The future of Australian property prices

[Miss Hale]

And here is the builder in question...The chat is this was almost an open secret.


http://www.afr.com/p/business/prope...luntary_administration_RVhBsSQQebaa0EzyYfIxyN

I heard about this on the radio this morning, the unions are blaming the Victorian state government for the failure of the project but I don't know the details as to why.

Another update form the land of rentals. We have been able to find a new place to rent after our current landlord decided to sell and the house was bought by owner occupiers rather than investors. The rent on the new place is 8% less than what we were previously paying and the property is larger and has a few extra features (namely a garage and airco). The only negative is that it is in a slightly less salubrious location (although that would be a debatable I think). It was on the market for over a month and we were the only applicants. Definitely a softening in the rental market IMO.

 

[Knobby22]

St Hilliers were in a PPP and tried to save money by not getting the prison doors manufactured in Australia but instead in China.

The doors were not of the right quality and didn't fit. They blew a fortune, hence they have gone broke on the project.

As it is a PPP it is the PPP that will wear it.

 

[numbercruncher]

About 75b wiped off the ASX so far this Month !


A few posters in this thread insisting that we just dont get it with Australian realestate because of the mining boom - BHP now supposedly scaling back its expansion plans as well....

Best we petition the RBA to drop interest rates to 0pc so we can revive some of our dead industries ? there is only about 7 tourists here on the Gold Coast - room for more !

 

[Glen48]

No reason to complain we are watching a depression forming and a part of history just like 1930 but our depression will be a lot worse.
Just like all the others and the ones to come in the next 80 odd years.

 

[numbercruncher]

No reason to complain we are watching a depression forming and a part of history just like 1930 but our depression will be a lot worse.
Just like all the others and the ones to come in the next 80 odd years.

Funny I think a depression would be wonderful for Australia - people can chill and have some family time for a while .... Trade in the Jetski for a fishing pole etc ....

It would be like ravage bush fire burning off the dead fuel load and undergrowth - imagine all the opportunity after the flames subside ....

 

[Glen48]

So true as long as you sell every thing now and be cashed up when the fire sale starts by then the Gold bubble should have popped so you can buy Q1 on the G/coast

 

[numbercruncher]

Seems our Chinese mates who according to a few posters in this thread are the bastion of Booming House prices via purchase of stuff out of the ground in the Pilbara are losing their appetite for Credit as well ....

1.40pm: Bit of news around about China, too, and it's hardly the bullish news many of us have taken for granted until lately.
China’s four biggest banks reported almost zero net new lending in the two weeks ended May 13, Shanghai Securities News reported today, citing unidentified people - as distributed by Bloomberg.
Two of the four lenders increased outstanding loans by less than 20 billion yuan ($3.2 billion), while the others posted drops as repayments exceeded new credit, the newspaper said.


Read more: http://www.smh.com.au/business/mark...ark-selloff-20120516-1ypuc.html#ixzz1v0lEQ7UK

 

[satanoperca]

The future is down down, prices are down.

From RPdata.

Melbourne qtr -1.49% yr/yr -7.17%

5 capital city aggregate qtr -1.03% yr/yr -5.00%

Still in correction stage, another 7% drop nationally and it could look very worrying to those holding large leveraged positions.

Also add, that I can see Melbourne dropping 5% this year due to the FHBG being removed and the large increase of supply of apartments over the coming year, coupled with that the trend still up on stock available on the market.

Good luck to all.

 

[young-gun]

About 75b wiped off the ASX so far this Month !


A few posters in this thread insisting that we just dont get it with Australian realestate because of the mining boom - BHP now supposedly scaling back its expansion plans as well....

Best we petition the RBA to drop interest rates to 0pc so we can revive some of our dead industries ? there is only about 7 tourists here on the Gold Coast - room for more !

ignorance is bliss

 

[MrBurns]

Funny I think a depression would be wonderful for Australia - people can chill and have some family time for a while .... Trade in the Jetski for a fishing pole etc ....

It would be like ravage bush fire burning off the dead fuel load and undergrowth - imagine all the opportunity after the flames subside ....

Would be great - Ch 9 would go broke along with that irritating P**** Eddie Maguire.
and Stefanovic AND Richard Wilkins...........would be great for Australian media.

 

[Julia]

Funny I think a depression would be wonderful for Australia - people can chill and have some family time for a while .... Trade in the Jetski for a fishing pole etc ....

It would be like ravage bush fire burning off the dead fuel load and undergrowth - imagine all the opportunity after the flames subside ....

I hope you're just being facetious. A depression would bring untold misery for hundreds of thousands of human beings.
Just think about how you'd go being on the unemployment benefit of around $230 p.w.
Do you really wish that on your fellow Australians, in addition to the many who are already thus living below the poverty line?

 

[DB008]

l'll start collecting egg cartons, empty PET bottles, food stamps, cardboard boxes.

I might even open a Soup Kitchen? They did good during the 1930's Depression in the States, did they?

 

[numbercruncher]

Funny enough I cant envision how people below the poverty line now could be much worse off during a Depression especially if the welfare state system we currently operate continues ?

It not like prices will rise on many products/services. ...

Of course an income of 230 a week wouldnt be easy but its not like an able person would starve to death in our land of plenty -

Yes I think a depression would be charactor building for everyone , might even motivate a few couch potatoes out there ...

Probably be good for the environment too ?

Lets keep an eye on Greece that might give us a heads up how it would play out ...

 

[MrBurns]

Lets keep an eye on Greece that might give us a heads up how it would play out ...

It already has, but it would be much worse than that.
There would be a run on the banks, funds locked up wholesale destruction of society as we know it, and violence and a lot of it as people steal and take out frustration on people with a few dollars, sell the Merc it wont be safe.

 

[Ves]

I hope you're just being facetious. A depression would bring untold misery for hundreds of thousands of human beings.
Just think about how you'd go being on the unemployment benefit of around $230 p.w.
Do you really wish that on your fellow Australians, in addition to the many who are already thus living below the poverty line?

I agree, most of the comments in this thread lately are laughable to say the least. Most people are all talk, you would do best to ignore them.

 

[Glen48]

The run on banks in Greece has already started according to B/BERG.
Well the ATM"S at leas they can refuse to refill the machines and slow it down a bit.

 

[numbercruncher]

So you all dont see the unsustainabilty of our current finacial system ? Forever the optimists ? Surely you have considered what if's ?

We have alot more wriggle room in Oz compared to many nations hey ... Interest rates , AUD value etc ... So maybe we will pop up smelling like roses again ?

 

[numbercruncher]

The run on banks in Greece has already started according to B/BERG.
Well the ATM"S at leas they can refuse to refill the machines and slow it down a bit.

Cool - bet they wished the had read Aussie Stock forums about the benefits of holding some physical precious metals hey ! Would of beat the ATM line ups....

They all might have Drachma? In accounts replacing their Euros soon perhaps ?.....

 

[DB008]

Cool - bet they wished the had read Aussie Stock forums about the benefits of holding some physical precious metals hey ! Would of beat the ATM line ups....

They all might have Drachma? In accounts replacing their Euros soon perhaps ?.....

And your solution?
Property - bad, going to worse....
Gold - dropping more....
Just sit on cash for the moment?

 

[numbercruncher]

And your solution?
Property - bad, going to worse....
Gold - dropping more....
Just sit on cash for the moment?

Not sure Danny - its nice to hear peoples strategy though hey .....

Me personally ? About half cash and no debt - im willing to change that as market forces or sentiment guide me though ....

Me thinks that inflating away the debt has to happen at some point - so prepared to leverage up when or if that eventuates ....

In the old days the financial Wizards would accuse me of having a lazy balance sheet , haha ....

But back to Aussie realestate it cant be worth it until we hit positive geared territory again ... And itll come some day ....