House prices to keep rising for years

[robots]

hello,

sorry, i didnt know there was a qualification requirement to discuss property and that I have to disclose this

just for any new comers, a summary of all the belief's that where put up over the past 12-18mths:

interest rates to go to zero like Japan, didnt occur

property prices to decrease 40%, didnt occur and infact have BOOMed

unemployment to hit 10%, didnt occur

credit tightening, didnt occur

immigration to be SLASHED, hahahaha didnt occur (that was always Numbercruncher's favorite one)

Doom, Doom ,Doom, didnt occur

five of us called it and made mega $ dollars on it, well done to those brothers, top effort

others still have plenty of opportunity

thankyou
professor robots

hello,

and here they are again

thankyou
professor robots

 

[MrBurns]

hello,
not much tightening there Burns, and the banks SP kicking off
all rosy
thankyou
professor robots

The only thing you should be buying on 5% deposit is a TV, this is crazy, to lend 95% on a house you are betting the market will increase, it might have so far but that will go into reverse in the next few months and there will be plenty out there with negative equity (it seems caps are all the go for those announcements.)

Lose your job or any number of things hapen, forced sale house sells for $250,000 so every other house in the street that sold for $300,000 is now worth $50,000 less.
Banks redo their valuations and if you miss or are late with a payment you're a gonner, if theye suspect you or your parents have any cash or equity in another property they will apply pressure to have that included in the security because you now have negative equity and are in breach of your mortgage conditions, happy days ahead.

 

[trainspotter]

I digress professor robots. It seems that the credit tightening didn't occur on your part of the world where as in my part of the world the banks got their panties in a bunch about lending to home owners and altered their lending criteria ... commonly known as "credit tightening".

 

[MrBurns]

LOL ... Keystart money will lend 103% of valuation on a 4% deposit with no LMI. Now THAT is a disaster.

http://www.keystart.com.au/key/home.htm

Keep an eye on their premises, probably up for sale in the next 12 months ..........empty

 

[robots]

hello,

yes in My World nothing much happened as I have listed,

thankyou
professor robots

 

[trainspotter]

Funnily enough the Keystart guys have a very low level of mortgagee repossession rate. One of my mates used to run Westland Building Society (Keystart money) and had very few repo's.

 

[trainspotter]

hello,

yes in My World nothing much happened as I have listed,

thankyou
professor robots

So therefore "credit tightening" didn't occur in professor robots world?

 

[MACCA350]

Here's an interesting article on what's fuelling our bubble, http://www.crikey.com.au/2009/09/21/the-role-of-foreign-buyers-in-the-ever-inflating-housing-bubble/

Previously, developers were able to offload no more than half of the new dwellings in a development to overseas buyers............Under the new laws, developers could sell 100% of new developments off-the-plan to overseas buyers who tend to pay a premium for Australian real estate..........

Another critical change introduced by the federal government was a relaxation on the acquisition of established properties. Under previous legislation, holders of student visas were only able to buy a property that cost less than $300,000, since late last year that limit was removed. Further, foreign-owned corporations are now permitted to purchase properties for Australian staff while temporary visa holders also face fewer restrictions.

The effect of the law changes should not be underestimated. The Sunday Age this week reported that Melbourne agent JP Dixon (based in luxurious Brighton in Melbourne’s east) noted that more than 40% of sales were made to Chinese interests. An agent told the paper that “[overseas investors] buy them to land bank, not to rent the, out. The houses just sit vacant because they are after capital growth.”

WOW

Way to go Krudd...........you've made policy simply to pushed up prices and reduce rental supplies in one fowl swoop.......well done

cheers

 

[MrBurns]

WOW

Way to go Krudd...........you've made policy simply to pushed up prices and reduce rental supplies in one fowl swoop.......well done

cheers

Yes at present he has the lead in the "Most destructive Labor PM" contest.

 

[MrBurns]

Oh hell I just read that properly, no wonder it's all Asians at the Auctions, this is a double whamy bubble.

 

[MACCA350]

hello,

the house BUILDING market

thankyou
professor robots

Gee.......Didn't realise that.........luckily you were here to point it out to me

If I were building a house in this climate I woud be paying as it completes, big payment up front and they go under and you're history.

I don't know of any builder who requires full/large payment up front..........and if they asked for it, I'd be out the door

cheers

 

[MACCA350]

Oh hell I just read that properly, no wonder it's all Asians at the Auctions, this is a double whamy bubble.

It's a worry, that's for sure..........it's like Krudd has opened the flood gates to anyone in the world who has money just to keep prices climbing. He seems only concerned with increasing prices no matter what the cost.

cheers

 

[MrBurns]

It's a worry, that's for sure..........it's like Krudd has opened the flood gates to anyone in the world who has money just to keep prices climbing. He seems only concerned with increasing prices no matter what the cost.

cheers

I've been to a few Auctions where the Asian presence was overwhelming, I asked the agents what it was all about and they just said it's like that all the time now but I never knew why till now.

Be interesting to find out by just how much that increased the pool of buyers, I'm guessing a lot a real lot.....

Funny how no one mentioned that before in the media or perhaps I missed it.

 

[robots]

hello,

thats right, all those things listed havent occurred

yes you missed it Burns, too busy going on about negative equity

carry on as those properties are lost for ever, what they can never be resold back to an aussie?

thanyou
professor robots

 

[trainspotter]

It appears that the "credit tightening" didn't occur in professor robots part of the world. Completely agree with all the other items listed.

http://corporate.afgonline.com.au/i.../web_content/mortgageindex-may09-national.pdf

Worth a read for a balanced view IMO. Good stats as well.

 

[MrBurns]

hello,

thats right, all those things listed havent occurred

yes you missed it Burns, too busy going on about negative equity

carry on as those properties are lost for ever, what they can never be resold back to an aussie?

thanyou
professor robots

Yes I think you missed it too, never saw you mention it.

 

[Gone Fishin]

Don't think houses will drop anytime soon. Too many people flocking to australia, will keep prices at current levels for ever

 

[robots]

hello,

great post Gone Fishin, superb

and this from earlier:

"Previously, developers were able to offload no more than half of the new dwellings in a development to overseas buyers............Under the new laws, developers could sell 100% of new developments off-the-plan to overseas buyers who tend to pay a premium for Australian real estate..........

well well, why not when they want to get a piece of paradise

just look out the windows

thankyou
professor robots

 

[MrBurns]

hello,
great post Gone Fishin, superb
and this from earlier:
"Previously, developers were able to offload no more than half of the new dwellings in a development to overseas buyers............Under the new laws, developers could sell 100% of new developments off-the-plan to overseas buyers who tend to pay a premium"]Australian real estate
well well, why not when they want to get a piece of paradise
just look out the windows
thankyou
professor robots

Put your money where your mouth is robots, get out there and buy buy buy, borrow 100% 105% even more if you can get into that equity robots quick, it's cheap...........(bet you've bought nothin' since this thread started), run robots run !

 

[Gone Fishin]

hello,

great post Gone Fishin, superb

and this from earlier:

"Previously, developers were able to offload no more than half of the new dwellings in a development to overseas buyers............Under the new laws, developers could sell 100% of new developments off-the-plan to overseas buyers who tend to pay a premium for Australian real estate..........

well well, why not when they want to get a piece of paradise

just look out the windows

thankyou
professor robots

yes right on bro!! You da man robots!!