House prices to keep rising for years

[cutz]

Half a mil is really cheap one would think

Sorry michael,

Not really up with pricing on McMansions on the outskirts, are they worth a lot more ?

Wow the problem is worse than i imagined.

 

[So_Cynical]

rent increases are mostly out of the question.

My rent goes up every 12 months and i know a few people in the same boat, its pretty common now...its those Ahole property investment seminar people and the Aholes that promote them.

 

[Soft Dough]

My rent goes up every 12 months and i know a few people in the same boat, its pretty common now...its those Ahole property investment seminar people and the Aholes that promote them.

Yeah but it has to end sometime, ie when people cannot afford to live in the houses / have to start to share housing etc.

How can rents increase exponentially if wages are stifled at the moment. I do believe yields will increase over the next few years BUT through a combination of house prices falling and rents stagnating, not by rental returns increasing.

But then again I am man enough to make predictions on these forums.

 

[michael_selway]

Sorry michael,

Not really up with pricing on McMansions on the outskirts, are they worth a lot more ?

Wow the problem is worse than i imagined.

Oh I was talking houses in general, under $500K is quite cheap etc

Thanks

MS

 

[cutz]

Oh I was talking houses in general, under $500K is quite cheap etc

Thanks

MS

Agree micheal,

Within a 5K radius around Melbourne you need to cough up a lot more for an established family home (actually for anything half decent).

 

[cutz]

The rain in spain falls mainly on the plain.

http://www.marketwatch.com/story/spanish-house-prices-tumble-78-in-third-quarter-2009-10-15

Interesting, considering i don't think loose lending was involved.

 

[MR.]

Speaking of $500K houses:

Mate just bought a $500K investment property. They are nowhere near on top of their existing mortgage. Bank lent them the money no worries. I wonder, if they had applied for a $500K loan for some high tech machinery, instead of loaning money for an investment property, would they have been granted the loan? The machinery has the chance to produce something productive! What is likely to be produced by giving people with little money, the means to buy investment properties at this late stage of the property cycle? Sounds as if it’s going to be unproductive to the country as well as to themselves.

Like “Storm” clients, will we see in the years to come court cases against banks from these property investors? My bet is if they had applied for some hefty or high tech machinery loan they wouldn’t have been able to get the loan or they would have positioned the hoops to make it almost impossible. Instead, even after all that has occurred our banks easily hand out more money for investment properties.

This property will return rent at approx $23K per year. The rent totals just $63- per day basically fixed. With an investment of $500K into machinery the hourly rate charged will exceed $63- per hour no matter what the machinery was and has the potential to run 24 hours per day.

And we are fixated with property?

 

[Uncle Festivus]

The rain in spain falls mainly on the plain.

http://www.marketwatch.com/story/spanish-house-prices-tumble-78-in-third-quarter-2009-10-15

Interesting, considering i don't think loose lending was involved.

That story is blatantly incorrect, as everybody knows that the GFC is over, although we are "not out of the woods yet"(Good one Swanny, Bernanke). Could somebody please tell Ireland, Japan, the UK, several Baltic states etc etc that because stock markets are up their economies are now also back to normal It's a bit like the scene out of the Naked Gun movie with Frank standing in front of the fireworks factory on fire - "Move along, nothing to see here"


Aussie banks would be doing the proverbial in their pants at the moment, with record deposits burning a hole in their pinstriped pockets, at the same time as the party pooper RBA has given the strongest signal yet that they are going to reign in the housing bubble at whatever cost, apparently. So all those who couldn't afford a prop at 3%, what do you thing they are going to do at 5% o/night rate?

Is that why the banks have increased their delinquent loans provisions from $4B to $32B as at last qtr? What credit crisis?

We've had a near 200 pt rally in the Dow the last 2 days but the Aussie banks sp's have done zip.

In our desperate search for yield in a world of diminishing growth, the banks in collusion with the Gov are building the last great bubble that could finally tip us into a deleveraging recession?

How would you like your debt served? Via GDP or..... (sorry Beej, no log charts )

The current household debt to income ratio is around 155 per cent, up from about 130 per cent at the time of the last RBA rate rising cycle in 2003, Westpac said today, in releasing the September consumer confidence number.

 

[Uncle Festivus]

why should people who contribute nothing to society benefit from the hard work of others Uncle, or perhaps you one of those who want the freeride, a step into anothers world

my living conditions perfect thanks to me

thankyou
professor robots

Not sure which people you are referring to? Hard work? Too easy - generous tax concessions and banks too willing to lend to anyone with a pulse, even if they can't afford it?

Perhaps you need a social conscience, or are you just a product of the 'me' generation?

 

[explod]

Not sure which people you are referring to? Hard work? Too easy - generous tax concessions and banks too willing to lend to anyone with a pulse, even if they can't afford it?

Perhaps you need a social conscience, or are you just a product of the 'me' generation?

A real Robot spilling out the propaganda for the Real Estate Industry.

But that is just my very humble opinion of course.

 

[robots]

hello,

just letting everybody know I am going to report the auction results for Melbourne today in approximately 30min,

i hope thats okay, it doesnt mean i think prices are going to go up 5000% or down 5000% just because i report the results

house prices still 8x income, fantastic and great for people

thankyou
professor robots

 

[Vizion]

How the hell is 8 x income good news for people??

I cannot understand how someone who had enough brains, to earn enough money to buy two properties, can continually make such dumb statements

Report what you like, it does not change the fact you make down right stupid statements... lol

 

[robots]

hello,

i hope this okay,

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

MASSIVE 80% again, again, again

thankyou
Dr Robots

 

[questionall_42]

Attached is a graph from McKinsey showing the global rise in prices and recent fall.

"Although the current crisis started with the bursting of the US housing bubble, other economies around the world are feeling the effects of their own real-estate booms and busts. From 2000 through 2007, a remarkable run-up in global home prices occurred (see exhibit). But that trend has reversed abruptly. In 2008, the value of US residential real estate fell 10 percent; the global average fared only somewhat better, declining by almost 4 percent. We estimate that falling home prices erased more than $3.4 trillion of household wealth in 2008. And because home prices are slow to correct, the current slide may persist for some time, which could depress global consumption."

 

[So_Cynical]

I cannot understand how someone who had enough brains, to earn enough money to buy two properties, can continually make such dumb statements

Since when has buying property required brains? its probably the simplest form of investment (at least up until a few years ago) its always been considered low risk and somewhat conservative.

As i stated in another thread a while go...most of the wealthy people i have met over the years have made all there money in property, and the vast majority of those people are ordinary, conservative, dull and somewhat normal/dumb people.

The accidental millionaires.

 

[explod]

As i stated in another thread a while go...most of the wealthy people i have met over the years have made all there money in property, and the vast majority of those people are ordinary, conservative, dull and somewhat normal/dumb people.

Not so, the very wealthy make their money by owning the banks, Rothchilds et al, and the old English Families who's offspring settled the colonies are still intact, they get into stocks before they are launched because they control them, they launch duds which the sheeple get into, (who make a bit) but too late, the big money gets the big money, without risk because they know. These people on trading make 100s of percent over and over.

Savvy stock market traders a bit lower down catch enough to be far ahead of property, sure for property 20% per annum in most good times, but its chicken feed in the bigger scheme of things. In fact start with a book on the Rothschild dynasty, as you expand your study it may open your eyes. An elderly lady I spoke to on a flight once suggested just that and it has gradually changed my life.

You hear about the Buffet's and the Sorroses but not the large family dynasties, they stay off limits away from scrutiny and any attention. But dig in a bit and you can pick it up.

Not knocking property. New a bloke who gave me some tips a few years ago now , he's been dead 5 years but his family have a wonderful legacy from property. He was first a chicken farmer but could see the urban sprawl coming his way so he brought all the other chicken farms in its path, the rest is history.

There are many ways So- Cynical, most of the wealthy have more angles than you can think of and they are worthy study.

 

[MrBurns]

To get wealthy you need two things -

1. High disposable income
   
2. The brains to use that cash flow to support investments such as property or whatever.

The initial cashflow is only half the story, some people think if you have a large income you'll get rich, not so, it's how you apply that income that leads to wealth..

 

[robots]

Since when has buying property required brains? its probably the simplest form of investment (at least up until a few years ago) its always been considered low risk and somewhat conservative.

As i stated in another thread a while go...most of the wealthy people i have met over the years have made all there money in property, and the vast majority of those people are ordinary, conservative, dull and somewhat normal/dumb people.

The accidental millionaires.

hello,

great post So Cynical, just plod along keeping a roof over your head and helping out a couple of others(renters) to have a roof over their heads

get a little bit each year on year, have the income to manage things and presto, living large

thankyou
Dr Robots

 

[Soft Dough]

To get wealthy you need two things -

1. High disposable income
   
2. The brains to use that cash flow to support investments such as property or whatever.

The initial cashflow is only half the story, some people think if you have a large income you'll get rich, not so, it's how you apply that income that leads to wealth..

I agree.

and it depends on what you define as high wealth ( for me it is $10mil plus )

Personally I find most wealthy people have failed in investing in some way ( be that a dud property, dud share transactions, failed business ). So at the very least, I can put quite a few ticks in this box.

But there is no point being excellent with money, and have the experience of failure unless you have the means to transact in reasonable amounts.

 

[BlackPrince]

In terms of krudd spending we have actually spent the 3rd highest amount on a per capital gdp basis behind US and Korea (i think)...mostly out of fiscal stimulus and not tax cuts as other countries have. Challenge now is when to turn the tap off