House prices to keep rising for years

[explod]

[/B]

hello,

this is the thing that really bugs me about all the "affordability" crew,

whats it to YOU/OR ANYBODY else if someone has a house/unit left empty for 1 day, 1 month, 1 years or 10 years,

i would be homeless too if didnt get up and go to work each day but these guys/girls just expect to get everything, they arent forced

oh yeah i go to work just so I can hand the chap out the front of Prahran coles a $1 so he can hop of to get a cap, get out of here

thankyou

robots

Getting upset is not going to help. Pepper is just pointing out that things are very much worse than the r/e (and the news media who feed off it) fraternity want you to think.

And I dont' see too many with the cap out that are not in a bad way due to shocking socialogical shortfalls in Government for the last 30 odd years.

Money needs to be spent on education (so that they can help themselves). Not on baby bonuses that just create more problems at the wrong end, and one could go on.

 

[robots]

Getting upset is not going to help. Pepper is just pointing out that things are very much worse than the r/e (and the news media who feed off it) fraternity want you to think.

hello,

and much the same with Mr Imber (VCOSS), anglicare etc all carrying on about affordable accomm. when camkawa greatly showed us around 8000 places to rent in Melbourne region

houses for great prices across melbourne, look at the Tanti Estate in Mornington for example, very easy to get a place for 220-240k, a local worker can easily get in,

these charity groups are not to dissimilar to RE agents really, pull in the funds so their "executive" salary can be pumped all with the help of the media by the sounds of it,

thankyou

robots

 

[explod]

hello,


houses for great prices across melbourne, look at the Tanti Estate in Mornington for example, very easy to get a place for 220-240k, a local worker can easily get in,


thankyou

robots

Problem with Tanti Avenue is that there are virtually no jobs, nearest that unskilled can get is at least an hour away. Because everyone wants to live on the nice Mornington Peninsula, the higher skilled will work for less. Cuts out the bottom feeder.

Cost of fuel is going to stop Australia in its tracks till we can move to alternative options. And those will take years.

 

[robots]

houses for great prices across melbourne, look at the Tanti Estate in Mornington for example, very easy to get a place for 220-240k, a local worker can easily get in,

these charity groups are not to dissimilar to RE agents really, pull in the funds so their "executive" salary can be pumped all with the help of the media by the sounds of it,

thankyou

robots

hello,

a local worker, not everyone travels 60min to work every day

thankyou

robots

 

[explod]

hello,

a local worker, not everyone travels 60min to work every day

thankyou

robots

If there are no jobs then there will be no local worker to take his place at Tanti Avenue accomodation.

Am I missing something here.

 

[robots]

hello,

has bays hospital closed, beleura hill private closed, safeway and coles gone, all the light industrial gone from Mornington

yes you are missing something

thankyou

robots

 

[explod]

hello,

has bays hospital closed, beleura hill private closed, safeway and coles gone, all the light industrial gone from Mornington

yes you are missing something

thankyou

robots

As I said earlier, all of those jobs are taken. I do know from professional involvement that trying to get a job here is very difficult. Do not think I am missing too much.

 

[robots]

hello,

what about someone renting or living at home WHO currently works in local area and wants to buy home? or are all the homes taken as well

thankyou
robots

 

[explod]

hello,

what about someone renting or living at home WHO currently works in local area and wants to buy home? or are all the homes taken as well

thankyou
robots

That is the whole point of what we are talking about, there are empty unsold and unleased homes in growing abundance. But nothing to make it possible for people to live in them. Too far from AVAILBALBE WORK, mon ami

 

[robots]

hello,

are you in local government

thankyou

robots

 

[Macquack]

My past weeks experience from sydneys north (where the whole riduculous boom/craze more or less started):

- near to city prices are dipping in almost all cases; and
- the blue chip northern beaches has unofficially crashed at the top and middle of the housing market (you heard it here first) ... for sale prices dropping materially, very little selling, agents chasing and begging, and no idea when the prices will stop dropping.

Well it hasn't crashed at the bottom end of the market yet.

Check out this little bargain. Two bedroom mobile home in North Narrabeen Caravan Park for just $330,000 ( plus I believe $140 per week rent).
http://www.realestate.com.au/cgi-bi...r=&cc=&c=97507181&s=nsw&snf=rbs&tm=1214825520

 

[Go Nuke]

How can house prices continue to rise without wages growth to keep up??

Wages growth = inflation, something our government is trying to keep a lid on (yes..thats our wages)
Personaly I'd like to see a government commit political suicide by changing the negative gearing laws.
Instead of seeing wealthy people buy up all the cheap housing to rent to those less fortunate to gain a deposit quick enough.
Don't get me wrong..I'm a landlord myself having bought a cheap house in the middle of nowhere because I was able to live with my parents till I was 24 and save some cash.
But these people who buy multiple cheap housing, i just don't think its fair. especially on the younger people today.
No wonder so many have given up on the dream of ever owning a home.

Yes yes...They should just lower their standards and move furhter out of town I hear you say...but then of course you have fuel and extra running cost.

Not to mention...how do you pay a morgage on a single income if you decide to have kids?? You cant.
Even child care is what...$60 a day!

Something has to give. there must be alot of Aussies living on a knifes edge. sadly alot of those are the ones that work the hardest IMO.

I would seriously be looking at finding a way to increase your income though, especially in this current economic cycle that Australia is going through. I know in WA, there are kids leaving school and going to work in the mines, where the starting wage is around 80k per yr and thats without any trade etc. Good luck in your endeavors.

Good luck indeed. A public misconception is that its easy to get a mining job. Its Not.
As a boilermaker with 10yrs experience, Ive not managed to get a mining job yet.
But yes...goodluck.

 

[Go Nuke]

Well it hasn't crashed at the bottom end of the market yet.

Check out this little bargain. Two bedroom mobile home in North Narrabeen Caravan Park for just $330,000 ( plus I believe $140 per week rent).
http://www.realestate.com.au/cgi-bi...r=&cc=&c=97507181&s=nsw&snf=rbs&tm=1214825520

just $330,000

Ahh the worst words in the English language...."just" and "only" lol.

Mate correct me if im wrong, but the repayments on about $330K is what...about $600/ week?
OMG..is that what "affordable is??
In my household thats about roughly 40- 45% of our desposable income.

Looks nice. But I bet there are management fees to pay on top of that morgage. Rediculous

 

[Tysonboss1]

Personaly I'd like to see a government commit political suicide by changing the negative gearing laws.
Instead of seeing wealthy people buy up all the cheap housing to rent to those less fortunate to gain a deposit quick enough.

But these people who buy multiple cheap housing, i just don't think its fair. especially on the younger people today.
No wonder so many have given up on the dream of ever owning a home.

Yeah,... don't forgot to mention all those evil investors buying up all the companies too,

It's just plain wrong the system we live how some parts of the population work hard, spend less than they earn and end up owning a bunch of assets while the bulk of the aussie battlers live the consumer lifestyle spending more than they earn on life style and doodads and end up with no assets the government should be doing more to stop people who work hard and invest and help the people that blow there cash and want more for doing less..... tonge in cheek.

At the end of the day Negative gearing just means you can offset the interest on your loans against your income, there is nothing wrong with that.

 

[wayneL]

At the end of the day Negative gearing just means you can offset the interest on your loans against your income, there is nothing wrong with that.

Depends on your point of view. Other businesses where a trading loss is the intentional result, are not allowed the deduction. There must be an intention to make a trading profit, irrespective of capital profits.

The trading loss should be accounted for somehow... perhaps offset against future profits if/when the property goes profit positive... and/or against future capital gains.

The current negative gearing rules however, are not in keeping with general taxation philosophy.

This artificially supports house prices.

However it does help to suppress rents. Oz rents are still quite cheap by western world standards.

Yin & Yang

 

[theasxgorilla]

How can house prices continue to rise without wages growth to keep up??

Well at least you're asking the right questions.

Taxes can go down.

The cost of certain other good and services can go down making more disposable income available.

People can resign themselves to the idea (wilfully, coerced or otherwise) that they're happy with less space than in the past. Net effect, people pay more for less.

People can take interest only loans allowing them to service larger mortgages.

Just because something happens not to make sense by traditional economic measures, or is even considered absurd compared with norms of only a few years ago, doesn't mean that in the future it won't become the norm...as much as that might seem to suck.

The next question to ask is, what if this is the future and it's here to stay? Or one step beyond that, what if things get worse/harder?

 

[theasxgorilla]

This artificially supports house prices.

As you pointed out, it keeps rents artificially low too. So it's kind of like stealth socialism, or maybe more fitting would be to call it 'voluntary socialism' . Only instead of forcing everyone to put their tax dollars toward social housing people get to choose if they want to participate...in exchange for the risk they're rewarded with cap gains.

It seems fair to me at least...just another way to socialise housing without the overhead of having government administer the system. In Sweden there is a MASSIVE rental shortage problem in all capital cities. Guess who dishes out practically all rental accomodation...the government. Guess what the 'all-for-one-and-one-for-all' Swedes do...get a contract and never relinquish it! What would you do with a contract that you waited in a queue 20 years to get?

This year will probably see the first private 'rental' apartments being built. Until this as an individual owner of an apartment you were forbidden from letting your apartment without first getting consent from the 'body corporate'. Typically you needed a damn good reason like a work offer overseas, and even that might get you a 12 month exception.

So, as an additional answer to the question raised above regarding how prices can keep going up when wages don't: legislation can change.

 

[robots]

Depends on your point of view. Other businesses where a trading loss is the intentional result, are not allowed the deduction. There must be an intention to make a trading profit, irrespective of capital profits.

The trading loss should be accounted for somehow... perhaps offset against future profits if/when the property goes profit positive... and/or against future capital gains.

The current negative gearing rules however, are not in keeping with general taxation philosophy.

This artificially supports house prices.

However it does help to suppress rents. Oz rents are still quite cheap by western world standards.

Yin & Yang

hello,

just substitute the word share for property,

its an even playing field for everybody,

the government will actually have to increase the negative gearing benefits in the future for property investors/providers,

yes rents were "dulled" during 01-04 when oversupply of apartments was present in most aus capitals,

now all those apartments are far more occupied and the big players who had glossy brochures are building different things

thankyou

robots

 

[robots]

hello,

http://www.theaustralian.news.com.au/story/0,25197,23949777-25658,00.html

where's numbercruncher? everything was going to be walloped, read here first

melbourne down 0.02%, fantastic results

Tech's town going well up 4.6%,

thankyou

robots

 

[wayneL]

hello,

just substitute the word share for property,

its an even playing field for everybody,

the government will actually have to increase the negative gearing benefits in the future for property investors/providers,

yes rents were "dulled" during 01-04 when oversupply of apartments was present in most aus capitals,

now all those apartments are far more occupied and the big players who had glossy brochures are building different things

thankyou

robots

'bot

As far as I'm aware, you can't file a form 221 (or whatever the hell it is) against your PAYE income tax on negatively geared shares.

Perhaps one of the tax experts could clarify that.