House prices to keep rising for years

[numbercruncher]

Nice work Pepperoni !

Loads of similar examples around, Here on the GC i see a 5 to 10m (perceived worth) property they have been trying to rent out for months at 100k p/a.

Lets assume its "worth" 5m, that 5m in someones savings acc. would get 400k p/a+, hahahahaha, sorry couldnt help but laugh

 

[robots]

hello,

have been having a "holiday" as many put it,

would like to thank joe

but all is well, the reading has been awesome

witnessed some debacles on saturday, just no bids, passed in

they tend to then move in about a week or two thru private sale,

thankyou

robots

 

[Pommiegranite]

I live in Melbourne's West and have just sold. The suburb I built in boomed last year.

It is now noticeable, the number of properties appearing on the market on a daily basis. I have also seen a few 'private sale boards/banners' appearing.

I have also heard that people trying to sell blocks of land pending certificate of title.

Also, developers seem to be upping the rate of release of land and homes seem to be getting built quicker. I sense the construction industry is in a hurry.

Agents aren't selling nearly as many property as are appearing. As a side show, I now expect agents to up their commisions.

 

[robots]

hello,

pomme, what do you plan to do after settlement?

renting, moving interstate, bought already

thankyou

robots

 

[YChromozome]

You're back Robots!. We all really missed you.

 

[robots]

You're back Robots!. We all really missed you.

hello,

thanks ychromo, look forward to giving those weekly clearance rates that many members enjoy hearing about,

this sat in melb will be a BIG test, many many props going up, could be bleak

on a side note, its still the tale of two markets and for those who think "small" apartment living is questionable,

a development in inner-south melbourne has just sold 265 of 272 1-bed and 2-bed apartments, awesome stuff

thankyou

robots

 

[Pommiegranite]

hello,

pomme, what do you plan to do after settlement?

renting, moving interstate, bought already

thankyou

robots

Throw my cash into a term deposit (8.4% with Suncorp for 12month is the best I can find at the moment).

Move to NSW and rent, watch and wait.

 

[Temjin]

I found him!!!!



He's lookin a bit down and out.

Oh well, we did try and tell him that house prices won't keep going up forever...

ROFL!!!

That is just soooo cruel! Sorry, nothing personal here, just can't stop laughing.

 

[WaySolid]

I'm watching the Brisbane market closely at the moment.

After 20+% last year a slow down was not a brave prediction, though it's possible we are having a decent one at the moment, nothing concrete yet but a few anecdotal observations about stock on the market in my areas and how long it's taking to move, though I'm not sure what prices are being achieved. Still that's just a hunch and there is nothing obvious at the moment.

My guess at the moment is once again the property market will follow the stock market and we could be in for a 90's scenario of slow nominal growth and even slower real growth allowing rents a chance to catch up.

 

[stock_man]

For me personally, after recently selling our house, have decided to stay in the market. Am currently building a new house with expectations of completion around end of year.

My reasoning for this decision is simply:

Mortgage Cost : $200/week greater than rent ($10K/year)
Invested @ 8%: $800-$1000
After Tax: $700
End Result: $10700 (year 1)

New House Value (approx): $470K
Break Even (against savings): $480.7K
Increase needed to break even: 2.27% (year 1) - less than inflation

Obviously the house needs to increase more every year to stay with the savings, but as rents increase this should tend to even out in the mid term.
Plus I have made a % gain on construction, which should assist me to ride out the current times.

 

[numbercruncher]

Just another day dealing with reality ?

House prices in some Perth suburbs could fall 20 per cent before Christmas, exposing thousands of people to the disastrous prospect of owing more than their homes are worth and increasing the risk of bankruptcy if they are forced to sell, a leading property forecaster warns.

Australian Property Monitors made the alarming prediction just days after the Real Estate Institute of WA said homeowners had been hit with a 2.7 per cent slide in house prices in the three months to March.

http://www.thewest.com.au/default.aspx?MenuID=77&ContentID=67894


Funnily enough Perth is the only place I have any exposure to RE

 

[pepperoni]

Hey Pep...which CBA account gives 8.1%?
Thanks

Advertised term deposit pays that for 6 months ... For the sum they have given me monthly compounding.

Citi has an at call account paying 8%.

 

[pepperoni]

hello,

thanks ychromo, look forward to giving those weekly clearance rates that many members enjoy hearing about,

robots

Its about as enjoyable as checking my share prices every 2 mins.

Id rather invest on good fundamentals and forget the market for 5-10 years.

 

[xoa]

CBA is offering 8.4% for 6 month term deposits here in Queensland.

 

[robots]

Its about as enjoyable as checking my share prices every 2 mins.

Id rather invest on good fundamentals and forget the market for 5-10 years.

hello,

good luck to you,

thankyou

robots

 

[Julia]

CBA is offering 8.4% for 6 month term deposits here in Queensland.

Can you be specific about where you were able to access this?

I placed some funds with them a couple of weeks ago and the best rate was 8.1%.
Here are their rates as of today from their website:

 

[Tysonboss1]

CBA is offering 8.4% for 6 month term deposits here in Queensland.

But your Capital is eaten away by inflation and you are fully taxed on your earnings every year....

you can't compare property will a cash investment,... it's like comparing apples and orange flavoured soft drink.

 

[Tysonboss1]

For me personally, after recently selling our house, have decided to stay in the market. Am currently building a new house with expectations of completion around end of year.

My reasoning for this decision is simply:

Mortgage Cost : $200/week greater than rent ($10K/year)
Invested @ 8%: $800-$1000
After Tax: $700
End Result: $10700 (year 1)

New House Value (approx): $470K
Break Even (against savings): $480.7K
Increase needed to break even: 2.27% (year 1) - less than inflation

Obviously the house needs to increase more every year to stay with the savings, but as rents increase this should tend to even out in the mid term.
Plus I have made a % gain on construction, which should assist me to ride out the current times.

your right,...

and your capital gain portion of the equation is tax free if its your own home,...

and 50% discounted if it is invested + tax delayed until you sell,...

 

[xoa]

Can you be specific about where you were able to access this?

I placed some funds with them a couple of weeks ago and the best rate was 8.1%.
Here are their rates as of today from their website:

There are posters in front of Brisbane CBA branches which advertise 8.4% for 6 month deposits of $10k+.

 

[xoa]

But your Capital is eaten away by inflation and you are fully taxed on your earnings every year....

you can't compare property will a cash investment,... it's like comparing apples and orange flavoured soft drink.

All investment strategies can be compared. The advantage of fixed interest, is that you're investing your own money, not renting somebody else's. You don't need to worry about it until it matures. And there's no repair bills, stamp duty, council rates, legal fees or agent commissions. I pay little tax on the interest I earn.