House prices to keep falling for years

[CamKawa]

I thought this was a serious forum where informed people discuss about shares and property.

But this guy is a clown, he just keep speculating and blafing without an end.

Moderators please keep up your game and exclude this type boring repetitive crap.

WBII

He has been discussed a few times before. I wouldn't hold your breath for the mods to suspend/delete his account. They do moderate some of his *really* ridiculous posts though. Maybe do what I have done and add him to your ignore list in the User CP.

 

[JackC]

If they did that the place would be empty.

Everyone knows St Kilda will defy the odds world wide and spiral upwards despite everything else going down, why just this morning I heard the British PM saying in an interview that if only Britain could follow the St Kilda model all would be well with their housing market, they figure if they can fill all the houses with helium that might help keep things up, but Gordon Brown was desperately trying to contact robots for the "secret" to defying gravity in a property crash.

Priceless

 

[Steve Austin]

I thought this was a serious forum where informed people discuss about shares and property.

But this guy is a clown, he just keep speculating and blafing without an end.

Moderators please keep up your game and exclude this type boring repetitive crap.

WBII

Couldnt agree more. This thread is becoming a disgrace to the forum. And there is even a thread about spam elsewhere - do the mods even know what spam is?

They must keep him here because the site gets paid or rated by clicks and posts no matter how retarded but its really bringing the place down. And it keeps lurkers land new people ike me away.

And st kilda is not going up. The miniscule 14 properties sold last quarter just happened to be worth more than those the previos quarter. St kilda is a hole and will be worth hole money one the debt giddyness wears off.

 

[nunthewiser]

Personally enjoys robots posts , always polite , always courteous , no abuse

hey if ST kilda flyin good luck to him , i think a few that like to abuse robots just a lil upset that they cant get a bite outta him

i do enjoy his one eyed views and reckon it provides a balanced view against those that like to slag of property investment on a daily basis too


pps , mr burns , your post was awesome

 

[cuttlefish]

Up until recently Robots lived on balmoral slopes didn't he? Bit of a move down to St Kilda there - things getting a bit tough?


On a more serious note, how have the bread and butter inner suburbs in places like london or new york, where there is nearly always high accomodation demand and limited supply, faired in the overall property slump in the UK and USA? How much have prices come down, what has happened to rents etc.

According to an article I read yesterday NSW housing approvals have slumped to levels not seen since WWII. This means little new supply in a state that typically scores a fair whack of the immigration intake - especially in Sydney. People have to live somewhere - what effect will this have on rentals - particulary combined with a flood of people selling and turning around to rent.

Also anyone got a view on what effect a weaker aussie dollar has on property prices, if any?

 

[nunthewiser]

Also anyone got a view on what effect a weaker aussie dollar has on property prices, if any?

makes it a darn sight more attractive to overseas buyers

 

[gfresh]

If they're not flat broke and out of a job...

Initially I found robots annoying, but now I find his rantings somewhat amusing, at least he is steadfast There does need to be some counter-arguments to all the d&g..

Nice and sunny on the GC and Brisbane, hard to be too depressed about the economy in a place such as this People in general are still positive in the sunshine state.

 

[MrBurns]

If they're not flat broke and out of a job...

Initially I found robots annoying, but now I find his rantings somewhat amusing, at least he is steadfast There does need to be some counter-arguments to all the d&g..

Nice and sunny on the GC and Brisbane, hard to be too depressed about the economy in a place such as this People in general are still positive in the sunshine state.

Yeah it's amazing what a bit of sunshine can do to your mood, it's dark here in Melbourne, just effects your mood.

I think robots is actually in Qld, he's always so bright and St Kilda is depressing, last time I was there many many years ago.

There must be a ray of sunshine that actually shines specifically on St Kilda and keeps the property values up, whoops I see storm clouds watch it robots.

 

[Pommiegranite]

Up until recently Robots lived on balmoral slopes didn't he? Bit of a move down to St Kilda there - things getting a bit tough?


On a more serious note, how have the bread and butter inner suburbs in places like london or new york, where there is nearly always high accomodation demand and limited supply, faired in the overall property slump in the UK and USA? How much have prices come down, what has happened to rents etc.

According to an article I read yesterday NSW housing approvals have slumped to levels not seen since WWII. This means little new supply in a state that typically scores a fair whack of the immigration intake - especially in Sydney. People have to live somewhere - what effect will this have on rentals - particulary combined with a flood of people selling and turning around to rent.

Also anyone got a view on what effect a weaker aussie dollar has on property prices, if any?

Cuttle,

The only thing that was increasing prices in the RE market was positive sentiment.

Now we are in a viscious cycle of bad economic data leading to doom and gloom in the public and businesses, which in turn leads to more bad economic data. This cycle will continue for at least a couple of years.

So you can forget, currencies, interest rates etc etc. Joe Public feeds on fear. Its best not to fight it and try picking a bottom.

Meanwhile....over in St Kilda, hookers are now offering 2 for the price of 1.

 

[gfresh]

Hookers are never out of work in Grey Street, guess that is why the values are holding up

Robots will have fun when he pops in at his usual time

 

[cuttlefish]

Cuttle,

The only thing that was increasing prices in the RE market was positive sentiment.

Now we are in a viscious cycle of bad economic data leading to doom and gloom in the public and businesses, which in turn leads to more bad economic data. This cycle will continue for at least a couple of years.

So you can forget, currencies, interest rates etc etc. Joe Public feeds on fear. Its best not to fight it and try picking a bottom.

Meanwhile....over in St Kilda, hookers are now offering 2 for the price of 1.

Sure, I'm just trying to get a balanced view on the amount prices could fall in these areas where there is typically high demand for accomodation and limited supply, and how much, if any, this might be counterbalanced by rental increases.

 

[Temjin]

It's funny that how his standard post reply template,

"Hello

......
....

Thank you"

have recently become more and more imitated by those who are looking to make sarcastic comments. It certainly does create a kind of mini-cultural revolution on this forum, and not necessary a bad thing either.

Regardless, I do give him the credit for keeping calm and not resort to abusive comments even after the gigantic amount of s--t we are giving him. Most would have given up already.

And sorry for the off-topic cos what I want to say in this thread has already been repeated a zillion times already. heh

 

[Pommiegranite]

Sure, I'm just trying to get a balanced view on the amount prices could fall in these areas where there is typically high demand for accomodation and limited supply, and how much, if any, this might be counterbalanced by rental increases.

House prices will fall 20-30% over the next 2-3 years.

My view is that rents will now stay stagnant for some time. There will be less pressure on landlords to increase rents due to falling costs. However, there is also a strong possibilty that we may even see some falls in rents depending on the unemployment situation, and net immigration falling.

Any increase in yields are more than offset by capital losses. Time in the market? NO. Timing the market is far more important in times such as these.

Home ownership will fall. The fear factor is growing so much that people would rather take a loss of a few hundred bucks a year renting than risking massive capital losses and high interest rates a couple of years down the track.

People are quickly realising that China is not the Goose and Australia is certainly not a golden egg. It will take years for confidence to be rebuilt.

Until then....tick....tick...tick

 

[Glen48]

MR. P.G.
My View is exactly the same as your view.

 

[nunthewiser]

The fear factor is growing so much that people would rather take a loss of a few hundred bucks a year renting

LOL where are u renting ? ....... even in the boondocks of tassy they still paying $200/week = $10,400/year

let alone what they paying me in geraldton , currently $300/week

bit more than a few hundred bucks a year to rent a place these days

 

[robots]

hello,

hey hey brothers, fantastic day here in Melbourne with plenty of rain coming through,

great opinion Pommie, who knows what will happen I certainly dont but I am in for the long haul,

the thing is we all still friends, through thick and thin, in the bunkers together

thankyou
robots

 

[Pommiegranite]

LOL where are u renting ? ....... even in the boondocks of tassy they still paying $200/week = $10,400/year

let alone what they paying me in geraldton , currently $300/week

bit more than a few hundred bucks a year to rent a place these days

LOL....reread my post. No one else seems to questioning it.

 

[Underpants Gnome]

House prices will fall 20-30% over the next 2-3 years.

My view is that rents will now stay stagnant for some time. There will be less pressure on landlords to increase rents due to falling costs. However, there is also a strong possibilty that we may even see some falls in rents depending on the unemployment situation, and net immigration falling.

My experience would indicate otherwise. I'm looking for a new place to rent in Brisbane and prices seem to have gone through the roof. The place I'm in now is increasing from $280/w to $310/w and the landlord has absolutely refused to negotiate, saying that it's in line with the current market.

I've been looking for a month now and $310/w is starting to look really good! This is for a 2br apartment in Toowong. Most places I've inspected have been 1br for $350+, both in the inner west as well as New Farm/Valley/Teneriffe.

I've talked to other people who's rent is increasing by much more - some by up to $80 or $90 a week!

This is anecdotal of course but I can't see anything to suggest rents will go down anytime soon. Happy to be proven wrong though

 

[nunthewiser]

LOL....reread my post. No one else seems to questioning it.

i did hence my quesrtion on where u living ? cupla hundred bucks a year in rent sounds great

 

[cuttlefish]

Whats Pommie's saying is that people will for example pay $700 a week rent in a place that they could be paying off the full loan for at $500 a week.

i.e. investors will have positive geared property from the outset because sentiment is so bad due to falling prices and low confidence that people would prefer to pay $200 a week more to rent vs buying, rather than risk taking a big loan for something that will fall in value.

I think that the scenario is likely but it usually comes about through both a combination of falling prices, fallilng interest rates and rising rents all working together - its not solely caused by the price falls alone. The balance varies depending on location.