hello,
no big issue at all, might affect the handouts though doing a bit
the great divide is upon us
thankyou
robots
House prices to keep rising for years
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hello,
no big issue at all, might affect the handouts though doing a bit
the great divide is upon us
thankyou
robots
explod
explod
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Had not looked in on this thread for a few weeks as it is never on topic "...ouse prices to keep rising..." but more on the mechanical imbecile.
What a joke, nothing has changed.
With the white boards going up around my area one will soon start on "How far will house prices crash?"
Lot of rentals too, seems young ones moving back with Mum and Dad. Older ones renting by the room instead of units. My parents rented a room when I was born in 1946.
And the tough times are just starting. Price of higher oil and food wont' bite the economy for 12 months yet.
Cheers to the tin man
What a joke, nothing has changed.
With the white boards going up around my area one will soon start on "How far will house prices crash?"
Lot of rentals too, seems young ones moving back with Mum and Dad. Older ones renting by the room instead of units. My parents rented a room when I was born in 1946.
And the tough times are just starting. Price of higher oil and food wont' bite the economy for 12 months yet.
Cheers to the tin man
Kauri
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Not Gero, not even Cheltenham.... but what the....??
Cheers
............Kauri
Full article in The West Australian....
http://www.thewest.com.au/default.aspx?MenuID=146&ContentID=73674
Cheers
............Kauri
Full article in The West Australian....
http://www.thewest.com.au/default.aspx?MenuID=146&ContentID=73674
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hello,
you are right explod nothing has changed, SRO has all the sales going thru for great prices,
took a drive to mt martha last weekend explod to visit mum, still the lucky country all through the estates in mornington
fine article kauri, but how is it so, many here tell me RE only moves with inflation? inflation is 4% i thought
well done to the owners of the house great effort,
thankyou
robots
you are right explod nothing has changed, SRO has all the sales going thru for great prices,
took a drive to mt martha last weekend explod to visit mum, still the lucky country all through the estates in mornington
fine article kauri, but how is it so, many here tell me RE only moves with inflation? inflation is 4% i thought
well done to the owners of the house great effort,
thankyou
robots
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I been observing this too. My landlord has naturally sold the apartment I rent in a dash for the exit now that prices are falling.
I was out pounding the pavements yesterday as Robi would say. I looked at two rentals in the same apartment block I did 1 year ago. Last year, it was typically three lift loads of people going up to look at these apartments. Yesterday, we all fitted in the same lift - and the lift hasn't changed size since last year.
hello,
thats because people are staying put and evident here in Vic with a reduction by 10% of new bonds being received by the bond department,
people are accepting the rent rises and I look forward to getting the best return on my investment, nothing wrong with that is there?
thankyou
robots
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Not if you keep getting your bunks from the Salvos. Over here in the home furniture clusters of Paramatta and Alburn many of the furniture outlets are going broke and shutting up shop. As rents are rising, consumers must spend more to service the roof over their heads and hence they are no longer buying furniture.
Think of the direct and indirect flow on effects. The immediate sales staff, managers, logistics, delivery drivers, their jobs and their mortgages. They then employ accountants, marketing people, printers, even the local kid to deliver the pamphlets. The staff also buy lunch from the corner deli, maybe get a paper to read at lunch from the newsagent etc.
More money as a percentage of household disposal income into rents & mortgages = less money into the economy.
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Over here, just about half the building is up for sale. Most of the specuvestors are bailing out big time and as fast as they can. How can you stay put then?
explod
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Yep the smart money is selling to the mugs big time. Allways the same at the end of a run, same with the dot.com bubble and Telstra 2, mugs get to hold the empty bag. It is also happening on Wall Street as we think.
theasxgorilla
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Most of the things you describe involve the local economy of those areas. As we boom the wealth-effect (if you want to call it that) emanates outward and as things get tight it contracts inward. Those at the fringes are exposed to the wealth effect for the shortest period of time, compared with those who live nearer the epicentre. The wealth effect allows people to get their balance sheets in order so they can weather the bad times, in simplest terms, pay down debt.
A lot of these areas at the fringes received these big furniture centres for the first times during the last 5 or so years. Ballarat in Victoria is one of them. Whether the boom has continued long enough, or was indeed strong enough, for the businesses in these areas to get their balance sheets in good enough order to weather the contraction is the real question, IMO. If not, they must close. If so, they become an established business in the area.
And even if the economic conditions were adequate for the business owner/manager to get their house in order before the contraction, that doesn't mean that the business hasn't been mismanaged.
What each individual has done with their personal balance sheet will determine how well they weather the contraction eg. "did you make hay while the sun shone?".
Bronte
Trading The SPI for 20+ years
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Kauri
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ROTFLOFAO
We know Horrocks well.
A great post Kauri
Thank you
Hi Bronte,
Long time no hear,
Good that my tongue in cheeks post..
drew you out of the closet...
Now that you are back..
Keep them..
coming. :emp:
Cheering
.................Kauri
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Firstly, i think that people forget that every boom has a bust. This is the third 'boom' in 30 odd years, and sooner or later is going to pop and economists can say 'yeh its going to keep on rising' but its got to stop, and its going to be sooner rather than later. And im sick to death of hearing the media yap on about house prices to further increase. There knobs, and if they could, they will tell you that your sh*t smells like roses and people will soon be saying 'hey barry, i love the smell of roses in the morning.'
Secondly, house prices are always going to increase, but not as a medium. There are always going to be certain areas that experience positive capital growth when the majority are not.
Thirdly, i might sound harsh here, but i have no one to blame but the idiots who chose to get a loan far greater than their income would allow. Household debt has increase 5 fold since the late 70's and net household savings has been negative since 2002. Funny that, considering the 'housing boom' kicked off a litte prior to 02. The fact that people have wanted to get something bigger and better than they should, were now in a pickle where people are paying 50% more than what the house is actually valued.
You dont have to be an economist to realise thats its going to stop. Look at the numbers being crunched and its all going to stop fast, otherwise a recession is inevitable
Secondly, house prices are always going to increase, but not as a medium. There are always going to be certain areas that experience positive capital growth when the majority are not.
Thirdly, i might sound harsh here, but i have no one to blame but the idiots who chose to get a loan far greater than their income would allow. Household debt has increase 5 fold since the late 70's and net household savings has been negative since 2002. Funny that, considering the 'housing boom' kicked off a litte prior to 02. The fact that people have wanted to get something bigger and better than they should, were now in a pickle where people are paying 50% more than what the house is actually valued.
You dont have to be an economist to realise thats its going to stop. Look at the numbers being crunched and its all going to stop fast, otherwise a recession is inevitable
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Robi had a great idea on this one. Get a new job or a second job!! That will solve the problem! Easy!
explod said:
Yep, the smart money are definitely packing up and cashing in their profit. My girlfriend's ex-boss is a real estate developer (albert quite a successful one, probably earned him a few cool million during the last few years of boom) but he is now cashing in and slowing down his speculation business.
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this has to be for a giggle, right?
LoL
We are in a resources Super Cycle ... PERIOD.
The gorgon gas project will require 3000 engineers alone... just engineers ... not to mention all the other engineering/mining projects in the pipeline. you cant just pull the plug on these projects.
These people will need a place to live or rent, and the simple matter of fact is as we have seen with recent economic data that development approvals are falling creating a major shortage in housing. Govt is now going to try increase skilled migration to alleviate the skilled labour shortage ... all this creates price pressures
At the moment we in a phase were people are being told different things from different people. Why is China wanting to increase stake in BHP ... because its going to reduce its demand for raw materials in the future? I think not.
IMO even better times ahead and I'm waiting to be told I'm wrong.
The only way we will have a downturn is if the media moguls spin enough crap to brainwash the people into a downward sheep mentality which I can see already happening ...
These were my
. not financial advice but for your entertainment and maybe to hit a few nerves too hahah lol not really ...
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Im not doubting that we are, and not for a second, but just cause we have another resource boom doesnt mean we should discredit the fact that we have increasing household debt with increasing unemployment, inflation and interest rates.
And when we talk about housing prices, people arnt talking about mining towns which house a small portion of Australia's total employment. Like I said, you will get areas of high growth, but the majority can be negative
I think everyone should read this. You might be surprised.
And when we talk about housing prices, people arnt talking about mining towns which house a small portion of Australia's total employment. Like I said, you will get areas of high growth, but the majority can be negative
I think everyone should read this. You might be surprised.
I have to disagree slightly with points in that article which suggests that the US will have to effect China significantly (it may, but I'm leaning towards less so).. US has been slowing down in consumer spending, and their property market severely crashed for several years now.. where is the flow on so far?
It hasn't been enough to stop prices for coal, iron ore, etc doubling in the last 12 months, while the US situation has just been continuing on its way getting worse and worse.
The Dow Jones, their largest companies (and reflection of overall health for US economy?) has essentially been flat since 1998.. well practically - 11,000 to 13,000 or 18% return over 9 years is pretty damn poor.
It hasn't been enough to stop prices for coal, iron ore, etc doubling in the last 12 months, while the US situation has just been continuing on its way getting worse and worse.
The Dow Jones, their largest companies (and reflection of overall health for US economy?) has essentially been flat since 1998.. well practically - 11,000 to 13,000 or 18% return over 9 years is pretty damn poor.
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