House prices to keep rising for years

[Passive]

yeah, big pity about Perth though. Smart money has already shifted interstate.

Tell me Juddy = where will you buy in Perth with $450k - try and see what little you will get. Go out there and see what is available for this price - Perth has come off highs but is not nearly as bad as you portray.

 

[michael_t_f]

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!

Tech would you not pay the mortgage for 5 years?
This would equate to well over $100000.

Buying a house is really just a way of compulsory saving which lowers your quality of life and gives you stress.

Before you say I'm just saying that because I'm renting, yes thats correct but I did buy a house in 2000 when I was 19 and they were throwing credit at people. There will be others like me who got easy credit who will lose there low paying unskilled jobs and they will have to sell.

Only a fool would think housing prices will keep going up.

 

[agathos]

Thanks Passive & knocker,

Both positive & negative feedback welcomed.
I don't meant to prolong debate on the archaic Judaism stuff, which to some of us may seem out of date, and completely irrelevant.

But let's have a final fair go, and take a final dig before I close this jubilee thing:

When babies were born in ancient times, before the availability of Injectable Vitamin K , circumcision was instructed to be performed only after the 7th day.

We now know that babies need a couple of days for the body to pump up their natural Vitamin K Levels. Ah! See. The ONE knows, before we do.

Lots of things we don't understand too.
If we understand everything, we will be enlightened beings and NOT a MADOFF or treate refugees like dirt (despite having some brilliant policies).

Bear in mind, eternal principles are not just for Judaistic people.

Isn't there a vocabulary in OZ language known as FAIR GO ??
Each person is entitled to chances, opportunities, respect, love, etc!

This was what the ONE Person tries to help the Judaism chaps to understand.
Doesn't mean they fail to grasp it , that the principle will fail to work!

JUBILEE was meant so that people could have a FAIR GO in everything.

Cheers, mate! No worries. Let time be the great determinator!

When home prices go up, we CHEERS
When homes prices go down, we also CHEERS (for those who need to catch up)

Cheeeeeeeeeeeeers, mates. Tighten our seat belt, it's sure is interesting times ahead. agathos.

 

[tech/a]

Tech would you not pay the mortgage for 5 years?
This would equate to well over $100000.

Buying a house is really just a way of compulsory saving which lowers your quality of life and gives you stress.

Before you say I'm just saying that because I'm renting, yes thats correct but I did buy a house in 2000 when I was 19 and they were throwing credit at people. There will be others like me who got easy credit who will lose there low paying unskilled jobs and they will have to sell.

Only a fool would think housing prices will keep going up.

Michael.

(1)
Wealth in property comes from multiple holdings.
Your initial purchase only supplies you with a place to live.
Often at a cost greater than rent.
As you say though it will hold you in line with appreciation if there is any but only place you in a position to be able to afford a new home going forward.
I dont know what you did with your Y2000 home but it would be worth X more today. If you did sell it you would only be on par with comapable properties for replacement value.

(2)
If you had investment properties and you were astute in investment and ofcourse in a position to invest in Property,then you'd have positively geared the investment or got as close as possible to PG.
Your tennent would pay the interst.
You would have a tax deduction for any short fall. You have massive tax advantages. Any capital appreciation is surplus to your needs.
So the calculation Ive put up is one which applies to Investors NOT principal place of residence owners.

 

[aleckara]

Michael.

(1)
Wealth in property comes from multiple holdings.
Your initial purchase only supplies you with a place to live.
Often at a cost greater than rent.
As you say though it will hold you in line with appreciation if there is any but only place you in a position to be able to afford a new home going forward.
I dont know what you did with your Y2000 home but it would be worth X more today. If you did sell it you would only be on par with comapable properties for replacement value.

(2)
If you had investment properties and you were astute in investment and ofcourse in a position to invest in Property,then you'd have positively geared the investment or got as close as possible to PG.
Your tennent would pay the interst.
You would have a tax deduction for any short fall. You have massive tax advantages. Any capital appreciation is surplus to your needs.
So the calculation Ive put up is one which applies to Investors NOT principal place of residence owners.

Arguably then property is overvalued for owners. The equations changes for investors due to tax breaks (assuming property doesn't rise). That's a lot of tax money going down the toilet. I can't help but think it would of been cheaper to put 4 years of these tax savings and use the money to build a lot of houses rather than allow negative gearing.

 

[juddy]

Tell me Juddy = where will you buy in Perth with $450k - try and see what little you will get. Go out there and see what is available for this price - Perth has come off highs but is not nearly as bad as you portray.

Only a third of the way there Passive. Long way to go yet. You can almost see the flight of money out of Perth.

 

[tech/a]

Only a third of the way there Passive. Long way to go yet. You can almost see the flight of money out of Perth.

Dont invest in property in Perth then.

 

[wayneL]

Dont invest in property in Perth then.

I don't think there will be a lot of places worthy of investment yet.

However, there are a small number of excellent deals popping up over here in the UK, if you are in the right place at the right time. In some cases back to documented 2000-2001 prices and less... if you can get finance.

 

[tech/a]

I don't think there will be a lot of places worthy of investment yet.

However, there are a small number of excellent deals popping up over here in the UK, if you are in the right place at the right time. In some cases back to documented 2000-2001 prices and less... if you can get finance.

Wayne is it possible to gear near positive yet over there?
With say 20% or do you need more base capital on a deal?

 

[wayneL]

Wayne is it possible to gear near positive yet over there?
With say 20% or do you need more base capital on a deal?

Possible, but rare... repos at auction usually, and usually need a bit of TLC. But getting more possible all the time. I'm pretty convinced it will become common.

 

[Julia]

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?

I know because I live in the area and am familiar with pricing.
No, I am not susceptible to R.E. advertising which in this case is as poor as the rental yield anyway.

Numbercruncher: yes, very valid points about all the deductions from the profit off the CG. Then there is always the way some tenants treat rental property.

 

[IFocus]

Tell me Juddy = where will you buy in Perth with $450k - try and see what little you will get. Go out there and see what is available for this price - Perth has come off highs but is not nearly as bad as you portray.

My mother bought one in Hocking for 450K last week up on the hill 4/2 had a heap to choose from, wanted her to wait but she wanted to move now.

 

[Passive]

Thanks Passive & knocker,

Both positive & negative feedback welcomed.
I don't meant to prolong debate on the archaic Judaism stuff, which to some of us may seem out of date, and completely irrelevant.

But let's have a final fair go, and take a final dig before I close this jubilee thing:

When babies were born in ancient times, before the availability of Injectable Vitamin K , circumcision was instructed to be performed only after the 7th day.

We now know that babies need a couple of days for the body to pump up their natural Vitamin K Levels. Ah! See. The ONE knows, before we do.

Lots of things we don't understand too.
If we understand everything, we will be enlightened beings and NOT a MADOFF or treate refugees like dirt (despite having some brilliant policies).

Bear in mind, eternal principles are not just for Judaistic people.

Isn't there a vocabulary in OZ language known as FAIR GO ??
Each person is entitled to chances, opportunities, respect, love, etc!

This was what the ONE Person tries to help the Judaism chaps to understand.
Doesn't mean they fail to grasp it , that the principle will fail to work!

JUBILEE was meant so that people could have a FAIR GO in everything.

Cheers, mate! No worries. Let time be the great determinator!

When home prices go up, we CHEERS
When homes prices go down, we also CHEERS (for those who need to catch up)

Cheeeeeeeeeeeeers, mates. Tighten our seat belt, it's sure is interesting times ahead. agathos.

Should really stick to the subject and research properly. The Jubilee had some preconditions and these need to be understood. That is not called knocking but correct interpretation. Medical aspects relate little to housing . Coagulation of blood has little to do with jubilee. Only correlation is the 7 day bizzo which is more coincidence than design - that aside does not change the positive side of ones faith but needs to be handled aright and not quoted totally out of context!

 

[Passive]

My mother bought one in Hocking for 450K last week up on the hill 4/2 had a heap to choose from, wanted her to wait but she wanted to move now.

Hocking is a new and outlying area which have many homes for sale and granted good ones. My point though is that for the equivalent in other states its often cheaper. That sort of dough will get you next to nothing in suburbs west of Marmion Ave for example. It still is not cheap here.Values are definitely not at bargain levels.

 

[Passive]

Only a third of the way there Passive. Long way to go yet. You can almost see the flight of money out of Perth.

What absolute utter rot. Xmas shopping here may exceed expectations. We are still vibrant state with a positive growth. Can't believe this negative garbage. Rates coming down and watch stability arise due to low rates. Resources boom on hold for a while but its far from over in China, India and Tiger economies. Needless to say we will see smart money buy up the bargains when they arise but there will not be a massive downturn here. Many businesses doing very well thanks. Always look at the long term and not micro dimensions with real estate. Quite apparent a lot of bears can't get past the thought of moving away from lifestyle rented accomodation and that will be their undoing and in turn the making of the shrewd property investor from whom they rent.

 

[IFocus]

Hocking is a new and outlying area which have many homes for sale and granted good ones. My point though is that for the equivalent in other states its often cheaper. That sort of dough will get you next to nothing in suburbs west of Marmion Ave for example. It still is not cheap here.Values are definitely not at bargain levels.

Agree about values when you can positive gear off rental returns then we will see value

 

[chops_a_must]

I can't work out whether this Passive guy is arguing for a fall... or the complete opposite.

 

[2BAD4U]

As far as I can tell, Passive & agathos are talking in code and religious undertones that only they can understand. When we all decipher that code we will be rich.

 

[IFocus]

What absolute utter rot. Xmas shopping here may exceed expectations. We are still vibrant state with a positive growth. Can't believe this negative garbage. Rates coming down and watch stability arise due to low rates. Resources boom on hold for a while but its far from over in China, India and Tiger economies. Needless to say we will see smart money buy up the bargains when they arise but there will not be a massive downturn here. Many businesses doing very well thanks. Always look at the long term and not micro dimensions with real estate. Quite apparent a lot of bears can't get past the thought of moving away from lifestyle rented accomodation and that will be their undoing and in turn the making of the shrewd property investor from whom they rent.

Not a dooms dayer but I am alarmed in the rate of falls right across the commodities markets, not just mining but soft commodities to. This is still to feed back fully into the local economy.

I wont be surprised if we will see some of the bigger retail company's pop, clearly they have geared their rapid expansions of big new shop heavily.

Again to state the obvious the size of the credit contraction globally is on a massive scale anything can happen and the risk bias is to the down side.

 

[Passive]

I can't work out whether this Passive guy is arguing for a fall... or the complete opposite.

This Passive guy is saying that we will level out and will not suffer as greatly as has been suggested. In for a tentative year or two that is strongly favouring a resurgence of re in the West as the resources requirements will not diminish long term. Good time to be looking with good buying opportunities
more on a selected basis than large falls across the board.
Historically low rates will engender much needed disposable income amongst the remaining 96% or so still with a job.