House prices to keep rising for years

[nunthewiser]

Hah!! New Jersey suburbs is NOT New York City!!! It's in a different STATE!!!! No-one in NYC wants to live in New Jersey......

You either are having us on big time and/or you have never been to NYC!

Cheers,

Beej

lol you missed the point AGAIN beej

COMMUTABLE to MANHATTAN . manhattan not a big enough business district ?

oh i suppose not when you compare it to sydney hey

i think i might go get a deckchair now and watch home and away for more up to date real estate news

 

[Beej]

dear beej and kincella

can you please point me to ANY australian city /town / boondock where one is able to purchase this quality house for the same price

last time i looked even in an outer mortgage belt area like even werribee one would be looking in the high 700,s /800/s(probably more ) for this size pad

but hey ........ never let the facts stand in the way of a good story

OK so that house was $499k US?? = $600k AU. Too easy - how about this one (attached, from http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007930624). It;s got 4 bedrooms, 2 bathrooms, DLUG. Cranebrook (western SYDNEY - not some second rate town in the boonies either, 45 mins on freeway to CBD), asking price $580k, could probably get for $550k. Took me 2 mins to find this - there are dozens more...... You have no idea about the market here.

Cheers,

Beej

 

[moXJO]

It's 50 squares and about 45 minutes drive to Houston CBD according to google maps

around 450 m2 I think

I know a lot around and under that price, 45 min to major city and next to beach, but don't want everyone cutting my grass:

 

[nunthewiser]

lol . oh we talking about negotiatians now .ok that one for 499 i,d prolly get for 400 or maybe less seeing as times are hard in the US .... lol

have a great day guys , as always a great thread

better get back to nursing my wounds on 2 shorts i misjudged

 

[moXJO]

lol . oh we talking about negotiatians now .ok that one for 499 i,d prolly get for 400 or maybe less seeing as times are hard in the US .... lol

The downside is you’re surrounded by Americans

 

[MACCA350]

asking price $580k, could probably get for $550k.

Not likely: "Offers Over $580,000"

Whenever I've enquired on properties advertised as such, they wont even take what is advertised..........when they say over they normally mean it.........at least until they get desperate

cheers

 

[MACCA350]

The downside is you’re surrounded by Americans

Big downside

cheers

 

[wayneL]

OK so that house was $499k US?? = $600k AU. Too easy - how about this one (attached, from http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007930624). It;s got 4 bedrooms, 2 bathrooms, DLUG. Cranebrook (western SYDNEY - not some second rate town in the boonies either, 45 mins on freeway to CBD), asking price $580k, could probably get for $550k. Took me 2 mins to find this - there are dozens more...... You have no idea about the market here.

Cheers,

Beej

Not too bad actually, if you could get it for 550.

That compares very favourably to the dross selling for around 450-500k in Perth when I left in '07.

 

[Beej]

Not likely: "Offers Over $580,000"

Whenever I've enquired on properties advertised as such, they wont even take what is advertised..........when they say over they normally mean it.........at least until they get desperate

cheers

Maybe - but regardless it's still the same price in $AU as the one posted by WayneL/Nun. Which was the point.... QED! Ie, a nice big house about 45mins from the CBD via freeway costs about the same in Houston (4th largest city in the US) as it does in Sydney (Australia's largest city). And they had a house price crash! Kind of smashes the whole relative affordability BS doesn't it when you compare like with like?

Cheers,

Beej

 

[wayneL]

Hah!! New Jersey suburbs is NOT New York City!!! It's in a different STATE!!!! No-one in NYC wants to live in New Jersey......

You either are having us on big time and/or you have never been to NYC!

Cheers,

Beej

Beej,

You'd better have another look at the border between NYC and Joisey. Most of NYC suburbs are in New Jersey. "West New York City" is in New Jersey State.

Take a look at Washington DC, it has suburbs in Virginia and Maryland. There are several US cities with suburbs in the next state!

Now tell me again about Jersey?

 

[wayneL]

Kind of smashes the whole relative affordability BS doesn't it when you compare like with like?

No

What about the other examples.

 

[Beej]

Beej,

You'd better have another look at the border between NYC and Joisey. Most of NYC suburbs are in New Jersey. "West New York City" is in New Jersey State.

Take a look at Washington DC, it has suburbs in Virginia and Maryland. There are several US cities with suburbs in the next state!

Now tell me again about Jersey?

I'm not saying it's not near NYC, I'm just stating the following facts:

1) the 5 boroughs that comprise NYC do NOT include any in New Jersey state - NYC is in New York state only.

2) No-one who lives in NYC considers NJ suburbs a part of the city - they would go way out into Brooklyn or Queens first! Most New Yorkers don't even consider anything off Manhattan to be NYC. Hence you cannot use NJ suburbs as realistic examples of NYC real estate prices! It's like using Woolongong to say Sydney houses are cheap!

Cheers,

Beej

 

[wayneL]

I'm not saying it's not near NYC, I'm just stating the following facts:

1) the 5 boroughs that comprise NYC do NOT include any in New Jersey state - NYC is in New York state only.

2) No-one who lives in NYC considers NJ suburbs a part of the city - they would go way out into Brooklyn or Queens first! Most New Yorkers don't even consider anything off Manhattan to be NYC. Hence you cannot use NJ suburbs as realistic examples of NYC real estate prices! It's like using Woolongong to say Sydney houses are cheap!

Cheers,

Beej

Nonsense.

Wollongong is much further from Sydney than Jersey.

 

[kincella]

here is just one reason the US are 'out of this world'....

Tears as Romell Broom's executioners fail to find vein
By staff writers
NEWS.com.au
September 16, 2009 09:14am
Text size

Romell Broom's execution has been put off for a week / AP
Executioners unable to find vein
Try for two hours before giving up
Killer now faces death next week instead
EXECUTIONERS spent more than two hours trying to find a vein in which to inject a lethal dose to a convicted US killer before giving up.

Romell Broom was sentenced to death in an Ohio jail for the rape and murder of 14-year-old girl Tryna Middleton in Cleveland in 1984.

The state of Ohio reintroduced the death penalty in 1999, and Broom today became the first inmate since that date to have his execution stayed by the governor.

Another attempt to take Broom’s life will be made in a week.

Onlookers claim Broom appeared to be sobbing after one of many attempts by the execution team to access his veins.

http://www.news.com.au/story/0,27574,26080906-401,00.html

 

[Beej]

Nonsense.

Wollongong is much further from Sydney than Jersey.

Last word on this specific topic from me; it's not about the exact physical distances, it's about how the people that reside/work/rent/buy property perceive the market. NYC is extremely high density - Manhattan burrough itself has a population of 1.6M-1.7M people living in ~60 square kms. If you look at the whole actual "island" (which includes The Bronx) the population is over 3M in 170 square kms (wikipedia: http://en.wikipedia.org/wiki/Manhattan). Manhattan is actually the most densely populated area of the US, but also one of the wealthiest (if not the wealthiest). A further 4.5M+ people live in the other official NYC Burroughs (Brooklyn, Staten Island, Queens). In this sort of environment, living in the suburbs of New Jersey for a New Yorker IS like living in Wollongong is to a Sydney-sider. That's how they - the people that actually buy/sell this property rather than just talk about it - perceive things.

That's the market. When looking at property prices anywhere you need to at least have a cursory understanding of factors that drive that local market.

Cheers,

Beej

 

[Mofra]

Mofra I think Gfresh is reffering to their rental properties. Once the boomers retire and their marginal tax rate goes to 15% they will no longer have the tax need to be property speculators. Hence they will sell. It is the investment properties that are leveraged not the PPRs

Perhaps he/she was, however reverse equity loans are for PPOR only and the majority of retiress currently are not self-funding and own only their own home (at least, this was the scenario 12 months ago). It will become a growing phenomenon.

 

[gav]

Gav...the govt would have to spend a similar amount itself in building public housing....and the govt knows the private sector is more efficient in providing this service, than any govt programs....just think of it this way...in the past the govt spent millions providing public housing....still using our taxpayers money...then they found a more efficient way...let the public spend the mopney and give them a tax deduction....
you should know Keating stopped neg gearing back in the 70's...but reinstated it very quickly when investors fled....and then the subsequent shortage of housing for renters suddenly dried up....the govt had not thought to replace the housing stock with its own stock....
the immigrants are a ready market for most of the public housing that is still out there today...believe almost no new public housing built since the 1970's...
so to answer your question...if I were not allowed to claim deductions...I would have to rethink my investments.....but the same non allowance would be applied to any investment, including shares.......
and a question for you...what if they turned it around and home owners were allowed to claim a tax deduction for the interest expense...like they do in the US ??? would that change your mind about owning a home....there were rumours of this approach....
in that case..maybe more people would become home owners rather than renters.....its doubtful that would turn people around....we have moved down from the 70% owners ratio of the past, and moving into the lower 60% and heading for a 50% mix
anyway, I would find a way to keep my properties as the bulk of my investments...or I might move further into commercial properties...which are the best of the best anyway

Hi kincella,

I wasnt having a go at you, I was just wanting to know if you had considered how it would affect you if negative gearing were abolished.

To answer your question, I purchased my first house earlier this year. First Home Owners Grant had nothing to do with why I bought, I bought because I believed it was a good price and because I had saved enough for a decent deposit (20%). My mortgage repayments are about the same as renting, but when you include stamp duty, rates and body corporate fees, it works out a fair bit more expensive. Have I done the right thing by buying earlier this year? Only time will tell. Similar properties in my area are selling for $30K more than I paid, so maybe I did the right thing. One thing I can say for now though: lifestyle wise, living in your own place sure beats the hell out of renting.

I have a friend in Shanghai, over there they can claim a tax deduction on their primary place of residence too. I would love for that to occur here, but I won't hold my breath waiting for it to happen.

 

[kincella]

GAV...I did not read your post as having a go at me at all....I recall you being a fhb....so just interested in how you feel about it now....
and you have found the 'wow' factor of living in your own home...
the stamp duty is a one off, its not a recurring expense....
just enjoy living in your own home....dont worry about the prices around you at such an early stage.....do a check in a couple of years time...
you have done the right thing.....
as for your question to me....I will always find a way to profitably invest in properties....I have 30 or more years of self funded retirement to look forward to....both annual income and capital growth.....
its a very serious matter...I dont take it lightly.....but I do sleep easy at night...in fact I only work part time....now...due to a very lucky investment...took me 5 years to find it....a very specific project....
how lucky can I be......and I expect to be able to find another little gem again, similar to that one...
cheers

 

[Knobby22]

Congrats Gav.

Just remember that once your rates and interest are less than renting, then you are winning every year!

And that is without considering any capital gains, which are tax free!

 

[Taltan]

If one of the property experts could help me out.

When buying a place off the plan in VIC is the stamp duty payable after the contract is signed (Sep 2009) or after settlement date (Expected Sep 2010). Also I know the developer and not me works out the stamp duty amount but does anyone know how it is calculated?

Any help would be appreciated