House prices to keep rising for years

[wayneL]

Because they are incompetent, reckless dickheads.

A very generous assessment Burnsie.

 

[moXJO]

Because they are incompetent, reckless dickheads.

That’s what it feels like sometimes.
I also question raising rates to slow a housing boom if overseas money is paying in cash. Will our economy get a handbrake while overseas money pours into housing anyway?

Seems we are hell bent on expanding our tax base.

 

[wayneL]

That’s what it feels like sometimes.
I also question raising rates to slow a housing boom if overseas money is paying in cash. Will our economy get a handbrake while overseas money pours into housing anyway?

Seems we are hell bent on expanding our tax base.

Classic Fabianism

 

[kincella]

it really is an uphill battle....
I love the so called ...logic...that houses do nothing for the economy except a roof over their heads....whereas with stocks, well they produce a dividend....

its a ridiculous attitude...
for eg BHP produces steel etc etc etc....driven by the demand in housing and infrastucture...

all those builders, tradies, hardware stores,furniture and whitegoods,lawnmowers, barbeques,,,the list is endless, all feed off housing for their survival....
not to mention all the other people that run a business mowing lawns, nannies, cleaning etc...

hey if we all lived like they do in the 3rd world countries, under a tree....or in a tent....there would be no demand for the big companies shares or stocks....so the bhp's would be out of business....
no need for whitegoods, or the lawnmower....
have they...any idea whatsoever about the wealth that is generated by the thousands of small businesses that are tied to housing....

 

[gfresh]

It's like reading Plato..

 

[Knobby22]

It's like reading Plato..

Yes, reminds me of Cicero.

 

[Taltan]

it really is an uphill battle....
I love the so called ...logic...that houses do nothing for the economy except a roof over their heads....whereas with stocks, well they produce a dividend....

its a ridiculous attitude...
for eg BHP produces steel etc etc etc....driven by the demand in housing and infrastucture...

I'll explain the logic. The thing with housing is that the house supports jobs but the land doesn't. So e.g. lets say I buy a house in Brighton for $3m. As manager of that home I do absolutely nothing for 20 years. The $3m home is worth say $6m - $3m profit & all I've done is hold a piece of land that someone else needs to buy but the addition to the Australian economy has been $0. Now aternatively if you put $3m into a company, and there is no enterprise used, after 20 years you have $0 profit and $3m. The difference is that BHP, NAB etc pay their dividends through investment in enterprise. 100% of their dividend comes from enterprise. For property the value portion that relates to the land adds no value to the Australian economy and keeps no-one employed.

I don't expect you to agree and am happy for you to dismiss but please do not respond with more copy and pastes from the News Ltd or Fairfax papers. I'm sure we're all aware of their existence.

 

[trainspotter]

Feeling a bit woozy. A financial counsellor in the ACT has predicted higher interest rates will lead to more loan defaults. The Reserve Bank of Australia announced the official cash rate would rise by 25 basis points to 3.25%.

It was the first rise in interest rates on over a year.

Care Inc Financial Counselling Service director Carmel Franklin said first home owners would be hardest hit by the decision.

"I think there is a lot of people in a tight place and that's the problem: that people borrow their maximum capacity," she said.

Small changes in interest, living costs and fuel costs "will tip a whole heap more people over into financial difficulty", she said.

 

[Soft Dough]

it really is an uphill battle....
I love the so called ...logic...that houses do nothing for the economy except a roof over their heads....whereas with stocks, well they produce a dividend....

its a ridiculous attitude...
for eg BHP produces steel etc etc etc....driven by the demand in housing and infrastucture...

all those builders, tradies, hardware stores,furniture and whitegoods,lawnmowers, barbeques,,,the list is endless, all feed off housing for their survival....
not to mention all the other people that run a business mowing lawns, nannies, cleaning etc...

hey if we all lived like they do in the 3rd world countries, under a tree....or in a tent....there would be no demand for the big companies shares or stocks....so the bhp's would be out of business....
no need for whitegoods, or the lawnmower....
have they...any idea whatsoever about the wealth that is generated by the thousands of small businesses that are tied to housing....

Please tell me how much money housing contributed to GDP in Australia over the past 5 years
Please tell me where the money to pay for these houses comes from.

the typical rubbish from someone without an understanding of what generates wealth in the country,

inflow of cash into the country and then using that cash to generate an income, which creates jobs exponentially.

Unfortunately, as you know I have already posted this logic, yet since people on these forums prefer to make themselves rich at the expense of others, instead of making us all rich and protected from overseas interests, I think that this is beyond some people to imagine.

 

[nunthewiser]

its a ridiculous attitude...
for eg BHP produces steel etc etc etc....driven by the demand in housing and infrastucture...

BHP do NOT produce steel


http://www.bhpbilliton.com/bb/home.jsp

do some research

 

[Vizion]

Not anymore no, they did up to 2002 As BHP Steel when they where spun off and listed separately as Bluescope

 

[nunthewiser]

Not anymore no, they did up to 2002 As BHP Steel when they where spun off and listed separately as Bluescope

yep

kincella posted this today not 2002

just helping with a few facts as it was a glaring error factually

 

[wayneL]

yep

kincella posted this today not 2002

just helping with a few facts as it was a glaring error factually

The whole premise of the post was nonsense, as a couple of posts above point out. But it just isn't worth the effort trying to talk facts with zealots.

 

[robots]

hello,

still 8x average income to median house price? oh yeah

thankyou
professor robots

 

[robots]

hello,

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

another fantastic day hey WayneL? 81% clearance

well done to those holding Australian property with similar results across other states

just plain old vanilla residential real estate, give yourself a pat on the back you putting in for the economy

OH YEAH!

thankyou
professor robots

 

[wayneL]

hello,

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

another fantastic day hey WayneL? 81% clearance

well done to those holding Australian property with similar results across other states

just plain old vanilla residential real estate, give yourself a pat on the back you putting in for the economy

OH YEAH!

thankyou
professor robots

Like I said, It's raining cash, ergo, not unexpected.

But the hot shots across the ditch aren't having so much fun, sans government handouts.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10602365&pnum=0

Party's over and debts called in for property kings

One day, it seems, they have the best clothes and are seen about town with the best-looking models, behind the wheels of the raciest cars.

Now they are crumbling under their creditors and even hocking their bling on the internet.

This week, Starline Group's Jamie Peters announced his bankruptcy after putting his name to about $1 billion worth of development work.

He's the developer who was selling his belongings on the internet a while back, including Cartier and Rolex watches, furniture and even his garden palms.....

 

[MrBurns]

Didn't see any Chinese out today, maybe it was just where I was dunno, but there's change in the air.

 

[Soft Dough]

hello,

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

another fantastic day hey WayneL? 81% clearance

well done to those holding Australian property with similar results across other states

just plain old vanilla residential real estate, give yourself a pat on the back you putting in for the economy

OH YEAH!

thankyou
professor robots

A typical no content post designed to inflame.

But please Robots, give us your prediction for house price increase over the next twelve months. Give us some indication you actually have some understanding of market forces and not just herd mentality.

And please, give me an answer to the questions I have posted on this site, including : what has housing contributed to GDP.

 

[cutz]

And please, give me an answer to the questions I have posted on this site, including : what has housing contributed to GDP.

I'll give you an answer, SFA.

Just another ponzi scheme that's destined to end up like all ponzi schemes when a greater fool can no longer be found.

 

[MrBurns]

Just another ponzi scheme that's destined to end up like all ponzi schemes when a greater fool can no longer be found.

Ezcellent choice of words.