House prices to keep rising for years

[nunthewiser]

HIA senior economist Ben Phillips said the May figures showed it would take more than first home buyers to support a recovery in home building activity.

"The vast majority of the housing recovery has been at the first home buyer end of the market,” Mr Phillips said in a statement.

"As that segment inevitably slows over the remainder of 2009 it's vitally important that the much larger trade-up and investor segments return to health.

"The federal government increased the first home owner grant in October last year to $14,000 for established homes and $21,000 for new homes or for those who wished to build their own home.

The temporary boost will be scaled back $10,500 and $14,000, respectively, after September 30.

Among the states, Western Australia recorded the largest drop in new home sales with a 13.5 per cent decline in May.

New home sales were down 9.9 per cent in New South Wales and 8.7 per cent in Victoria.

On the positive side, new home sales rose two per cent in Queensland - the state's fourth rise in the past five months - and were up 3.6 per cent in South Australia.

The HIA survey covered 100 of Australia's largest builders and developers.

AAP and LOUISE BURKE

http://www.thewest.com.au/default.aspx?MenuID=159&ContentID=151830


sunshine and lollipops brothers

pure nirvana

walking tall

senior professor nun

 

[trainspotter]

When the state revenue dept sends you a refund cheque for land tax and downgrades your property portfolio by an average of 20k per construction you gotta be asking yourself "hello, what property boom, man?"

Currently holding 5 houses that have dipped between 30k to 50k on average. Some rented, some not. Real estate agent figures by the way.

Nevermind that they incresed in value on average of 100k in 2 years ... (nervous cough) Could be the market correcting itself?

RP data ... my main source of info. Useful as a weapon of mass destruction.

 

[Bafana]

Just a quick footnote. Some of the larger private developers in Canberra are continuing to purchase property and have sites set up to get done over the next 5 years already. These guys sat back for a while recently but are now out and about so my feel is there may not be such a large bubble in commercial property, the same may not be said for residential. (Source: Office Workload projections, we are insultanting engineers lah)

What I have found is that regional prices in residential property in and around provincial city's doesn't looking to be spiking too much, especially old homes. They appear to be spiking in retirement and hobby areas only, and it would appear that real farm land is very hard to move right now (my aged Aunt's property $750K has been on the market for over a year now).

 

[robots]

hello,

hey hey hey hey:

http://business.theage.com.au/business/melbourne-in-housing-recovery-20090630-d3uk.html

this is just amazing, the residential property train just keeps plodding along

fantastic and for most its just for putting the key in the door and saying Hi to the wife, awesome

surely that western sydney uni must have an empty office by now

well done to those putting in keep up the effort man

thankyou
professor robots

 

[kincella]

Hi Robots,
I copied this post from a mate on another forum........he is a smart cookie...
....................

I bought a place 4 weeks ago for $180k ....100% lend

spent 8k and 2 weeks doing it up and now back on the market for $269,000

So has cost me $204,000 inc all fees/sduty/agents and reno costs.

First open was Saturday.....got an offer of $255k and another one coming in today.

here is the house below....shown refurbished.


http://www.realestate.com.au/cgi-bi...er=&cc=&c=61011103&s=sa&snf=rbs&tm=1246406012

So Peter.....stick to the books and I will live reality.

 

[Taltan]

Kincella
Aren't quick and easy profits a sign of a bubble in a market? Such stories remind me of the M&A activity that took place on the ASX in 2006 & 2007.

At the moment both interest rates and unemployment are at near historical lows so I think there is still generally only one way for them to go

 

[kincella]

actually that poster turns over those projects on a regular basis.....he has an eye for it ......finds a bargain....knows how to fix them up....
obviously knows his market....note the prices are well below that 300k threshold for fhb's....
there has been a bubble forming since Jan 09....but it will deflate a bit I believe

 

[kincella]

I copied this extract from another property poster on another forum.....
its magic.......

The owner of McDonalds once asked Harvard students if anyone knew how he made his money.

They answered easy, making hamburgers.
No he replied. I own the best real estate in every capital city in the world.

 

[nunthewiser]

yeah .blah blah blah to copied posts from other forums ..............

meanwhile in reality land ............

Building approvals fall 12.5 per cent in May

1st July 2009, 10:00 WST

Australian building approvals fell 12.5 per cent to 9,953 units in May, seasonally adjusted, from a downwardly revised 11,374 units in April, the Australian Bureau of Statistics (ABS) reported today.

In the year to May, building approvals fell 22.4 per cent.

The market forecast was for building approvals to have recorded a rise of 3.3 per cent in May.

AAP

sunshine and lollipops ?

better get over to the happiness thread and breath in some of that sweet smelling scent i left there

 

[kincella]

I live in reality land...right here in Melb......
you are laughing at reduced building approvals...which means less houses built
which puts more pressure on the existing stock.......
grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

and then this.....hehehehehe

Melbourne's population surge
Jason Dowling
July 1, 2009 - 4:23PM
Melbourne will add 70,000 residents each year for the next five years making it the highest urban growth area in Australia.

The population rise means Melbourne will need 29,000 new homes a year for the next five years - especially alternative housing such as houses on smaller lots, townhouses, villas and apartments.

The new population and housing figures, produced by Matusik Property Insights, were commissioned by the Residential Development Council.

At the release of the new growth figures, Federal Minister for Housing Tanya Plibersek said Australia could have an under-supply of 200,000 homes by 2013.

http://www.theage.com.au/national/melbournes-population-surge-20090701-d4vx.html

 

[robots]

I live in reality land...right here in Melb......
you are laughing at reduced building approvals...which means less houses built
which puts more pressure on the existing stock.......
grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

and then this.....hehehehehe

Melbourne's population surge
Jason Dowling
July 1, 2009 - 4:23PM
Melbourne will add 70,000 residents each year for the next five years making it the highest urban growth area in Australia.

The population rise means Melbourne will need 29,000 new homes a year for the next five years - especially alternative housing such as houses on smaller lots, townhouses, villas and apartments.

The new population and housing figures, produced by Matusik Property Insights, were commissioned by the Residential Development Council.

At the release of the new growth figures, Federal Minister for Housing Tanya Plibersek said Australia could have an under-supply of 200,000 homes by 2013.

http://www.theage.com.au/national/melbournes-population-surge-20090701-d4vx.html

hello,

i thought immigration was halted in a recession? i read it on a blog from the UK, strange

yes it going to be massive Kincella, just holding on doing our bit for society and getting a bit on the way

fantastic, its just so easy i cant believe it

nirvana man,

thankyou
professor robots

 

[trainspotter]

Hi Robots,
I copied this post from a mate on another forum........he is a smart cookie...
....................

I bought a place 4 weeks ago for $180k ....100% lend

spent 8k and 2 weeks doing it up and now back on the market for $269,000

So has cost me $204,000 inc all fees/sduty/agents and reno costs.

First open was Saturday.....got an offer of $255k and another one coming in today.

here is the house below....shown refurbished.

http://www.realestate.com.au/cgi-bi...er=&cc=&c=61011103&s=sa&snf=rbs&tm=1246406012

So Peter.....stick to the books and I will live reality.

All glory to you kincella. You go, you good thing !! That is a fabulous reward for effort. Used to be like that where I am, back about 8 years ago. Trend moved to new blocks and new construction. Blocks are cheap and the builders needed the work. Great coin to be made.

Times have changed. Glut on the market of "new" homes. Prices droppped 40k on established. Not complaining. Just summarising.

Majority of $$$ to be made is in property. And safe. Safe as bricks and mortar. Banks also tend to be more agreeable on lending as well.

Like the idea of sticking the key in the door and saying HI to the Missus and making money !

 

[Saucebottle]

What a load of garbage...if people think house prices are going to keep rising for years then I have 2 words for you "INTEREST RATES"

The only sure thing that is going to be rising is interest rates, NOT the price of housing!

What are people smoking? The RBA has given its strongest hint that more aggressive rate rising is on the way.

I can feel a late 90's housing bubble bursting all over again!

What indication have the RBA given that they are going to raise rates, didnt they just bring them down??? What drugs are these people on??

 

[MrBurns]

Hi Robots,
I copied this post from a mate on another forum........he is a smart cookie...
....................

I bought a place 4 weeks ago for $180k ....100% lend

spent 8k and 2 weeks doing it up and now back on the market for $269,000

So has cost me $204,000 inc all fees/sduty/agents and reno costs.

First open was Saturday.....got an offer of $255k and another one coming in today.

here is the house below....shown refurbished.


http://www.realestate.com.au/cgi-bi...er=&cc=&c=61011103&s=sa&snf=rbs&tm=1246406012

So Peter.....stick to the books and I will live reality.

What a hero, and it's not that hard, thats what I should be doing but it's a bit harder in Melbourne or am I just lazy ? by the time I get motivated the crash that's overdue will be here.

 

[robots]

hello,

you a bit like all the money box bankers here at ASF, Burns?

the text book boys

thankyou
professor robots

 

[MrBurns]

hello,

you a bit like all the money box bankers here at ASF, Burns?

the text book boys

thankyou
professor robots

You mean money in the bank robots ? Yes.

 

[trainspotter]

What a neat way to get traffic directed to your website !! Attribute it too a mate. Or is that too close to the bone? Web page counter went through the roof !

Log onto RP data and do a search of ownership and check the sales history.

Just me being militant. If it works out then great! Make money anyway you can. If housing works your style then go with it. Remember ... everything is kinky the first time.

 

[trainspotter]

Don't mean to rain on anyones parade:.

Demand for new houses hits 22 year low:-

AUSTRALIAN building approvals fell 12.5 per cent to 9953 units in May, seasonally adjusted, from a downwardly revised 11,374 units in April, the Australian Bureau of Statistics (ABS) said.
In the year to May, building approvals fell 22.4 per cent.

The market forecast was for building approvals to have recorded a rise of 3.3 per cent in May.

The lowest in 22 years apparently.

 

[nunthewiser]

Don't mean to rain on anyones parade:.

Demand for new houses hits 22 year low:-

AUSTRALIAN building approvals fell 12.5 per cent to 9953 units in May, seasonally adjusted, from a downwardly revised 11,374 units in April, the Australian Bureau of Statistics (ABS) said.
In the year to May, building approvals fell 22.4 per cent.

The market forecast was for building approvals to have recorded a rise of 3.3 per cent in May.

The lowest in 22 years apparently.

scroll back

i posted that earlier today but the sunshine and glee gang tried to turn it into a lollipop moment .

quite a few indicators turning pear shaped lately but hey never let facts get in the way of a good story

 

[Julia]

What indication have the RBA given that they are going to raise rates, didnt they just bring them down??? What drugs are these people on??

Did you look at the date of that post?
Stop the Clock hasn't been on this forum for at least a couple of years.