House prices to keep rising for years

[Temjin]

Are the american people going to allow their currency to be worth less than the banana republic down under?

Why not? It's the easiest way out of their trillion dollar national debt.

Can't repay the debt?? Easy! All you have to do is to jack up the printing press and devalue the dollar so we will end up owning "less" in absolute term! It's the foreigners who are losing out anyway and their stupidity for lending us money when they know we can't repay them back, it's not our fault!

That's what happening right now.

 

[pepperoni]

Auctions are generally being abandoned now which is making clearace rate even more irrelevant.

In fact agents are continuing to try to sell me 2007 $2m properties at 2001 prices ... here is one from this morning after I asked for an update on a property that was selling for 2.2m 2 months ago ...


"Hi



Waiting for a response from solicitors

If bank will allow us to sell between $1,4m to $1,5m



Have two offers at $1,4m

Will call every body back when I have more info."


I takes money to make money, and those that thought it was possible to get rich with property using almost entirely other peoples money are realising that the people providing the money also expect a good return on it.

Super funds have been targeting 8.5% long term and are down 5% this year ... at the moment 8.5% is doable at call as cash once again assets itself.

And of course with $1m or more incredble rates can be negotiated on 1-3 month terms.

Borrowers for a while seem to have forgotten the golden rule ... those with the gold make the rules.

 

[robots]

hello,

whats going on with the income to price ratio? surely keenie, ghpc or shilling must have a new one to show everybody if pep's info is what is going on

any link?

thankyou

robots

 

[Naked shorts]

Auctions are generally being abandoned now which is making clearace rate even more irrelevant.

In fact agents are continuing to try to sell me 2007 $2m properties at 2001 prices ... here is one from this morning after I asked for an update on a property that was selling for 2.2m 2 months ago ...


"Hi

Waiting for a response from solicitors

If bank will allow us to sell between $1,4m to $1,5m



Have two offers at $1,4m

Will call every body back when I have more info."

Hahaha they are getting desperate for money.. see how much you can squeaze them!

Do you believe they are telling the truth when they say "Have two offers at $1,4m"? It seems like they are trying the age old trick of making it seem like the deal will only last a minute

 

[wayneL]

In the paper today:

http://www.dailymail.co.uk/news/art...06-Now-8217-s-resold-auction-just-71-000.html

Huge drops are restricted to flats atm, but houses are dropping as well.

According to Rightmove.co.uk there are 15 sellers for every buyer at present.

 

[Temjin]

In the paper today:

http://www.dailymail.co.uk/news/art...06-Now-8217-s-resold-auction-just-71-000.html

Huge drops are restricted to flats atm, but houses are dropping as well.

According to Rightmove.co.uk there are 15 sellers for every buyer at present.

It kinda surprised me that city-centered flats would experience such a drop in prices. I guess even the low supply, high demand areas are not totally invulnerable to selling pressure.

Though one need to be aware that media always love to dramatise stuff. On one hand saying house prices will rise by 30% over the next year and the next house prices dropped by 70%.

 

[wayneL]

It kinda surprised me that city-centered flats would experience such a drop in prices. I guess even the low supply, high demand areas are not totally invulnerable to selling pressure.

Though one need to be aware that media always love to dramatise stuff. On one hand saying house prices will rise by 30% over the next year and the next house prices dropped by 70%. :D

Notice the difference though. One is a prediction based on (??? BS really), whereas one is recorded fact.

Have a look at this ad:

http://www.rightmove.co.uk/viewdetails-10048392.rsp?pa_n=false&tr_t=buy

A year ago you would NEVER have seen those words on a house price ad ( Any offers will be open to consideration!). That pile of crap is still way overpriced, but we are a long way from the bottom IMO.

 

[michael_selway]

In the paper today:

http://www.dailymail.co.uk/news/art...06-Now-8217-s-resold-auction-just-71-000.html

Huge drops are restricted to flats atm, but houses are dropping as well.

According to Rightmove.co.uk there are 15 sellers for every buyer at present.

hi do you have related info for Australian properties?

thx

MS

 

[wayneL]

hi do you have related info for Australian properties?

thx

MS

Sorry, no.

 

[wayneL]

London was supposed to be immune to price falls.

 

[theasxgorilla]

It kinda surprised me that city-centered flats would experience such a drop in prices. I guess even the low supply, high demand areas are not totally invulnerable to selling pressure.

Though one need to be aware that media always love to dramatise stuff. On one hand saying house prices will rise by 30% over the next year and the next house prices dropped by 70%.

And the marketers like to use the media to dramatise stuff when they're trying to shift product.

I think of Docklands and Southbank. Fundamentally excellent areas which experienced very stagnant price growth for many years, even during the best boom years. These high-density flats make about the worst kind of property investments IMO...but as a low cost place to live where you will have low repayments and close proximity to transport and ammenities they can make a lot of sense.

 

[wayneL]

And the marketers like to use the media to dramatise stuff when they're trying to shift product.

I think of Docklands and Southbank. Fundamentally excellent areas which experienced very stagnant price growth for many years, even during the best boom years. These high-density flats make about the worst kind of property investments IMO...but as a low cost place to live where you will have low repayments and close proximity to transport and ammenities they can make a lot of sense....

...at the right price.

 

[theasxgorilla]

...at the right price.

Absolutely...buy the dip. If you have one of the so-called hifalutin professions paying you good coin and you can put yourself close to work for monthly cost that starts look more like rent than a mortgage...it can make a lot of sense. I know of several people who did this in '03-'04 in Melb...granted this dip seems more severe, and may impact the hifalun job sector in the 'city' over there.

 

[wayneL]

More from the impregnable Londinium:

http://www.thelondonpaper.com/cs/Sa...152887435?packedargs=suffix=ArticleController

 

[robots]

hello,

but the thing with "btl" or "off the plan" here in aus (and probably uk)is the construction needs to occur,

in melbourne, a ride around the blocks at the docklands, southbank or melb shows how the lights are now on, balconies have tables & chairs, bbq's etc

my block in st kilda hasnt had a change in resident for 2yrs now, new bond applications are down 10%

the UK will be haeding this way

thankyou

robots

 

[Pommiegranite]

Just thought I'd add my part about the UK.

Currently half of my relatives over there are trying to sell their properties. I hear their stories very week. One has been trying to sell her appartment for 8 months (Reading). She has been chasing the market down from £205K. She is currently at £165K, with still NO viewings.

On the flipside, I have a relative who has managed to sell his house in the same town. It also has taken close to 6 months. However, he has only come down from £210k to £190K.

There is a definite disconnect between the performance of appartments and houses. My view is that because houses can be rented out by the room and be altered to accomodate more tenants, this is cushioning house prices. However, sooner or later (with an increase in unemployment), even the demand for those will fall significantly. Not even higher yields will be seen as worth risking the capital losses.

 

[pepperoni]

I dont think we are anywhere near the UK situation yet and dont think we will get quite there.

However I do think further falls are possible especially in the unlikely event of further rate rises.

http://smallbusiness.smh.com.au/growing/finance/august-rise-still-on-cards:-bank-909677750.html

And with shares down 17% for the year there will be lots of people feelling alot less richer than last year (even my token remaining holdings are $40k down).

http://business.smh.com.au/shares-likely-to-remain-out-of-favour-20080623-2vga.html


Wish I followed my instincts and sold all shares last year and put in cash which seems to be the only investment making gains ... and healthy ones over 8% to boot.

Good time to be saving and being picky when it comes to property.

 

[pepperoni]

Hahaha they are getting desperate for money.. see how much you can squeaze them!

Do you believe they are telling the truth when they say "Have two offers at $1,4m"? It seems like they are trying the age old trick of making it seem like the deal will only last a minute

Real estate agents are the biggest liars and unfortunately many people get sucked in and pressured by the lies. Its probably a big part of the recent boom sucking in the necomers caught up in the hype.

Ive been in property for over 10 years so i know the game but here are some emails from the same agent

5/5/08

"Hi David

Still working on it two buyers at $1,8m still don’t have a deposit

I now have a valuation report dated 07/07

Have you finished your house I do have buyers for completed product.

Regards"


19/5


Hi

The buyer at $1,8m including materials has fallen over

We have a time extension from the bank the property is now going to tender

With a dead line 12 June 08 offers over $1,6 without materials will be considered."


Small bickies compared to the property at hope island that was selling for $25m and a few weeks back was sold by the bank at $5m-10m. Cant remember the details but this was one of the biggest houses in aus built over the equivalent of many waterfront blocks in the hope island estate.

 

[explod]

However I do think further falls are possible especially in the unlikely event of further rate rises.

In the UNLIKELY event, I am a bit more ambivilant on that. Cost of money to the banks are going north due to a growing shortage of the stuff.

And with shares down 17% for the year there will be lots of people feelling alot less richer than last year (even my token remaining holdings are $40k down

Wish I followed my instincts and sold all shares last year and put in cash which seems to be the only investment making gains ... and healthy ones over 8% to boot.

Physical gold is up 35% for the year.

 

[Temjin]

Notice the difference though. One is a prediction based on (??? BS really), whereas one is recorded fact.

Have a look at this ad:

http://www.rightmove.co.uk/viewdetails-10048392.rsp?pa_n=false&tr_t=buy

A year ago you would NEVER have seen those words on a house price ad ( Any offers will be open to consideration!). That pile of crap is still way overpriced, but we are a long way from the bottom IMO.

That is quite true though, unfortunately, people tend to listen to what they want to hear and will ignore (deny) the facts whenever possible.

I think we can all start singing, "London's Real Estate is falling down, falling down, falling down!"

Physical gold is up 35% for the year.

As well as other commodities such as oil/natural gas/agriculture stuff. When financial assets are falling down, commodities tend to go up.