House prices to keep rising for years

[stocksontheblock]

just did a Financial IQ test...with Coredata
the results.......shows how really very stupid and ignorant I am........

Your Assessment

Well done!! Your Financial IQ is between 125 and 135. This places you close to two standard deviations above the national average. In basic terms it means your Financial IQ is in the top 7% of the population with regard to understanding financial terms and concepts. Placing you well above the average level of national understanding. You are clearly smarter than most bankers and should possibly consider a new career working for the RBA. However as with all major financial decisions you should still carefully consider all your options before making major financial purchases.

I think is no.12 on the guilty list.

 

[satanoperca]

Stocksontheblock,

Kincella is laughing all the way to the bank and has an above average IQ, how can you question that?

Your post was eliquent and somewhat poetic.

Back to the topic. Just of the last week or so I have started to see again properties that I might be interested in and they do not seem to have risen above 2007/8 peak.

I have also noticed at lot more properties without prices, a trend that I noted late last year.

Will interest rates looming, taxes to increase to pay of KRUDD's debt, KRUDD's sugar hits almost finished, FHBG reduced and reducing further in a few months I cannot see prices growing to new heights in 2010 but I may be wrong.

Cheers

 

[Taltan]

Stocksontheblock, Well said I have noticed many of the assme things but I could not have written it so well in the time I allocate to this forum.

Regarding prices I think there is one more sugar hit to come, and that is the many bullish investors who have been waiting for the FHB to be scaled back. As an accountant I see a lot of these investors. I often tell them that they should consider things like equities however they are scared of stocks and believe you cannot go wrong with property. They have been waiting and I wouldn't be surprised if with 3% interest rates they further delayed the inevitable.

 

[kincella]

my response to all of you on the attack today is......
tell someone who cares.......cause I dont......
I have a thick hide....its like water off a ducks back.....
some of you sound like a gang of ferals....
the words... bully boys.... springs to mind......
oh, and I say bollocks to you to....
hehehehehehehehe

 

[satanoperca]

I hear the sounds of bleating drums and rising IR's.

 

[robots]

hello,

kincella, I have reported that offensive post to the moderators.

Uncalled for, keep your chin up brother

his wife took him to the cleaners

thankyou
professor robots

 

[robots]

hello,

kincella,

they all get around with L on their forehead, looking for someone else to blame for life

just like the scab out the front of Coles asking for a dollar of you hard earned

thankyou
professor robots

 

[theasxgorilla]

Exactly mythos.

kincella has no idea about the reasons Europeans like to rent. Mainland Europe is cheaper than Oz (wages to price), apart from a few premium areas. It is nothing to do with cost.

And to expand on the facts even further, Germany, and practically every country bordering it, particularly the Germanic ones (Netherlands, Switzerland, Austria, Denmark, Sweden) have massive state run housing systems.

It tends to work like this, you put your name on the list when you are young (or your parents do), eventually, depending on how long you've been on the list, you start getting offers of accomodation. This accomodation can and often does include old heritage listed apartments in central locations of some of the most desirable cities on the world. And you get to rent them for cents in the dollar so to speak.

It's not apples and apples either. The living standards and expectations are often higher in Europe. The quintessential run-into-the-ground rental properties (shacks) of Australia just wouldn't rent in a lot of European countries. People demand and tend to get more.

 

[MrBurns]

The bulls are getting touchy, they must sence the inevitable - negative equity and lots of it.

Prices slashed, interest rates through the roof, forced sales everywhere, prices tumbling.

Well there's the next lot of headlines in the daily papers starting soon, paradise for the true believers who will swoop and pick up the bargains.

(do I sound like anyone but in reverse?)

 

[moXJO]

I hear the sounds of bleating drums and rising IR's.

I don't think our IR's can go up that much, I'm sure there was a limit mentioned of about 7-8% as the max pain threshold somewhere. Houses are selling like hotcakes down my way. I hope they do go down, as rents are BS atm, Rents at $500 a week for a crappy 3 bedroom house in a bogan town is stupid. I'm backing house prices to rise more though, hopefully I’m wrong.

If my punctuations out in the above, just add the following at your leisure
.,!""'';()?/-

 

[theasxgorilla]

i have removed my last post as waynes link said it all

Oh the irony!

 

[Soft Dough]

I sometimes chuckle to myself at how naive people are to believe that

1. House prices can continue to show compound growth at a pace higher than wages growth ( gearing has to max out sometime )

2. People weren't stupid with rudd propping up the market and didn't overextend with stupidly low interest rates.

3. Prices will not return to trend ( either the trend line moves or the price does - so this one smacks of stupidity )

4. Housing contributes to the economy ( sure it generates employment etc, but all it does is sinks money that could be used to generate net inflow of money into the country into depreciating assets, which, for all intents and purposes has a one off effect on employment )

5. That banks are evil when it comes to housing. In fact the true evil lies with the rip off councils and land developers ( who ramped up land prices overnight about 8 years ago where I am approximately 250% ) and builders and tradesmen who continue to demand excessive remuneration, for what is in effect a low skill job, as they do not need to compete as the government is subsidising their jobs at the expense of real competition.

I have said it before : if the FHBG went totally tomorrow, builders would actually need to compete for work, and hence would not pay plumbers, painters, chippies, electricians over what they are worth, land developers would need to cut margins, and housing prices would return to trend.

I would sell. I still believe housing is in for a 20% correction, lets see how it goes over the next year, now that the FHB grant ( lining the pockets of builders and developers pockets ) has returned to "normal" ( in fact, can ANYONE give a good reason as to why we should have a FHBG anymore? )

 

[robots]

hello,

just to get back on track,

i havent seen the figures recently and hope someone can help me

does anyone know if its still 8x average income to average house price?

thankyou
professor robots

 

[Wysiwyg]

I sometimes chuckle to myself at how naive people are to believe that

Asset prices have always gone too far one way or another. At this rate of increase in house pricing, one could be paying 1/2 million dollars for the fibro. number down the road in 10 years time.
All good if you own the fibro. number.

 

[robots]

I sometimes chuckle to myself at how naive people are to believe that

1. House prices can continue to show compound growth at a pace higher than wages growth ( gearing has to max out sometime )

2. People weren't stupid with rudd propping up the market and didn't overextend with stupidly low interest rates.

3. Prices will not return to trend ( either the trend line moves or the price does - so this one smacks of stupidity )

4. Housing contributes to the economy ( sure it generates employment etc, but all it does is sinks money that could be used to generate net inflow of money into the country into depreciating assets, which, for all intents and purposes has a one off effect on employment )

5. That banks are evil when it comes to housing. In fact the true evil lies with the rip off councils and land developers ( who ramped up land prices overnight about 8 years ago where I am approximately 250% ) and builders and tradesmen who continue to demand excessive remuneration, for what is in effect a low skill job, as they do not need to compete as the government is subsidising their jobs at the expense of real competition.

I have said it before : if the FHBG went totally tomorrow, builders would actually need to compete for work, and hence would not pay plumbers, painters, chippies, electricians over what they are worth, land developers would need to cut margins, and housing prices would return to trend.

I would sell. I still believe housing is in for a 20% correction, lets see how it goes over the next year, now that the FHB grant ( lining the pockets of builders and developers pockets ) has returned to "normal" ( in fact, can ANYONE give a good reason as to why we should have a FHBG anymore? )

hello,

to cover the outrageous Stamp Duty charges from the state government

exactly the reason J.Howard introduced it

dont buy or hold, rent no big deal

this is great we havent had Q & A since Chops A Must was around, anymore questions?

thankyou
professor robots

 

[cutz]

I have also noticed at lot more properties without prices, a trend that I noted late last year.

Something else i've been noticing is sales data not being disclosed in the papers.

My misses rang up a real estate agent last week requesting the price on a house that was passed in but later sold via negotiation but the reply was, "sorry can't say". Also those private "in the office" multi auctions are pretty annoying.

 

[wayneL]

Something else i've been noticing is sales data not being disclosed in the papers.

My misses rang up a real estate agent last week requesting the price on a house that was passed in but later sold via negotiation but the reply was, "sorry can't say". Also those private "in the office" multi auctions are pretty annoying.

Yeah that sucks cutz.

Here in the UK you can get the actual price of any house sold... free.

One such site is www.houseprices.co.uk

If a partially socialist country can do this, why can't a more economically liberal country like Oz do it?

 

[nunthewiser]

Oh the irony!

hahahahahahah

now thats funny in a warped kind of way

 

[Soft Dough]

hello,

to cover the outrageous Stamp Duty charges from the state government

exactly the reason J.Howard introduced it

dont buy or hold, rent no big deal

this is great we havent had Q & A since Chops A Must was around, anymore questions?

thankyou
professor robots

Yeah I guess you must be right, because as we all know, Stamp duty was never ever ever around before FHBG was introduced was it.

I thought FHBG was introduced as a way to "soften" GST introduction, so it should have had an endpoint. Pity the politician who takes it away from the "needy" masses.

 

[moXJO]

5. That banks are evil when it comes to housing. In fact the true evil lies with the rip off councils and land developers ( who ramped up land prices overnight about 8 years ago where I am approximately 250% ) and builders and tradesmen who continue to demand excessive remuneration, for what is in effect a low skill job, as they do not need to compete as the government is subsidising their jobs at the expense of real competition.

I have said it before : if the FHBG went totally tomorrow, builders would actually need to compete for work, and hence would not pay plumbers, painters, chippies, electricians over what they are worth, land developers would need to cut margins, and housing prices would return to trend.

)

Ummm no there was better pay years ago without the fhbg. I noticed you had an issue with trades previous, and quoted stupidly high rates of pay for plumbers before. I doubt you would know the right end of a hammer, let alone what it takes to run a company. It's pathetic to look down on, and rag about other profesions, when you have no idea. Trades will just run to the mines, or other industrys when work gets quiet.
And there is a reason why there is a skill shortage and lack of quality builders
Someone must have burnt you bad.

I would sell. I still believe housing is in for a 20% correction, lets see how it goes over the next year, now that the FHB grant ( lining the pockets of builders and developers pockets ) has returned to "normal" ( in fact, can ANYONE give a good reason as to why we should have a FHBG anymore? )

Wanna bet robots a case on that.