House prices to keep rising for years

The raid followed complaints to the local Neighbourhood Watch about other crowded houses in the area, with one neighbour of the Sunnybank property saying that despite the overcrowding she had never found them to be a problem.

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A council spokesperson said council had no powers to prosecute the perpetrators of the overcrowding, and action had been limited to raiding the property and working with the agent to enforce lease terms.

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But if you own the place no such problem.. Griffith Uni is closer to my place than Sunnybank.. I can fit in a good 10 at least .. in the shed, they might get a bit hot in summer, some might pass out, or die or some such but hey, they can't expect everything :

Milton Dick, ALP planning spokesman on the council, said a further crackdown by state and council authorities was needed to prevent student overcrowding.

"I would hope people aren't profiteering, preying on vulnerable students to cram them into illegal accommodation to make a quick buck," he said.

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profiteering? never! good one Mr Dick! How about the council actually allowing dorm style accommodation for students, would be a good business opportunity for some. At least it could be regulated somewhat.

this article will not affect all those FHB's or parents of FHB's on these forums....its all about the top end market.......

seems very slack that the new foreign investment board has allowed the flood gates to open....without the requirement to actually live in the houses....what concerns me is the land banking.....eg one buyer bought 4 houses to sit there vacant as an investment and hedge.....

but then the housing shortage is at the bottom of the market...not the top end....

whew just when you thought we had covered everything there is to know about the housing market.....something comes from left of field.....

anyone forgotten all those students and temp visa holders are allowed to purchase...and do the same....ie land bank if they want to ....

here are some extracts.....
What is certain is that in the past financial year before the change, foreign investment in Australian residential property increased by a third to $20.4 billion from the year before. Victoria attracted 21 per cent of that investment, according to the Foreign Investment Review Board's annual report released last month

NICK Johnstone is a man on a mission. Next week, the Brighton estate agent will fly to Shanghai with the aim of selling 30 of Melbourne's most expensive homes to Chinese buyers.

It will be the first time a Melbourne agency has attended the China International Luxury Property Show, but it is just one example of a phenomenon that has transformed Australia's residential market.

''Australia is the flavour of the month amongst the Chinese investors,'' Mr Johnstone, 41, said yesterday. ''They love property and there's plenty of money over there so they're good clients to have.''

While Chinese buyers have fuelled the top-end real estate revival, they are also courting controversy, with some local house hunters complaining they are being priced out by foreigners who have no intention of living in their new properties.

A few critics go further, arguing Chinese money is now putting upwards pressure on interest rates.

But you will not catch Mr Johnstone of J. P. Dixon complaining. He has made at least 40 per cent of sales this year to the Chinese. Other agents in the east and south-eastern suburbs have reported the same level of demand.

http://www.theage.com.au/business/chinese-buyers-fuel-topend-property-boom-20090918-fvga.html

kincella said:

NICK Johnstone is a man on a mission. Next week, the Brighton estate agent will fly to Shanghai with the aim of selling 30 of Melbourne's most expensive homes to Chinese buyers.

It will be the first time a Melbourne agency has attended the China International Luxury Property Show, but it is just one example of a phenomenon that has transformed Australia's residential market.

''Australia is the flavour of the month amongst the Chinese investors,'' Mr Johnstone, 41, said yesterday. ''They love property and there's plenty of money over there so they're good clients to have.''

While Chinese buyers have fuelled the top-end real estate revival, they are also courting controversy, with some local house hunters complaining they are being priced out by foreigners who have no intention of living in their new properties.

A few critics go further, arguing Chinese money is now putting upwards pressure on interest rates.

But you will not catch Mr Johnstone of J. P. Dixon complaining. He has made at least 40 per cent of sales this year to the Chinese. Other agents in the east and south-eastern suburbs have reported the same level of demand.

http://www.theage.com.au/business/chinese-buyers-fuel-topend-property-boom-20090918-fvga.html

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Deja Vu?

Found this interesting, I've been browsing an Aussie home building forum. Everyone I've found who mentioned their buy/loan price or their LVR has shown that their LVR is between 93-97%...........and most(if not all) are FHB.

Some who have had valuations done by the banks have found the valuation lower than expected and have had to either up their LVR(one went from 93% to 97%) or find cash(mostly via credit card or personal loan) to cover the shortfall.

So much for the banks lowering LVR's.........even if they did, people will get around it with credit cards and personal loans(which is still debt, and worse they have higher rates) which means effective LVR's are still high.

LVR's still high, 93-97% is in the sub-prime range
Interest rates at record lows with people borrowing larger amounts(remember the average loan increased by about $40k when rates dropped)
Bank valuations lower than build costs

Dunno, but it all smells like trouble, especially when banks are saying they can't hold rates this low as their international costs are rising, so even if the RBA want to keep rates on hold, the banks may have no choice but to begin raising them due to their bottom line.

cheers

Considering you can buy a house with no money down and the only cost is driving to the RE agent and your bank all this can't keep going on . wonder how many KPA the bubble is at now?

wayneL said:

Deja Vu?

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How ?

This hasnt happened before.

I swear Rudd is boating in Chinese by the millions over night, I've never seen so many around and the Auctions would be nearly empty without them.

MACCA350 said:

LVR's still high, 93-97% is in the sub-prime range

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So none of these borrowers have gainful employment, which is what you're implying by the term sub-prime?

You do realise that LMI LVRs have reduced in the past two years right?

hello,

more excuses (chinese buyers, fhg, low int's),

its just fantastic, keep holding brothers as this is goin' to be one great ride

and well done to Kincella helping out the family, doing the right thing and getting a bit in his travels, great community spirit, top effort Landlords

thankyou
robots

Mofra said:

So none of these borrowers have gainful employment, which is what you're implying by the term sub-prime?

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You don't agree that 93-97% LVR is sub-prime?
Someone posted a US chart that indicated that anything above 80 or 85% LVR was classed as sub-prime, not sure where is is now.

You do realise that LMI LVRs have reduced in the past two years right?

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Yes, I do realise that. LMI would not be needed if LVR were capped at 80%..........100-110% LVR's were just stupid..........LMI is mostly to allow people to borrow more on less deposit...........Now why would most need to do that if house prices were affordable.

Is it like the chicken and the egg? Did increased LMI and LVR from the 90's cause an inflationary effect on prices? or were they a result of increased prices?

Seems simple to me, if people can borrow more on the same income and deposit, they will........if buyers have more to spend, they'll push prices up. Mind you I'm no expert on bank lending

What would happen if LVR was capped at 80%?

cheers

hello,

oh yeah, this is getting so exciting:

http://www.heraldsun.com.au/news/deadline-nears-for-first-time-buyers/story-e6frf7jo-1225776817827

the figures out later on from REIV, Enzo will package them up real nice

what a day in Melbourne, cant believe it, paradise, well done brothers

its a bit like the guy in the Uk saving money by renting, some are making $ by owning and just putting the key in the door, amazing

thankyou
professor robots

MrBurns said:

How ?

This hasnt happened before.

I swear Rudd is boating in Chinese by the millions over night, I've never seen so many around and the Auctions would be nearly empty without them.

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Happened in the eighties with the Japanese on the Gold Coast just as the market topped if I remember correctly and before the Nikkei went down hard, in fact I think the Japanese were late buyers so sounds like deja vu to me too.

hello,

oh yeah, oh yeah, oh yeah:

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

Massive 82%, huge numbers, great result again

throw anything at it brothers, no boards, no options, cfds, puts, butterfly spreads, sell a call or buy a put, go short go long

just plain old vanilla real estate, equity mate

thankyou
professor robots

hello,

oh yeah massive test over the past few weeks, anyone left?

special thanks and appreciation to:

numbercruncher
chops a must
pepperoni
kimosabi
explod
dowdy
the guys who pops in every 6mths and carrys on about having units

thankyou
professor robots

Evening Robots,
Guess some of us are blessed....we have a positive attitude, and a passive nature, coupled with a passive income...and voila....life is easy most of the time.....
if times get tough, then we get tough.....find answers to overcome any perceived problems....and work through the tough times to achieve our dreams, goals and life committments.....

oh and I have a really good working relationship with God.....we work together...I lean on him sometimes, seeking help and answers....and the rest of the time....he leans on me....to come up with the goods, and help the others, the less fortunate people....its a two way street......

I guess I just cannot help having a positive attitude to life....anyway life is just too short to be bogged down in negativity.......
cheers all

kincella said:

Evening Robots,
Guess some of us are blessed....we have a positive attitude, and a passive nature, coupled with a passive income...and voila....life is easy most of the time.....
if times get tough, then we get tough.....find answers to overcome any perceived problems....and work through the tough times to achieve our dreams, goals and life committments.....

oh and I have a really good working relationship with God.....we work together...I lean on him sometimes, seeking help and answers....and the rest of the time....he leans on me....to come up with the goods, and help the others, the less fortunate people....its a two way street......

I guess I just cannot help having a positive attitude to life....anyway life is just too short to be bogged down in negativity.......
cheers all

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Thanks for this window into your psychology kinc', it explains a lot.

But as a point of order, you are praising God when you should really be praising The Fed and the RB........

......maybe The Fed is God!

Praise Uncle Ben! :bowdown:

wayneL said:

Thanks for this window into your psychology kinc', it explains a lot.

But as a point of order, you are praising God when you should really be praising The Fed and the RB........

......maybe The Fed is God!

Praise Uncle Ben! :bowdown:

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I'm pretty sure God isn't a property bull.

Not to sure on that MR B. God has a few church's in Her name and has her own Ponzi scheme collecting money every Sunday and the Vatican is the rich's square mile on Earth.

hello,

yes Kincella, its all been debunked as well

people just spreading doom to get on TV

just to recap:

the greatest financial event the world has seen after 1929 and Australian property prices are booming, amazing

well done to those who called it

pretty simple though brothers, we walking in paradise every day and have plenty of room for others to join us in this happy commune

thankyou
professor robots

Glen48 said:

Not to sure on that MR B. God has a few church's in Her name and has her own Ponzi scheme collecting money every Sunday and the Vatican is the rich's square mile on Earth.

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Thats the Church not God.

robots said:

hello,
yes Kincella, its all been debunked as well
people just spreading doom to get on TV
just to recap:
the greatest financial event the world has seen after 1929 and Australian property prices are booming, amazing
well done to those who called it
pretty simple though brothers, we walking in paradise every day and have plenty of room for others to join us in this happy commune
thankyou
professor robots

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How can booming property prices locking many people out of the market be paradise?

Sounds more like selfish bull**** to me and I own several properties, with no debt.