Superannuation Discussion + market volatility

[Brissy1]

Does your fund make you renew every 3 years?

2 types of Binding Nomination, lapsing and non-lapsing. To my mind a Lapsing Binding Nomination is like writing a will that has an expiration date of 2 or 3 years, just silly .
And yes some funds only allow Lapsing, was one of the considerations I made when transferring to a new fund.

 

[Quickstatus]

And yes some funds only allow Lapsing

Mine allows lapsing and non lapsing.

 

[Quickstatus]

the question is how much of a hit

Whatever the hit, I think rents are going up for existing properties to compensate.
Mine are just about cashflow positive now, so I would hold.

 

[JessicaTam]

[mod hat]
Please keep to the thread topic and avoid *any* political commentary.

Some posts have been removed.
[/mod hat]

 

[Brissy1]

If the housing market does take a real hit, it still might be worth buying into - the question is how much of a hit?

And when? Maybe 2 years.
In my experience, sharemarket is quick to react to changing circumstances, but housing slow. House sellers are simply unwilling to sell at the buyers quickly changed price. Forced sales hopefully remain very low.
And again (imo) it's the buyers who set the price; sellers can ask what they like, but to quote..."tell 'em their dreaming".

 

[Quickstatus]

Forced sales hopefully remain very low.

The ones at risk are probably the recent first time home buyers with 5% deposit. They are likely to see negative equity very quickly + high interest rates.

 

[Pushka]

The ones at risk are probably the recent first time home buyers with 5% deposit. They are likely to see negative equity very quickly + high interest rates.

I saw some stats on that last night. Frightening. And then there's grind of paying the mortgage every month.

 

[Quickstatus]

mortgage every month.

They should be paying it fortnightly but yes.
Now also add in an economic slowdown.

 

[tgh]

The ones at risk are probably the recent first time home buyers with 5% deposit.

..as well as the banks that provided the finance .. leads to….

 

[Quickstatus]

.as well as the banks that provided the finance .. leads to….

The banks will be Ok but they will be stricter with loan approvals, dragging down economic activity