House prices to keep rising for years

[kyme]

House prices in Adelaide been performing well compared to a lot of Australia last year or so. Might be about to tank though. Artcle in Sunday Mail today states prices fell in more than 60 Adelaide suburbs last 6 months, albeit some well off suburbs still did OK. Whats probaly more signifcant is that auction sales plummetted to under 28% last weekend compared to 83% same time last year People with high debt/committments at risk of getting crushed I'm afraid.

 

[robots]

Dont recall his post but second quarter showed falls indicating 12% annual fall was possible.

If you are in the market long term who cares about fluctuations. And even if you are not lower prices means it will be easier to upgrade one day which most people want to do.

High property prices are in nobodys interest except by to lets types.

hello,

what are you doing here pepperoni?

bears are to stick on that thread with 2500 views

thankyou
robots

 

[WaySolid]

Dont recall his post but second quarter showed falls indicating 12% annual fall was possible.

If you are in the market long term who cares about fluctuations. And even if you are not lower prices means it will be easier to upgrade one day which most people want to do.

High property prices are in nobodys interest except by to lets types.

If you have a look at the composition of home ownership in Australia I think you can disprove your own statement. Investors (buy to let being a subset of that group) are not the largest part of the total market by some distance.

 

[wayneL]

I was awoken this morning by the sound of hysteria. At first I thought it was wailing, perhaps the queen had died? As I rubbed the sleep from my eyes I determined that it was laughter emitting from virtually every household, but with the loudest concentration just up the road at the newsagent.

Intrigued, I rushed down to buy a paper. I was greeted with the scenes of people in convulsions of laughter, writing on the ground and holding their sides... obviously laughing so hard, it hurt.

There was another group there, a much smaller group who where not laughing, but were grinning inanely. They all had cheap shiny suits and slicked back hair.

I rushed in and placed my 50p on the counter (The shop owner couldn't take my money, he was on the floor in fits) to be faced with this:



I too, was totally consumed with amusement! Nice one Daily Express!

LOL

 

[robots]

There was another group there, a much smaller group who where not laughing, but were grinning inanely. They all had cheap shiny suits and slicked back hair.

I rushed in and placed my 50p on the counter (The shop owner couldn't take my money, he was on the floor in fits) to be faced with this:



I too, was totally consumed with amusement! Nice one Daily Express!

LOL

Hello,

any chance of a picture of this group?

thankyou
robots

 

[wayneL]

Hello,

any chance of a picture of this group?

thankyou
robots

No need,

Walk into any estate agency. They're all sitting at their desks playing computer solitaire 'cause they have nothing else to do.

Else you might find some in the dole queue. Two firms have shut up shop in Cheltenham already.

 

[wayneL]

Back to reality

 

[chops_a_must]

What's so funny about Myleene?

She looks great there.

 

[subaru69]

What's so funny about Myleene?

She looks great there.

I've been reading this thread today and only just realised it was on something other than Myleene. :

Very successful:
http://en.wikipedia.org/wiki/Myleene_Klass

Classy site too:
http://www.myleeneklass.co.uk/

Photographs well (check Google for less family friendly ones ):

 

[SBH]

hello,

well done g,

still plenty of great results out there, friend got letter for increase in rent

i find most people are accepting them as "cost" of moving both emotionally and financially is nothing compared to most increases,

thankyou
robots

Ive got to call you out on that one champ. I had a rent increase 2 months ago which was a nice little 10% slap from a landlord I know is not paying off a loan. That has really annoyed me, especially as we have been great long term tenants. Anyway Ive bailed, have found a cheaper place (yes there are a LOT of rentals out there in inner sydney!) and enjoyed immensely the phone call to the real estate agent telling them Im outta there. What Ive learnt is that tenants arent all 'robots' they will think their way out of being smashed with rent increases, and the rental crisis is way overblown, talked up by guess who, the real estate industry. There are still a lot of spare bedrooms out there that will take the excess tenants... people will save on rent, save and buy in when property prices plunge to somewhere near reasonable.

 

[YChromozome]

I'm with you SBH. I moved two weeks ago. My new place is better and 10% cheaper.

If any of you are pounding the pavements (Robot Speak), you will see lots of rentals which are empty and available now. The price on these places are negotiable. Last year you may have had to offer a bit more, now you get a chance to offer a bit less than asking price.

[edit: I was reading my tenancies agreement a couple of weeks ago and laughed about the continuing clause - "At the end of the term the tenant can stay in the residential premises at the same rent (or at an increased rent if the rent is increased in accordance with the Residential Tenancies Act 1987) but otherwise under the same terms unless or until the agreement is ended in accordance with the Residential Tenancies Act 1987" There was no provisions in the standard agreement about a fall in rent. I might have to write to the Real Estate Institute of New South Wales who wrote the standard agreement]

 

[robots]

hello,

yeah man, in my area i see "leased" going up on the board within days and at amazing prices,

but everyone is entitled to do as they please, you dont wanna buy then rent no big deal chromo,

not sure why you are interested in housing prices at all actually,

people can join the public housing list, rent, buy, get a mobile home, live in a tent on the foreshore, a humpy whatever

thankyou
robots

 

[kingbrown]

Re house price outlook

A sober thought for the day makes interesting reading

Re article from Candada using the IMF report on world housing ?
I know we all here in Australia like to compare things with Canada
Re mining boom Demographics etc

May give us some ideas where Australian property is headed ???

Has graphs etc
See link below

Canada’s Real Estate Market – An International Perspective
John Pasalis in Toronto Real Estate News

A few months ago I did a live online Q&A on globeandmail.com where I had the opportunity to answer questions about Toronto’s real estate market. One question I have been meaning to elaborate on came from a reader in the United Kingdom who asked:
In what way is Canada unique and special in the world and able to transcend global forces much bigger than one country? I just think the housing market will crash because credit is drying up everywhere, and most Toronto houses are not worth it.

To answer this question, I turned to a recent International Monetary Fund (IMF) report which provided a cross-country analysis of housing markets. The report had two salient conclusions for Canadians.



http://www.movesmartly.com/2008/07/canadas-real-es.html

 

[dubiousinfo]

Part of a recent article in The Age.....

Australian house prices fell in a majority of capital cities in the June quarter as high interest rates brought about the weakest housing market in four years, a report says.

And national house and unit prices could dive by 10 per cent next year as a prolonged real estate slowdown sets in, says online real estate data group Australian Property Monitors (APM).

APM reported that Perth had the biggest median house price fall, of 2.8 per cent, in the June quarter, followed by Sydney's 2.1 per cent decline.

Median house prices fell in five of Australia's eight capital cities in the three months to June 30.

Hobart suffered the biggest median price dive for home units, 3.8 per cent,and had the nation's cheapest capital city real estate with the median unit price at $207,568.

Unit prices fell in five capital cities during the quarter including Brisbane, which posted a three per cent slump.

"The June quarter housing data is the weakest we have observed since 2004," APM general manager Michael McNamara said.

"It is likely these results are the canary down the coal mine and that rapidly rising mortgage rates and a looming economic slowdown will usher in a sustained period of property market weakness."

 

[So_Cynical]

hello,

well done g,

still plenty of great results out there, friend got letter for increase in rent

i find most people are accepting them as "cost" of moving both emotionally and financially is nothing compared to most increases,

thankyou
robots

I got slapped with a 17% rent increase last week...id like to give the solicitor landlord a slap.

 

[YChromozome]

I'm with you SBH. I moved two weeks ago. My new place is better and 10% cheaper.

Three weeks now. Went past the old place today - still empty. Blinds open where I left them last.

I thought renters were suppose to be climbing over each other to get a foot in the door?

 

[robots]

hello,

great advice for So Cynical, everybody can do as they please

a great feature of this country we live in,

i thought prices got smashed too?

thankyou
robots

 

[WaySolid]

Three weeks now. Went past the old place today - still empty. Blinds open where I left them last.

I thought renters were suppose to be climbing over each other to get a foot in the door?

Probably better to look at data regarding vacancy rates rather than an individual property.

http://www.oesr.qld.gov.au/queensla.../rental-housing-vacancy-rates-qld/index.shtml

Hmm not sure how to imbed that link in text with this BB software, don't see the URL button?!

Shows Brisbane vacancy rates are tight by historical standards. Though I still think rents are 'cheap' imo and subject to further upwards pressure, I'm raising mine wherever I can, and for healthy increases.

With values I see an interesting Mexican standoff developing in Brisbane, sales volumes have fallen a lot but not yet prices... so how that battle resolves itself will be interesting, could well be the fall many have been waiting for. We will see.

 

[gfresh]

Shrug, the vacancy rate actually the highest it's been in those stats for the June quarter in the last 4 years.. although not much in it.

June 2005 - inner brisbane was 1.5%
June 2006 - inner brisbane was 1.3%
June 2007 - inner brisbane was 1.4%
June 2008 - inner brisbane is 1.6%


"Remainder Brisbane" also showing highest June vacancy rate for years at 2.2%. In fact the only one higher was June last year at 2.3%

Goldcoast shows plenty available @ 3.9% - highest since December 2006 (which says it may be subject to error), otherwise mid 2005.

Doesn't really stack up with a severe lack of rentals.. looks same as it always has, if not higher vacancies.

 

[WaySolid]

Gfresh I suspect like an affordability crisis it's a creation largely of the media, though it's all a matter of definition. In my suburb which is 10k from the Brisbane CBD, there are houses on decent chunks of land going for under 300k still, and that is for a house that you can live in straight away even if it's not going to suit most Gen Y's expectations, units I'm sure you can find some much cheaper deals if you look hard enough.

Knowing family who grew up under the Soviet system you are less likely to throw out the C word for anything we experience in this country, not even close, we are spoilt to even be able to mention that word. Good for us.

I expect you are never going to get 0% vacancy rates, though I don't know the methodology used. My burbs are still a landlords market when it comes to setting rents, but the rates do appear to be higher than they have been in the previous few years.