Recent content by joeyr46

Could be a knife edge

Joey would you do me a favour and have a look at this past post. Although this chart is only "volumes of sales" we can see the volume change with interest rate changes. Volume has to have an impact on prices at some stage. It's my graph and it's how I concluded to my opinion...

OK so you moved out of St Kilda

I never said they have no effect on the economy. House prices are not the economy just a small part of it. IMO House prices are no different to any other auction type market where buyers and sellers enter into agreements with (lets call them fundamentals) data that is not necessarily accurate...

Low interest rates are not the cause of rising house prices they were low for years before the 70's and house prices were relatively stable. Interest rates in Japan have been low for a couple of decades and house prices have been falling It is true that low interest rates allow us to borrow...

I may have missed some posts but so far I havn't seen anyone say why house prices will fall regardless of gearing. Once a house has been bought it has no real bearing on where prices go in the future (Bear with me I know we use last sale price as a guide for the next house price that is similar...

Does that mean the GBP has halved every 7 years

I cant see how we have had a black swan event as everything that has happened so far is simple economics and not unexpected consequences.

A I said land value . Right in the middle of town Always has higher land value and yes original condition if it has been kept in good condition has a definite appeal but many of the features if they need replacing will cost a lot more than $5000 unless or sometimes even if you do the work...

That really only applies for businesses not your personal home or car. Sure they depreciate but you have to save the difference or borrow the difference when you replace. And yes houses (homes) depreciate but we spend lots of money lavishing new kitchens, bathrooms etc on them but don't count...

Agreed property is an asset but a home is a consumption item just like your car boat or furniture and yes they do have a value and when you go to a bank you can put them in the asset column I guess it depends on your description of asset or consumption items, I suspect we'll have to agree to...

Why is a home clearly an asset I would have classed it as a consumption item, A 2nd house would be an asset,but the first house is just like your car (there for your use). Cash is an asset until you use it and of course you can raise cash against the house then the house becomes a liability...

So number of loans is down, total value of loans is down but dont worry the market is going to keep on going up. Simple its Supply/ Demand No supply plenty of demand will drive prices up as the bulls keep saying 2004 or there abouts I can remember looking in the local RE office and there...

I agree I don't think interest rates will be the cause of the coming correction, just the fact we have too much debt. Of course we can go on a bit longer but judging by the mainstream media stories on property it feels like a major top. Can't remember this many stories in papers and current...

The question then becomes "Are houses safe?"