Will the increased interest rates force you to change your punting habits?
Will the increased interest rates force you to change your punting habits?
No...What about you??Originally Posted by thefatness
Not for now but will have to consider if rates and inflation continue soaring
Depends on how many IPs you managed to “snag” when the easy money was available and using whatever serviceability loophole you could find.
Nope don't have a mortgage or loans so business as usual.
Hoping interest rates keep on rising.
I have no debt and have a substantial Investment Portfolio.
Just an aside do you guys remember the 13-14% interest rates in the 80s?
I think cash rate was as high as 7 something percent then too
Definitely cutting down punting to minimum in the present economic climate with pandemic, Ukraine war, interest rate hike, inflation, recession etc.
I don't own a car, don't travel, don't drink, smoke or gamble. I used to be able to save part of my earnings.
Punting is my biggest expenses. If I punt recklessly I would not be able retire comfortably.
By punting I only make mamasans and MLs richer. And myself poorer. They are driving expensive cars and live in expensive apartments.
Increasingly I start to realize punting is for the wealthy class of people and not for people like me who have to sweat for every dollar I earn.
Having being poor I know the value of money.
At least when you reach 18 you can legally drink
I agree. Valuations on stocks, bonds and real estate are all too high.
The normalization of rates will lead to substantial falls in the stock market, and probably your investment portfolio.
Regardless, you have no debt, and thus can play the long game.
It was 18-19% under Keating and people still survived paying mortgages.
I am 65 and remember those rates all too well, but the size of the mortgage compared to annual income was far more manageable then with todays generation. Go back even further to my parents time and if you had a humble trade (not a business ) your wife did not work, a paid off your house and even had a holiday home up or down the coast. I feel sorry for today's younger people.
On the other hand Keating's "recession we had to have" brought truck loads of new girls" into the industry. I can remember $90/hour, nude from the start, with loads of extras included at no additional cost.The main competition was girls competing for clients. Good times - But they didn't last!
Boomers had many advantages during those times. Free tertiary education being one of them.
https://youtu.be/PkJlTKUaF3Q
Having said that. When they finally die, there'll be a huge wealth transfer.
Back then houses were seen as commodities as opposed to an asset. Cars sometimes cost more than the home.
If your outgoings, in terms of interest, fuel, food and so on are going up, but your income remains static, then something has to give. Usually pleasure expenditure which, unlike the electricity bill, is discretionary.
If inflation continues to rise inexorably into next year then what will likely happen is classic supply and demand. Punters will have less discretionary capacity. Less punters will lead to decreased supply - shops will close or, more likely, decrease input costs in terms of number of girls in the shops. That's generally a slow train though. In the short term it may turn into punter paradise - more girls than the market can sustain. I think the liklihood here is that the girls will supply more service to convince customers to become regulars. But it's not sustainable and over time girls will leave. They'll go home. We will all suffer from this, even cashed up punters.
If we start to see inflation slow in a determined fashion then the above outcome will likely be averted.
Inflation is no good for anyone. Strong suite of investments? Good for you, but less spend across the board decreases profit and therefore dividends and therefore stock valuations. Reduced income reduces the capacity of people to pay your property rent.
We've all been sitting in a nice, warm bath. When inflation loosens the plug, we'll all shiver a little.
Your all saying you don't have mortgage to pay and this and that. But increase interest rates also affect rent. Which will affect the prices of these shops rent too. Which also has a knock on effect to future punting prices aswell. With a new increased punting prices and increased everything else, ofcourse punting will be affected.
I have seen threads about an increase in $20-50 for punting in fs shops and people and complaining about that. Imagine THAT increase in massage shops.
Correct. 12 months ago you almost couldn't give away residential rentals, discounts of $100/week were not uncommon. Now rental demand is growing, discounts are a thing of the past, increases have started and people are bidding for rentals again.
Commercial rents may be a different proposition, has demand for commercial property increased? I'm seeing more and more vacant properties in the suburbs, and more businesses trying to sell (some are even giving away their business as long as someone takes on the lease). Massage shops attempting that kind of increase would see a fair hit in business would be my prediction.
When shops start to bump up prices, guys need to consider whether they should pay the higher price or look for other alternatives if they want to continue their punting.
"Other alternatives" such as converting regular ML to girlfriend for free sex?
Posting Permissions
|
|
|
|
Reply With Quote