Australian (ASX) Stock Market Forum

The future of Australian property prices

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Mrmagoo said:
House prices are the CAUSE not a symptom ? Get it through your heads. Housing investment is a greed fueled evil which needs to be stamped out. Repeat after me - it is not the bankers it is housing investors ruining the world.
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ok, do u plan on legislating away human nature?
 
Mrmagoo said:
You guys had it handed to you. Julia got a 3% loan on her POPR during a time when prices were rock bottom and then they rose fast. Not hard to make a buck under those circumstances. All you needed was surplus income and a desire to invest.

Which is why you lot seem to think becoming wealth is just a matter of having the will to do so - because for your generation that is all that was required.
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:D So many assumptions there. Your conclusion might have been right had I stayed married. I didn't. He got it all, despite my input, so glad was I to escape. Try starting again from nothing in your mid 30's when interest rates were 18% on 1st mortgage and 22% for IPs.

orr said:
You do notice the implicit out come there for the 99% Techo . That's a voting block to keep in mind. Mind you a lot better odds than the Lotto, unless you believe the advertising.
Who was it that coined the phrase 'a queit life of despiration' Thoreau ?
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He said "Most men lead lives of quiet desperation". I fail to see the relevance in your addressing this to Tech, whose life seems to me anything but one of desperation.
 
orr said:
You do notice the implicit out come there for the 99% Techo . That's a voting block to keep in mind. Mind you a lot better odds than the Lotto, unless you believe the advertising.
Who was it that coined the phrase 'a queit life of despiration' Thoreau ?
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Your limiting your observation to the topic at hand.

Widen your view and youll note.

(1) The Tech Boom
(2) The 2000-2008 Bull Market.
(3) Gold $250/oz to $1700
(4) The Aussi $ 50C to $1.10
(5) The crash of 2008 (Short!).
(6) Oil $40 a barrel to $125.
(7) Mining boom.
(8) Housing boom of the late 90s early 2000


In the next 30 yrs you'll see many many many more opportunities
just like these. Get one right with enough on it and youll change you life
Financially.

whose life seems to me anything but one of desperation.
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Clearly you've not seen my golf swing!
 
Julia said:
Try starting again from nothing in your mid 30's when interest rates were 18% on 1st mortgage and 22% for IPs.
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While interest rates were higher, the price of property was much lower, and has been shown previously, the level of income devoted to mortgage repayments now are much higher than when you got to buy.

People need to stop using the past to justify investment in housing NOW.

Australian households CAN'T triple their debt levels again.

Australians HAVE gone back to their historical level of saving 10% of their income.

House prices CAN'T increase faster than wages growth unless you can encourage people to save less. I would say we're a good decade away from people feeling that comfortable to go on a debt binge again.

It's not relevant that you've got a mortgage free IP or primary residence, or both. What is relevant is what can realistically occur going forward, and as yet I've not seen any evidence to show that house prices in general can take off again. If anything, lower interest rates are making people more scared and more likely to save than to go out and borrow.

Hands up anyone who knows someone with a home loan who has decreased their repayments due to lower interest rates? None of my friends have done this. Everyone I know who has debt is keenly focused on repaying it as fast as they can now.
 
Hands up anyone who knows someone with a home loan who has decreased their repayments due to lower interest rates? None of my friends have done this. Everyone I know who has debt is keenly focused on repaying it as fast as they can now.
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Anyone who cant get more than 6% on their money would be best advised to do that.
Those who can would be Crazy!!
 
tech/a said:
Your limiting your observation to the topic at hand.

Widen your view and youll note.

(1) The Tech Boom
(2) The 2000-2008 Bull Market.
(3) Gold $250/oz to $1700
(4) The Aussi $ 50C to $1.10
(5) The crash of 2008 (Short!).
(6) Oil $40 a barrel to $125.
(7) Mining boom.
(8) Housing boom of the late 90s early 2000


In the next 30 yrs you'll see many many many more opportunities
just like these. Get one right with enough on it and youll change you life
Financially.



Clearly you've not seen my golf swing!
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We are discussing the future of house prices. If this was a thread on what could provide the best investment return over the next 20-30 years, then sure, I'd agree to open the field of options, but it become a bit irrelevant for someone who's trying to decide if they should get out of a current property, or to newly buy in.

As for you 20:20 hindsight view of the markets, how many did you pick, how many did anyone pick?

The markets ain't rational, it's just a herd game and the ones who can spot the change in herd direction earliest tend to do best.
 
sydboy007 said:
We are discussing the future of house prices. If this was a thread on what could provide the best investment return over the next 20-30 years, then sure, I'd agree to open the field of options, but it become a bit irrelevant for someone who's trying to decide if they should get out of a current property, or to newly buy in.

As for you 20:20 hindsight view of the markets, how many did you pick, how many did anyone pick?

The markets ain't rational, it's just a herd game and the ones who can spot the change in herd direction earliest tend to do best.
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Tech's just pointing out the choices of the 1%, off the topic at hand, as he warned.

But geez it's easy looking back.....

To topic, I'm getting in! But it will depend on location. Like the share market different sectors find their bottoms at different times. Staying well clear of that herd for now, one day the herd will return in my favour for growth but I maybe an old man!
 
sydboy007 said:
Hands up anyone who knows someone with a home loan who has decreased their repayments due to lower interest rates? None of my friends have done this. Everyone I know who has debt is keenly focused on repaying it as fast as they can now.
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The above example even has a name. "The Paradox-of-Thrift". Not much good for the economy!
http://www.wisegeek.com/what-is-the-paradox-of-thrift.htm

Further more to : the lower the interest rate the more one can pay off their loan..... The lower the interest rate the less someone gets from a return of a term deposit, so they don't spend it anymore. It's a transfer directly from the loss of ones term deposit to the loan holder at the economies expense. (+1 to the young?)

Your point is ageed to by many, property isn't likely to take off anytime soon!
 
MR. said:
The above example even has a name. "The Paradox-of-Thrift". Not much good for the economy!
http://www.wisegeek.com/what-is-the-paradox-of-thrift.htm

Further more to : the lower the interest rate the more one can pay off their loan..... The lower the interest rate the less someone gets from a return of a term deposit, so they don't spend it anymore. It's a transfer directly from the loss of ones term deposit to the loan holder at the economies expense. (+1 to the young?)

Your point is ageed to by many, property isn't likely to take off anytime soon!
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Yup, the Europeans are facing the paradox of thrift wall, and if unemployment goes up much in Australia we'll be facing it here too with all levels of Govt trying to save along with the private sector. Where will demand come from?

Still the news papers are filled with reports on suburbs cheaper to buy than rent, property spruikers telling all and sundry that it's never been a better time to buy, and too many people focusing on the boom time where Australians went into negative savings territory and somehow think that can be repeated again.

I'd love to know how many boomers have negatively property, and how much they'd have to top up their loans to get to break even point. I just can't help but think that if house prices in general stagnate or slowly decline, how logn can these people wear the losses before they start to sell up. maybe sell day will happen when either side of politics decides to force retirees to take the majority of their super as an annuity rather than a lump sum that can be used to pay off private debt.
 
With Europe - trying to compare Apples and Apples ain't gonna work. There are soooooo many variables, it's really hard to compare.

  • Minimum wage
  • Cost of living
  • Tax rates, laws and loopholes, etc etc...
  • Cost of utilities (when we don't even have nuclear)



MINIMUM MONTHLY WAGES IN EUROPE


http://en.wikipedia.org/wiki/List_of_minimum_wages_by_country

Germany - No statutory minimum wage, except for construction workers, electrical workers, janitors, roofers, painters, and letter carriers. Minimum wage is often set by collective bargaining agreements in other sectors of the economy and enforceable by law[13]
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Greece - €586 a month
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Hungary - 98,000 Hungarian forint per month Firefox.png
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Per Month....FARK...I make more per week....seriously.....
 
I have recently purchased a small 2 bedroom unit of about 58 sq, still under construction and purchased off the plan on vendor finance, paying it off over 11 months so that the final payment will coincide with hand over, 7 months to go.

Capital city southern suburbs location, 4th floor of a 6 story building, On site security with 3 pools and a gym, water views with a train station and supermarket less than 700 meters away...overall happy to be getting back into the real estate market.

Bargain basement price too. ;)
 
moXJO said:
Do you live in Philippines now So_Cyn?
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No just visit twice a year.

moXJO said:
I like the idea of moving to an Asian country on the cheap.
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The Philippines is about as cheap as it gets...they have the cheapest retirement visa program.

http://www.pra.gov.ph/main/retiree/active?page=1

Planning on moving there in 3 or 4 years time, taking early retirement and living off my own money until the super kicks in come 2021...bought the unit because it was just so cheap (46K) and i liked the idea of getting the big real estate purchase out of the way and sort of committing to my plans.

--------------

prawn_86 said:
So there are no foreign ownership laws in Philipines?
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Foreigners cannot own land at all, but can own apartments where the project land is owned by a Filipino legal entity.

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CanOz said:
SC, well done!

We'll be purchasing a Condo in Thailand this year.

CanOz
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Nice work, BKK or Pattaya?
 
So_Cynical said:
No just visit twice a year.



The Philippines is about as cheap as it gets...they have the cheapest retirement visa program.

http://www.pra.gov.ph/main/retiree/active?page=1

Planning on moving there in 3 or 4 years time, taking early retirement and living off my own money until the super kicks in come 2021...bought the unit because it was just so cheap (46K) and i liked the idea of getting the big real estate purchase out of the way and sort of committing to my plans.

--------------



Foreigners cannot own land at all, but can own apartments where the project land is owned by a Filipino legal entity.

--------------
Click to expand...


Well done So cyn, looks like you have the plan down pat.
I like the idea, might have to lose the wife though:D
 

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