House prices to keep falling for years

[robots]

When did that occur to you?

What is more bizzare is people trying to argue with him in full sentences .

hello,

how soon people forget the great teachings of our dearly departed colonel of ASF,

its dicsussion and debate, dont get upset or defensive man, its opinion

we all walk out as friends man

thankyou
robots

 

[chops_a_must]

hello,

good cop it on the chin brother,

on the 7.30 report a fantastic segment about how pensioners are living together,

so why cant they rent a place?

great to see people recognize the boom is surviving

thankyou
robots

Because a) students are smarter than paying obscene amounts in rent, b) no-one (or next to no-one) is actually prepared to rent anything out to young people or c) thrift.

And so Pensioners should share house. Young people and students have been doing it for eons.

When did that occur to you?

What is more bizzare is people trying to argue with him in full sentences .

Lol.

 

[robots]

hello,

obscene rents? how can that be, pepp's is continually informing us rents are cheap as chips

the excuse page is mighty long now

thankyou
robots

 

[pepperoni]

hello,

how soon people forget the great teachings of our dearly departed colonel of ASF,

its dicsussion and debate, dont get upset or defensive man, its opinion

we all walk out as friends man

thankyou
robots

There is debating and then there is trolling for attention.

You believe the lies you post just as much as you believe that you are my neighbour.

And no its not personal just saying it how it is .... or "keeping it real" in your lingo.

 

[chops_a_must]

obscene rents? how can that be, pepp's is continually informing us rents are cheap as chips

In terms of what?

Compared to the price of the house, they are. Compared to wages and as a percentage of the cost of living, they certainly aren't.

That's the problem.

 

[pepperoni]

Compared to the price of the house, they are. Compared to wages and as a percentage of the cost of living, they certainly aren't.

Good point and well put.

Im only saying its cheap compared to the price of the houses (ie 3% return or less) but by international standards the houses themselves are overpriced.

It would certainly explain all the stagnant rental properties and discounts Im seeing.

 

[Beej]

News reports were of auction clearance rate of 50%.

Well I posted a link with the ACTUAL results, all listed individually. Says 55% and shows good volume with 150 sold.

Most importantly there were far fewer people than expected. Only person at a few viewings and maybe 5 groups though a first week prime listing. To put that in context I had 30 groups through my last property first week during the good old days.

I had one of mine open today (selling to fund next purchase), only been advertised on internet for 2 days and no other advertising as yet - 21 groups through already, one contract already requested. Trust me I won't be selling for a low price (I'll just hold it if that happens), but all indications so far are that I will get a good price and therefore will be selling.

I think you are playing in the most depresseed segment of the market Pepperoni - but I guarantee you it won't last for too long, I've seen it all before.....

Anyway, I'm just providing some facts here - I've made my views clear before and I'm currently acting based upon them. I've certainly given up trying to make any money from the stock market at the moment

Cheers,

Beej

 

[singlefished]

House, unit sales plummet in Qld

Saturday October 11, 2008, 6:08 pm




There has been a 40 per cent slump in house and units sales in Queensland.

Tim Lawless from RP Data says there were more than 48,000 transactions to June compared with 80,000 for the corresponding period last year.

He says it is uncertain times with the global financial crisis.

"With the decrease in volumes the prices in the short term won't do very much," he said.

"But certainly once there are some signs the worst is behind us in terms of the global crisis and some confidence returns."

Dan Molloy from the Real Estate Institute of Queensland says there has been a levelling out of price growth in the last six months.

"The movement, not just by the Reserve Bank as far as upward pressure on interest rates, but also the banks earlier this year acting independently of the Reserve, that really bit into the market and consequently had this really significant impact on the volume of sales," he said.


http://au.biz.yahoo.com/081011/31/1zrhs.html



The volumes quoted are only to June and I'm guessing the volume would have dropped off even more since then. Not been too much increase in the number of new landed properties coming onto the market either, especially on the north side (where I'm looking to buy).

 

[pepperoni]

Well I posted a link with the ACTUAL results, all listed individually. Says 55% and shows good volume with 150 sold.



I had one of mine open today (selling to fund next purchase), only been advertised on internet for 2 days and no other advertising as yet - 21 groups through already, one contract already requested. Trust me I won't be selling for a low price (I'll just hold it if that happens), but all indications so far are that I will get a good price and therefore will be selling.

I think you are playing in the most depresseed segment of the market Pepperoni - but I guarantee you it won't last for too long, I've seen it all before.....

Anyway, I'm just providing some facts here - I've made my views clear before and I'm currently acting based upon them. I've certainly given up trying to make any money from the stock market at the moment

Cheers,

Beej

Your link shows reported not actual clearance ... including withdrawn properties Im confident its well under 50% ATM.

You have a biased view as you wish to iminently sell. I can guarantee it will get much worse at some time.

21 groups is good but you will either meet the market (ie sell in 6 weeks for best offer) or not sell for eons.

And internet ads only = poor market ... a few extra K advertising can mean tens of Ks sale price.

Or maybe not, but these are the real nuts and bolts of banking (as opposed to dreaming about) property profits.

Make sure to factor in those transaction costs, and interest costs. Then factor in the opportunity cost of not investing your money a 6%-8%.

Ill even spot you your time running around after the properties which even at $10 an hour is alot.

Then we can talk about profits. :shake:

 

[pepperoni]

House, unit sales plummet in Qld

Saturday October 11, 2008, 6:08 pm




There has been a 40 per cent slump in house and units sales in Queensland.

Tim Lawless from RP Data says there were more than 48,000 transactions to June compared with 80,000 for the corresponding period last year.

He says it is uncertain times with the global financial crisis.

"With the decrease in volumes the prices in the short term won't do very much," he said.

"But certainly once there are some signs the worst is behind us in terms of the global crisis and some confidence returns."

Dan Molloy from the Real Estate Institute of Queensland says there has been a levelling out of price growth in the last six months.

"The movement, not just by the Reserve Bank as far as upward pressure on interest rates, but also the banks earlier this year acting independently of the Reserve, that really bit into the market and consequently had this really significant impact on the volume of sales," he said.


http://au.biz.yahoo.com/081011/31/1zrhs.html



The volumes quoted are only to June and I'm guessing the volume would have dropped off even more since then. Not been too much increase in the number of new landed properties coming onto the market either, especially on the north side (where I'm looking to buy).

Same in syd.

In reality the world is running out of suckers that think 30 year stretch mortgages are a good idea.

I know 15 year olds that can work this out ...The pyramid scheme is collapsing and its all downhill from here.

 

[Beej]

21 groups is good but you will either meet the market (ie sell in 6 weeks for best offer) or not sell for eons.

And internet ads only = poor market ... a few extra K advertising can mean tens of Ks sale price.

The internet ad is just the first phase - the marketing campaign goes into full swing from this week. I will sell (or not) by Nov 8th as that's the auction date; if my expectation and the market do not meet then I will not be selling, and I don't have to, so no languishing for me. I think I will be selling though - I've been researching and watching the market in this area closely lately and of course also for many years - I know it pretty well and I know what is happenning right now.

Or maybe not, but these are the real nuts and bolts of banking (as opposed to dreaming about) property profits.

Make sure to factor in those transaction costs, and interest costs. Then factor in the opportunity cost of not investing your money a 6%-8%.

Ill even spot you your time running around after the properties which even at $10 an hour is alot.

Then we can talk about profits. :shake:

You are telling me how to suck eggs - I've been in the game directly for nearly 20 years now. My current plans have more to do with personal lifesyle choices than chasing profits - more about chasing opportunity. Inflation protection and potential profit is just icing on the cake.

Cheers,

Beej

 

[pepperoni]

The internet ad is just the first phase - the marketing campaign goes into full swing from this week. I will sell (or not) by Nov 8th as that's the auction date; if my expectation and the market do not meet then I will not be selling,

In which case you add that good money to your already enormous transaction costs.

But this is a mistake ... you either get comfortable with meeting the market at the lowest price it may offer (requires taking off the rosy glasses) or dont put up for sale.

Ive been in the market for over 10, have built and renoed, and have the $$$ to prove I know exactly how it works.

 

[theasxgorilla]

But this is a mistake ... you either get comfortable with meeting the market at the lowest price it may offer (requires taking off the rosy glasses) or dont put up for sale.

Ive been in the market for over 10, have built and renoed, and have the $$$ to prove I know exactly how it works.

I could say the same things Peps, and in my case staring the market down has worked. I've got the asset, they (the market) haven't got the money...the problem is theirs.

It's simple sales theory...if your prospect wants/needs what you're selling but can't afford it, they're not a good prospect, don't waste time and move along. Selling is a numbers game.

 

[theasxgorilla]

Or maybe not, but these are the real nuts and bolts of banking (as opposed to dreaming about) property profits.

Make sure to factor in those transaction costs, and interest costs. Then factor in the opportunity cost of not investing your money a 6%-8%.

Ill even spot you your time running around after the properties which even at $10 an hour is alot.

Then we can talk about profits. :shake:

As usual pepperoni what you say is 100% accurate.

The thing is that most people, when they factor in their net hourly rate from wages it's usually much, much lower than the gross rate that they boast about to all their friends. I'm not just talking about taxes either...I'm talking about all the time and money that people spend just to front up each day and cope with having a job.

For some reason the people who do all this inefficient leg work and pay all these transaction and holding costs still seem to come out on top of the social scale eventually.

And lets also face it, some people get as much of a kick out of doing all this inefficient leg work as the property bears on this thread get out of trying to kick the bulls when they're down. I love chasing, evaluating, transacting, living in and improving property...LOVE IT!

 

[CamKawa]

This is a fairly flat report on the Melbourne property market. I laughed when I read this "Among the sluggish results yesterday, the auction of a four-bedroom house in Frankston South was cancelled after only a handful of neighbours turned up."
Source: Credit crisis douses bidders' confidence

 

[CamKawa]

The Age has quite clearly forgotten who is advertisers are with this little ripper.

"THE property market yesterday endured one of its worst days this year as buyers — stunned by the global sharemarket meltdown and growing fears of a local recession — decided their best bet was to hang on to their cash."
Source: Bad day for house sales as jitters spread

If I was Enzo I'd be on the phone straight away!

 

[pepperoni]

Not really surprising with the credit and stock market woes eroding peoples ability to pay (not to mention confidence).

Even land banking will take a hit if K Rudd can work out that he needs to gtee bank deposits.

Judging from dhukkas credit charts it will take a miracle for the rest of the year do any better.

 

[Glen48]

Ch 7 news did a report on 1 house which was sold for 680K some Bronco player did the business the other houses are still for sale.
The next problem will be when pensioner start selling for what ever they can get to buy food and flood the market.
The next boom will be the parasites moving in with deals for pensioners to use their homes equity for money to survive.

 

[Mofra]

The next boom will be the parasites moving in with deals for pensioners to use their homes equity for money to survive.

Seniors equity loans - 30-35% LVR max lends (dependant on age), interest capitalises, property is sold upon death with funds taken from the estate to cover the mortgage & costs. All ther banks and a number of NBLs offer them, and I wont argue the merits of the term "parasites" as both sides of the fence could raise some valid points there

Proportionally they are highly profitable for lenders (and the interest rates are usually higher than standard mortgages, so margins are protected) however the market is winding back so the peak in this type of lending appears to have passed.

 

[robots]

hello,

I hope people enjoy this article:

http://www.theage.com.au/national/b...-as-market-crumbles-20081011-4ysl.html?page=2

have a great evening

thankyou
robots