House prices to keep rising for years

[MACCA350]

So is there a method or report that does accurately reflect valuations?

cheers

 

[MrBurns]

Just back from Chapel St.....I have never seen a bigger crowd...so what the hecks going on down there ???
Will someone pleasee tell them we are in a recession, and that they have to stop spending !

They're all homeless.........wont be a joke for too much longer.

They're spending $rudds.

 

[robots]

hello,

good evening Kincella, the dog get a treat at KFC?

the joint is rocking alright, its amazing, great to be part of it all

thankyou
robots

 

[MACCA350]

Just noticed at 4:50 in Enzo's video he shows a graph that compares their figures to the Valuer Generals and they seem to track quite closely and mentions that this shows that the REIV figures are very accurate to actual market movements.
From what I understand, the Valuer General valuations are the ones used for governments and things like land tax and annual rates.......is this correct?

This would suggest that, even though the REIV figures are not directly derived from accurate valuations, they are a good representation of the movements of valuations.

cheers

 

[kincella]

Hi Robots...
yes the dog did get her treat...(3-4 weeks since last had some) its really just a tiny amount of meat...not enough for a meal....
since I lost a couple of kg's and inches I thought she should have a treat...she only weighs 4.5 kg..so she is a little tike
that Chapel st just buzzes all the time....the chemist was full... I thought they must be shopping for Mothers day...they have some good specials on perfumes for both sexes
cheers

 

[kincella]

***I am guessing....a fair number of people who prefer renting to buying/owning the home they live in....may have been influenced by their parents...and their history....
majority of people who grew up in their own home...will copy their parents and buy....
the ones who grew up in rented housing will copy their parents and rent...
of course there are the ones in each group who rebel...did not like it and do the opposite
parental influence may be the deciding factor here ????

*** the other thing that some will scoff at...
a new show starting on ch 9...... for home renovations......
I will be watching....I love new ideas, I enjoy renovating myself, including interior design, and landscaping
whoo hoo....there are a load of people out there who will be renovating...with the low interest rates kicking in of course...and biding their time....until the market is right....
I would prefer to be renovating houses for a living.... so far I have been doing same on a part time basis....maybe , just maybe I will make it my full time job....coming to cross roads...which road will I take....a big decision...requires a lot of thought and research....and a bit of gutz
cheers

 

[MrBurns]

***I am guessing....a fair number of people who prefer renting to buying/owning the home they live in....may have been influenced by their parents...and their history....
majority of people who grew up in their own home...will copy their parents and buy....
the ones who grew up in rented housing will copy their parents and rent...
of course there are the ones in each group who rebel...did not like it and do the opposite
parental influence may be the deciding factor here ????

*** the other thing that some will scoff at...
a new show starting on ch 9...... for home renovations......
I will be watching....I love new ideas, I enjoy renovating myself, including interior design, and landscaping
whoo hoo....there are a load of people out there who will be renovating...with the low interest rates kicking in of course...and biding their time....until the market is right....
I would prefer to be renovating houses for a living.... so far I have been doing same on a part time basis....maybe , just maybe I will make it my full time job....coming to cross roads...which road will I take....a big decision...requires a lot of thought and research....and a bit of gutz
cheers

If people knew how to invest properly they would rent and put the cash into investments, they could make much more than the appreciation on a house even with the tax, but people on the whole have no idea how to invest so they buy a house, it's forced saving.

 

[Julia]

If people knew how to invest properly they would rent and put the cash into investments, they could make much more than the appreciation on a house even with the tax, but people on the whole have no idea how to invest so they buy a house, it's forced saving.

Mr B. That's rather a generalisation, don't you think? There are other reasons for owning a home than just the financial considerations. We've discussed this before.

A home means much more to many people than just a profit making vehicle.
Rather it represents security (the landlord can't throw you out), and the various enhancements you make to the property add to the pleasure of living there. When any mortgages are paid you don't have to worry about the landlord upping the rent exponentially.

I would always have a home to live in first, then left over capital can go into more property or other investments.

 

[MrBurns]

Mr B. That's rather a generalisation, don't you think? There are other reasons for owning a home than just the financial considerations. We've discussed this before.

A home means much more to many people than just a profit making vehicle.
Rather it represents security (the landlord can't throw you out), and the various enhancements you make to the property add to the pleasure of living there. When any mortgages are paid you don't have to worry about the landlord upping the rent exponentially.

I would always have a home to live in first, then left over capital can go into more property or other investments.

I do the same as you BUT if I was a really savvy investor I wouldnt have $2M tied up in a place to live, I could do very very well elsewhere and the landlord could do as he liked the rent would be small change.

One day when all is done you would buy something and have a stack left over to live off.

People like to have the "security" of their own home because they havent got the know how to turn that money into multiples of itself, I'm one of them , not enough confidence or tolerance for risk.

 

[Lancelot]

If people knew how to invest properly they would rent and put the cash into investments, they could make much more than the appreciation on a house even with the tax, but people on the whole have no idea how to invest so they buy a house, it's forced saving.

Would they?

Would you have suggested something like this?

 

[Lancelot]

I do the same as you BUT if I was a really savvy investor I wouldnt have $2M tied up in a place to live, I could do very very well elsewhere and the landlord could do as he liked the rent would be small change.

One day when all is done you would buy something and have a stack left over to live off.

People like to have the "security" of their own home because they havent got the know how to turn that money into multiples of itself, I'm one of them , not enough confidence or tolerance for risk.

Who has a 2million dollar house?

You do realise that most people have to put a deposit on a house and pay it off, they don't just go out and pay cash from the millions of dollars they have lying around in the bottom of the cupboard.

If they DID have a few million lying around your comment makes sense, to rent and invest those millions elsewhere, but as they don't, they need leveraging to get a result.

 

[MrBurns]

Who has a 2million dollar house?

You do realise that most people have to put a deposit on a house and pay it off, they don't just go out and pay cash from the millions of dollars they have lying around in the bottom of the cupboard.

If they DID have a few million lying around your comment makes sense, to rent and invest those millions elsewhere, but as they don't, they need leveraging to get a result.

Investing is not just shares, and rent is cheaper than mortgage payments, rates , taxes , maintenence , with the money left over you support your investments and enjoy the tax breaks.

 

[Julia]

I do the same as you BUT if I was a really savvy investor I wouldnt have $2M tied up in a place to live, I could do very very well elsewhere and the landlord could do as he liked the rent would be small change.

Quite so. I don't have 2M tied up in a home.

One day when all is done you would buy something and have a stack left over to live off.

I don't know about "a stack", but yes there is enough left over to live off.

People like to have the "security" of their own home because they havent got the know how to turn that money into multiples of itself, I'm one of them , not enough confidence or tolerance for risk.

So you're handing out advice that you don't take yourself, or am I misunderstanding you, Mr B? If so, what's stopping you?

 

[Lancelot]

and rent is cheaper than mortgage payments, rates , taxes , maintenence , with the money left over you support your investments and enjoy the tax breaks.

Really?

My repayments at 7.5% rates taxes etc are way way cheaper than rent on a similar property.

I have been "investing" in this place for a few years now though to make it so.

 

[Soft Dough]

Would they?

Would you have suggested something like this?

yes, over the long term the sharemarket is a great as an alternative investment.

Perhaps the last 3 weeks return would be a better graph to post? Or does that not suit the bias of your viewpoint?

Remember it doesn't take as much of a percentage fall in house prices to wipe out as much in real $$ from regular investors, as in housing you will find more people more highly geared.

 

[Soft Dough]

]
Agree. Annual outgoings on this property would be under $5000. That's under $100 p.w. Rent on equivalent property would be around $400 p.w. min even in this regional area.

I have just moved again, and thought of purchasing a property for where I am for the next few years.

House = $400k -> interest = $446 per week, rates = $50 per week house insurance = $20 per week, depreciation = $120 per week.

= $636 per week
Rent = $350 per week

I do not expect any capital gain in housing over the next 3 years. So why would I buy when I can rent?

 

[MrBurns]

So you're handing out advice that you don't take yourself, or am I misunderstanding you, Mr B? If so, what's stopping you?

Thats right and I told you why, it's not advice it's an observation and a true one at that Julia, just because we cant/dont do it doesnt mean others dont and very successfully too.

 

[MrBurns]

Really?

My repayments at 7.5% rates taxes etc are way way cheaper than rent on a similar property.

I have been "investing" in this place for a few years now though to make it so.

Add up ALL your expenses and you'll get a different result.

 

[singlefished]

Really?

My repayments at 7.5% rates taxes etc are way way cheaper than rent on a similar property.

I have been "investing" in this place for a few years now though to make it so.

How much would a FHB have to borrow to buy the same property today then (assuming 5% deposit)?

 

[MrBurns]

I have just moved again, and thought of purchasing a property for where I am for the next few years.
House = $400k -> interest = $446 per week, rates = $50 per week house insurance = $20 per week, depreciation = $120 per week.
= $636 per week
Rent = $350 per week
I do not expect any capital gain in housing over the next 3 years. So why would I buy when I can rent?

Only dont but a house if you're absolutely certain you can do beter in other areas, if not buy, but not just yet the fun and games are about to begin there.