House prices to keep rising for years

robots · 11 October 2009

hello,

actually its quite the opposite down in Mt Martha at the moment Explod,

i have been down there for over two months now and SOLD stickers have been hitting the boards in record times

i am in the Craigie rd area, beachside of course, not sure whats happening in the slums

thankyou
professor robots

satanoperca · 11 October 2009

satanoperca said:
Interesting points from all sides, however ...
Imagine a world, a simple one at that, where for whatever reasons, market forces resulted in residential property only increasing at +1% over inflation p.a.
What would this mean to Oz?

A major mindset change.
Freeing up huge amounts of current and future capital that is currently locked up in mortgages benefiting the 4 pillars of society.
A pursuit to create wealth and prosperity through innovation and efficiency funded by not having to support massive indebtness via mortgages which drag on the economy and reduce GDP.
More displosable income for people to spend, increasing quality of life and generating jobs for the country instead of fat cat bankers. Eg holidays, eating out, clothes, furniture, interiors, cars, time off with the childrens @ the zoo or down the beach.....
Taxes could be increased, as people would have more disposable income to provide better healthcare, education, looking after the elderly, all increasing again quality of life.

Will the above ever eventuate, who knows but I do not think that having some of the highest property prices in the world is good for society or having the highest quality of life?

robots said:
hello,

this already occurs though Satanoperca,

I notice on the list you dont have spend disposable income on an investment property, (provides work when I replace the carpet, lay new tiles, paint walls, double glaze windows)

but okay to give it to Gerry Harvey, or TPG (Myer), Dick Smith, the local restauranter

amazing

great to see Kincella online today,

thankyou
professor robots

Yes, interiors as hightlighted in above text. This would include keeping tradies in work whether it was for a PPOR or IP.

I expected a better retort from you, maybe my expectations are a little high in regards to a self acknowledged Professor of ????

robots said:
the longer you CFD salesman and financial advisors keep going on about it the better as the $ keep piling up in my pocket, utopia

the holders of true wealth, and its all TAX FREE

thankyou
professor robots

Who are these people on this forum who contribute to this thread that are CFD salesman and financial advisors? Please identify yourself immediately.

Your final comment could be contributed as providing financial advise itself.

And finally, always love people who think it is cool and intelligent to avoid or negate the social obligation of paying tax to contribute to society and often promote schemes that do so.

robots · 11 October 2009

hello,

yes I provide FREE financial advise all the time, to fellow workers mostly

just pointing out that the PPOR is tax free and totally within the rules,

and probably one of the main reasons for the stability and rise of property as people got out of the shonk exchange, superannuation, online bank accounts and simply upgraded their home

one Massive advantage of being a "contractor" is having the choice to be outside of the superannuation vehicle

thankyou
professor robots

cutz · 11 October 2009

Hi Beej,

Thanks for the copy and paste on what a ponzi scheme is but in my books anything that is subject to artificial price manipulation is a ponzi, take away government grants,negative gearing, depreciation and all the other tax routs then we'll see the true value of property is worth.

Robots,

What a beautiful day in downtown Melbourne, the sun and the rain, almost surreal.

explod · 11 October 2009

robots said:
hello,

actually its quite the opposite down in Mt Martha at the moment Explod,

i have been down there for over two months now and SOLD stickers have been hitting the boards in record times

i am in the Craigie rd area, beachside of course, not sure whats happening in the slums

thankyou
professor robots

That's right Professor, has been, but I watch it every day here which is where I live and I am talking about the change in this last week. I talk to Agents here every few days and they can feel it, and change when it comes Australia wide will be as fast as a cut with a knife, and many are so leveraged due to the hype it will not be pretty.

Thats just my view though. DYOR

robots · 11 October 2009

hello,

oh yeah Cutz, sensational day, great to be alive kicking back walking the streets and riding the trams

thankyou
professor robots

robots · 11 October 2009

explod said:
That's right Professor, has been, but I watch it every day here which is where I live and I am talking about the change in this last week. I talk to Agents here every few days and they can feel it, and change when it comes Australia wide will be as fast as a cut with a knife, and many are so leveraged due to the hype it will not be pretty.

Thats just my view though. DYOR

hello,

if thats the same thing that was predicted in 2004/05 then people dont have a lot to be concerned about

sure "business people" might be in trouble

yeah, do your own research, ask a friend, read a blog, speak to a professor, buy a Share Magazine, subscribe to a CFD Provider

thankyou
professor robots

Beej · 11 October 2009

cutz said:
Hi Beej,

Thanks for the copy and paste on what a ponzi scheme is but in my books anything that is subject to artificial price manipulation is a ponzi, take away government grants,negative gearing, depreciation and all the other tax routs then we'll see the true value of property is worth.

Sounds like you are redefining what a ponzi is to me if you are going to argue that any market subject to government regulation and intervention is a ponzi!

Should negative gearing, 30% company tax rate, small business tax benefits and rule exemptions and dividend imputation be taken away from share investment and business investment too then to find their true value??

What a crock.

Beej

robots · 11 October 2009

gav said:
Actually some cheaper outer suburbs have seen considerable gains as well. Even though I only purchased my first PPOR earlier this year, I like to keep an eye on the sales in my suburb - particularly my street.

On my street in the past 2 months, 2 places a lot smaller than mine (with houses roughly same age as mine) sold for $30K more than I paid.. Another place the same size as mine (also with house same age) sold for $65K more than what I paid! There are also 3 small townhouses being built about 50m from my place, asking price off the plan is $50K more than I paid, and they are all WAY smaller than my place!

If I decided to wait and save a little longer, I would have been priced out - unless of course I broke my rule of having a 20% deposit, and that includes the money I would have saved in the mean time...

I don't know if this is sustainable, but I really feel for people trying to save for their first home.

hello,

well done Gav, many happy years on the cards

i think professor frink got in as well around the same time

building costs have to be underpinning the existing market, but even if you take away the "boss" aspect of a trade service the "man" hours to build homes are still astronomical

how you go with the Stamp Duty issues?

thankyou
professor robots

Gordon Gekko · 11 October 2009

Conclusion

* Australian housing is unaffordable compared to similar developed nations.
* Australian households hold records amount of debt.
* The Australian Government has been artificially inflating housing prices with grants.
* Interest rates won’t stay low forever.
* For the property market to continue to rise, buyers must be secure in their employment, banks must continue to lend at current rates and boomers must find property purchasers who are willing to fund their retirement.

http://agoodhuman.wordpress.com/2009/10/07/economy-2-is-a-housing-bubble-looming-in-australia/

Good reading for those young and feed up with the myth of housing going up forever. A useless piece of info for those older and desperate for growth at all costs to fund there retirements.

No disrespect to those battlers out there, keep you heads up cause there's a storm a comin.

G

cutz · 11 October 2009

Beej,

Negative gearing whether it's on shares or property is a joke, what's the point, so you gear up to the max, pay more in interest to the banks than what your getting in income, avoid paying you dues to society, then hope a black swan doesn't wipe you and your next generation out. (If are are aware of risk management in the first place)

If the government had the courage to get rid of all the scams maybe we can all enjoy the benefits of a lower tax rate and lower property prices. High property prices is of no benefit to anyone, i purchased my piece of inner city on land when i was a kid and payed it off in 5 years on an average income, now gen Y haven't got a chance.

explod · 11 October 2009

hello,

if thats the same thing that was predicted in 2004/05 then people dont have a lot to be concerned about

In my view of current economics 2004/05 was a walk in the park, this time looks very different. Forget the popular press, look at the small to medium general business, the real job numbers, hotels, tourist areas and etc etc.,

I love real estate dont' get me wrong and it will provide excellent opportunities for the cashed up. Anyway time will tell Professor

robots · 11 October 2009

cutz said:
Beej,

Negative gearing whether it's on shares or property is a joke, what's the point, so you gear up to the max, pay more in interest to the banks than what your getting in income, avoid paying you dues to society, then hope a black swan doesn't wipe you and your next generation out.

If the government had the courage to get rid of all the scams maybe we can all enjoy the benefits of a lower tax rate and lower property prices.

hello,

i agree Cutz, this share trading provides no wealth at all, no benefit to GDP, nothing

non-productive and ties up mega-capital which should be used for other purposes,

thankyou
professor robots

MrBurns · 11 October 2009

Gordon Gekko said:
Conclusion

* Australian housing is unaffordable compared to similar developed nations.
* Australian households hold records amount of debt.
* The Australian Government has been artificially inflating housing prices with grants.
* Interest rates won’t stay low forever.
* For the property market to continue to rise, buyers must be secure in their employment, banks must continue to lend at current rates and boomers must find property purchasers who are willing to fund their retirement.

http://agoodhuman.wordpress.com/2009/10/07/economy-2-is-a-housing-bubble-looming-in-australia/

Good reading for those young and feed up with the myth of housing going up forever. A useless piece of info for those older and desperate for growth at all costs to fund there retirements.

No disrespect to those battlers out there, keep you heads up cause there's a storm a comin.

G

Don't forget the relaxing of the investment rules, I've been to Auctions around Melboune where if there were no Chinese there there would be no one ......literally no one, expensive suburbs, Balwyn Hawthorn etc.
So thats had a huge effect because they dont care what they pay, whatever it takes ...just top get in before someone wakes up and closes the door again, they cant believe their luck..............nor can the young Aussies that miss out because of it.

michael_selway · 11 October 2009

robots said:
hello,

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

thankyou
professor robots

Hey what's the average income and median house price in Australia?

Thanks

MS

satanoperca · 11 October 2009

Gordon Gekko said:
Conclusion

* Australian housing is unfordable compared to similar developed nations.
* Australian households hold records amount of debt.
* The Australian Government has been artificially inflating housing prices with grants.
* Interest rates won’t stay low forever.
* For the property market to continue to rise, buyers must be secure in their employment, banks must continue to lend at current rates and boomers must find property purchasers who are willing to fund their retirement.

http://agoodhuman.wordpress.com/2009/10/07/economy-2-is-a-housing-bubble-looming-in-australia/

Good reading for those young and feed up with the myth of housing going up forever. A useless piece of info for those older and desperate for growth at all costs to fund there retirements.

No disrespect to those battlers out there, keep you heads up cause there's a storm a comin.

G

Well summarized but one must add :
1) Land is a finite resource - even though it is a massive country with a current population larger than being self sufficient off the land and ridiculous planning requirements from local councils.
2) Governments are inapt of forward thinking, action for votes today not the future of the next generation
3) Our population is increasing and immigration and selling Oz seems to be the answer to all problems because of point 2.

So it would seem that high property prices do lead to a percentage of the population being wealthy but as a result of the well being and quality of life for the rest.

Robots, are we know discussing the merits of share trading or/and share investment?

One adds little to GDP
One is essential for GDP

I will leave it up to you to work out what matches what as I need to fill my class again.

What the f???k is a good human anyway.

Evening to all.

Gordon Gekko · 11 October 2009

That spillover effect from foreclosures is one reason why Celia Chen of Moody's Economy.com says nationwide home prices won't regain the peak levels they reached in 2006 until 2020.

Anyone doubting that the recovery in U.S. real estate prices will be long and hard should take a look at Japan, Chen said. Prices there are still off about 50 percent from the peak they hit 15 years ago.

http://www.reuters.com/article/email/idUSTRE59705J20091008?ref=patrick.net

It does seem to be getting better here in Aus but I often wonder about the sentiment in the US with regards to markets/housing/ economy etc.
Just seems to me that they are no were out of the woods yet and if they are the ones to spend and consume and buy from China which will continue to keep us in Aus ahead of the curve, then what happens if the China figures don't support that?
I mean its often been discussed here on other threads but with regard to property in general: If China stumbles and there growth does not meet projections, Aus exports suffer, joblessness or under employment rise, how would this effect the price or sentiment with regards to housing which is already by most standards overvalued?

Would it not follow the US, UK??? Does it really all come down to supply and demand where houses are so rediculouly over valued?

My spelling sucks! deal with it!

G

MrBurns · 11 October 2009

Gordon Gekko said:
My spelling sucks! deal with it!

G

Try this -

http://www.iespell.com/download.php

Gordon Gekko · 11 October 2009

Oh and lastly I save the response by making another point. So the Aus banks were not as reckless as the US banks. Aussies are in more debt the there US counterparts for smaller houses on smaller blocks with a smaller less diverse economy.

I'm sure I am going to get a serve.

G

satanoperca · 11 October 2009

Gordon Gekko,

The USA overhang on the global economy is yet to be full realized and will be felt by the world and sundry in time.

China will continue to emerge as a global powerhouse but like all periods of growth the road with be pathed with potholes that will cause ripples in dependant economies like Oz.

What all this means for Oz RE is for those that have crystal balls but sooner or later the IOU's become worthless.

A tip to happiness.

Always decant a aged bottle of red to discover the pure essence of love

House prices to keep rising for years

robots

hello

satanoperca

robots

hello

cutz

explod

explod

robots

hello

robots

hello

Beej

robots

hello

Gordon Gekko

cutz

explod

explod

robots

hello

MrBurns

michael_selway

Coal & Phosphate, thats it!

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House prices to keep rising for years

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