Australian (ASX) Stock Market Forum

House prices to keep rising for years

Status
Not open for further replies.
Jump to new
pepperoni said:
They have had the throttle wide open for a decade and now its a case of "**** is there enough space to stop before the end of the road"?

Other countries with more history (eg france) protect renters more in recognition that housing speculation and volatility is not desirable.

Other countries seem to accept concepts of $/sqm for residential property. In aus its $/wow factor and million dollar views.
Click to expand...

Well, with all due respect it made you wealthy...and has put me in a not too bad position either. Much of the country wanted it this way.

I must admit though, the coutries with more socialised housing policies like the Netherlands, Sweden and France have been a real eye opener to me. If you tell people you've bought a property their initial response is either, "you're moving" or "a summer holiday house"? If you tell them you've bought a block of 4 apartments they ask, "what should you do with the other 3, you can only live in 1?".
 
Macquack said:
It appears Sydney's Northern Beaches real estate has not crashed as much as you would have liked.

Being a "token multi-millionaire" does not buy you much on the "insular peninsula".
Click to expand...

Bah .. a waterfront on "yachtsmans paradise" passed in a few weeks back ad was listed for 1.85m. With over 2m real money (ie cash) and normal borrowing levels I could buy the whole peninsular ... if I wanted to spend 2 hours each day battling to and from casa paradiso on balmoral slopes.

Speaking of multi millions, ill bet them all that mac quack refers to the pet duck out the back of you maquarie fields home and has nothing to do with PHDs or mac bank haha.

Sorry but with that level of polish if you work at mac bank robots is the ceo. :D
 
nioka said:
I agree there are places to rent that seem a bargain but in years to come a renter ends up with nothing, owners have paid off their place and inflation makes them rich (richer).
Click to expand...

Sorry, but I am JUST amazed when you put out the claim that "inflation makes them richer".

There is one exception though, you can try asking the poor billionaires in Zimbabwe. :) Inflation does not make anyone rich, it is a hidden tax from the government and everyone will become worst off.

While house prices do increase nominally over the "very" long term, it only ever traces with average inflation/wage growth. If your definition that inflation would make them richer, then you better pray that we should experience a hyperinflation and make everyone own a trillion dollar house.
 
theasxgorilla said:
Well, with all due respect it made you wealthy...and has put me in a not too bad position either. Much of the country wanted it this way.

I must admit though, the coutries with more socialised housing policies like the Netherlands, Sweden and France have been a real eye opener to me. If you tell people you've bought a property their initial response is either, "you're moving" or "a summer holiday house"? If you tell them you've bought a block of 4 apartments they ask, "what should you do with the other 3, you can only live in 1?".
Click to expand...

Agree ... but id rather be doing just ok in a country with a healthy stable property market. As it stands im looking to leave for saner shores.

Interesting about the countries you mention .... other end of the spectrum from aus but much healthier imo.
 
Temjin said:
Sorry, but I am JUST amazed when you put out the claim that "inflation makes them richer".

There is one exception though, you can try asking the poor billionaires in Zimbabwe. :) Inflation does not make anyone rich, it is a hidden tax from the government and everyone will become worst off.

While house prices do increase nominally over the "very" long term, it only ever traces with average inflation/wage growth. If your definition that inflation would make them richer, then you better pray that we should experience a hyperinflation and make everyone own a trillion dollar house.
Click to expand...

Well said ... We could end the thread here if the denialists understood this.
 
pepperoni said:
Interesting about the countries you mention .... other end of the spectrum from aus but much healthier imo.
Click to expand...

Tell me about it. Research article from Danske Bank this week about the Swedish housing market suggests its bound for the same territory as the US/UK, Spain, Ireland. I was suprised to see them quote a stat claiming that mortgage costs for new mortgages as a percentage of disposable income had surged in the last two years. It was estimated to now be around 13%, up from 7.9% in 2006.

What do they let you finance yourself up to now in Aust, 40%???
 
Temjin said:
Sorry, but I am JUST amazed when you put out the claim that "inflation makes them richer".

There is one exception though, you can try asking the poor billionaires in Zimbabwe. :) Inflation does not make anyone rich, it is a hidden tax from the government and everyone will become worst off.

While house prices do increase nominally over the "very" long term, it only ever traces with average inflation/wage growth. If your definition that inflation would make them richer, then you better pray that we should experience a hyperinflation and make everyone own a trillion dollar house.
Click to expand...

hello,

dont buy then, simple and invest/spend whatever you like,

like pepperoni who wants to end the thread we could end it on this as well,

if cant afford or dont want to buy then dont you have the choice

rent a 1-bed, rent a mansion, rent a bus whatever

but we all know its not truely about this thou, its all about the little guy, the battler, the poverty pack and how they can take from the rich (or the system)

thankyou

robots
 
noirua said:
Wasn't the guy on the right nearly Prime Minister once? Seems to talk very sensibly for a politician and due to his relaxed demeanour I doubt he's one anymore?
Click to expand...
Yes, Michael Portillo. Was shadow Chancellor and challenged Hague for the Tory leadership. Did not stand at the last election.

He's still involved with the Tories, but not as MP.
 
Is there a problem with the volume on that, or am I supposed to read their lips?

Or is my computer kaput?
 
kennas said:
Is there a problem with the volume on that, or am I supposed to read their lips?

Or is my computer kaput?
Click to expand...
No volume is fine...must be your end... ummm you know, your computer.:eek:

Sorry.
 
From yesterday's WA business news. Isn't WA the recession proof state? Enjoy:

Perth houses prices drop $30,000 - 11 Jul, 06:45am

The median house price in Perth has fallen $30,000 down to around $446,000 in the past six months and the rental vacancy has returned to normal for the first time in several years, according to the data released today by the Real Estate Institute of WA.

Data released today by the Real Estate Institute of Western Australia show that the Perth median
house price has dropped a further $14,000 since March, while the rental vacancy rate has returned
to normal for the first time in several years.

REIWA's preliminary results for the June quarter show a 3 per cent fall in median price, pulling the
metropolitan median down from $460,000 in March to around $446,000.

This follows the median price having peaked at the end of last year at $475,000.
REIWA President Rob Druitt said the post-boom market was still correcting but had now been hit by
the weaker consumer confidence in the overall economy, interest rate uncertainty and petrol
prices.

"Perth has experienced an overall slump of almost $30,000 in the median price since the beginning
of this year, and the June quarter shows that this slump is found right across the metropolitan area
and also that the regions have gone backwards a little too," Mr Druitt said.
REIWA data for June show that Mandurah dropped by 7 per cent, Greater Bunbury by 7 per cent,
Geraldton-Greenough by 9 per cent and Kalgoorlie by around 5 per cent.

Mr Druitt said the large number of properties for sale punctured the myth of a housing shortage.
"In WA we have a situation of oversupply - not a problem with undersupply, and this is due to the
strength of building activity between 2001 and 2007," he said.

There were 17,200 properties on the market in June (down 2 per cent on March), including 2,450
blocks of land.

Mr Druitt said the once tight vacancy rate for tenants had now returned to normal, with REIWA
recording a comfortable 3 per cent vacancy rate, illustrating many new properties had flooded into
the rental system as investor/owners now found it a difficult time to sell.
"For the first time in several years tenants should now find it much easier to find a suitable home.

There is much more stock available and much more competition amongst owners to secure good
tenants.

"However, rents did increase a little in the June quarter, lifting by $10 per week for houses to a
median of $350 per week, while units rose by $10 per week to a median of $320 per week," Mr
Druitt said.

"Given the large number of properties now being passed over into the rental system, it is
reasonable to expect that rental price growth will ease in the latter part of the year.

"Landlords need to be mindful of the changing conditions and not to price themselves out of the
market," Mr Druitt said.

The oversupply of housing is not restricted to the Perth market with both Mandurah and Bunbury
recording high stocks of listings along with healthy vacancy rates which have contributed to no
movement in rents in these regions during June.
 
Interesting.. prices are plummeting in Perth, and rental vacancies soar from less than 1% to more than 3%.

That's not supposed to happen. What happened to the housing shortage? :D
 
Stay clear of any lender who is involved in buy to let. Bradford and Bingley, UK Bank, is on its knees now. Many more associated companies are likely to follow. What's happening in Perth is the same as the UK not all that long ago, it will almost certainly suddenly reverse.
 
xao: exactly.. what I was saying a couple of pages back. Investors have two choices right now with very few buying - sell at a lower price, or rent it out. There's going to be thousands of further rental properties magically coming up in most areas. This is going to completely take off any upward pressure on rents.

The talked about 30% rent increase across the board in the next 3 years is just hype. It'll increase at maybe slightly above the rate of inflation, so around 15%. As the chart a couple of pages back indicates - real adjusted rent has stayed remarkably flat for 30 years.

I think it's already starting to happen on the gold coast, having a look, and lots more suitable options than even 12 months ago. All good :)
 
pepperoni said:
Nice work .. Im renting a $5m house on one of the best streets on balmoral slopes. 300m to beach, 4 bend, 2 car remote garage, big island kitchen, floor boards, lawnmowing and 3m ceilings for 750 a week.

My missus chucks in 250 a week so she can lay claim to 90% of the house ha ha.

I shake my head ... the property is free falling and the capital could be invested for almost $8k a week interest.

Im no expert but it doesn't add up ... Not my problem though ... Ill happily live in australias most exy real estate for chickenfeed at 37.
Click to expand...

What? So is that your uncles house or something????? Or maybe a very short term lease/house sitting type arrangement? $750/week in the regular market would barely get you a 3 bedroom flat or a maybe an un-renovated 3 bed semi anywhere else in Mosman or around the lower north shore. A $5M Balmoral slopes house on a long term lease should pulling $2k-$3k/week and would be snapped up easily in the corporate/executive rental market. Eg: http://www.domain.com.au/Public/PropertyDetails.aspx?adid=5752848 or http://www.domain.com.au/Public/PropertyDetails.aspx?adid=5759222 as a starting point.

I think there is more to that situation than you are letting on.....

Cheers,

Beej
 
Status
Not open for further replies.

Similar threads

A
Factors affecting property prices
Replies
3
Views
11K
Space Invader101
Space Invader101
Pommiegranite
  • Locked
House prices to keep falling for years
213 214 215
Replies
4K
Views
414K
MrBurns
MrBurns
H
Listen to this Seer...
Replies
13
Views
4K
haunting
H
M
Keen warns Australia headed for sub-prime crisis
3 4 5
Replies
92
Views
15K
Aurum
A
The Mint Man
  • Poll
Property to boom under Labor Government
2
Replies
30
Views
10K
tech/a
tech/a
Top