"I wish I had more time, but the clock was ticking," he said. "We might not have this opportunity again, so when I saw $42,000 was on offer I pushed it through."
"We weren't going to buy, but we probably will because of the grant," she said. "If it wasn't for the rush of the deadline I think we would have carried on renting for a year."
"I am 99 per cent sure we will sign tomorrow ”” I have to rush, you can make a lot with $26,000,"
Interesting chart from REIV.
http://data1.reiv.com.au/trendchart/default.aspx
It would seem that property prices can go down and are still trending down in Victoria from peak to end of 1st qtr 09 - 12.5% fall.
Don't tell anyone, it is different here in Oz.
Just waiting for the 1st qtr 09 stats from the ABS to get a clearer picture.
Cheers
It's called imputed valuation effect, it play nice in the bull market, it shall salvage in a bear market... what the hell is imputed valuation you may ask?
You see it first hand in the last 18 months in the stock market
Let me use housing as an example (apply to stock or business also), say your house you purchased for 300K and you rent out for 300 bucks a week and contract sign for 2 years.
couple months later a house down the road similar to your sell for $350K so you revalue your house and it came to 350K..wow awesome..I'm now 50K richer.... but what most people failed to understand is it's just imputed value, you haven't done a god dam thing, the rent hasn't increase, economy hasn't perform any better, people output or productivity hasn't increase.
but the sad thing is people then used that imputed value to borrow more to buy more imputed value assets (boom times) or take out and buy a new car and telling themselves this **** can go on forever, pretty damn easy to get rich this property investment stuff
so now your debt has increase as the result of the imputed valuation while productivity hasn't increase at all
now if imputed valuation can magically goes up so can it magically reverse into gear but the reverse is savage as people increase their debt based on imputed valuation during the good time and a domino effect has link all their assets into this imputed value...and banks hold all these assets in their hands as collateral...
let kick the reverse gear shall we because people losing job as a starting point.
so house down the street now sell for $330K, people revalue your property
to 330K, next house sell for $300K they revalue your property downward to $300K and once they do this a while, chaos kick in and banks who seize your asset due to job lost or over-commitment start to compete with other banks to get rid of the assets to safeguard further fall... all your imputed value assets now in a kaput and you are at the mercy of the banks.
No housing shortage or any other reason people come up with will stop this onslaught...and the ball on this onslaught has just start to roll
Happy investingand remember house price double every 7 years... so don't give up keep striking for that 10 properties in 2 year stuff...
"The first thing people do in a time like this is defer buying anything they don't have to, but if they have to make a purchase decision, they look at relative perceived value, rather than any aspirational element,"
"The bottom line is that if people are concerned about their employment prospects, no matter what sort of incentive you put in place, they are not going to buy a new car,"
hello,
just in case anyone missed the news the other day:
http://abs.gov.au/ausstats/abs@.nsf/mf/6416.0?OpenDocument
thankyou
singlefished
hello,
just in case anyone missed the news the other day:
http://abs.gov.au/ausstats/abs@.nsf/mf/6416.0?OpenDocument
thankyou
singlefished
Real estate analysts say a relatively small number of very expensive houses are being sold at big losses and this is skewing the national figures, despite strong demand from first-home buyers driven mainly by falling interest rates.
10 The ABS uses stratification to control for this 'compositional' effect by grouping (or 'clustering') houses according to a set of price determining characteristics. The finer the level of stratification available, the more similar or homogenous the cluster of houses will be. However, the finer the level of stratification, the fewer the property sales in the period. Therefore, the clusters defined have to balance the homogeneity of housing characteristics and the number of observations required to produce a reliable median price. The lowest level geographical classification that is commonly available across data sets is the suburb. Therefore, suburbs are the building blocks on which the clusters are based.
any thoughts on those results robots ? or are they just evil lies concocted by people with dire intentions ?
The ABS--have always focussed on just houses and ignored apartments, semis, terraces etc. So they are ignoring around 20% of the market. More recently, these homes have accounted for about 33% of all sales, so the ABS is missing one-third of the market.
I think the ABS is fine over long multi-year periods where the "noise/errors" in their estimates washout. But in the short-term you can get a lot of volatility.
Lancelot...the comments following the article are interesting too
Do you know RP Data are?And when we add in that extra 33% of sales I suppose the REAL figures would look something like this
Do you know RP Data are?
Well lets have a quick look.
RP Data have significant interests in the mortgage market through Rismark who received an award for "Mortgage Manager of the Year - 2009"
Could they be talking up their own book?
Yeah, whats your point?
When your car plays up do you get advice from a Mechanic or do you go to a dentist?
Sounds like you would go to a dentist
What?Yeah, whats your point?
When your car plays up do you get advice from a Mechanic or do you go to a dentist?
Sounds like you would go to a dentist
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