Australian (ASX) Stock Market Forum

House prices to keep rising for years

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robots said:
hello,

look at the return, 4.5% over the past years

yet so many are interested in property?

thankyou
robots
Click to expand...

hello,

and this part Number? oh the great divide

i hope g man can give us an update on his Melbourne tour

thankyou
robots
 
I was a bit of a property bear but if interest rates drop again in February, I am sure the money will return to real estate.

Finally the yield will be OK compared to price and interest to the loan and a lot of people with savings to invest will have sworn off the stock market.

The risk is if interest rates end up rising quickly when this thing is over.
 
numbercruncher said:
Awesome man returns less than interest rates for 5 years and gloating about it ? :D
Click to expand...

Numbers "Sometimes it is better to remain silent and be thought of as a fool than to open ones mouth and remove all doubt!."

Lets say 5 yrs ago I bought a $300,000 property with 20% down and had 4.5% compounding growth.

So I put $60,000 down
$300,000 compounded 4.5% annually over 5 yrs is now $373,854.
So I have a $60,000 now worth $133,854 or a 123% increase (Less costs) on my initial $60,000.

You have a lot to learn!
 
robots said:
hello,

when we getting these in AussieLand:

http://www.theage.com.au/world/zimbabwe-unveils-10-billion-dollar-note-20081220-72j1.html

happened in Zimbabwee so gotta happen here, doesnt it?

thankyou
robots
Click to expand...
Was a great little country until ideology and greed of a few wrecked it. Absolutely no parallel here and to try and superimpose trends on Australia based on their peculiarities ( trends in basket case countries overseas that is ) is far fetched to the extreme and totally oversimplistic. But then if you are skint and don't want to make the sacrifices the next best thing is hope it all collapses until it becomes affordable. Talk about believing in the tooth fairy!
 
tech/a said:
Numbers "Sometimes it is better to remain silent and be thought of as a fool than to open ones mouth and remove all doubt!."

Lets say 5 yrs ago I bought a $300,000 property with 20% down and had 4.5% compounding growth.

So I put $60,000 down
$300,000 compounded 4.5% annually over 5 yrs is now $373,854.
So I have a $60,000 now worth $133,854 or a 123% increase (Less costs) on my initial $60,000.

You have a lot to learn!
Click to expand...

Well put mate - not to say the opportunities the increased equity will create plus the return on your actual deposit as time goes on from a rental perspective etc.etc. Needless to say shares pale into oblivion and cash is dismal and will get worse and as inflation increases net effect on cash holdings will be negative and your debt will decrease in value as an added bonus. How little they comprehend - most of them are lost on base two!
 
robots said:
hello,

check check, we got robots on the mic,

http://www.reiv.com.au/home/inside.asp?ID=142&pnav=141

what an awesome day brothers, 71% clearance this is going BEZERK

the sun shining strong on those doing the yards again

dont know where g man has gone, the internet is working well in St Kilda

thankyou
robots
Click to expand...
Across the board sales good when looking at values. Somewhere along the line the realisation will sink in hard that rates are low and opportunity will be missed. Poor sad sacks waiting for further falls or the hope of emulating overhoused mature economies. Go Melbourne! Watch it catch on. What people forget is that with 4/5/ or even 6% out of work over 90% are still working and have not given up on life.
 
tech/a said:
Numbers "Sometimes it is better to remain silent and be thought of as a fool than to open ones mouth and remove all doubt!."

Lets say 5 yrs ago I bought a $300,000 property with 20% down and had 4.5% compounding growth.

So I put $60,000 down
$300,000 compounded 4.5% annually over 5 yrs is now $373,854.
So I have a $60,000 now worth $133,854 or a 123% increase (Less costs) on my initial $60,000.

You have a lot to learn!
Click to expand...



Tech " Cant teach an Old Dawg new tricks "

Happy investing buddy.
 
Passive said:
Well put mate - not to say the opportunities the increased equity will create plus the return on your actual deposit as time goes on from a rental perspective etc.etc. Needless to say shares pale into oblivion and cash is dismal and will get worse and as inflation increases net effect on cash holdings will be negative and your debt will decrease in value as an added bonus. How little they comprehend - most of them are lost on base two!
Click to expand...


Yes yes you property investors are the bomb - you should all get Nobel prizes for business acumen.

Up is the only way, Oz is short on land and Kangaroos and we all know it.


:)
 
Anyone know how the bottom end of the market will fair? I mean will there be a demand for cheap rental properties say 100-150$ per week? at the end of the day people have to have a roof over there heads? maybe there is a market for bedsitters 1 bedrooms appartments etc. In third world countries they cram whole families into little units. Or maybe at the other extreme big house will be left empty for squatters?
 
tech/a said:
Numbers "Sometimes it is better to remain silent and be thought of as a fool than to open ones mouth and remove all doubt!."

Lets say 5 yrs ago I bought a $300,000 property with 20% down and had 4.5% compounding growth.

So I put $60,000 down
$300,000 compounded 4.5% annually over 5 yrs is now $373,854.
So I have a $60,000 now worth $133,854 or a 123% increase (Less costs) on my initial $60,000.

You have a lot to learn!
Click to expand...
A property I sold four years ago has come onto the market again now.
Sold then at $186,000. Now asking price is $320,000. Will sell for $300,000.
Rental return is pathetic, less than 3% on the basis of the $300K.
But the capital gain sure as hell offsets that low yield.

See NC? Your comments are excluding the capital gain effect.
 
Yes I appreciate what you are saying - I made money from RE during the credit boom as well. :cool:

What hope has the next buyer of that property got ?

What was the real return the seller gets after interest rates 6 to 9pc over 4 years, rates/maintenance, stamp duty, re selling fee, capital gains tax etc. Alot gets zapped - this is the stuff permas omit. ( yes still a good return but not as good as first glance suggests, but going forward is my debate, the past is there for all to see)
 
Julia said:
A property I sold four years ago has come onto the market again now.
Sold then at $186,000. Now asking price is $320,000. Will sell for $300,000.
Rental return is pathetic, less than 3% on the basis of the $300K.
But the capital gain sure as hell offsets that low yield.

See NC? Your comments are excluding the capital gain effect.
Click to expand...

How do you know it will sell for 300k? Can you pleaqse provide a link to information about what price this, or any other house will sell for? Or do you base it on advertising spruike from agents?
 
Hi everyone,

Seems like lots of netizens here DESIRES for the price of homes to keep going up, up , up! Hmmmm. that might happen.
But the BIG question still is:

WHAT IF...........................

What if the WORLD goes into a prolonged, protracted, deep recession?
What if Canada, Japan, Korea, New Zealand, UK (price of units and condominiums have realistically dropped between 25% and 50%) and the big cohuna like USA AND China goes into proloooooooooooooooonged slow down?

Don't even mention the word recession
Just let's say deep slow down

The WORLD has gone beserked
MAD people like MADOFF can operate because the world runs on GREED
We desire the materiaf stuff so much, we become greedy till dollar ooozes out of our nose and mouth and ear orifice

Since we have the freedom of speech here in Australia, may I present a VERY different perspective to this forum, something which many of you would NEVER have heart of. Most of you won't have heard of it. Most of you would NOT believe it. I tried sharing it to you a chap who taught me the basics of investing in TAFE Western Australia, and he it was just too much for him.

So, the caveat is - read the following, only if you are OPEN minded.
Ready, get set? Read on:

Ok, here it is:

Because there is ONE who knows that human beings tend to operate in EXCESS and goes off either too leftist or too rightist in nature, HE has placed a very interesting principle , which seems very logical to me. (and I believe it is still in operation today).

Allow me 2 sentences to share it , and then I shall attempt to localize it to how OZ would put it.

The principle I have in place is known as the JUBILEE principle.
In the old days, there is a rest pronounced upon the LAND every 7th year.

It was not only designed to bring rest so that the land can yield bumper crops again, but it was also designed to restore ownership.(Leviticus 25:1-7 is the reference).

Obviously, in today's economy, no one would be so foolish to surrender his real estate property to another after 7 years. So, in our enlightened mind that boast in knowledge and 21st century law, we may say, "hocus pocus again". But please read on and be patient with me for 45 seconds.

But because the ONE who controls the Universe is still sovereign, HIS governance trascends the wisdom of human greed , etc.

Ever heard of the Chinese Saying - Wealth never last beyond 3 generations???
The first generation work hard and amass WEALTH$$$$
The second generation grows the WEALTH $$$ and exercise prudence
The 3rd generation, generally like the Prodigal Son, usually blows it all away. Sometimes very normally, sometimes very mysteriously. Sometimes beyond the human understanding.

That's where I would like to interject and says that I believe that the 7 years jubilee principle is still @ work, no matter how corrupted and greedy human has become.

No matter how many ENRON, and MADOFF we breed in society
No many how many years of BOOOOOOOOOOOM we have

There will ALWAYS be [[COLOR="Red"]B]years of FAT & GROWTH [/B[/COLOR]]And there will be years of LEAN and TRIMRegardless whether we believe it or not - there is a somehow JUBILEE principle at work, in our health, in our economy, in our global affairs (who may or may not recognize that ONE Sovereign Being).

I didn't intend that you believe my words.
But principles, like gravity, stands the test of time!

To those of you who are waiting for an opportune time to buy a home,
perhaps it's been a long wait
Brick layers, tradies, and other OZ mates, we've been waiting for a long time, mate!

Perhaps your Jubilee......and MY jubilee has come

Only time will tell. There is ONE who knows you and I have been waiting and like the Olden times, JUBILEE will come and allow others to catch up!

Beyond theories, ideas, opinions, and man's pride - let's see how things work out as times and seasons unfolds!

And man will live FOREVER more (either here or elsewhere) , because of ONE Man!...............Blessed Xmas.........agathos. 2008.
 
agathos said:
Hi everyone,

Seems like lots of netizens here DESIRES for the price of homes to keep going up, up , up! Hmmmm. that might happen.
But the BIG question still is:

WHAT IF...........................

What if the WORLD goes into a prolonged, protracted, deep recession?
What if Canada, Japan, Korea, New Zealand, UK (price of units and condominiums have realistically dropped between 25% and 50%) and the big cohuna like USA AND China goes into proloooooooooooooooonged slow down?

Don't even mention the word recession
Just let's say deep slow down

The WORLD has gone beserked
MAD people like MADOFF can operate because the world runs on GREED
We desire the materiaf stuff so much, we become greedy till dollar ooozes out of our nose and mouth and ear orifice

Since we have the freedom of speech here in Australia, may I present a VERY different perspective to this forum, something which many of you would NEVER have heart of. Most of you won't have heard of it. Most of you would NOT believe it. I tried sharing it to you a chap who taught me the basics of investing in TAFE Western Australia, and he it was just too much for him.

So, the caveat is - read the following, only if you are OPEN minded.
Ready, get set? Read on:

Ok, here it is:

Because there is ONE who knows that human beings tend to operate in EXCESS and goes off either too leftist or too rightist in nature, HE has placed a very interesting principle , which seems very logical to me. (and I believe it is still in operation today).

Allow me 2 sentences to share it , and then I shall attempt to localize it to how OZ would put it.

The principle I have in place is known as the JUBILEE principle.
In the old days, there is a rest pronounced upon the LAND every 7th year.

It was not only designed to bring rest so that the land can yield bumper crops again, but it was also designed to restore ownership.(Leviticus 25:1-7 is the reference).

Obviously, in today's economy, no one would be so foolish to surrender his real estate property to another after 7 years. So, in our enlightened mind that boast in knowledge and 21st century law, we may say, "hocus pocus again". But please read on and be patient with me for 45 seconds.

But because the ONE who controls the Universe is still sovereign, HIS governance trascends the wisdom of human greed , etc.

Ever heard of the Chinese Saying - Wealth never last beyond 3 generations???
The first generation work hard and amass WEALTH$$$$
The second generation grows the WEALTH $$$ and exercise prudence
The 3rd generation, generally like the Prodigal Son, usually blows it all away. Sometimes very normally, sometimes very mysteriously. Sometimes beyond the human understanding.

That's where I would like to interject and says that I believe that the 7 years jubilee principle is still @ work, no matter how corrupted and greedy human has become.

No matter how many ENRON, and MADOFF we breed in society
No many how many years of BOOOOOOOOOOOM we have

There will ALWAYS be [[COLOR="Red"]B]years of FAT & GROWTH [/B[/COLOR]]And there will be years of LEAN and TRIMRegardless whether we believe it or not - there is a somehow JUBILEE principle at work, in our health, in our economy, in our global affairs (who may or may not recognize that ONE Sovereign Being).

I didn't intend that you believe my words.
But principles, like gravity, stands the test of time!

To those of you who are waiting for an opportune time to buy a home,
perhaps it's been a long wait
Brick layers, tradies, and other OZ mates, we've been waiting for a long time, mate!

Perhaps your Jubilee......and MY jubilee has come

Only time will tell. There is ONE who knows you and I have been waiting and like the Olden times, JUBILEE will come and allow others to catch up!

Beyond theories, ideas, opinions, and man's pride - let's see how things work out as times and seasons unfolds!

And man will live FOREVER more (either here or elsewhere) , because of ONE Man!...............Blessed Xmas.........agathos. 2008.
Click to expand...

Research will tell you that the Jubilee did not apply to land within walled cities in the Judaic system and unwalled land was to be returned to the hereditary owner. Was a form of usufruct but certainly not designed to give something to those to whom it was not entitled. Fail to see the relevance of this in any shape of form in a system not based or endorsed by the Judaic model.
 
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