House prices to keep rising for years

[kincella]

THE software entrepreneur Simon Clausen is Sydney's most active property investor, having bought $34 million worth since last October.

Mr Clausen, who made his debut on the recent BRW Rich List with a $180 million fortune, has snapped up nine properties since selling his business last year.

The 32-year-old recently added another Clareville beachfront to his portfolio, paying $2,789,000 for a property listed with $3.5 million hopes.

He has also bought a Balmain East property listed at $2.49 million for $1.73 million.

http://business.smh.com.au/business/tech-tycoon-bets-on-houses-20090626-cztn.html

 

[kincella]

I thought this article was full of interesting tit bits....short and concise...different from some of the long winded boring waffle we see......
the really interesting bits are highlighted......so the dollar has lost 95% of its value....meaning if that trend continues then one would need a whole lot more dollars to buy that house.....
and what impact will another 74 billion dollars issued by India have on interest rates world wide ???

AS the Monty Python boys said, always look on the bright side of life.

Overnight we’ve had reports that manufacturers in the Euro-zone saw their April orders down 35.5 per cent year on year, that the Irish banks are facing collective losses of Euros 35 billion, that UBS is going to report another loss in the second quarter, that India desperately needs some cash and is issuing $US74bn in paper and so threatening to choke bond market appetite, while the New Zealand economy shrank another 1 per cent. And, this morning, Qantas announces it is not only deferring orders for the Boeing 787 but cancelling 15 jets that were to be delivered from 2014 - all rather suggesting that it’s not too optimistic even five years out.

Are the markets worried. Nah!

Wall Street’s up, gold’s up, hopes are up - and it’s joy unbounded on the London Metal Exchange. They took heart from the Federal Reserve saying no further monetary policy action is needed. Great, but just remember that the period 1800 to 1900 in the US was one of either non-inflation or actual deflation, yet that century saw the greatest economic development story the world has known - and the dollar largely kept its value. In the 96 years since the Fed was set up - with the primary aim of protecting the greenback’s value - that same greenback is now worth 5 per cent of its buying power in 1913. And do you think that all this money printing could just possibly accelerate that loss of value even further?
So there is some sense in holding hard assets - like metals.

http://www.theaustralian.news.com.au/business/story/0,28124,25693000-15023,00.html

 

[MACCA350]

So there is some sense in holding hard assets - like metals.

http://www.theaustralian.news.com.au/business/story/0,28124,25693000-15023,00.html

Why can't metals devalue?

Copper went from $8.5k down to $3k in the space of 6 months.

cheers

 

[explod]

Why can't metals devalue?

Copper went from $8.5k down to $3k in the space of 6 months.

cheers

Big difference in metal types, copper industrial, down; gold for collectors investors, held its own and up 300% since 2002

 

[knocker]

ashaege....
I saw something somewhere last week...Lindsay Park stud is moving to Euroa.....that will be a big boost for the area....I was looking at buying there for my brother....Its always been big on horses....we used to go there often with the childrens horses...
its a cute little town about 1.5 hours from Melbourne on the freeway....
it will give the town a lift....and cheap houses...well a lot cheaper than Melbourne
cheers

lol Euroa you have to be joking. get a life dude and buy os. Lots of bargains in Spain at the moment ;-)

 

[kincella]

no thanks, I will buy where its just easy travelling distance to visit and inspect....
and I am not into travel o/seas....I have no idea what their market is like...
and prefer to really know the market...location
but thanks anyway.....others on here may be interested in your idea

 

[knocker]

no thanks, I will buy where its just easy travelling distance to visit and inspect....
and I am not into travel o/seas....I have no idea what their market is like...
and prefer to really know the market...location
but thanks anyway.....others on here may be interested in your idea

Fair enough, I guess euroa is good for retirement nothing else there. But if you were to retire why not go further up towards mildura lots of cheap farms etc up there.

 

[Gordon Gekko]

no thanks, I will buy where its just easy travelling distance to visit and inspect....
and I am not into travel o/seas....I have no idea what their market is like...
and prefer to really know the market...location
but thanks anyway.....others on here may be interested in your idea

http://patrick.net/housing/crash2.html

Well here is some info on the housing market in the US. I cannot believe how over priced property is here in Aus I get a chuckle when I read most of your posts. Are you a realestate agent or something?
If you have made money in property thats great congratulations!
I've lived in Aus 10 years (originally from Canada) If housing prices hold these levels I will truly be shocked but I will never buy at these prices.

Lucky I don't have to pay rent so I guess its easy for me to sit tight and watch. Or maybe I pay to much attention to Steve Keen and Harry Dent

Best of Luck

G

 

[kincella]

I like closer to Melb....maybe Kyneton, somewhere with a fast train...or soon to be a fast train within an hour to Melb....not the western suburbs...
brother wants to go somewhere where its warm all year....doubt such a place exists in Australia....
oh and he is retired....
Brumby looks after himself
....we need a fast train to Albury and I might live there...under duress.....cannot stand the place....but I have props up there
plenty of cheaper places around....all they have to do is get some fast rail and people will stay there, or move to where they have fast commute times...
no new roads or infrastructure required ...its already there

the drought is a worry....but if it breaks, everything changes....

 

[robots]

hello,

good evening, has been a tough couple of days with Michael passing away

but as usual the auction report for the day:

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

THATS RIGHT BROTHERS, A GREAT 86%

fantastic effort again, oh well, anyone know if the internet working in the UK yet

the thing is Gordon Gekko, no guns and no crack here in AUs, just a supreme place on the planet

zero interest rates yet?

thankyou

professor robots

 

[kincella]

Gordon...thanks again, but no thanks...I am not interested in what the freeken americans, canadians, irish or japanese do....
not an agent....just had fun buying properties at a low price and selling at a high price....only have 5 props left...but on the lookout for a bargain again...
have 30-40 years of retirement to look forward to...so need some income to support me all those years...
and if its worked well for so long now...not expecting anything to change...
sure some hiccups and twists and bends along the way.... but its proved worthwhile so far
cheers

 

[robots]

hello,

Kincella, we have a family house in Kyneton (maxwell st, near pool)

the place has gone really boutique over the past 12-18mths, Piper st is a mecca for foodies now

still some cheap places in the streets

thankyou
professor robots

 

[Gordon Gekko]

Gordon...thanks again, but no thanks...I am not interested in what the freeken americans, canadians, irish or japanese do....
not an agent....just had fun buying properties at a low price and selling at a high price....only have 5 props left...but on the lookout for a bargain again...
have 30-40 years of retirement to look forward to...so need some income to support me all those years...
and if its worked well for so long now...not expecting anything to change...
sure some hiccups and twists and bends along the way.... but its proved worthwhile so far
cheers

Kincella you should be worried about what happens globally but you are liquidating your portfolio so I can see why you are keen to talk up the property market. Have you been watching to much steve keen

Here is the 40 ways to lose your future.


1. Deflation is inevitable due to Ponzi dynamics (see From the Top of the Great Pyramid)
2. The collapse of credit will crash the money supply as credit is the vast majority of the effective money supply
3. Cash will be king for a long time
4. Printing one's way out of deflation is impossible as printing cannot keep pace with credit destruction (the net effect is contraction)
5. Debt will become a millstone around people's necks and bankruptcy will no longer be possible at some point
6. In the future the consequences of unpayable debt could include indentured servitude, debtor's prison or being drummed into the military
7. Early withdrawls from pension plans will be prevented and almost all pension plans will eventually default
8. We will see a systemic banking crisis that will result in bank runs and the loss of savings
9. Prices will fall across the board as purchasing power collapses
10. Real estate prices are likely to fall by at least 90% on average (with local variation)
11. The essentials will see relative price support as a much larger percentage of a much smaller money supply chases them
12. We are headed eventually for a bond market dislocation where nominal interest rates will shoot up into the double digits
13. Real interest rates will be even higher (the nominal rate minus negative inflation)
14. This will cause a tsunami of debt default which is highly deflationary
15. Government spending (all levels) will be slashed, with loss of entitlements and inability to maintain infrastructure
16. Finance rules will be changed at will and changes applied retroactively (eg short selling will be banned, loans will be called in at some point)
17. Centralized services (water, electricity, gas, education, garbage pick-up, snow-removal etc) will become unreliable and of much lower quality, or may be eliminated entirely
18. Suburbia is a trap due to its dependence on these services and cheap energy for transport
19. People with essentially no purchasing power will be living in a pay-as-you-go world
20. Modern healthcare will be largely unavailable and informal care will generally be very basic
21. Universities will go out of business as no one will be able to afford to attend
22. Cash hoarding will continue to reduce the velocity of money, amplifying the effect of deflation
23. The US dollar will continue to rise for quite a while on a flight to safety and as dollar-denominated debt deflates
24. Eventually the dollar will collapse, but that time is not now (and a falling dollar does not mean an expanding money supply, ie inflation)
25. Deflation and depression are mutually reinforcing in a positive feedback spiral, so both are likely to be protracted
26. There should be no lasting market bottom until at least the middle of the next decade, and even then the depression won't be over
27. Much capital will be revealed as having been converted to waste during the cheap energy/cheap credit years
28. Export markets will collapse with global trade and exporting countries will be hit very hard
29. Herding behaviour is the foundation of markets
30. The flip side of the manic optimism we saw in the bubble years will be persistent pessimism, risk aversion, anger, scapegoating, recrimination, violence and the election of dangerous populist extremists
31. A sense of common humanity will be lost as foreigners and those who are different are demonized
32. There will be war in the labour markets as unempoyment skyrockets and wages and benefits are slashed
33. We are headed for resource wars, which will result in much resource and infrastructure destruction
34. Energy prices are first affected by demand collapse, then supply collapse, so that prices first fall and then rise enormously
35. Ordinary people are unlikely to be able to afford oil products AT ALL within 5 years
36. Hard limits to capital and energy will greatly reduce socioeconomic complexity (see Tainter)
37. Political structures exist to concentrate wealth at the centre at the expense of the periphery, and this happens at all scales simultaneously
38. Taxation will rise substantially as the domestic population is squeezed in order for the elite to partially make up for the loss of the ability to pick the pockets of the whole world through globalization
39. Repressive political structures will arise, with much greater use of police state methods and a drastic reduction of freedom
40. The rule of law will replaced by the politics of the personal and an economy of favours (ie endemic corruption)

Best
Professor Gordon

 

[Beej]

Kincella you should be worried about what happens globally but you are liquidating your portfolio so I can see why you are keen to talk up the property market. Have you been watching to much steve keen

Here is the 40 ways to lose your future.


..... [snipped crazy conspiratoral drived about impending economic collapse and doom and gloom]

Best
Professor Gordon

Ummm - might be best if you head back up into the hills to your cave and curl up with your stockpiled shotgun ammo and baked bean tins!!! Really, this type of stuff is up there with the guy going on about aircraft contrails actually being "chemtrails".......

In the meantime back in the real world, Sydney auction clearance rate today was 76%.....

Beej

 

[knocker]

I like closer to Melb....maybe Kyneton, somewhere with a fast train...or soon to be a fast train within an hour to Melb....not the western suburbs...
brother wants to go somewhere where its warm all year....doubt such a place exists in Australia....
oh and he is retired....
Brumby looks after himself
....we need a fast train to Albury and I might live there...under duress.....cannot stand the place....but I have props up there
plenty of cheaper places around....all they have to do is get some fast rail and people will stay there, or move to where they have fast commute times...
no new roads or infrastructure required ...its already there

the drought is a worry....but if it breaks, everything changes....

Ok I have a property around maldon. very nice for a visit very now and then. bOUGHT AND PAID 10 YEARS AGO FOR 50K. Now rent.

 

[knocker]

Ummm - might be best if you head back up into the hills to your cave and curl up with your stockpiled shotgun ammo and baked bean tins!!! Really, this type of stuff is up there with the guy going on about aircraft contrails actually being "chemtrails".......

In the meantime back in the real world, Sydney auction clearance rate today was 76%.....

Beej

well mortagagees must be doing well

 

[Gordon Gekko]

Ummm - might be best if you head back up into the hills to your cave and curl up with your stockpiled shotgun ammo and baked bean tins!!! Really, this type of stuff is up there with the guy going on about aircraft contrails actually being "chemtrails".......

In the meantime back in the real world, Sydney auction clearance rate today was 76%.....

Beej

Actually beej I live on a small island 80km north of Townsville where I have a 7 course degustation menu prepared daily by a chef that opened the fat duck restaurant in the UK.. My only bill is for red wine which I pay at cost. Yesterday I went for a scuba dive and today I had fresh red emperor fish for dinner. My wife and I save 90% of our wages.
I may choose to buy a house in cash when interest rates go up which they will start to do very soon. That is when it will be time to buy, now it is time to sell.
The smart money is selling now only to buy it back when rates go up and over leveraged dreamers are forced to sell and then blame everyone else for why there life is so unfair.
For every winner there is a loser and I hope young people don't get burned by the falicy that prices never go down.

Best

G

 

[robots]

Actually beej I live on a small island 80km north of Townsville where I have a 7 course degustation menu prepared daily by a chef that opened the fat duck restaurant in the UK.. My only bill is for red wine which I pay at cost. Yesterday I went for a scuba dive and today I had fresh red emperor fish for dinner. My wife and I save 90% of our wages.
I may choose to buy a house in cash when interest rates go up which they will start to do very soon. That is when it will be time to buy, now it is time to sell.
The smart money is selling now only to buy it back when rates go up and over leveraged dreamers are forced to sell and then blame everyone else for why there life is so unfair.
For every winner there is a loser and I hope young people don't get burned by the falicy that prices never go down.

Best

G

hello,

sounds like the sermons many gave 4 yrs ago when the great thread started, oh well

i thought we were going like Japan with 0% interest rates? oops sorry people have changed there mind this week

what a new blog somewhere on www?

thankyou
professor robots

 

[knocker]

Actually beej I live on a small island 80km north of Townsville where I have a 7 course degustation menu prepared daily by a chef that opened the fat duck restaurant in the UK.. My only bill is for red wine which I pay at cost. Yesterday I went for a scuba dive and today I had fresh red emperor fish for dinner. My wife and I save 90% of our wages.
I may choose to buy a house in cash when interest rates go up which they will start to do very soon. That is when it will be time to buy, now it is time to sell.
The smart money is selling now only to buy it back when rates go up and over leveraged dreamers are forced to sell and then blame everyone else for why there life is so unfair.
For every winner there is a loser and I hope young people don't get burned by the falicy that prices never go down.

Best

G

nanygai.. mmm nice

barra and muddies mmm nice

 

[knocker]

Port douglas nice
cairns nice