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House prices to keep rising for years

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well Robots, if you liked that one, you will like this one too, Port Adelaide grew by 29% this year...

Suburbs home to high prices
Bridget Carter | August 01, 2009
Article from: The Australian

THEY are the postcodes people never want to leave.

It's these boutique suburbs - the ones between five kilometres and 15km from big city centres and home to upwardly mobile people with secure jobs - that are driving what Reserve Bank governor Glenn Stevens fears is a property bubble.

Research commissioned by The Weekend Australian from RP Data shows capital gains of as much as 29 per cent in the year to May in the nation's "middle band" suburbs, despite the national economic downturn.

Agents and analysts say the strong demand for the boutique suburbs will remain until next June, and reject concerns by Mr Stevens, who on Tuesday flagged the risk of a property bubble inflated by the current low interest rates and the first-home buyer grant
*****Raine and Horne South Australia state manager Kevin Magee said extra infrastructure around Port Adelaide and defence spending was driving capital gains. RP Data found Nailsworth, in the Adelaide Hills, recorded the greatest capital gain in the country, of 29 per cent.
the above are extracts only...read the full story for your state

http://www.theaustralian.news.com.au/business/story/0,28124,25865099-25658,00.html


--------------------------------------------------------------------------------
.
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>*** The best way to become a millionaire is to borrow a million dollars and have your renters pay it off.
Jack Miller

**** My posts are for experienced property investors only. They are not for the inexperienced or first home buyer..
 
I bet some of you can relate to this.....people so frightened that if they sell the old home to upgrade, they will not find their next home, so they are holding the old home (due to good returns from the low rates) and just buying the next home...so at least they are guaranteed to have a home....so in fact are increasing their property holdings....thats my strategy as well.....interesting

extract................
In Melbourne, buyer advocate JPP says in its newsletter that as interest rates remain on a par with rental returns many people are simply buying their next home and not selling their existing one. We are about to see a fundamental change in property ownership during the next generation, it says, with people who have property increasing their holdings and those who have never had the opportunity to get into the market.

The supply of housing has been a long-term issue in Australia, but Stevens's comments highlight just how crucial it will be in a new, more frugal economy.

http://www.theaustralian.news.com.au/business/story/0,28124,25862876-25658,00.html
 
Hey hey hey put away the umbrella and come out to play

REAL estate group Ray White says prestige property sales have rebounded after falling during the economic downturn. In a sign top-end buyers are returning to the market, Ray White chairman Sam White said there was a revival in the prestige sector although it did not release actual figures.

But Mr White said the market has "definitely dusted itself off'' from the worst of the global financial crisis.

He said sales of prestige properties had been given a boost by the shortage of lower-end properties as a result of the first home owners grant. He said first home buyers were now looking at properties priced in the $500,000 to $750,000 price range.

"Buyers are recognising that there is a rare chance now to get into the top-end of the market and save between 10 to 15 per cent and achieve benefits in the long term,'' Mr White said.

He said the renewed activity came from long-term investors and overseas interest. The company said a Sydney property priced at more than $6 million was recently bought by a British man the day it went on the market.

The statement from Ray White comes amid a swathe of positive economic news.
 
MACCA350 said:
"DANGER Will Robinson, DANGER!!"

cheers
Click to expand...

absolutely! so first home buyers are now looking at houses 500 - 750k??! wonder what the average income / deposit and general history of savings looks like for these buyers..? You'd want to hope it was strong!

Thanks

Gusto
 
Mc Gusto said:
absolutely! so first home buyers are now looking at houses 500 - 750k??! wonder what the average income / deposit and general history of savings looks like for these buyers..? You'd want to hope it was strong!

Thanks

Gusto
Click to expand...

I am sure *some* FHBs are looking in this range, but *most* are not. I know people with a $200k deposit and a dual income of $150k plus that are looking in this range; but I think they would be in the top 10-20% of FHBs.

In other news just in see (http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0?OpenDocument) - the ABS stats are finally catching up with what has been happening in the housing market, with the ABS June quarter house price index showing a 4.2% INCREASE nationally - note this is more than the APM, Residex and RP-Data figures for the June quarter, which makes them all about the same for the half year so far given the ABS negative result (which has been revised upwards by the way from -2.2% to -1.5%) for the March quarter, which was in contrast to the other indices.


So every cities detached house prices up including Perth and Brisbane, which I didn't think would happen, but there you go. Sydney/Melbourne leading the way, and Darwin finally slowing down a little.

Looks like Ass Prof. Steven Keen is going for a long walk! I've seen bad calls in my time but that one really takes the cake.

Cheers,

Beej
 
Beej said:
Looks like Ass Prof. Steven Keen is going for a long walk! I've seen bad calls in my time but that one really takes the cake.
Click to expand...
Are you talking the selling of house many months after he called the financial crisis (which admittedly he got right eventually after a few years of predictions) thereby catching the dip in prices, the immediate jump in prices in his area the quarter following the sale, or they signs of life that are emerging from many markets worldwide?
 
must make it very hard to buy a home over there, in the wild old USA, for those at the bottom of the scales
and do they only get the dole for 6 months at a time ??

Rich v poor gap is widening
Leela de Kretser

August 04, 2009 12:00am
IT IS often noted that, as the world's most powerful economy, the US has left its poorest citizens living in a virtual third world.

In New York, despite all the money that was made on The Street in the past three decades, almost 20 per cent of families live below the federal poverty line.

In a six-block radius bounded by Fifth and Park Avenues, the wealthiest households in the country earn a median income of $US188,697 ($A225,400), according to an analysis of census data by the New York Times.

Sixty blocks up the road, in East Harlem, the country's poorest households depend on an annual median income of $9320
http://www.news.com.au/heraldsun/story/0,21985,25876937-664,00.html
 
notice how we have been leading with the housing recovery...now the US is beginning to follow
if you study the charts thoroughly, you will have noticed the trend.....
those who followed the media instead....would be the losers
now the media is back to screaming about a bubble again...
modest gains in Syd and Melb of 4-5% is not a bubble....
its a shortage of houses....in the most populous places...where everyone wants to live....
you can buck the trend and go further out...go past the magical 15klm's from the city....find affordable housing there....then sit back and watch as the city has to move further out
I dont believe states will do anything soon to relieve the shortage
 

Yes Mofra you are right - there were quite a few dud calls from our friend Prof Keen! I was referring specifically though to his "median house prices in Australia to fall 40%" that got so much publicity last year.

I think technically Prof Keen hasn't lost his bet with Rory Robinson yet based on ABS data, as the national median needs to surpass the previous peak (and we are currently 1.5% below that). I reckon the Q3 ABS numbers should seal his fate re that wager though. He has already lost based on the RP-Data, APM and Residex numbers, which seem to lead the ABS stats it seems by a couple of months in terms of what's happening in the market.


Cheers,

Beej
 
It would be embarassing for SK.. the media will be all over it, front page material maybe? Then again, if you make big bets, you gotta carry through if they go wrong.

kincella said:
I dont believe states will do anything soon to relieve the shortage
Click to expand...

Queensland has a bit of a master plan in the works to expand out west towards Ipswich and some higher density in the north of Brisbane.. I am not sure if it will carry through to effective managemnet but they are definitely wetting themselves over the growth forecasts that are out there and what to do about it.
 
added extra...heard on news this week, more exemptions for foreigners to buy OZ property, and businesses...mentioned 180 million...or more
interesting....will post link when I can find it...now back to this article.....
increasing competition out there...now this as well...

CHINESE developers could soon be circling cheap residential land on offer in Australia, with many already trawling through bargain-priced assets in the US, according to the new Asian head for real estate firm CB Richard Ellis.

Residential land sites in Australia, particularly in Queensland, have been severely discounted, with few parties able to develop them, given the banks' tight lending criteria.

As a result, many owners are opting to sell up, rather than pay steep holding costs while they wait for the market to rebound.

http://www.theaustralian.news.com.au/business/story/0,28124,25888419-25658,00.html
 

Cheap land? - where?

The reason why no developers here in Australia are developing is because its too expensive & there is no one in this country who can afford to buy it, particularly once interest rates start climbing.

So why would the Chinese be silly enough to buy land other developers are off loading?

And of course there are heaps of experts out there telling us how lucrative property is at the moment.....mmmm I wonder why!

Cheers
 

Just what we need. Australia soon to be renamed Chinaustria, a satellite communist state. No need for Krudds immigration policies now.
 
I am struggling with the fact that Australia can be seemingly so decoupled from the global economy. Seems we are defying gravity with house prices, unemployment etc.

Is it sustainable? Are we delaying the inevitable or will it all come to a grinding halt and the effects of the global downturn be trully felt.

Lets face it - for a lot of us it is a matter of 'recession, what recession..?'

This is not meant in anyway to undermine the people who have lost their jobs or houses due to the industry they work in. More about Australia as an economy.

I am absolutely miffed as to the confidence people are showing in bricks and mortar just at the moment. Long term no issue. Short term i remain bearish as i am thinking the most recent gains are a bubble.

Thanks

Gusto
 
hello,

i still havent heard from Satanoperca regarding my reward from the bet i accepted

will report this poster to the Code of Conduct panel for a resolution

thankyou
professor robots
 
robots said:
hello,

i still havent heard from Satanoperca regarding my reward from the bet i accepted

will report this poster to the Code of Conduct panel for a resolution

thankyou
professor robots
Click to expand...

He's probably getting quotes on slabs and parmas
 
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