House prices to keep rising for years

[robots]

hello,

howdy Kincella, the sun out and lining us up for a great day

check this video:

http://www.youtube.com/watch?v=Zd5nb4jGYNA&feature=related

melbourne the back drop for this artist, just amazing globalisation, cant believe it

prices still going strong everywhere

thankyou
professor robots

 

[kincella]

THE average price of a Sydney home could rise by $100,000 in the next two years, according to an investment group.
A shortage of homes and a growth in population will cause the property boom, The Investors Club says.

Kevin Young, president of the group, which has 90,000 members in Australia, says the last spike in Sydney property prices occurred between 2002 and 2004 when the median house price surged by over $150,000 to $524,000 because of under-supply.

"This spike in property prices was caused by an under-supply of houses relative to population growth which resulted in a major blowout in prices over this two year period," Mr Young said in a statement.

"House prices in Sydney have been in recession for the last five years.
http://www.news.com.au/story/0,27574,25968251-29277,00.html

"In contrast, other capital cities have recorded major growth in their median house prices during this five year period, with the median house price in Perth, for example, jumping by around $200,000 during this five year period.''

Mr Young says it has become difficult for developers secure building approval in Sydney.

ps I only heard of this group last Friday, apparently my source says they are mainly interested in 'off the plans', whereas she prefers older homes in established areas.

 

[trainspotter]

My understanding on how the "Investor Club" works is that they purchase off the plan for a development at a set price. Pay a usual deposit of 10k or so and wait for the price to increase during the course of the development. Lets say you purchase a unit in a residential development for 400k and it takes 18 months for completion of project. Upon completion you flog it off for 450k to someone else. Technically you have done nothing wrong and generally you have a simultaneous settlement. Profit 50k and only stamp duty applicable. I have done the same myself on vacant land. Purchased 7 blocks of land for 80k each. Pay the deposit and stamp duty (approx $4,550 each). 11 month development lead in time. Sell 7 blocks for 110k each due to capital growth and strong demand. Love a rising market !! LOLOL. This kinds of "risk" is extreme and it is a prerequisite to have BIG kahunas and also the funds to settle if necessary.

 

[Macquack]

THE average price of a Sydney home could rise by $100,000 in the next two years, according to an investment group.
A shortage of homes and a growth in population will cause the property boom, The Investors Club says.

Neil Jenman says -

The Investors Club is not a club, but a marketing organisation which receives enormous fees for flogging properties for developers.

Jenman then refers to a quote from one of Queensland's most respected property valuers -

The Investors Club is nothing more than a pretend form of organisation to sell overpriced and overvalued real estate to unsophisticated and gullible purchasers.

http://www.jenman.com.au/news_question.php?id=176

 

[trainspotter]

Sounds like my kind of club. Nahhhhhhhh ... it was as I suspected though. Scalpers of the real estate world. Ok to perform these kinds of actions in shares but not so groovy when it comes to property. Especially the way these guys go about it. Nothing illegal in what they are doing either. If the property does not come up to valuation the deal falls over ... simple. But then again there are a lot of unscrupulous valuers out there as well.

 

[robots]

hello,

great day today, meet up with Satanoperca down in St Kilda, we enjoyed a great chicken parma at the Village Belle Hotel in Barkly st, get down there for a laugh

plenty of people out on Acland St, so will have to hit Chapel St Monday for a cafe latte

just hope S.Keen delivers on his bet like our man here at ASF Satanoperca

we gave the top poster award to Kincella and we hope one day we can catch up with the legend

thankyou
professor robots

 

[moXJO]

hello,

great day today, meet up with Satanoperca down in St Kilda, we enjoyed a great chicken parma at the Village Belle Hotel in Barkly st

And you thought he was going to let you go hungry:

 

[kotim]

Friend of mine owns a number of untis in a place called Gladstone Queensland, which is one of the countries economic powerhouses in terms of mine development support etc. He has not been able to rent them out and the ownly way he can is too substantially reduce the renting price which he is doing now. In Gladstone there is a huge over supply of rental properties according to him.

 

[kincella]

Good on both of you Robots and Santanoperca.....settled like true gentlemen...
oh and thanks for the award, but I don't believe I deserve such an honour....
plenty of good tipsters here, they just do not post as often as I do...and I am mainly interested in a small section of the Melb and regional markets.....whereas Beej deserves an award for the Sydney markets...and others for their markets...

regardless of awards, its the people who have an eye for property and watch it on the ground, watch surrounding suburbs, and ignore the media sensationalism.......
around Toorak and surrounding suburbs, almost every street has tradesman working on renovations and upgrades, and a new building going up, or a property being demolished.....that tells me heaps about property, rather than the scary stories of rates going up, and disaster about to strike....from the media and all other analysts or economics people.......

here is todays news on Sydney......
Get in the queue for an Australian property boom
By Chelsea White
The Daily Telegraph
August 24, 2009 07:08am
Open for inspection ... the Californian bungalow for sale in Iandra St, Concord West. Picture: Justin Lloyd
Interest high at open houses
Second-home bracket "a seller's market"
Buying or Selling?: Property news
IT'S the proof we've been waiting for that the housing boom is back - at dinner tables across the country talk is returning to the old conversation chestnut ... property.

While the global financial crisis made us all armchair investment analysts, now lower interest rates, government bonuses and the first home market boom was again making property the hot topic.

Do you agree? Tell us below

On any given Saturday huge numbers of prospective buyers are flocking to open houses everywhere.

Nowhere is the craze more evident than in the median home market, where young families are trying to make the most of the demand from first time buyers to sell and trade up for more space.

But with medium-priced houses in limited supply, real estate circles are rife with rumours of auction punch-ups and inspection queues rivalling nightclubs.

http://www.news.com.au/business/money/story/0,28323,25970467-5013951,00.html

ps ...yes am sure we will catch up one day cheers

 

[mythos]

Friend of mine owns a number of untis in a place called Gladstone Queensland, which is one of the countries economic powerhouses in terms of mine development support etc. He has not been able to rent them out and the ownly way he can is too substantially reduce the renting price which he is doing now. In Gladstone there is a huge over supply of rental properties according to him.

Not overly surprising. Gladestone is completely tied to the Mining industry. During the mining boom, too many people poured too much money into mining towns. Forgetting that mining has been traditionally quite cyclical. When the mining sector in QLD started winding back, people leave towns like Gladstone, as there are no other opportunities.

 

[Mofra]

regardless of awards, its the people who have an eye for property and watch it on the ground, watch surrounding suburbs, and ignore the media sensationalism.......
around Toorak and surrounding suburbs, almost every street has tradesman working on renovations and upgrades, and a new building going up, or a property being demolished.....that tells me heaps about property, rather than the scary stories of rates going up, and disaster about to strike....from the media and all other analysts or economics people.......

So you basically take notice of the people involved in the industry rather than sensationalist media stories designed to sell papers (which, in all honesty, would be the logical course of action). Sounds so simple & effective but it's amazing how many refuse to do so.

 

[Glen48]

From Money Morning:
The facts are, as we suspected all along, the case for a housing shortage in non-existent. It does not exist. There is no housing shortage.

That's because it is price that is the major problem in the housing market. Prices are at unsustainable levels brought about by the manipulation of demand and supply by the various levels of government.

As soon as the manipulation ends, price discovery will lead to a collapse in the housing market.

Only then will the property spruikers realize there is not, and never has been a 'chronic' housing shortage

Any one got figures to refute this?

 

[kincella]

can some of you guys go over to the property forum, take a look now and again....there are some new posters over there with questions...am sure some on here can provide the answers for them...I would if I could, but I dont have the answers for them
cheers

 

[robots]

hello,

no worries Kincella, will whip over there and help out

thankyou
professor robots

 

[Buckeroo]

oh well, off to battle the crowds in Chapel St again, actually its like that everywhere around inner Melb atm....now takes hours to do anything at the weekend, sat in Chapel St for 10 mins yesterday without moving, carpark at Safeway in Toorak is mandatory 5 minutes wait

And people still want to buy property there they can't afford knowing they will spend half their life in a line up? Huh, go figure

Cheers

 

[Glen48]

My land lord turned up today and told me he is selling this house soon he paid me $250K in Sept. 2008 and tells me he needs to get $290 to break even and as he is a real estate agent there are no fee's ...so house prices do rise..

 

[Mofra]

From Money Morning:
The facts are, as we suspected all along, the case for a housing shortage in non-existent. It does not exist. There is no housing shortage.

That's because it is price that is the major problem in the housing market. Prices are at unsustainable levels brought about by the manipulation of demand and supply by the various levels of government.

Glen,

I know of plenty of bulls who don't believe there is a housing shortage if you use national figures, however there are areas of high demand which is where they are looking to buy.

Why do so many bears assume an inner city house has the same appeal as a shack 4 hours from anywhere? After all, the outback shack could theoretically address any perceived shortage couldn't it?

Location matters.

 

[trainspotter]

Get in the queue for an Australian property boom

IT'S the proof we've been waiting for that the housing boom is back - at dinner tables across the country talk is returning to the old conversation chestnut ... property.

http://www.news.com.au/business/money/story/0,28323,25970467-5013951,00.html

 

[kincella]

the news about all the asbestos thats in the houses....not just the fibro sheets....its almost everywhere....and the whole family exposed, not just the person handling the stuff....
I believe there will be a lot of people concerned now....and it will be reflected in increased activity in renovations and repairs to the homes...

look at this for all the products and uses...
www.asbestos.com

I copied this post (mine) from another forum

anyone else think this news is explosive ??
massive amounts of new claimants for compensation for the disease ???
homeowners will look to either seal up, or replace the asbestos related material....
look a lot closer at what asbestos is in their homes...in order to protect their families ...and apparently their animals....
3 dogs died at age 7, a later autopsy revealed the dogs had been running along sniffing the garden fence (as dogs do) except the fence had asbestos in it.....

I will be doing my own research about whats in my houses, and tradesman will need to have some good answers regarding safety issues, when working on any of my properties....
I believe there will be a lot of renovations to fix, rectify the asbestos problems in the houses after this news...
hmmm and the question of compensation from james hardie to fix my houses.....that should be an interesting question....


--------------------------------------------------------------------------------
.
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

 

[Buckeroo]

Get in the queue for an Australian property boom

IT'S the proof we've been waiting for that the housing boom is back - at dinner tables across the country talk is returning to the old conversation chestnut ... property.

http://www.news.com.au/business/money/story/0,28323,25970467-5013951,00.html

Well if news.com.au says it, then it must be true - I better rush off and go down to the nearest listed property hot spot & buy something.

I think the media are having a field day with asbestos at the moment Kincella. Its funny how all this comes out immediately after ASIC fines Hardy directors.

Asbestos has been out there for a long time & as long as its not disturbed, I've heard its fine. But I suppose if your a renovator & unaware of the dangers of asbestos or fail to recognize it, then you are probably going to die....eventually.

Cheers