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House prices to keep rising for years

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More breaking news on Australias booming RE market ....

Looks like the days of buying a house and a surfboard being the road to riches are over ?

I have a friend who fixed 75% of his $500 000 mortage 1 year ago at 7.83%.He fixed it for 5 years with one of the big 4 banks. Now he is about to lose his job , the investment property he bought recently has lost over 25% of his value and the bank is asking him 34k to get out of the fixed part of his loan.
Is there something he could do to get out of this bad situation ?

Cheers
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https://www.aussiestockforums.com/forums/showthread.php?t=14384

nirvana ?
 
Bill M said:
He said it not me. I've heard these 50% property collapse doomsday comments for decades and it's never happened, keep on dreaming.
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Bank assets are really someone else's debt property has gone up in price (not necessarily value) because of credit inflation (not the same as inflation) and some inflation over the years. Credit contraction is currently underway here as well as overseas so this time prices could fall substantially (not value) the house will still be there. If you doubt credit contraction underway already look at interest rates if there is demand for money the price (interest rates) goes up when the price goes down the demand isn't there. Also ask wholesalers how there getting paid at the moment and most will tell you slower than last year .Another sign of impending deflation the slowing down of volatility of money.Another thing to think about we got into this mess by using too much credit so how is giving more credit out as in stmulus package going to help. Long term this wil end and then will be a brilliant opportunity but at much lower prices 50% may be too much or it could even be too little but certainly much lower than were we are right now
 
Bill M I am not a permabear have been buying and selling houses up till last year but they are too illiquid now although I believe that we are going to have one last rally in the next 8 to 12 months, but that is not backed up by evidence as per my previous post only personal believe
 
joeyr46, I tend to deal with facts in my area and the way things are here. I have no interest of over supplied American or UK property. You talk about too many things like, "too much credit", "too illiquid", "deflation", wholesalers and so on but none of this has any effect of property being sold right now and in my area.

The buyers are still about and credit is flowing to all those who are worthy of getting it. I have no debt what soever and we could get 300K credit easy if we wanted it. Lets face it, these days an average working couple can earn a 100K combined income quite easily and they can get credit easily as long as the deposit is there.

You talk about liquidity, that's just not right. Properties that are priced correctly still sell within 2 and 4 weeks time. However I might add that there are some silly owners out there. I went and saw a nice 2 br unit 4 weeks ago, it was on the market at 449K. Now the sold sticker is on the sign and another sign is up along side it for another unit. The new one is on the market for 550K, guess what? no takers and it is still available. Why would I pay 550K when the neighbour just sold for 449K? Needless to say this property probably won't sell. Other than gross mispricing pretty much everything under 500K is still being sold.
 
robots said:
hello,

more great news out there fellow brothers:

http://www.reiv.com.au/home/inside.asp?ID=162&nav1=652&nav2=162

what a day, 70% clearance rate this is great stuff Kincella

most likely people sitting on a little bit of money leftover from failed sharemarket/cfd/option bets realising where its at

Lioness may have second thoughts, but oh well, still down with the crew

thankyou
robots
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Robots, I am here and watching:cautious:

No, I am out of here, take my profits and lock in the cash. Thankfull my property is smack bang in the first home buyers market up to $550K. They can have it and load themselves up to their eyeballs in debt. I will wish them luck paying it off for the next 15 years!!!!!! HAHA

I will reenter but not before 2-3 years have expired for maximum pain to be inflicted. Watch deflation kill everything including property in the next 2 years.

Unemployment will reach 30% in the USA and 10% plus here in the next 2 years. Then I will rock up with my wads of cash and offer 30% off the asking price and wait and wait until the vendors beg and scream to take their rental properties off their hands for such a discount.

Patience is a virtue here.;)
 
robots said:
hello,

whats happened to the colonel from England, WayneL? havent heard from him for a while

hope all's well,

suit pressed in a day and LOE in about 14-20 days, again!

thankyou
robots
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All's well. Just moving house and a couple of other things taking up my time.

Thanks
 
gav said:
Seaford units up 15.3% in the Dec 08 quarter, and up 24% since the Jun 08 quarter.

http://realestateview.com.au/portal/...ford&state=vic
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hello,

fantastic result Gav, 15.3% in the Dec 08 quarter amazing

great suburb right on the water there with a very nice beach behind the tea-tree, nice bakery on the highway

probably similar right through bonbeach, chelsea, edithvale and aspendale

45-50 min train ride to the city

nirvana everywhere

thankyou
robots
 
gav said:
Seaford units up 15.3% in the Dec 08 quarter, and up 24% since the Jun 08 quarter.

http://realestateview.com.au/portal/...ford&state=vic
Click to expand...


Arff..Arff..!!!:D Looks like it was removed. I wonder why:rolleyes::


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robots said:
hello,

thats okay man, have some of Bonbeach:

http://www.realestateview.com.au/po...tydata&search=1&suburbname=bonbeach&state=vic

similar result for the Dec08 Quarter, paradise Numbercruncher

and probably some great rent increases for the year as well

the title is rolling on man

thankyou
robots
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Anyway Sept quarter is past and no longer relevant if you want to stay ahead of the pack. Anecdotal from agents here on the Mornington Peninsula is falling prices all round (including Seaford). A bit of support round the 300 to 400k due to FHBG but otherwise very risky business till a bit more plays out in the financials. With money supply those going in now could get swept aside when interest rates have to go in the other direction and governments can say what they like, it is free capitalism that controls banks and interest rates. Remember the banana republic, 18% rates and it will happen again.


Not saying get out, just saying it is a time to stand and watch what happens.
 
December quarter, slip of the month, working on scabble with the missus. Out of investment property at the moment so relaxing time in any case.

Have another beer Robots

thank you

Explod
 
explod said:
December quarter, slip of the month, working on scabble with the missus. Out of investment property at the moment so relaxing time in any case.

Have another beer Robots

thank you

Explod
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hello,

on the red cordial at the moment, better than the v's too

i am just plodding along as well Explod, fantastic

thankyou
robots
 
So_Cynical said:
Yep all's well in Bonbeach with prices like this.

PS Station St BV 5rm $180,000 :eek:
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hello,

so much for affordability issue's so_cynical, propaganda from the socialist crew who want everything for free

yeah just hand everything over to the bludgers in society,

thankyou
robots
 
hello,

so just to expand on so_cynical's info:

180k, 5rm Brick Veneer, station st Bonbeach

couple on average income, so 100k combined, less deposit say 20k, WOW thats 1.6x income, yes thats right

i know i know i know, no one has a job everyone is going to be unemployed by 2010

thankyou
robots
 
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