ZILCH? so I guess the p/e ratio is just something unrelated the analysts made up??? Both markets are often distorted but long-term prices have a lot to do with profitability
Wrong.
Shareprices OFTEN have absolutely ZILCH to do with a business being profitable ...
There is allot of misinformation from some very powerful lobby groups here. Most of it is simply not true. The higher the mortgage is the more money banks, real estate agencies etc stand to make on transactions. Not to mention stamp duty for the states, and so it goes on. Our banks for instance went from being profitable to hugely profitable in the space of a decade. Institutions making 25% profit increases per year ongoing, has to come from somewhere. Who does everybody think pays for that really?
You agree in doing it across the board so you are not biased either way which is good.
Some 24 years ago one of our previous governments did abolish negative gearing on housing and it stuffed up the whole rental market from memory. Rentals went up, property went up and it did not help low income earners or tenants. It was so bad they they had to reverse that decision 1987, it just didn't work.
Dollar's strength can't deter foreign property investors
CHRIS ZAPPONE - November 6, 2009 - 7:13AM
The strong Australian dollar has done little to cool overseas demand for real estate as foreign cash seeks out a lucrative home in the nation's residential property market.
Real estate agents say overseas-based bidders are increasingly common at auctions around the country, with the resulting additional demand stoking already rising clearance rates and prices.
John Bongiorno, director of Marshall White & Co, in Melbourne said international buyers had typically made up 5 to 10 per cent of sales, a figures that had recently risen to about 15 per cent. And the dollar's rise had not yet dampened demand.
Mr Bongiorno said his overseas clientele was ‘‘predominately mainland Chinese'', some of which adopted a fly-in, fly-out approach to house hunting.
‘‘We have people who fly in on a Saturday morning for auctions and will fly out the same day,'' he said. ‘‘They'll just arrive in Melbourne specifically for the auction.''
Marshall White & Co has forged alliances with immigration services firms in China to promote local property.
Further north, the rising demand from Asia, especially China, is even more pronounced.
Tina Edwards, sales manager at Brisbane-based Yong Real Estate , which caters to local and international Asian buyers, said investment from China had ‘‘really soared recently''.
She said the surge may have peaked at as much of 90 per cent of the transactions handled by the firm, with the Aussie dollar's recent jump above 90 US cents (about 6.2 yuan) deterring some buyers.
But Ms Edwards also said temporary lull may also reflect the shortage of suitable properties to sell after a period of sustained demand.
Real estate agents credit the overseas demand as contributing to rising home prices, which have increased nationally 8.1 per cent in the first nine months of the year, according to the RP Data-Rismark Index released today.
A spokesperson for Assistant Treasurer Nick Sherry said despite the rule changes the FIRB rules were designed to spur the creation of additional housing supply rather than add to affordability problems.
Nonetheless, the impact of the new investment has raised questions about housing affordability for would-be owner-occupiers.
One Melbourne real estate agent, who asked not to be identified, privately worried about what the Chinese demand would do for the chances of local buyers.
He said the topic was a constant subject within the real estate industry, although few agents wanted to question a trend that generated financial benefits for them.
In his view, "the rising Australia dollar has not impacted at all the demand from Chinese,'' he said, estimating that currently in Melbourne about 40 per cent of properties over $1 million in the inner suburbs were being sold to Chinese and Indian investors.
One Melbourne real estate agent, who asked not to be identified, privately worried about what the Chinese demand would do for the chances of local buyers.
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Robots - please write in English. Also if you are a doctor please also tell us for what? otherwise in respect of those who have furthered themselves maybe stop using the name.
Do you mean like taking advantage of people who at this stage in their lives can't afford to take out a mortgage. In a capitalist society anything within the law goes.Not always but most of the time and at least someones putting in but higher house prices benefit no one but the parasite residential investor.
I say parasite because unlike the commercial property investor or share investor their greed effects couples wanting a roof over their head to raise a family.
Do you mean like taking advantage of people who at this stage in their lives can't afford to take out a mortgage. In a capitalist society anything within the law goes.
hello,
vizion, fine man, rent no big deal and keep the dollars in shares
Robots - please write in English. Also if you are a doctor please also tell us for what? otherwise in respect of those who have furthered themselves maybe stop using the name.
They (we!) do. I can claim any interest deductions from margin or other loans and claim that against income earned from investment or trading activity. Deductability of interest is not asset class specific as far as I am aware.How about some incentives and tax breaks for traders/investors in the markets?
"Have house prices continued to rise?" Yes or no? Ummmm ....... I think robots has got us cold on this one.
Have we ever considered that robots could be a real estate agent ramping the cause? HAha hah aha h ha ........ I think not. Just a genuine guy who strongly believes in residential real estate or owning your own home.
:
Yes but who or what group pushes the average cost of housing up? The Real Estate Agent? The Politicians? A Professional Group of Real Estate Investors?
Who?
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