The future of Australian property prices

[robots]

All discussions this evening have nothing to do with the direction of property prices.

If it is not going to stay on topic then the Mods need to get on it and if that fails the thread should be closed down.

I would like to know where property prices are headed because the Confessor is worried that I will not have a garage to live in.

Silver up over 200% for the year botty, so all very good man

Hello,

yeah i agree Explod, plenty need to be deleted i reckon brother

me and a couple of others probably the only ones on track day after day after day

oh well

thankyou
professor robots

 

[explod]

hello,

the same Tax laws/rules apply to everybody, if you dont like NG on investments then dont borrow to invest, do something else with your life

once again its the minority groups trying to get their own way, plenty of affordable homes around everywhere,

i cant understand, why didnt I grow up in Toorak or South Yarra, like 40yrs ago anybody could of bought a joint in that place right?

thankyou
professor robots

Yes hindsighty is a great thing. Have a mate who brought a place at Armadale in Melbourne, just next to Toorak too, lovely old Victorian/federation, blue stone footings, you know the look, for $145,000 in 1976, today 3 million. But its just his home and its great.

So price does not matter. Do we perhaps need to take the investment bit right out of property. The direction of prices may alter a bit then. Nahh, too leftie for Botty.

Matter of fact a nice brick barn out the back where I could stay at a pinch Botty. Oops..., after a few reds I would trip into the swimming pool.

Smack me Mod, off topic nbow as well. Blame ole Conf's..

 

[medicowallet]

council rates, renovations, realestate agents, pest/building inspectors, bank fees, and a host of taxes, its keeping someone employed and churning money to local and state coffers.

Churning of internal money, none coming in from overseas.

Waste of our mining boom if there ever was one.


See what the argument is, is whether you are better off having a house "valued" at $600000 which does all what you say

Or one "valued" at $300000 which STILL does what you say

and $300000 invested in companies/infrastructure which makes more money for AUSTRALIA, and then, all of us.

Scrap negative gearing on everything.

 

[medicowallet]

Hello,

yeah i agree Explod, plenty need to be deleted i reckon brother

me and a couple of others probably the only ones on track day after day after day

oh well

thankyou
professor robots

On that note Robots.


What was the median increase in prices in Melbourne in the last quarter?

Thanks
Medicowallet

Sunshine, rainbows, periwinkles and bubbles.

 

[robots]

Churning of internal money, none coming in from overseas.

Waste of our mining boom if there ever was one.


See what the argument is, is whether you are better off having a house "valued" at $600000 which does all what you say

Or one "valued" at $300000 which STILL does what you say

and $300000 invested in companies/infrastructure which makes more money for AUSTRALIA, and then, all of us.

Scrap negative gearing on everything.

hello,

rubbish, the mining boom and these companies/infrastructure are infact costing people in the states of SA, VIC, NSW and Tasmania

the only benefit most get is via there super and with diversification the benefit is very very low

get on board the truth brother, yeah i own property in Qld and NSW

thankyou
professor robots

 

[Mr Z]

rubbish, the mining boom and these companies/infrastructure are infact costing people in the states of SA, VIC, NSW and Tasmania

Just spectacular.....!

 

[medicowallet]

hello,

rubbish, the mining boom and these companies/infrastructure are infact costing people in the states of SA, VIC, NSW and Tasmania

the only benefit most get is via there super and with diversification the benefit is very very low

get on board the truth brother, yeah i own property in Qld and NSW

thankyou
professor robots

All the more reason for investments to be made in those states, as opposed to locking it up in houses.

So you are saying that you prefer the money to be locked up in housing than to be invested in industries in SA, NSW, VIC and TAS?

Sounds like someone doesn't understand that property prices here are in a bubble.

My property is not negatively geared, so it doesn't bother me.

 

[MACCA350]

As I said INVESTMENT housing and INVESTMENT shares both right off the interest from the loans against the income they derive. If you want to cut one you have to cut the other. All investments are just that, investments, and should be treated the same tax wise.

And there's where we differ, you see it as it has become; a speculative investment, I see it as it has always been; a basic human need.

As far as I'm concerned losses in housing should be reduced from housing income either in that year or in the years to follow not from other income streams(ie salary). I am taxed as an "investor" not a "trader". Why, I gave up the ability to deduct losses against other income streams for the benefits of the 12 month 50% CGT reduction. Afaik housing has the benefit of both worlds.

So you're suggestion of "both right off the interest from the loans against the income they derive" is not quite accurate, if it were I wouldn't have an issue.

Cheers

 

[nunthewiser]

Tens of thousands of Perth homeowners who bought property at the top of the boom before the global financial crisis are facing big losses as the market goes through its worst period in almost two decades.

Special analysis of median house and land prices across the city reveals that people who bought at the peak of the market in late 2007 and early 2008 hoping to see their investment grow now hold "negative equity".

Once inflation is taken into account, a person who bought a median-priced block of land in Perth three years ago is at least $48,000 worse off, while someone who bought a median-priced house is down by almost $25,000.

The median price of a house sold in Perth grew 162 per cent between early 2002 and the end of 2010, while the median price of a residential block of land rose 182 per cent.

But all that growth was up to the peak of the market in late 2007.

Since then, the median price of a house has lifted just 3.2 per cent to $480,000, while for land it has fallen 9.4 per cent to $240,000.

However, this does not take into account movements in the inflation rate.

Between 2007 and 2010, overall prices in Perth have risen 8.7 per cent.

If house prices had kept pace with inflation, the median price would now be $505,000.

For someone who borrowed all the value of a median-priced home in Perth, that translates into a loss so far of $25,000 coupled with interest repayments of $75,000 over the past three years.

It is worse for people who have bought land.

If residential land had kept pace with inflation, an average block in Perth would now cost $288,000. That translates into a loss of $48,000, given the current median price.

http://au.news.yahoo.com/thewest/a/-/latest/9252224/owners-feel-the-pinch-as-prices-stall/

sunshine and lollipops homies

 

[moXJO]

Government intervention seems inevitable. Seems to have come a bit faster then I anticipated, opinion has changed and I believe we will now get the national house price drop everyone has been waiting for. Buyers (investors) will be holding off until there is confirmation of what the government intends to do. No doubt home buyers will wait to see if they can buy in at lower prices. And those with overleveraged portfolios would be looking to lighten their holdings. I do worry about those people that bought $500k+ homes two new cars, boat, holidays every year etc and have absolutely no savings at this point.
My main question is: what will government do, how long till we actually get details (the longer it takes to release the worse for the property market), and what will be the flow on effects in a skitterish economy.

Also people supporting wiping negative gearing off everything, does that include business that claim expenses from cost of doing business?

It's like the rise of the socialist investor mindset lately.

 

[c-unit]

Government intervention seems inevitable. Seems to have come a bit faster then I anticipated, opinion has changed and I believe we will now get the national house price drop everyone has been waiting for. Buyers (investors) will be holding off until there is confirmation of what the government intends to do. No doubt home buyers will wait to see if they can buy in at lower prices. And those with overleveraged portfolios would be looking to lighten their holdings. I do worry about those people that bought $500k+ homes two new cars, boat, holidays every year etc and have absolutely no savings at this point.
My main question is: what will government do, how long till we actually get details (the longer it takes to release the worse for the property market), and what will be the flow on effects in a skitterish economy.

Also people supporting wiping negative gearing off everything, does that include business that claim expenses from cost of doing business?

It's like the rise of the socialist investor mindset lately.

Why does the government need to intervene?

You act like property price falls are a bad thing. It is a great thing. Those that bought $500k houses, two cars, and have no savings, made their bed and now need to lie in it.

You mention the rise of the socialist investor mindset. Government intervention is itself a socialisation mechanism. You seem to be advocating the socialisation of losses from excessive consumption and debt build up?

 

[Glen48]

The feds will do the same as USA prop up house prices and the banks because they are more important than any other institution and use you super money as well, claiming the feds are looking after your retirement, sucker's will see this as a positive and vote for them in the next election until we have a tanking of house prices the fed's can't stop.. This will take years to play out house prices in USA are falling faster than ever before.
What happens in USA happens here about 5 yrs later.

 

[moXJO]

Why does the government need to intervene?

You act like property price falls are a bad thing. It is a great thing. Those that bought $500k houses, two cars, and have no savings, made their bed and now need to lie in it.

You mention the rise of the socialist investor mindset. Government intervention is itself a socialisation mechanism. You seem to be advocating the socialisation of losses from excessive consumption and debt build up?

The government doesn't need to intervene that's my point, but looks like it will anyway.
I'm all for price drops but let the market do its thing. Everyone on here seemed to be harping on house prices were dropping anyway.
I'm also a little worried about the rest of the economy if everyone suddenly has to take a loss or are underwater on loans. I would have thought we were already having an increase in savings and a lowering of debt at the moment. I wouldn't mind more detail from government announcements not extended uncertainty like the NBN or Carbon Tax.
I wouldn't trust this government to organize flies on $hit, so the less government tinkering the better. But I should wait on the details before getting ahead of myself.

 

[DB008]

I think that a fair number of people are also forgetting that in the good old US-of-A, your PPOR can be NG. Not here, only investment properties which make a loss can be NG. I think this makes our real estate markets slightly different.

DB80

 

[satanoperca]

Of cause our market is different in ways to the US but the same fundamental applies that causes price rises :

Availability and cost of credit.

And without doubt the govnuts will intervene if property drops, they have to as property is correlated to the health of the economy and unemployment. If property drops so does the economy and up goes unemployment.

Cheers

 

[drsmith]

The monster is shaking its cage.

http://www.theaustralian.com.au/bus...re-than-expected/story-e6frg916-1226045534262

 

[tech/a]

I think that a fair number of people are also forgetting that in the good old US-of-A, your PPOR can be NG. Not here, only investment properties which make a loss can be NG. I think this makes our real estate markets slightly different.

DB80

????
Just about every new home owner begins negatively geared.
Over time most IP's become positively geared.
In the US you pay capital gains on your PPOR and you can claim tax deductions on interest.
You can also give the keys back and walk away.

This constant comparison is as futile as the Property thread itself.
Fear is the driver of most comments here.
Few are actively involved and those that are arent frozen by fear or blinkered by optimism.
They handle the situation/s as they develop

 

[c-unit]

The government doesn't need to intervene that's my point, but looks like it will anyway.
I'm all for price drops but let the market do its thing. Everyone on here seemed to be harping on house prices were dropping anyway.
I'm also a little worried about the rest of the economy if everyone suddenly has to take a loss or are underwater on loans. I would have thought we were already having an increase in savings and a lowering of debt at the moment. I wouldn't mind more detail from government announcements not extended uncertainty like the NBN or Carbon Tax.
I wouldn't trust this government to organize flies on $hit, so the less government tinkering the better. But I should wait on the details before getting ahead of myself.

Ah I see, apologies I misread your post. Agreed about the rest of the economy. We are struggling badly. Already in recession (in my opinion).

Not sure they government will be able to intervene in housing even if they wanted to. They have backed themselves into a corner with their talk of surpluses and budget cuts. Not sure they will be able to fund another increase in the FHOG.

The GFC recession is still looming on Australia. Government stimulus essentially delayed the inevitable or kicked the can down the road for another 2 years. But we still have the same recession-inducing factors at play two years later. Unsustainable debt levels, dwindling productivity, affordability concerns, artificially high asset prices etc etc.

 

[tothemax6]

Why does the government need to intervene?
You act like property price falls are a bad thing. It is a great thing. Those that bought $500k houses, two cars, and have no savings, made their bed and now need to lie in it.

Damn straight.

There are crowds of people lining up, waiting for house prices to be affordable so they can finally commit to buying a home. The government should be releasing as much land for housing development as they possibly can, to at least balance out the crowding malais they are creating with their insane immigration policy.

I hope house prices plummet, I shall be the first at the auctions.

 

[IFocus]

http://au.news.yahoo.com/thewest/a/-/latest/9252224/owners-feel-the-pinch-as-prices-stall/

sunshine and lollipops homies

Seems everyone is eastern states focused Nun so I'll comment WA is taking a real hit yet we are in a boom state with 1000's pouring in every week surely this isn't possible? demand and supply.............BS