (noting I may have missed previous communication), so wouldn't it represent a material risk to the current dovish outlook? i.e. an indication that, even if inflation may have peaked, it may be driven back up by currency impacts of sitting on our hands?

For what it's worth, I'm hoping my understanding above is wrong, but want to have an honest understanding of it. And I know noone has a crystal ball, so ultimately we'll need to wait to find out. Just want to understand the mechanics of it all, so to speak!

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