House prices to keep rising for years

[robots]

hello,

its already happening number, I couldnt give a rats about inflation as its a zero game,

its a given, like the sun coming up in the morning

rents will continue to rise and rise as I believe renters have plenty of spare $ and can easily handle at least 50% increase over the next 1-2yrs,

thankyou

robots

 

[Macquack]

From a gen-Y perspective..

If I slaved my guts off for a property, I'll be nearly 60 and wow, I'll have a house I "own". My mother died at 63 and one of my grandmothers not much older. You never know how long life will give you, and 25-30 years is a long time for a mortgage.

There will surely be others out there seeing the pain of some with interest rates and thinking "this is not for me". Maybe they'll even be more convinced to rent forever.

Good post gfresh, I like your perspective.
Some of the other posters in this forum think they will live forever and enjoy the fruits of their "property" in perpetuity.
If they only thought, we are all renters in effect, you cant take it with you.

 

[wayneL]

Parts of Londinium still cost a pretty penny :

http://property.timesonline.co.uk/tol/life_and_style/property/article3559490.ece

A flat in central London has become the most expensive home in the world, with a price understood to exceed £115m.

That's about $240,000,000 pacific pesos... for a flat????

 

[numbercruncher]

Good post gfresh, I like your perspective.
Some of the other posters in this forum think they will live forever and enjoy the fruits of their "property" in perpetuity.
If they only thought, we are all renters in effect, you cant take it with you.

Reminds me of some horror movie I watched once, some Psycho murderer was being Interviewed by the cops ... He says or to the effect .... " They work for 40 years doing the same Job paying off a House with a white picket fence then they Die and they call ME Crazy !! "

 

[Macquack]

Parts of Londinium still cost a pretty penny :

http://property.timesonline.co.uk/tol/life_and_style/property/article3559490.ece



That's about $240,000,000 pacific pesos... for a flat????

They must be printing the stuff up (pounds) over there big time. Nobody could possibly earn that much money without the help of an out of control growth in the money supply.
Thats what really peeves me - lack of control of money supply growth.
Every new dollar/pound issued/created reduces the value of all existing money.

 

[wayneL]

They must be printing the stuff up (pounds) over there big time. Nobody could possibly earn that much money without the help of an out of control growth in the money supply.
Thats what really peeves me - lack of control of money supply growth.
Every new dollar/pound issued/created reduces the value of all existing money.

What you have to realize is that the wealth of certain individuals in this country is truly startling. There is the "old money" aristocracy, plus the nouveau riche from Europe (particularly Russia) and the Middle East (oil money).

Some aristocratic blood runs through Missus' family, plus via the horsey scene, have had a first hand look at some of these people's lifestyles. It is just beyond comprehension... absolutely mind boggling.

Whilst I agree with your point, in the instance of absolutely top end London property, printing money by CBs has absolutely nothing to do with it.

 

[Macquack]

What you have to realize is that the wealth of certain individuals in this country is truly startling. There is the "old money" aristocracy, plus the nouveau riche from Europe (particularly Russia) and the Middle East (oil money)....It is just beyond comprehension... absolutely mind boggling.

Time for a revolution !

 

[wayneL]

Time for a revolution !

Maybe, but the Champagne Socialists infesting Whitehall atm are a more imminent danger to the average schmuck. But we get our chance to boot them out in a couple of years. Meanwhile, it is gratifying to see Crash Gordon roasted on the self-created economic skewer of crashing house prices.

 

[numbercruncher]

Time for a revolution !

They own Armies with big shiny Guns ....

 

[numbercruncher]

New Zealand is getting Toasted at the moment, Just read Unemployment skyrocketed the most in 19 years ..... Housing is getting hammered too by the reports. But I understand its different here in Oz ?

This is the worst example ive found so far

An Auckland couple lost 83 per cent of their investment when they sold a property in one of the city's best urban precincts.

As the gloss goes off the Auckland housing market, the Mt Albert pair, who paid $349,000 three years ago for a Beaumont Quarter apartment, have sold it for $58,600.

The couple bought the Freemans Bay unit in July 2005 through the now-collapsed Blue Chip property investment business.

The level-two 42sq m one-bedroom unit with a balcony, off Beaumont St opposite Victoria Park, attracted bargain-hunters when it was auctioned on Wednesday.

Agent Matt Jones of Ray White said some bidders arrived at his firm's Lorne St offices expecting to pay only $10,000 or $20,000 because ground rents at Beaumont are about to be significantly increased.

The sellers decided to auction the apartment quickly without any reserve before ground rents rocketed.

"They were pretty devastated," Mr Jones said. "They accepted it but they were not happy. They didn't want to come to the auction."


Bidding opened at $30,000 and a Howick woman bought the unit.

It is rented for $375 a week, bringing in $19,500 a year.

http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10505043


Ground rent I assume is the same as body corp ?

 

[wayneL]

Ground rent I assume is the same as body corp ?

If it's the same as the UK, there is no such thing as strata title. Apartments are therefore leasehold and rent is paid to the land owner, even though you "bought" the property.

You've really only bought a long term lease.

 

[numbercruncher]

Thanks Wayne, I looked it up after posting ... Further to that article they say Ground rents in that complex are increasing by upto 4x in one hit !

Dodgy deal hey, worse than placing faith in Central banks

 

[Macquack]

If it's the same as the UK, there is no such thing as strata title. Apartments are therefore leasehold and rent is paid to the land owner, even though you "bought" the property.

You've really only bought a long term lease.

WayneL, does that mean the new owner of 115m pound flat has to pay rent?

 

[wayneL]

WayneL, does that mean the new owner of 115m pound flat has to pay rent?

I would say so.

Ground rent is not like rent rent and may in some cases be only a nominal amount.

So it's not like paying £150,000 for a flat and still having to pay £650 per month rent. Ground rent might only be £150 per year, up to soething comparable to body corporate fees. (or substantially more in the NZ case)

The value for the freeholder (in the UK at least) is in fees for permission for the leaseholder to do alterations to the property, extending the leasehold, or in the case of leasehold terraces selling the freehold to the leaseholder.

 

[YChromozome]

rents will continue to rise and rise as I believe renters have plenty of spare $ and can easily handle at least 50% increase over the next 1-2yrs,

Cool. So if rents go up, renters will spend less money into the economy. They won't go to restaurants, buy consumer discretionaries etc. Businesses will start to hurt, have to slash staff. As staff lose jobs, they also lose their incomes used to service the mountain of debt and lose their homes.

Bring it on I say. The quicker we pop this bubble the better.

Only last weekend I went down stairs to get my Weekend Financial Review and found the newsagent was closed. They have shut up shop. With rising rents, people either don't buy the paper or magazines anymore, or like me, I get the daily paper from the recycle bin once my neightbours have finished with it.

 

[Tysonboss1]

If it's the same as the UK, there is no such thing as strata title. Apartments are therefore leasehold and rent is paid to the land owner, even though you "bought" the property.

You've really only bought a long term lease.

yeah it seems crazy,...

In new york there are some land holders that own the land,.... but other owners that own the building rights,...

The funny thing is I heard in the UK there was a rich land lord who 100 years ago sold of most of his families property fortune on 999years leases thinking he was safe guarding his families income stream,... how ever he forgot to allow for inflation,.... the family is still in europes richest 100 but the income stream is very poor,.....

 

[robots]

helllo,

great news for property owners:

http://www.theage.com.au/news/national/homes-out-of-reach/2008/05/09/1210131265806.html

with the bond department noting a reduction in 10% its clear people are easily soaking up the rises which is awesome news,

yoy 20% chromo? very achievable

thankyou

robots

 

[numbercruncher]

Nice one Robi, that article is more about the unfortunate circumstances of others than anything else, do you derive pleasure from this ?

What does the word Chromo mean in your post ?

 

[Aussiejeff]

Nice one Robi, that article is more about the unfortunate circumstances of others than anything else, do you derive pleasure from this ?

What does the word Chromo mean in your post ?

Hahaha. Go up 3 posts. I don't think robi is talking about XChromozomes?

LOL

 

[numbercruncher]

Hahaha. Go up 3 posts. I don't think robi is talking about XChromozomes?

LOL

Oh lol @!

So Robi thinks 20pc year on year rental Increases is acheivable ? Thats some sort of twisted fantasy that interest rate rises would stop in its tracks.