House prices to keep rising for years

[Mofra]

This is the part I have the problem with, every time you buy and sell you have cost, real estate, lawyers, bigger mortgage ect. where is the advantage for mums and dads to keep on upgrading there family home.

Mums & Dads updating their family home is as much an emotional & lifestyle issue as an investment decision.

 

[xoa]

As a FIRST home yes - that's the way it's always been. Who do you think should be buying the cheaper houses or units?? Minimum wage earners? People on welfare? That's how you end up with a US style sub-prime problem (which we don't have!). After building up some equity over time people move up the property ladder....

Cheers,

Beej

But first home buyers typically earn significantly less than the "average" wage. You were trying to infer that typical first home buyers take home $80k per year. Try halving that. The median household income is about $58k, before tax.

 

[Beej]

But first home buyers typically earn significantly less than the "average" wage. You were trying to infer that typical first home buyers take home $80k per year. Try halving that. The median household income is about $58k, before tax.

Re average wage/household income figures, no. Just under $60k is the national average full time wage (ordinary earnings), excluding super and overtime/bonuses. See http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0?OpenDocument for the May stats. Average household income stats (as opposed to average full time earnings) quoted are usually across the board and include pensioners, the unemployed, student households etc etc. It's average full-time earnings you have to look at re buying houses, as I don't think anyone honestly expects that you should be able to afford to buy a house without at least having a decent job!

The $80k figure is Wayne Swans typical "working family" number that presumes one full time average wage earner and a spouse earning another $20k or so from part time work.

And in Sydney in particular there are a LOT of people/families that earn a LOT more than this. Hundreds of thousands of them.

As for first home buyer incomes - sure they may well be less, but affordability is always quoted as the multiple of average earnings needed to buy the median house. All I am saying is that the lower priced houses are actually affordable - which makes sense as that's why they sell at those prices and that's how people are able to buy them!

Cheers,

Beej

 

[robots]

hello,

here we go, here we go

anz dropping fixed rates again, fantastic news

those fixed interest fanatics will be in a panic soon

thankyou
robots

 

[numbercruncher]

those fixed interest fanatics will be in a panic soon

Yes seems plenty of panic around in anything RE related ....

 

[robots]

hello,

number you back from the dead bro,

oh yeah its all a panic like last quarter, but low and behold the holy bible showed things are amazingly strong for RE,

the cries will come, next quarter will show it, or the next or maybe next year?

tall poppy syndrome

thankyou
robots

 

[numbercruncher]

Hey Robi !

Yes seem in officialdom we can only be backwards looking ......

Not quite an Investment style that I relate to .....

Im looking at forsale signs .... its going mental out there !


I see the RBA is starting to fret to boot ...

 

[robots]

Hey Robi !

Yes seem in officialdom we can only be backwards looking ......

Not quite an Investment style that I relate to .....

Im looking at forsale signs .... its going mental out there !


I see the RBA is starting to fret to boot ...

hello,

same stuff you gave us after march NC, boards everywhere, the crisis has hit yet the bible came out with fantastic results

going to enjoy it immensely though waiting for each Quarter to come out

things are pretty good out there, houses are selling everywhere

thankyou
robots

 

[robots]

hello,

great news,

http://www.news.com.au/heraldsun/story/0,21985,24268451-661,00.html

cant wait for them to get down to 5 or 6%, will be awesome

I havent been in this game to long, do rents drop as well or stay at the current rates?

thankyou
robots

 

[robots]

hello,

waky waky Explod, where are you?

its getting one-sided around here, many expecting 2 yrs of cuts now what fantastic news,

many survived this just recently, what a bonanza for mortgage holders and another major blow for the poverty pack (as supported by ABS of course)

thankyou
robots

 

[kingbrown]

Housing Boom to Bust ?

House sales tumble as slump bites
August 31, 2008


MELBOURNE'S property market has slumped dramatically over the past three months - and by a staggering 44 per cent over the past year.
Figures compiled by The Sunday Age reveal property sales have dropped from 2032 in the first four weeks of August 2007 to 1131 for the comparable period this year.

Hopes that the prospect of a rate cut on Tuesday would boost the market yesterday proved unfounded, with the clearance rate falling below 60 per cent for the first time this year.

Despite reports that buyers are returning to the market, the clearance rate fell 3 percentage points to 59 per cent.

The Real Estate Institute of Victoria's chief executive, Enzo Raimondo, said yesterday's auction results showed that buyers were holding off until the Reserve Bank decided to drop official interest rates.

''Confidence in the market has not been forthcoming yet,'' he said. ''People are still waiting for an interest rate cut.''

Mr Raimondo said the downturn may even put some real estate agents out of business.

The Sunday Age figures, compiled from REIV data, reveal the true extent of Melbourne's real estate slump. Sales were at least 30 per cent down year-on-year for the three months June to August. The slump was especially marked in July, when only 1100 properties were sold, compared with 1721 the previous year.

The results are the latest in a number of economic indicators which show Victoria is suffering from a severe property slowdown. On Friday it was announced sales of newly built homes had dropped 7.2 per cent this month, while on the same day the Reserve Bank of Australia released figures showing finance for housing rose just 0.5 per cent in July, the smallestmonthly gain since 1989.

http://www.theage.com.au/national/house-sales-tumble-as-slump-bites-20080830-465v.html?page=-1


Any armchair property experts care to comment ?

 

[pepperoni]

Re: Housing Boom to Bust ?

House sales tumble as slump bites
August 31, 2008


MELBOURNE'S property market has slumped dramatically over the past three months - and by a staggering 44 per cent over the past year.
Figures compiled by The Sunday Age reveal property sales have dropped from 2032 in the first four weeks of August 2007 to 1131 for the comparable period this year.

Hopes that the prospect of a rate cut on Tuesday would boost the market yesterday proved unfounded, with the clearance rate falling below 60 per cent for the first time this year.

Despite reports that buyers are returning to the market, the clearance rate fell 3 percentage points to 59 per cent.

The Real Estate Institute of Victoria's chief executive, Enzo Raimondo, said yesterday's auction results showed that buyers were holding off until the Reserve Bank decided to drop official interest rates.

''Confidence in the market has not been forthcoming yet,'' he said. ''People are still waiting for an interest rate cut.''

Mr Raimondo said the downturn may even put some real estate agents out of business.

The Sunday Age figures, compiled from REIV data, reveal the true extent of Melbourne's real estate slump. Sales were at least 30 per cent down year-on-year for the three months June to August. The slump was especially marked in July, when only 1100 properties were sold, compared with 1721 the previous year.

The results are the latest in a number of economic indicators which show Victoria is suffering from a severe property slowdown. On Friday it was announced sales of newly built homes had dropped 7.2 per cent this month, while on the same day the Reserve Bank of Australia released figures showing finance for housing rose just 0.5 per cent in July, the smallestmonthly gain since 1989.

http://www.theage.com.au/national/house-sales-tumble-as-slump-bites-20080830-465v.html?page=-1


Any armchair property experts care to comment ?

Yes ... property returns will continue to be pretty poor on average for the foreseeable future.

Definitely way below 5% on average and nowhere near the 9.5% property fanboys (and girls) are paying.

This summer may be OK as the last few highly emotional property fanboys think a .25% rate drop = instant property riches.

 

[awg]

a question for the property experts:

re Spain and England.

do these countries have population growth, and an undersupply of new construction?

my opinion property prices in Australia are held up by the two above factors.

if they were not present, we would be looking at much lower prices

obviously this is a simplification of the many issues.

regards tony

 

[robots]

hello,

and whats it to you pepperoni if people buy RE? nothing

if you happy renting then stay out of it, and to others do the same if you think renting is the go, simple

you keep telling us its a bargain in the rental game then why the interest in RE? TALL POPPY SYNDROME,

troll

thankyou
robots

 

[robots]

hello,

yes yes:

http://business.theage.com.au/business/st-george-cuts-fixed-rates-20080901-470w.html

thankyou very much,

what happened to get on gold inflation is going to get us, everyone's dropping dropping them like punters at a rave

thankyou

robots

 

[pepperoni]

hello,

and whats it to you pepperoni if people buy RE? nothing

Just a little thing called recession brought about by crack heads and meth users borrowing 99% to buy 5x10m "houses" then defaulting.

These people are not tall nor are they poppies.

 

[robots]

hello,

hope everybody having a great day,

some great news with auction clearance going ballistic yesterday, jumping a huge 7% i believe, 59% to 66% this week,

have a laugh, dont take things to seriously and go Hawthorn

thankyou
robots

 

[robots]

hello,

here we go here we go,

http://business.theage.com.au/business/anz-cuts-rates-again-20080911-4efz.html

another one dropping rates so the disheartening "facts" continue to roll in,

high unemployment? disappeared see report today

high interest rates? disappeared with everybody dropping them

this is like being in utopia, another great weekend on the cards,

thankyou
robots

 

[Aussiejeff]

hello,

here we go here we go,

http://business.theage.com.au/business/anz-cuts-rates-again-20080911-4efz.html

another one dropping rates so the disheartening "facts" continue to roll in,

high unemployment? disappeared see report today

high interest rates? disappeared with everybody dropping them

this is like being in utopia, another great weekend on the cards,

thankyou
robots

Unless you live in Cranbourne....

"Hundreds of residents evacuated from a Cranbourne housing estate after a dangerous leak may be unable to return to their homes for years - and there are fears that thousands more may be affected."

http://www.theage.com.au/national/explosive-methane-scare-could-hit-thousands-20080911-4eaf.html

I don't like these peoples chances of living in Utopia anytime soon.

Is that a suburb you live in, Robuts?

 

[robots]

hello,

its a bit like the Insight show, lets lump everything on the property scene

i have a broken yo-yo, must be a property issue, cat has got a sore paw must be a property issue, lost my job must be a property issue, smackhead out the front of coles wants a dollar must be a property issue

no man, I'm down in sunny St Kilda

thankyou
robots