House prices to keep rising for years
- Thread starter moses
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The only way is up maybe.
http://www.smh.com.au/business/price-spike-puts-a-house-beyond-many-20091009-gqrq.html
Some extracts :
Affordability doesn't seem to be an issue?
Sorry wrong thread, property only ever goes up doesn't it.
And there is more, a week or so old but an interesting survery conducted by realestate.com.au
http://au.news.yahoo.com/thewest/a/-/newshome/6138987/home-sellers-prepared-to-accept-less/
Surely this cannot be true, housing only goes up in Oz helped along with the lowest interest rates in 50 years and massive sugar hits from the Government.
With another 0.25% rate rise next month a certainty and more to come, it will be interesting how long it takes for the bubble to deflate. If anyone wants to argue about ratio of household income to property why has Sydney prices failed to rise in the last six years over inflation. Can only blow up a balloon so far.
http://www.smh.com.au/business/price-spike-puts-a-house-beyond-many-20091009-gqrq.html
Some extracts :
Affordability doesn't seem to be an issue?
Sorry wrong thread, property only ever goes up doesn't it.
And there is more, a week or so old but an interesting survery conducted by realestate.com.au
http://au.news.yahoo.com/thewest/a/-/newshome/6138987/home-sellers-prepared-to-accept-less/
Surely this cannot be true, housing only goes up in Oz helped along with the lowest interest rates in 50 years and massive sugar hits from the Government.
With another 0.25% rate rise next month a certainty and more to come, it will be interesting how long it takes for the bubble to deflate. If anyone wants to argue about ratio of household income to property why has Sydney prices failed to rise in the last six years over inflation. Can only blow up a balloon so far.
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G
I that a picture of what happens to all the people waiting for the great house price crash that never comes??
Beej
wayneL
VIVA LA LIBERTAD, CARAJO!
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Why would that be Beej?
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To all the Sydney Bulls,
Why have Sydney RE prices failed to above the rate of inflation over the last six years if property always keeps going up?
Will Sydney prices show any real growth over the next six years?
Cheers
Why have Sydney RE prices failed to above the rate of inflation over the last six years if property always keeps going up?
Will Sydney prices show any real growth over the next six years?
Cheers
you must be talking the median price...where thousands of the lower price houses sold, hence the lower median figure quoted.....however one friend bought in Cremorne 7 years ago and the mv has tripled on that property, no major capital works or anything done....its been an inflation beating investment if ever there was one
Interesting to see why you picked 6 years?
Why not one year?
The majority of people actually buy a house to reside in and tailor it to suit their taste and not for capital gain.
However the luxury of home ownership is CGT exempt, so even if you stuck your hard earned in the bank( the bank paid your interest at CPI) and rented you most probably be worse off.
When you have a mortgage you are incharge of your repayments ie whether you fix your interest rates or not.
Renting.. you are at the mercy of the landlord and you can bet your bottom dollar that everytime an interest rate rise occurs and the rental market is tight, your landlord wont be in a generous mood.
prawn_86
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This is a common myth imo. When you rent you are usually in 6+ month contracts, so they can only raise it once a year, and by law can only raise it a certain amount (10% i think) per year, so its not like they can raise it with every interest rate rise.
FWIW where we rent the apartment costs 290k. We pay 12kpa. Body corp and insurance are about 3k im guessing. So that leaves them with 9k to service the mortgage, not much really. Even a 200k loan @ 5% is still 10k pa interest. And yet they still only raised the rent once (by 5%) in 3 years
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Lasty, thanks for your response but didn't answer the question and I am well aware of the merits of owning.
Why six years as this seems to be the period of stagnation - something that the media and spruikers seem to always negate.
Kincella, yes I am discussion median prices. Bit hard to get an overall picture of a trend when discussing only a couple of properties.
There will always be specific cases of winners and losers.
As you have pointed out in the past, one must do their own research and know they market.
Why six years as this seems to be the period of stagnation - something that the media and spruikers seem to always negate.
Kincella, yes I am discussion median prices. Bit hard to get an overall picture of a trend when discussing only a couple of properties.
There will always be specific cases of winners and losers.
As you have pointed out in the past, one must do their own research and know they market.
wayneL
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There are good reasons to rent, and there are good reasons to buy. Each person's situation is different.
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The key to life is being flexible, the ability to change and adapt.
I'm back to renting after selling my PPOR. Essentially renting back my old place. The difference, no debt, money invested in the market that is moving shares and the difference financially between renting and owning is massive, approx 50% less to rent. Something goes wrong, fix it landlord or reduce my rent until it is fixed.
Will I buy again, yes but just waiting and researching for the next investment choice.
It is all about mindset and living life to the fullest.
I'm back to renting after selling my PPOR. Essentially renting back my old place. The difference, no debt, money invested in the market that is moving shares and the difference financially between renting and owning is massive, approx 50% less to rent. Something goes wrong, fix it landlord or reduce my rent until it is fixed.
Will I buy again, yes but just waiting and researching for the next investment choice.
It is all about mindset and living life to the fullest.
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If you're smart you rent and use your capital to invest and make more money, more than you'd make by just sitting on you're **** robots errrr everyone......... waiting for inflation to increase the value.
Reality is most people aren't that clever and their best option is to buy, it's fairly failsafe if you can service the mortgage through thick and thin.
Reality is most people aren't that clever and their best option is to buy, it's fairly failsafe if you can service the mortgage through thick and thin.
prawn_86
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2 of the better posts in this thread which just repeats itself over and over...
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It'll start over again tonight when robots logs in and congratuates himself ..........again. And on it goes.
Ground hog day.
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Yes Mr Burns,
Ground Hog Day. Time for me to stop watching.
The best of luck to everyone in regards to RE. I will simply watch and review over the next six months as there is still a lot of unwinding to be done.
Interest rates
FHBG
Unemployment
Swan congratulating himself for getting through the GFC but forgets we are in a crap load of debt, but that is trival. Go debt.
Cheers
Ground Hog Day. Time for me to stop watching.
The best of luck to everyone in regards to RE. I will simply watch and review over the next six months as there is still a lot of unwinding to be done.
Interest rates
FHBG
Unemployment
Swan congratulating himself for getting through the GFC but forgets we are in a crap load of debt, but that is trival. Go debt.
Cheers
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Not every landlord has a mortgage on the rental. We've been renting for the last 10 years, 3br house 11km from CBD, in that time we've only had one $10pw increase. Our landlord is happy to keep the price as is(which is extremely cheap for the size and location) to keep us here.
In fact the only reason they increased it was because the real estate agents changed hands and it was their pressuring for a $20pw increase(not the landlord) I told them we'd leave if they pushed the issue, they came back with a reduced $10pw increase, I decided that was fair enough after 6 years tenancy. Suffice to say they haven't brought it up in the last 4 years
The only reason we are still here is because of the cheap rent. I just checked available equivalent rentals and we are paying half what they are asking
cheers
psst....anyone want to make 40% return on housing...within one year....
Iraq has a housing shortage of 350,000
low cost 8 square units sell for 65,000 costs estimated 39,022= profit 25978
open to foreigners for investing.......
even in Iraq the prices were trebling during the war and before the global financial con job....
some of you should consider moving there....since prices are sooo cheap compared to the oz market
note the warnings on the site below
http://www.tobb.org.tr/rehber/irak/EIraq Social Housing Project 2009.pdf
Iraq has a housing shortage of 350,000
low cost 8 square units sell for 65,000 costs estimated 39,022= profit 25978
open to foreigners for investing.......
even in Iraq the prices were trebling during the war and before the global financial con job....
some of you should consider moving there....since prices are sooo cheap compared to the oz market
note the warnings on the site below
http://www.tobb.org.tr/rehber/irak/EIraq Social Housing Project 2009.pdf
forget the last post....look at this one...make 50% profits.....
it would have only improved since this article of Feb 09....I mean its almost peaceful over there now....compared to earlier periods
extract only.................
House prices have risen by 50 per cent in many parts of central Baghdad during the past year, and rents have almost doubled. Mr Hadithi says that this is explained primarily by the end of the war. “Refugees are returning, but not to the places where they once lived,” he says. “A Shia who owns a new and expensive house in a Sunni area will want to sell it and buy a cheaper one in a Shia-majority district for safety reasons.”
The returning refugees will not find it easy to secure housing. Many never were rich and others have used their savings to wait out the war. A typical middle-class house in Yarmouk costs $340,000 (£240,000), while a similar one in Palestine Street costs $240,000, according to estate agents.
Even before the civil war Iraq was chronically short of housing. Ms Bayan Dezayee, the Minister of Construction and Housing, said last month that by 2015 the population of Iraq would be 39 million and there is a need for 1.9 million extra housing units. Very little has been built over the last six years
http://www.independent.co.uk/news/w...-puts-heat-under-property-prices-1624889.html
it would have only improved since this article of Feb 09....I mean its almost peaceful over there now....compared to earlier periods
extract only.................
House prices have risen by 50 per cent in many parts of central Baghdad during the past year, and rents have almost doubled. Mr Hadithi says that this is explained primarily by the end of the war. “Refugees are returning, but not to the places where they once lived,” he says. “A Shia who owns a new and expensive house in a Sunni area will want to sell it and buy a cheaper one in a Shia-majority district for safety reasons.”
The returning refugees will not find it easy to secure housing. Many never were rich and others have used their savings to wait out the war. A typical middle-class house in Yarmouk costs $340,000 (£240,000), while a similar one in Palestine Street costs $240,000, according to estate agents.
Even before the civil war Iraq was chronically short of housing. Ms Bayan Dezayee, the Minister of Construction and Housing, said last month that by 2015 the population of Iraq would be 39 million and there is a need for 1.9 million extra housing units. Very little has been built over the last six years
http://www.independent.co.uk/news/w...-puts-heat-under-property-prices-1624889.html
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