House prices to keep rising for years

[gfresh]

Meanwhile, out in the real world: "Rent price rises at 20-year high":

spin, spin, spin.. Not for me

Anyhow, interest rates will be soon so low, entry level properties will be $100-$150 more than renting.

For a couple, $330k 2br unit will cost them $400/wk clear. Now if two people can't afford $200/wk each they have some serious problems with basic finances

 

[Pommiegranite]

reserve bank of NZ cut rates buy 1.5...now 3.5

woo hoo good news for all...but why do we have to wait till next week
that 2% cut is looking good...do they have the gutz to do it now...or wait longer until more jobs are lost

http://www.news.com.au/business/story/0,27753,24978518-31037,00.html

--------------------------------------------------------------------------------
.
Ever met a wealthy person who complains and moans about everything ?

*** The best way to become a millionaire is to borrow a million dollars and have your renters pay it off.
Jack Miller

Only the seriously naive aren't questioning why interest rates are being cut.

 

[Glen48]

6 Pubs a day in UK are closing, time to write yourself a poison pen letter and eat it.

 

[Trevor_S]

800 houses in townsville...could be on the market...after storm financials collapse.....
http://www.theaustralian.news.com.au/business/story/0,28124,24977694-25658,00.html

Hyperbole is the word that springs to mind reading this article.

Being the perennial property bear that I am, I keep looking for signs of housing decline, forced sales etc (I live in Townsville) nothing obvious to me (yet !), houses are still way overpriced (IMO of course) and renting is hellish expensive (IMO of course), place next door to mine was renting for $550, I nearly fell over, I expected it to be $350 ! Tenant just moved out and I see it's for sale now, and next door (other side from me) to the local member and Minister for the Dept of Natural Resources as well (and his yappy freakin' dog !) That aside, all this talk of distressed housing will probably have lots of people out expecting low prices, and possibly driving prices up further !

Townsville is very unaffordable, and not just in my opinion

http://www.townsvillebulletin.com.au/article/2009/01/21/34065_investor.html

TOWNSVILLE has been named among most unaffordable places in which to live in Australia.

so it could do with a wake up call in that respect eg things like this (a friend works there & lives in Townsville !) happening. Yes, I have made money from my IPs up here over the years, just could never figure out why there was so much capital gain, no value was ever add'd. I am used to having to work hard in my business (or in a job before that), to add value to the business, buying a house, then doing nothing and seeing capital appreciation above CPI always seem'd odd to me.

When it rains up here though it is WARM.. was out swimming on the Aus. Day long weekend in a local creek (swimming hole)

in the midst of a "storm" (pun intended !) beautiful and very surreal.

 

[nunthewiser]

is that you in the photo trev ?

 

[gav]

Hyperbole is the word that springs to mind reading this article.

Being the perennial property bear that I am, I keep looking for signs of housing decline, forced sales etc (I live in Townsville) nothing obvious to me (yet !), houses are still way overpriced (IMO of course) and renting is hellish expensive (IMO of course), place next door to mine was renting for $550, I nearly fell over, I expected it to be $350 ! Tenant just moved out and I see it's for sale now, and next door (other side from me) to the local member and Minister for the Dept of Natural Resources as well (and his yappy freakin' dog !) That aside, all this talk of distressed housing will probably have lots of people out expecting low prices, and possibly driving prices up further !

Townsville is very unaffordable, and not just in my opinion

http://www.townsvillebulletin.com.au/article/2009/01/21/34065_investor.html

so it could do with a wake up call in that respect eg things like this (a friend works there & lives in Townsville !) happening. Yes, I have made money from my IPs up here over the years, just could never figure out why there was so much capital gain, no value was ever add'd. I am used to having to work hard in my business (or in a job before that), to add value to the business, buying a house, then doing nothing and seeing capital appreciation above CPI always seem'd odd to me.

One of the large factors for places like Townsville and Darwin being over-priced is the large Defence Force communities. None of the single ones want to live on base, they want a little bit of "freedom", and they get that by renting. Plus the govt chips in for their rent too. From 2004 to late 2006 I was renting a small apartment with one of the guys from my unit. Rent was $300 per week ($150 each), and the gov't gave us $80 of that. If we had served for 6 or more years we would have received more, and familes received more too.

Fast forward 2 and a half years, rent in that same apartment building is $550-600!!!

 

[arco]

I was sent this by a real estate agent - amazing

.

House, unit sales tumble
The number of houses and units sold in Brisbane over the past year has plunged 28%, the worst in the country, Residexresearch reveals, while sales nationally fell 16%. First home buyers virtually disappeared from the market, but developer incentives, falling interest rates and government grant increases had seen some recovery in the market sector. Almost 5500 home buyers took up the first homeowners grant in its first full month of operation, starting in mid-October.

The Courier-Mail, Page 27, 17- 18 January 2009


Property market in free fall
The WA property market is being decimated following the evaporation of the resources boom, with values of $1 million-plus properties plummeting 20% and the equivalent of more than two years' supply of homes flooding real estate agencies. In Geraldton, rents have slumped 8%, and in the northwest, fibro shacks that had been fetching rents of $1,000 a week are sitting vacant as mining
executives face retrenchment. Perth houses fell 4% in the December quarter, taking the yearly decline to 11%. The median price of a Perth house was $418,000, down from $473,000 at the peak of the west Australian housing boom in December 2007. House prices are expected to fall
further.

www.theaustralian.com.au 19 Jan 2009

 

[numbercruncher]

But .... but ..... didnt Oztraaaalian realestate only go up ??

 

[robots]

hello,

another great day, mid thirties

kicked off early to beat the heat again and keep the economy going, putting in a bit extra with like the money box crew taking time out,

fantastic news Beej on the rents, hopefully another 10% this year who knows but with the development issue in could be more great news in 12mths time

thankyou
robots

 

[Glen48]

Maybe like Storm victims home owners should demand a Fed Bailout for not knowing house prices go up as DOWN.

 

[2BAD4U]

Only heard the tail end of a story on the radio today but they were saying one of the big problems with QLD (and especially the Gold Coast) was the purchase of units off the plan. It was something like 1300 constructed and only 36(ish) have been settled. The rest remain unsold or will be forced sales. People can't meet the requirements for settlement now they are completed. This will drag down the QLD median price.

And no I haven't turned into a bear.

 

[numbercruncher]

And no I haven't turned into a bear.

Might be becoming a realist though huh ?

 

[2BAD4U]

Nope. I have too much fun poking the bears and waking them up.

 

[GumbyLearner]

But .... but ..... didnt Oztraaaalian realestate only go up ??

Precisely NC.

Bubble -> POP!!!!!!!!!!!!!

 

[wayneL]

Meanwhile in the UK:

If you follow the hypothesis that Ostriylia will follow the trend of England... that Oz is a few months behind in the cycle (and I think that's a reasonable hypothesis), then brace yourself for falling rents.

Looks like I'll be moving from Cheltenham to Londinium, and am looking around the Wimbledon area for a place to rent.

The first thing the Letting agents say is "ignore the list price, we can get you in for less". They say that places going for £1400 pcm last year are renting at £1150 - £1200.

I offered £1400 on a place that was listed at £1650... the LL (a first timer and accidental LL) knocked it back, but the agent thinks they're nuts. "Reality will hit them sooner or later... £is about right at the moment" is what he said. Reckons last year they could have gotten £1700 easily.

That's happening all over the country right now. LLs sticking to their price are having BIIIIIIIG voids,

Oz LLs should prepare for that possibility.

 

[robots]

Meanwhile in the UK:

If you follow the hypothesis that Ostriylia will follow the trend of England... that Oz is a few months behind in the cycle (and I think that's a reasonable hypothesis), then brace yourself for falling rents.

Looks like I'll be moving from Cheltenham to Londinium, and am looking around the Wimbledon area for a place to rent.

The first thing the Letting agents say is "ignore the list price, we can get you in for less". They say that places going for £1400 pcm last year are renting at £1150 - £1200.

I offered £1400 on a place that was listed at £1650... the LL (a first timer and accidental LL) knocked it back, but the agent thinks they're nuts. "Reality will hit them sooner or later... £is about right at the moment" is what he said. Reckons last year they could have gotten £1700 easily.

That's happening all over the country right now. LLs sticking to their price are having BIIIIIIIG voids,

Oz LLs should prepare for that possibility.

hello,

link link link.... otherwise really just more spruik talk (sounds familiar, dont take it personally)

thankyou
robots

 

[MrBurns]

hello,

link link link.... otherwise really just more spruik talk (sounds familiar, dont take it personally)

thankyou
robots

He's not quoting evidence just an experience , there is no link.

 

[robots]

Meanwhile in the UK:

If you follow the hypothesis that Ostriylia will follow the trend of England... that Oz is a few months behind in the cycle (and I think that's a reasonable hypothesis), then brace yourself for falling rents.

Looks like I'll be moving from Cheltenham to Londinium, and am looking around the Wimbledon area for a place to rent.

The first thing the Letting agents say is "ignore the list price, we can get you in for less". They say that places going for £1400 pcm last year are renting at £1150 - £1200.

I offered £1400 on a place that was listed at £1650... the LL (a first timer and accidental LL) knocked it back, but the agent thinks they're nuts. "Reality will hit them sooner or later... £is about right at the moment" is what he said. Reckons last year they could have gotten £1700 easily.

That's happening all over the country right now. LLs sticking to their price are having BIIIIIIIG voids,

Oz LLs should prepare for that possibility.

hello,

considering the sensitivity of the issue, and no doubt BTL will be the first article Wayne will pull up, which is not a lot different to buying a new product

no worries man

thankyou
robots

 

[wayneL]

hello,

link link link.... otherwise really just more spruik talk (sounds familiar, dont take it personally)

thankyou
robots

Here ya go

 

[wayneL]

Here is a recent story on it:

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=325156

London rents post record declines
By Lorna Bourke | 00:01:00 | 07 January 2009
The New Year starts with some depressing news for landlords with rents for prime central London properties falling 10% over the past three months, the largest quarterly decline since 1995. According to property consultants, Knight Frank, rents have now fallen for three consecutive quarters, by a total of 12%, taking rents back to the level last seen in March 2007.
The figures would look worse were it not for the fact that property values are also falling fast so rental yields in prime central London are continuing to rise and now stand at 4.2%, compared with 3.9% a year ago....