House prices to keep rising for years
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http://www.news.com.au/heraldsun/story/0,21985,25660169-664,00.html
Link to the show mentioned, for those interested
http://mpegmedia.abc.net.au/local/nightlife/nightife_w_m1753992.mp3
Link to the show mentioned, for those interested
http://mpegmedia.abc.net.au/local/nightlife/nightife_w_m1753992.mp3
Hi Robots,
this article sounded like a backdown to me....since he spent some time recently over in Calafornia checking out all the housing drama...and reporting as if the same thing will happen over here in OZ.. he appears to just have the same views as most young people and says whatever appears to be popular on the day.......
I would not normally take any notice of him.... it is just that some raised the issue.....
the article is like a double edged sword...because on one hand he says your own home is the best investment you can make...and on the other...telling readers our houses are so overpriced....he loses any credibility he was trying to make...
here is the extract......
Wealth starts at home
One of the first points I brought up on the show was why I believe buying a home is the best investment you can make. So long as you have a 20 per cent deposit, have factored in a 4per cent jump in interest rates, and have asked yourself the what-if questions: What if I get pregnant? What if I lose my job? What if I get sick?
Here's why buying a home is so important: the bedrock to mastering your money is spending less than you earn, borrowing conservatively and investing in long-term growth assets.
As a financial adviser I know of no other investment that inspires savings like meeting a monthly mortgage payment.
this article sounded like a backdown to me....since he spent some time recently over in Calafornia checking out all the housing drama...and reporting as if the same thing will happen over here in OZ.. he appears to just have the same views as most young people and says whatever appears to be popular on the day.......
I would not normally take any notice of him.... it is just that some raised the issue.....
the article is like a double edged sword...because on one hand he says your own home is the best investment you can make...and on the other...telling readers our houses are so overpriced....he loses any credibility he was trying to make...
here is the extract......
Wealth starts at home
One of the first points I brought up on the show was why I believe buying a home is the best investment you can make. So long as you have a 20 per cent deposit, have factored in a 4per cent jump in interest rates, and have asked yourself the what-if questions: What if I get pregnant? What if I lose my job? What if I get sick?
Here's why buying a home is so important: the bedrock to mastering your money is spending less than you earn, borrowing conservatively and investing in long-term growth assets.
As a financial adviser I know of no other investment that inspires savings like meeting a monthly mortgage payment.
another very interesting article ...this time about Japan investing $90 billion in AUS ...surging 16% for the year
extract...........
Japanese target Australia for investment
Last week, Sekisui House announced a $190 million investment in a joint venture with Payce Consolidated to build new housing, with a special focus on "green homes", in Sydney's Homebush Bay and Queensland's Ripley Valley.
Trade Minister Simon Crean says this will support about 3500 jobs in NSW and 4500 in Queensland. "While the global financial crisis has caused global trade and investment flows to contract, Japan is one of the economies countering this trend," Crean says
Investments from Japan in recent few months have included:
* A $376m investment in Tower by life insurer Dai Ichi.
* A $1.1bn investment in Schweppes Australia by Asahi Beer.
* $3.3bn from Kirin to complete its ownership of Lion Nathan (approved by the Foreign Investment Review Board yesterday), with another $910m paid for Dairy Farmers.
* A $200m investment in the Kaz group by Fujitsu.
* A $575m investment in Paper Australia, a unit of Paperlinx, by Nippon Paper.
* Mitsubishi's leadership in the $3.5bn Oakajee port and rail project in Western Australia.
* Marubeni and Osaka Gas paying $800m for 80 per cent of APA GasNet, and Marubeni paying another $250m for a rail leasing joint venture.
* Suntory paying $1bn for the Australia and New Zealand operations of Danone's Frucor.
The range of these investments is especially impressive. China is also now cashed up and eager to invest in Australia, but its interest remains overwhelmingly focused on a single sector of national strategic priority -- resources.
http://www.theaustralian.news.com.au/story/0,25197,25662847-5017906,00.html he tune of $90 billion....
extract...........
Japanese target Australia for investment
Last week, Sekisui House announced a $190 million investment in a joint venture with Payce Consolidated to build new housing, with a special focus on "green homes", in Sydney's Homebush Bay and Queensland's Ripley Valley.
Trade Minister Simon Crean says this will support about 3500 jobs in NSW and 4500 in Queensland. "While the global financial crisis has caused global trade and investment flows to contract, Japan is one of the economies countering this trend," Crean says
Investments from Japan in recent few months have included:
* A $376m investment in Tower by life insurer Dai Ichi.
* A $1.1bn investment in Schweppes Australia by Asahi Beer.
* $3.3bn from Kirin to complete its ownership of Lion Nathan (approved by the Foreign Investment Review Board yesterday), with another $910m paid for Dairy Farmers.
* A $200m investment in the Kaz group by Fujitsu.
* A $575m investment in Paper Australia, a unit of Paperlinx, by Nippon Paper.
* Mitsubishi's leadership in the $3.5bn Oakajee port and rail project in Western Australia.
* Marubeni and Osaka Gas paying $800m for 80 per cent of APA GasNet, and Marubeni paying another $250m for a rail leasing joint venture.
* Suntory paying $1bn for the Australia and New Zealand operations of Danone's Frucor.
The range of these investments is especially impressive. China is also now cashed up and eager to invest in Australia, but its interest remains overwhelmingly focused on a single sector of national strategic priority -- resources.
http://www.theaustralian.news.com.au/story/0,25197,25662847-5017906,00.html he tune of $90 billion....
This article confirms what Beej has been telling everyone for months now...
Now for the good news on house prices
only an extract.....
Sydney buyer's agent PK Property reports that units and houses up to $650,000 are selling in a week, and for houses up to $4million on Sydney's lower north shore, eastern suburbs and mid north shore, there are low stock levels. "This market has stabilised now and will start to creep up because of supply and demand issues," it says.
Houses over $4 million are still fairly soft in all the blue-ribbon areas, with stock levels and buyer numbers still low, but in the other price brackets mentioned there seems to be a build-up of buyers because there have been low stock levels for five months, according to PK.
It says stock levels are low because lower rates have allowed people to hang on to their homes and investments and because owner occupiers are staying put, perhaps fearful of losing their jobs. But Sydney could be entering what it calls a locked market, "a vicious cycle where no one sells because they are too scared they won't find anything else".
John McGrath, chief executive of McGrath Estate Agents, says in his winter market review that while most of the strength has centred on the lower end of the market, results in the $1 million plus range are exceeding expectations. The Sydney market is divided more by price bands than the traditional geographic segmentation. Sellers in the lower end have pocketed better than expected results and are reinvesting to upgrade their homes with confidence, he says.
The market for property over $5 million is harder to gauge because of limited volume, but McGrath says there is a shortage of trophy properties and suspects the top end of the market is about 15 per cent off its highs.
However, there have been properties sold for better than their 2007 prices and if there is no great increase in listings, he says, most of the price falls will be regained next year. But, similar to others, he qualifies this by saying that if unemployment were to hit 10 per cent, the sustainability of present demand and prices would have to be revised.
http://www.theaustralian.news.com.au/business/story/0,28124,25660175-25658,00.html
Now for the good news on house prices
only an extract.....
Sydney buyer's agent PK Property reports that units and houses up to $650,000 are selling in a week, and for houses up to $4million on Sydney's lower north shore, eastern suburbs and mid north shore, there are low stock levels. "This market has stabilised now and will start to creep up because of supply and demand issues," it says.
Houses over $4 million are still fairly soft in all the blue-ribbon areas, with stock levels and buyer numbers still low, but in the other price brackets mentioned there seems to be a build-up of buyers because there have been low stock levels for five months, according to PK.
It says stock levels are low because lower rates have allowed people to hang on to their homes and investments and because owner occupiers are staying put, perhaps fearful of losing their jobs. But Sydney could be entering what it calls a locked market, "a vicious cycle where no one sells because they are too scared they won't find anything else".
John McGrath, chief executive of McGrath Estate Agents, says in his winter market review that while most of the strength has centred on the lower end of the market, results in the $1 million plus range are exceeding expectations. The Sydney market is divided more by price bands than the traditional geographic segmentation. Sellers in the lower end have pocketed better than expected results and are reinvesting to upgrade their homes with confidence, he says.
The market for property over $5 million is harder to gauge because of limited volume, but McGrath says there is a shortage of trophy properties and suspects the top end of the market is about 15 per cent off its highs.
However, there have been properties sold for better than their 2007 prices and if there is no great increase in listings, he says, most of the price falls will be regained next year. But, similar to others, he qualifies this by saying that if unemployment were to hit 10 per cent, the sustainability of present demand and prices would have to be revised.
http://www.theaustralian.news.com.au/business/story/0,28124,25660175-25658,00.html
all this positive news is becoming just a little boring....but here is another piece anyway
Offshore buyers flock to Raptis Group's Hilton development
Turi Condon, Property editor | June 20, 2009
Article from: The Australian
APARTMENTS in the collapsed Raptis Group's $700 million Gold Coast Hilton project are being snapped up by overseas buyers as its new owners, the ANZ Bank and builder Brookfield Multiplex, resurrect the previously stalled beachfront towers.
Eight apartments, which are being marketed for more than $720,000 each, were sold in Singapore last weekend by the builder, whose residential division is marketing the units.
Work restarted last month after halting last year as the property empire of Gold Coast developer Jim Raptis faltered. Raptis Group collapsed in February under more than $900m of debt, leaving the ANZ Bank reportedly $200m down.
The two-tower Hilton Surfers Paradise hotel and residences and Mr Raptis's $700m Southport Central, being completed by receivers, were tipped as strong contenders to get funding from Rudd Bank, the commercial property bailout fund voted down in the Senate on Tuesday, and which was put up by the government as an industry job saver.
Giant Canadian-owned builder Brookfield Multiplex and ANZ say the Hilton project will provide 900 construction jobs over the 2 1/2-year building period, as well as a further 1000 tourism and other jobs.
ANZ Queensland state chairman Russell Shields said the Hilton project could have been a contender for Rudd Bank funding before the bank took control, acknowledging there might be more political will to introduce the bailout scheme if employment deteriorates.
Mr Shields declined to put a figure on how much Raptis owed the bank, putting the collapse in the past. "It's not a five-minute fix, it's not a five-minute project," he said.
Brookfield Multiplex expects to sell half the 410 apartments to offshore buyers, and is marketing the property heavily in Asia.
Turi Condon was flown to the Gold Coast by Brookfield Multiplex.
Offshore buyers flock to Raptis Group's Hilton development
Turi Condon, Property editor | June 20, 2009
Article from: The Australian
APARTMENTS in the collapsed Raptis Group's $700 million Gold Coast Hilton project are being snapped up by overseas buyers as its new owners, the ANZ Bank and builder Brookfield Multiplex, resurrect the previously stalled beachfront towers.
Eight apartments, which are being marketed for more than $720,000 each, were sold in Singapore last weekend by the builder, whose residential division is marketing the units.
Work restarted last month after halting last year as the property empire of Gold Coast developer Jim Raptis faltered. Raptis Group collapsed in February under more than $900m of debt, leaving the ANZ Bank reportedly $200m down.
The two-tower Hilton Surfers Paradise hotel and residences and Mr Raptis's $700m Southport Central, being completed by receivers, were tipped as strong contenders to get funding from Rudd Bank, the commercial property bailout fund voted down in the Senate on Tuesday, and which was put up by the government as an industry job saver.
Giant Canadian-owned builder Brookfield Multiplex and ANZ say the Hilton project will provide 900 construction jobs over the 2 1/2-year building period, as well as a further 1000 tourism and other jobs.
ANZ Queensland state chairman Russell Shields said the Hilton project could have been a contender for Rudd Bank funding before the bank took control, acknowledging there might be more political will to introduce the bailout scheme if employment deteriorates.
Mr Shields declined to put a figure on how much Raptis owed the bank, putting the collapse in the past. "It's not a five-minute fix, it's not a five-minute project," he said.
Brookfield Multiplex expects to sell half the 410 apartments to offshore buyers, and is marketing the property heavily in Asia.
Turi Condon was flown to the Gold Coast by Brookfield Multiplex.
No zero rates just a crash and high rates
Interesting theory! Meanwhile auction clearance rate was 73% in Sydney on a cold rainy day today (127 sold), median price $573k. And last weekend was about the same with a $625k median. Heaps of $2M+ pads changing hands on both weekends as well.
Cheers,
Beej
hello,
check check, Professor Robots is in the house:
http://www.reiv.com.au/home/inside.asp?ID=162&nav1=652&nav2=162
WOW WEEEE
86% clearance rate, this unbelievable, well done brothers, keep holding onto the title slips fellow men
gee the internet must still be down in the UK as havent heard from WayneL for while, maybe out earning a quid
oh well, paradise still in the lucky country
kincella: re S.Pope, yeah definitely back pedalled with todays article and NO DOUBT was heavily influenced by his visit to United States of Crapola
debtwatch donations will be in for a hard time I think, not much credibility left at that joint
thankyou
associate professor robots
check check, Professor Robots is in the house:
http://www.reiv.com.au/home/inside.asp?ID=162&nav1=652&nav2=162
WOW WEEEE
86% clearance rate, this unbelievable, well done brothers, keep holding onto the title slips fellow men
gee the internet must still be down in the UK as havent heard from WayneL for while, maybe out earning a quid
oh well, paradise still in the lucky country
kincella: re S.Pope, yeah definitely back pedalled with todays article and NO DOUBT was heavily influenced by his visit to United States of Crapola
debtwatch donations will be in for a hard time I think, not much credibility left at that joint
thankyou
associate professor robots
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Just bought a block of land..........now to decide on the rest
Would have been nice if the market tanked more before we baught but since this will be our PPOR for the next 10-20(or more) years I'm not too fussed now we've decided. If things do tank we may pick up an IP
It's taken us nearly a year to find and decide. In the end we couldn't find the established "one that ticks all the boxes" so we're going to build it since we found a great sized block(biggest in the estate) in a great location(adjoining a huge 20+ha parkland reserve with a creek and views).
cheers
..........now to decide on the restWould have been nice if the market tanked more before we baught but since this will be our PPOR for the next 10-20(or more) years I'm not too fussed now we've decided. If things do tank we may pick up an IP
It's taken us nearly a year to find and decide. In the end we couldn't find the established "one that ticks all the boxes" so we're going to build it since we found a great sized block(biggest in the estate) in a great location(adjoining a huge 20+ha parkland reserve with a creek and views).
cheers
Just bought a block of land
Would have been nice if the market tanked more before we baught but since this will be our PPOR for the next 10-20(or more) years I'm not too fussed now we've decided. If things do tank we may pick up an IP
It's taken us nearly a year to find and decide. In the end we couldn't find the established "one that ticks all the boxes" so we're going to build it since we found a great sized block(biggest in the estate) in a great location(adjoining a huge 20+ha parkland reserve with a creek and views).
cheers
Good stuff bro. I have my big block of land up North approx 50 acres, waiting for the right time to build my eco friendly amnsion.
In the meantime I am picking up bargain basement propertiues here in Uk ,Portugal and Spain.
Julia
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Knocker, what will you do with these? Rent them? Via an agent? How does the tax work?
A reality check from http://www.news.com.au/couriermail/story/0,23739,25660536-3122,00.html
Worse to come for Australian economy, says Harry Dent
AUSTRALIA'S sharemarket will halve in value, house prices will slump as much as 40 per cent and unemployment will climb to 10 per cent.
That's the bold prediction from economic forecaster Harry Dent, who says a bigger crash is ahead for the global economy within the next two years.
And while Australia's strong financial system, links to China and young working population have cushioned the nation from the economic turmoil so far, Mr Dent says smart investors are cashing up in preparation for "the Mother of all depressions".
"When you have to deleverage a major bubble in stocks and housing and commodities . . . it doesn't just get over with in one year with a nice stimulus program," he says.
Mr Dent, who predicted Japan's 1990s recession and the present economic crisis, yesterday began an Australian speaking tour in Brisbane.
He says a "perfect storm" is brewing where a peak in spending by baby boomers will collide with the global commodity bubble to "leave behind the next great crash".
Although Australia's All Ordinaries Index may peak at between 4500 and 5000 points by the end of this year, he says a crash in about 2011 will see it slump to about 2000 points.
He says our house prices are "among the most overvalued in the world" and will backtrack by as much as 40 per cent while unemployment – now at 5.7 per cent – will hit double digits.
"I would say Australia is not paying close enough attention to the worldwide housing bubble and banking crisis," he says.
Mr Dent scoffs at a BIS Shrapnel report, issued this week, that said home values would rise by as much as 20 per cent over the next three years.
"Look at Japan to see what happens when a generational trend finally slows your economy and a housing bubble bursts. Housing peaked in 1991 in Japan and is still down over 60 per cent from the peak 18 years later."
He believes the next boom will begin to unfold in 2023, when India will take over from China as the world's growth powerhouse.
"If I was Australian businesses and government I'd say, 'OK, China's our best customer now but we need to be cultivating India'," Mr Dent says.
"India is the one large country – that isn't dependent on just commodity cycles for exports – that could grow dramatically and urbanise."
He says India's economic strength will be underpinned by its youthful population – something that will also help make Australia one of the most resilient developed economies throughout the next two decades.
Most of the affluent world is not having enough children to support their ageing population, he says.
Japan has the oldest population in the world, followed by Italy.
However, Australia's immigration policy has ensured the local economy has stayed refreshed by young, skilled workers from overseas, helping drive innovation to "take the economy to new heights".
"Your demographics do not turn down nearly as much as Europe and the United States and Japan's did and your banking system didn't go nuts," Mr Dent says. "You will fare better but you won't come out of this unscathed."
Worse to come for Australian economy, says Harry Dent
AUSTRALIA'S sharemarket will halve in value, house prices will slump as much as 40 per cent and unemployment will climb to 10 per cent.
That's the bold prediction from economic forecaster Harry Dent, who says a bigger crash is ahead for the global economy within the next two years.
And while Australia's strong financial system, links to China and young working population have cushioned the nation from the economic turmoil so far, Mr Dent says smart investors are cashing up in preparation for "the Mother of all depressions".
"When you have to deleverage a major bubble in stocks and housing and commodities . . . it doesn't just get over with in one year with a nice stimulus program," he says.
Mr Dent, who predicted Japan's 1990s recession and the present economic crisis, yesterday began an Australian speaking tour in Brisbane.
He says a "perfect storm" is brewing where a peak in spending by baby boomers will collide with the global commodity bubble to "leave behind the next great crash".
Although Australia's All Ordinaries Index may peak at between 4500 and 5000 points by the end of this year, he says a crash in about 2011 will see it slump to about 2000 points.
He says our house prices are "among the most overvalued in the world" and will backtrack by as much as 40 per cent while unemployment – now at 5.7 per cent – will hit double digits.
"I would say Australia is not paying close enough attention to the worldwide housing bubble and banking crisis," he says.
Mr Dent scoffs at a BIS Shrapnel report, issued this week, that said home values would rise by as much as 20 per cent over the next three years.
"Look at Japan to see what happens when a generational trend finally slows your economy and a housing bubble bursts. Housing peaked in 1991 in Japan and is still down over 60 per cent from the peak 18 years later."
He believes the next boom will begin to unfold in 2023, when India will take over from China as the world's growth powerhouse.
"If I was Australian businesses and government I'd say, 'OK, China's our best customer now but we need to be cultivating India'," Mr Dent says.
"India is the one large country – that isn't dependent on just commodity cycles for exports – that could grow dramatically and urbanise."
He says India's economic strength will be underpinned by its youthful population – something that will also help make Australia one of the most resilient developed economies throughout the next two decades.
Most of the affluent world is not having enough children to support their ageing population, he says.
Japan has the oldest population in the world, followed by Italy.
However, Australia's immigration policy has ensured the local economy has stayed refreshed by young, skilled workers from overseas, helping drive innovation to "take the economy to new heights".
"Your demographics do not turn down nearly as much as Europe and the United States and Japan's did and your banking system didn't go nuts," Mr Dent says. "You will fare better but you won't come out of this unscathed."
http://www.news.com.au/couriermail/story/0,23739,25660536-3122,00.html
A few salient quotes, for the those unable/unwilling to read the entire article, addicted to twitter and suffering ADHD
I wonder if he has been reading this thread (see below !)
A few salient quotes, for the those unable/unwilling to read the entire article, addicted to twitter and suffering ADHD
I wonder if he has been reading this thread
(see below !)I have a big family, I let them stay there for a nominal fee ;-) Unemployement in Spain and Portugal is very high, a lot of ex-pat pohms are coming back home, I help them out here as well;-)
Bill M
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Mate, word of warning, Harry Dent has been proven wrong before. I would take anything he says with a grain of salt. Here is what some of his readers have said:
------------------
I am really amazed at the shameless spinning by Harry Dent in his latest book about his past predictions. He makes it sound like he foresaw the crash of 2000-2002. But in fact, his previous book, The Roaring 2000s, published in late 1990's, made all sorts of bullish predictions that were totally 100% wrong in retrospect.
In June of 1999, Harry became a mutual fund advisor. It did okay for all of six months, then lost 70% of its value. It regained some ground in the last two years, but is still down substantially from its inception. Just a few weeks ago, the fund was quietly merged into another and the Dent name removed.
So Mr. Dent has another book out, eh? The same guy who put a book out five years ago saying BUY NOW just as the Nasdaq was reaching 5000. Anybody who listened to this guy five years ago surely has a big DENT in his portfolio... or rather, a CRATER. If someone truly knew the secret to attaining market-beating returns, guess what? It would be A SECRET... and he certainly wouldn't be sharing it with you.
--------------------
All of this can be verifyed off this freely available website here:
http://www.amazon.com/Next-Great-Bubble-Boom-2006-2010/product-reviews/B000W3U9CY/ref=dp_top_cm_cr_acr_txt?ie=UTF8&showViewpoints=1
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