Tag Archives: Infrastructure

HELP ASAP: Why Is Debt Service an Important Measure of Whether Debt Is a Problem?

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debt

A. Because debt service is the difference between the passive and structural deficits. The larger the difference between the two, the greater the burden of the debt on the economy.
B. Because interest payments are the result of past expenditures and do not result in additional productive expenditures. They are the burden of the debt: if the debt service is large and is hurting the government’s ability to fund today’s expenditures, that debt could be considered a problem.
C. Because debt service determines the real deficit. The higher the real deficit, the greater the burden of the debt on the economy.
D. Debt service is not an vital measure of whether debt is a problem. Only debt/GDP ratios and future budget balance projections are relevant measures of the burden of the debt on the economy.

Will award best answer!
It is for debt in infrastructure.

Housing Solution (Reverse Ponzi Scheme)

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How could attempts to increase investment increase debt? It is not because they are investments but because the way they are financed involves debt that doesn’t get paid for decades, or in some cases, it doesn’t get paid at all. Look at Japan for example. A lot of infrastructure spending was financed by government intercession. The result was that Japan’s debt (non-periodic) exceeded its GDP (annual). Now would it make any significant difference to the result if private industry was able …

Do Investors and First Home Buyers Buy the Same Property?

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John Symond, from Aussie, look at first time investors who are generally tiny investors seeking property which has a excellent yield, and yields are excellent at the moment because theres a shortage of supply. They like to be near infrastructure, near the CBD, which means, predominantly, home units. Whether youre in Brisbane Melbourne, Sydney particularly, inner city – apartments, shortage of supply, high yield and hopefully a high capital gain potential. Not a spike in values over one or two years thats long gone. Today investors have to look at a property and see that it brings in an acceptable yield, its got excellent growth asset potential and its even better if you buy a recently built apartment or house where you also can get the depreciation benefits of, say, 2.5% every year. A lot of investors dont know about this but if you can depreciate 100000, 200000 off the buy price every year for 20 years you can get possibly 4, 5 thousand dollars tax deduction year after year on top of the operating costs your interest holding charges. So I believe that the shortage of supply of housing, the appeal of low interest rates, a better range of properties because not competing with the FHB segment which really has upset is going to give investors a much better chance to secure the right property.with everything else thats necessary and Im tipping that investors will start coming back with a flurry, and thats a excellent thing for the housing market. I dont believe theyre going to come in en …