House prices to keep rising for years

satanoperca · 21 September 2009

robots said:
how we looking brothers, the biggest financial event since 1929, are prices still 8x average income, paradise

The event has not finished yet, we are just warming up, don't count your chickens before they hatch.

Your comment that it is paradise with high prices (x8) is a little childish and does make you look like a troll.

May start a new thread, How much will house prices fall <$500,000 in the next year after the government stimulus and grants are finished or reduced.

Seems the media are slowly starting to wake up and see the FHBG was just a donation to PI's and has done very little to make housing affordable for first home buyers.

Anyway, who cares about property at the moment when all the action is shares.

Cheers

robots · 21 September 2009

hello,

its like the everlasting gobstopper from Willie Wonka

the everlasting prediction of DOOM

thankyou
professor robots

satanoperca · 21 September 2009

robots said:
hello,

its like the everlasting gobstopper from Willie Wonka

the everlasting prediction of DOOM

thankyou
professor robots

Or

its like the everlasting gobstopper from Willie Wonka

the everlasting prediction of house prices keep rising for years.

Dowdy · 21 September 2009

robots said:
hello,

and bang 500k on BHP or RIO, no brainer in the mind thats about it

you might get a good return on 10k, chicken feed though

and the fund crew dont care if they loose it as its not theirs

thankyou
professor robots

You do know that if you do the sums and work out the percentage of profit then the stock market always comes infront.

They say property doubles every 10 years (which is total BS anyways but lets say it's true) but when you break it down, that only 10% a year, then take inflation into account (i bet alot of you forget to do that, don't you) and it's around 5-8% increase a year.

Now if you ask me, that sounds like chicken feed.

On the other hand if you bought BHP 10 years ago....

I haven't taken into account Capital Gains Tax but it's negated from housing council rates, power/water rates, stamp duty, maintenance, time of labour etc

People always forget the PERCENTAGE of profit. A $30k profit on a $500K home is pretty pathetic, percentage wise

MrBurns said

Those who call it paradise are selfish morons.

I'll take it from another angle - Those who call it paradise are deluded morons

wayneL · 21 September 2009

satanoperca said:
Or

its like the everlasting gobstopper from Willie Wonka

the everlasting prediction of house prices keep rising for years.

Long term the bulls win. The bear argument here is for a return to traditional vectors of value, either by price correction, or a period of stagnation. Once that happens, I'm a bull too.

Right at this moment, you have to be a bull, because of the cash stimulus that is being shoved in everyone's face. The tricky bit is what happens when stimulus is exhausted. That's why I'm still a bear medium term... unless inflation runs out of control.

robots · 21 September 2009

Dowdy said:
You do know that if you do the sums and work out the percentage of profit then the stock market always comes infront.

They say property doubles every 10 years (which is total BS anyways but lets say it's true) but when you break it down, that only 10% a year, then take inflation into account (i bet alot of you forget to do that, don't you) and it's around 5-8% increase a year.

Now if you ask me, that sounds like chicken feed.

On the other hand if you bought BHP 10 years ago....

I haven't taken into account Capital Gains Tax but it's negated from housing council rates, power/water rates, stamp duty, maintenance, time of labour etc

People always forget the PERCENTAGE of profit. A $30k profit on a $500K home is pretty pathetic, percentage wise

MrBurns said

I'll take it from another angle - Those who call it paradise are deluded morons

hello,

buy today Dowdy, go and buy 500k, get a loan and bang it on

well done if you make it large, and I mean well done, no issue from me, you have made the $

just dont whinge to me if people making money from property also

thankyou
professor robots

MrBurns · 21 September 2009

robots said:
hello,
buy today Dowdy, go and buy 500k, get a loan and bang it on
well done if you make it large, and I mean well done, no issue from me, you have made the $
just dont whinge to me if people making money from property also
thankyou
professor robots

Gee Robots you're logic continues to astound, I have a message for you but I daren't assume the position with Smithers around so I'll let a little buddy of mine deliver it, but dont get any ideas now, I know all you over in St Kilda are famous for your sexual preferences (shudder) so make one move toward him and I'll be dialing 000 -

Dowdy · 21 September 2009

robots said:
hello,

buy today Dowdy, go and buy 500k, get a loan and bang it on

well done if you make it large, and I mean well done, no issue from me, you have made the $

just dont whinge to me if people making money from property also

thankyou
professor robots

I haven't made that much money yet, i'm still young though so time is on my side.

I never whinge to anyone, i just state my case why housing is a bad investment and you keep calling it the shonk market, hence your delusion on housing

On the other hand if you bought BHP 10 years ago....

Fine just pick another stock and look at a chart over a 10 year period...

RIO, CSL, FMG (FORTESCUE), LEI (LEIGHTON), STO (SANTOS), WES (WESFARMER), WOW (WOOLWORTHS).

Some stock will win and some will lose but the bottom line is a diverse stock portfolio will ALWAYS outperform real estate, even in a crash. Some stock will win and some will lose.

How is your portfolio going to be when the real estate market crashes but they will never happen won't it. I guess higher prices justify higher prices

robots · 21 September 2009

hello,

yes still waiting for it to happen

thankyou
professor robots

MrBurns · 21 September 2009

robots said:
hello,

yes still waiting for it to happen

thankyou
professor robots

Look at 4 Corners NOW, thats your paradise.

Mofra · 22 September 2009

Dowdy said:
You do know that if you do the sums and work out the percentage of profit then the stock market always comes infront.

I totally agree - although most sums tend to ignore holding costs, which are much higher for residential property than for equities. Don't mind the rental vs dividend argument too, considering frankingcredits tend to come in hady at tax time.

The only real major advantage of property is the gearing levels allowed.

satanoperca · 22 September 2009

MrBurns said:
Look at 4 Corners NOW, thats your paradise.

Interesting doco, really quite sad given we live in a wealthy country, full of natural resources to sell to the world. We have a pile of vacant houses yet 100K of people are homeless each night.

For those that don't give a s??t, you never know which way the wind blows and your wealth could disappear and you find yourself on a park bench.

Gee, the landlord was a lovely sort of fella including his sister come bulldog.

Have a happy day and smile at the next person you meet, it is free and could make their day.

MrBurns · 22 September 2009

satanoperca said:
Interest doco, really quite sad given we live in a wealthy country, full of natural resources to sell to the world. We have a pile of vacant houses yet 100K of people are homeless each night.

For those that don't give a s??t, you never know which way the wind blows and your wealth could disappear and you find yourself on a park bench.

Gee, the landlord was a lovely sort of fella including his sister come bulldog.

Have a happy day and smile at the next person you meet, it is free and could make their day.

I guess there's no votes in helping kids in homeless famlies, beyond moving them from motel to motel.

Makes me sick.

cutz · 22 September 2009

MrBurns said:
I guess there's no votes in helping kids in homeless famlies, beyond moving them from motel to motel.

Makes me sick.

Yeah it makes me puke too,

If the the government had any balls they'll pull the routs and handouts and let the property market go to hell.

As for the stimulus what a joke, just to stop a period of negative growth, what clowns.

MrBurns · 22 September 2009

cutz said:
Yeah it makes me puke too,

If the the government had any balls.

They dont, Rudds only interested in votes while appearing to be caring, he's good at it too

Early Bird · 22 September 2009

hi all,

for what its worth, i think mofra is the only one tackling the real issues in this comparison between property and shares. they will both achieve similar long term capital growth and income on average (and both contain some exceptional and some poor returns within that average) but one has much lower holding/start up costs and the other allows much higher leveraging.

the relative merits of these are what should be being debated, in my humble opinion, not the relative % rates of price increase.

even tax i cant see much difference between them, both can avoid capital gains if you don't sell, but can offset the cost of investing against income.

MrBurns · 22 September 2009

Property is best.

1/ It cant disappear.

2/ It has a use in itself.

If you stick to the blue chips you may be ok but property is something you can see and work with.

Early Bird · 22 September 2009

cutz said:
Yeah it makes me puke too,

If the the government had any balls they'll pull the routs and handouts and let the property market go to hell.

As for the stimulus what a joke, just to stop a period of negative growth, what clowns.

i think there would be a lot more homeless people if the government let the property market go to hell. most people's main asset is their home and if they go into negative equity it can cause them major problems, esp if they are forced to sell for some reason such as losing their job.

i also dont see how it would help those people on 4 corners who coudlnt get a rental property due to a shortage of properties and also a lack of regular income for most of them. how is a crash in prices going to improve the supply of rental properties or the likelihood of landlords to take on tennants without jobs?

Early Bird · 22 September 2009

MrBurns said:
Property is best.

1/ It cant disappear.

2/ It has a use in itself.

If you stick to the blue chips you may be ok but property is something you can see and work with.

how about an index fund or etf?

also, what about subsidance/concrete cancer etc? not all houses are as safe as houses!

MrBurns · 22 September 2009

Early Bird said:
i think there would be a lot more homeless people if the government let the property market go to hell. most people's main asset is their home and if they go into negative equity it can cause them major problems, esp if they are forced to sell for some reason such as losing their job.

i also dont see how it would help those people on 4 corners who coudlnt get a rental property due to a shortage of properties and also a lack of regular income for most of them. how is a crash in prices going to improve the supply of rental properties or the likelihood of landlords to take on tennants without jobs?

Property prices are high so rentals are high.

There's a shortage of properties to rent because you cant get a return on the prices being paid at the moment.

House prices to keep rising for years

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