House prices to keep rising for years

[Taltan]

House prices about to soar, says Reserve Bank official

When you read the article at not one quote does Mr Richards actually say that prices will soar. In fact given that he is advocating policies to encourage lower price increases its hard to understand how he declared that prices will soar - as the RE advertising reliant news ltd headline suggests

 

[Timmy]

Here is a link to that article:

House prices about to soar, says Reserve Bank official

 

[BradK]

I will say it again from someone who has done well out of property in the past.

High house prices help NO ONE

Enough said.

Brad

 

[Bronte]

What if you own a few houses Brad ?

 

[MrBurns]

I will say it again from someone who has done well out of property in the past.
High house prices help NO ONE[
Enough said.
Brad

And on that note -

Rising house prices only 'hurt vulnerable'

http://www.abc.net.au/news/stories/2009/09/29/2699622.htm

 

[BradK]

What if you own a few houses Brad ?

Well, it does. But the kind of society that it generates where some people can ill afford the housing over their heads far outweighs the benefits of a couple of investors who are screaming like a Geelong cats fan for double digit growth year in year out.

I know some will start singing their songs about 'getting ahead' and having 'aspirations', and playing the game. It is 'smart' they say. But, the twisted logic of capitalism is just that. Twisted. And no, I'm not a socialist!!! I'm a free market advocate who recognises that the logic is twisted.

So, yeah, it helps those people. I have no problem with property investors who pay down the mortgage or use capital to buy sound investments to generate RENTAL return - no problem whatsoever - it is probably THE best inflation hedge. But the leeches who use no money down type schemes and cheer lead soaring prices are just that - leeches.

I know, I was one of them, and I did REALLY well. And then I realised what that type of thing was doing to the economy.

Property investment is a great hedge against inflation. But, as I said - for rental return and not for screaming soaring capital gains.

Brad

 

[Bronte]

We have also just sold a property we bought ten years ago for 'no money down'
Thanks for clearing that up and the reply Brad.

 

[BradK]

We have also just sold a property we bought ten years ago for 'no money down'
Thanks for clearing that up and the reply Brad.

Bronte, you are from Perth?

I cleaned up in Ellenbrook and I'm from the east coast. Built 4 places for $200k each and sold them mostly for near double that on average. Great for the economy of Ellenbrook isn't it!?

Im a hypocrite. I answer the charge. Guilty.
Brad

 

[MrBurns]

We have also just sold a property we bought ten years ago for 'no money down'
Thanks for clearing that up and the reply Brad.

Hey Bronte, well done, now why dont you go out and do it now, right now this weekend ?

It wasn't luck was it ????????

 

[Bronte]

We had a chance to buy two townhouses new off the plan for $192,000 each,
close to Burswood casino and Perth city.(yes we live in Perth Brad)
The townhouse we sold was positively geared from day one, only two tenants.
The last occupiers, really nice couple stayed with us for nine years.
Hardly saw them or the property.
Nearly tripled in price

 

[BradK]

We had a chance to buy two townhouses new off the plan for $192,000 each,
close to Burswood casino and Perth city.(yes we live in Perth Brad)
The townhouse we sold was positively geared from day one, only two tenants.
The last occupiers, really nice couple stayed with us for nine years.
Hardly saw them or the property.
Nearly tripled in price

I don't begrudge any of that - long term investment. Fine.

Call me self-loathing, but dont you think my activities in Ellenbrook were ultimately destructive? 18 months.

Yes Mr Burns. It was all luck.

Brad

 

[cutz]

And on that note -

http://www.abc.net.au/news/stories/2009/09/29/2699622.htm

Makes me sick, when will the routs end ? when will the balance be restored.

The irony is, i generally keep it to myself that i trade stocks and derivatives and pay hefty taxes on the profits for my troubles, some people look at you like some sort of greedy capitalist freak, yet if i had multiple investment units negative geared and depreciating those to the max i'm a working class hero.

 

[Bronte]

Hey Bronte, well done, now why dont you go out and do it now, right now this weekend ?
It wasn't luck was it ????????

Thank you Mr Burns,
Luck to us is when: 'Opportunity meets Preparation'
At the time we were doing a lot of work/research with different 'Investment Property' companies.
So we knew exactly what we were looking for:
10% areas
Positive gearing
Depreciation of new property etc

 

[BradK]

Hello,

Can't wait until Professor Robots read this thread thus far.

Thank you
Professor Brad

 

[Green08]

If you have a mind, the country is a great investment. The prices are reasonable but if you have cash and determination, absolute bargins!! Alot of renters. Where we are, prices have sky rocketed.

There are some super people, alot of city professionals relocating for the space and family needs! There are so many opportunities for business.

 

[MrBurns]

Thank you Mr Burns,
Luck to us is when: 'Opportunity meets Preparation'
At the time we were doing a lot of work/research with different 'Investment Property' companies.
So we knew exactly what we were looking for:
10% areas
Positive gearing
Depreciation of new property etc

I've had a lot of experience in this and from what I've seen it's more like when "Stupidity meets Luck" Usually in the end they do it once too often and go bust and find out it wasnt their smarts after all.

 

[Bronte]

"If the numbers work....do it"

Mr Burns,
May I ask you:
If you could buy a new property for no money down.
In an expected high growth / nice popular area
Positively geared from day one.
Would you buy that property ?

 

[MrBurns]

"If the numbers work....do it"

Mr Burns,
May I ask you:
If you could buy a new property for no money down.
In a high growth / nice popular area
Positively geared from day one.
Would you buy that property ?

The numbers worked in a syndicate I was in once, we made millions, I got out and the others worked out that the numbers dont always pay off ni matter how much you THINK they add up, they went broke. Came back eventually I think but only by taking crazy risks.

Your other question, I wouldnt touch it unless the price of it stacked up if it was vacant. Tenants do go broke, I know.

 

[Bronte]

Very Interesting.
Thank you Mr Burns

 

[wayneL]

"If the numbers work....do it"

Mr Burns,
May I ask you:
If you could buy a new property for no money down.
In an expected high growth / nice popular area
Positively geared from day one.
Would you buy that property ?

This is a good marker of value.

This was possible 10 years ago when there was value.

This is nowhere even remotely possible today.

If it is, show me. I'll buy some.