House prices to keep rising for years

[gfresh]

I'd be interested to see a breakdown of property Investors, and when entered first entered the investment market, if it's available anywhere?

Established landlords (owning a decade or more) may well have gone through these periods before, they'll adjust, they'll know what to do to ensure they keep their places tenanted, not over charge rent, be prepared to sell if they think the market may go against them.

The rest... well, being the last in line during any boom is never a good position to be in.

 

[Tysonboss1]

A land lord can expect to do annual rent increases inline with inflation, but the rental increases are not directly related to the interest rates.

houses within 20kms of a large capital city will probally expect to average rent increases of cpi + 1%. the extra one pecent relates to the diminishing avaiablilty over time of house and land within the capital cities,

Apartments where there is no extra selling piont suchas parking or veiws will only increase with inflation in the longterm,.... offcoarse there will be years where the rent increases faster but there will also be years where it doesn't increase so over all it will rise pretty much with inflation.

 

[Tysonboss1]

I'd be interested to see a breakdown of property Investors, and when entered first entered the investment market, if it's available anywhere?

Established landlords (owning a decade or more) may well have gone through these periods before, they'll adjust, they'll know what to do to ensure they keep their places tenanted, not over charge rent, be prepared to sell if they think the market may go against them.

The rest... well, being the last in line during any boom is never a good position to be in.

I think most Investors who use property in there portfoilio would have pretty low gearing having properties they purchaed years ago increase in value so much and have probaly paid down alot of their loan.

you'll probally find most investors who know the market won't be phased by a down turn, they will just keep collecting rent and paying down debt till the market bottoms out and starts to swing slowly the other way, then they will probally look at using the equity they have built up for further investments.

If they do decide to sell, they won't be selling everything probally just one of the marginal deals.

 

[Go Nuke]

Very interesting chart Temjin thank you.

Looks like i stand corrected.
I'm proud enough to admit when i have something wrong.
I am young after all and don't proclaim to know everything!

Yes, but there are many landlords like the one you are replying to, who are not only woefully lacking in an understanding of basic economics, but are also stubborn too boot.

These landlords will be the first to feel the pain, followed by a lot of head scratching and questions to themselves asking "what went wrong?".

This will be quickly followed by feeble attempts of finding someone else to blame i.e Kevin Rudd, renters, the RBA, the Chinese, REAs etc etc.

It really is laughable.

Pommie, i'm not going to lower myself to a verbal,insulting slanging match with you.
Ive done quite well out of my investment house.
I was only able to save the money for it as an apprentice becasue I lived at home with parents longer than my mates.
As far as I'm concerned I have a foot in the real estate door and am charging rent accordinly with the locality of my property.
Perhaps you don't have kids, or were born well off..I don't..nor do i really care.
But obviously you sound pretty ticked off by your narrow minded responses.

I appreciate a good debate, but I think you are lowering the bar by getting a little personal.

Yes real estate prices are high and affordability is at an all time low.
As that great link said, in the U.S income to house prices is 3:1..in OZ is 6:1.

 

[Pommiegranite]

Very interesting chart Temjin thank you.

Looks like i stand corrected.
I'm proud enough to admit when i have something wrong.
I am young after all and don't proclaim to know everything!


Pommie, i'm not going to lower myself to a verbal,insulting slanging match with you.
Ive done quite well out of my investment house.
I was only able to save the money for it as an apprentice becasue I lived at home with parents longer than my mates.
As far as I'm concerned I have a foot in the real estate door and am charging rent accordinly with the locality of my property.
Perhaps you don't have kids, or were born well off..I don't..nor do i really care.
But obviously you sound pretty ticked off by your narrow minded responses.

I appreciate a good debate, but I think you are lowering the bar by getting a little personal.

Yes real estate prices are high and affordability is at an all time low.
As that great link said, in the U.S income to house prices is 3:1..in OZ is 6:1.

No Nuke, I was merely showing you that you shouldn't be accusing people off idiotic comments, when your own are so off the mark. Glasshouses...throwing stones etc.

 

[Go Nuke]

Well I'm sorry but I do think says "Just go and get a better,higher paying job" is a silly thing to say.

And i guess Ive taken offence to it.
I work very hard for my money like most of the working class families
It just sounds a little...I dunno..judgemental or something or derogertory towards lower income earners.

As Ive said. i'm not happy as a tradesman because the pay is well below average but i am happy to be out looking to get off the tools But off my own bat. not being told I should.

Housing affordabilty is just one of those touchy subject imo.

 

[robots]

hello,

like how long do you think negative gearing has been around?

at least 20yrs, yes 20yrs so all "specufestors" back in 1988, 1990's? and it wasnt positive geared, school friend bought in Frankston at this time and it wasnt positive,

sure you kick in half and would be there, a premium has always been around for buying than renting and then things slowly change as Tyson has indicated,

the only "main" difference I feel was everything was P&I but the differential was still there,

yes i believe in what i write

thankyou

robots

 

[robots]

hello,

whats wrong with getting a better paying job, working two, saving more here and there man?

i find it offensive when low income and no-income individuals want a handout all the time, yet you see many puffing on a rollie struting down the street

yeah man, get three or four living in a house party time, pulling in the benefit, selling a couple of caps, concessional PTC, concessional pharmaceuticals, concessional energy bills, rates, rego on and on and on

thankyou

robots

 

[Warren Buffet II]

Shortage, what shortage??

Is there really a shortage of housing? Let us turn our attention to the census data at the Australian Bureau of Statistics (ABS):
2001 2006 Growth
Number of Total Private Dwellings 7,790,079 8,426,559 8.17%
Number of Unoccupied Dwellings 717,877 830,376 15.67%
Number of Households 6,744,795 7,144,097 5.92%
Population 18,769,249 19,855,288 5.78%
Number of Dwelling/Household 1.15 1.18 2.60%

As we can see, from 2001 to 2006, the growth in the number of dwellings far exceeded the growth in the number of households. In addition, the growth in the number of dwellings also far exceeded th population growth. As the average number of persons per household in both the 2001 and 2006 census is 2.78 (i.e. remained the same) this could not be explained by the decrease in the size of households. This hardly looks to be a shortage situation!

Quoted from http://cij.inspiriting.com/?p=314

 

[Pommiegranite]

hello,

whats wrong with getting a better paying job, working two, saving more here and there man?

i find it offensive when low income and no-income individuals want a handout all the time, yet you see many puffing on a rollie struting down the street

yeah man, get three or four living in a house party time, pulling in the benefit, selling a couple of caps, concessional PTC, concessional pharmaceuticals, concessional energy bills, rates, rego on and on and on

thankyou

robots

You're having a laugh mate.

If it weren't for your types who through taking on excess debt, negative gearing and jacking up their rents, people wouldn't be having this buying/renting affordability problem.

These people that you talk about are resigning to the fact that they can never afford a home.

Some consolation is that you will learn a harsh lesson from the upcoming storm.

 

[robots]

hello,

just another "opinion", but I would soon fill a double decker bus in 10 mins with fellow men or women,

thats it throw your hands up in the air oh this is all too hard getting a place,

go nukes: are you in board plaster?

thankyou

robots

 

[wayneL]

You're having a laugh mate.

If it weren't for your types who through taking on excess debt, negative gearing and jacking up their rents, people wouldn't be having this buying/renting affordability problem.

These people that you talk about are resigning to the fact that they can never afford a home.

Some consolation is that you will learn a harsh lesson from the upcoming storm.

In robot's world, there are only:

1/ People who earn (by whatever means) >$100,000

2/ Students or immigrants stacked 15 high per room

3/ Dope smoking, long haired bludgers who believe they should be able to buy a Toorak mansion with dole money.

However robot's world only exists in his limited imagination and does not reflect the real world at all.

 

[gfresh]

Pft, robots doesn't even go outside, he's too busy spending every cent paying off all his lovely properties

Is there really a shortage of housing?

Maybe, maybe not I'm of the "not" camp, but even if there was - hasn't stopped the UK plunging head first into falling property prices and now serious talk of recession.

http://www.economist.com/world/britain/displaystory.cfm?story_id=11671702

Same old in their papers too leading up to their deflation, regarding lack of supply...

http://www.24dash.com/news/Housing/2007-07-19-UK-property-shortage-speeding-up-price-growth

 

[pepperoni]

hello,

you may be able to answer my question number, the others today couldnt

am I able to pick up a front row block for lets say half price yet?

anywhere? anybody?

even pepporini couldnt send the link about the house in syd he/she has been spruiking has dropped from 2m to 1.3m

or is it still wait wait wait, have a great evening

thankyou

robots

Speaking of robots, why dont the mods ever seem to do something about him ... he is at best incoherent and at worst a huge troll.

"who has bought a front row block for 50k" ... typical robots mix of incoherence and blatant trolling for reaction.

 

[Tysonboss1]

hello,

whats wrong with getting a better paying job, working two, saving more here and there man?

Agreed,...

Also what we call low incomes in Australia are actually quite large incomes by world standards, especially when you factor 9% super, 5 sick days, 20 days holiday, various public holidays, workers compensation, the extrmely low tax bracket and family payments.

not to mention australias average working week is only 38 hours... and there are masive penalty rates if your boss offers you more work... thats somthing I don't get,.. why should i have a penalty for offering staff more work,...

when you think about it,... no wonder we can't compete with over seas labour,..... the labour unions have priced them selves out of the market

 

[doogie_goes_off]

Protectionism is a culture. See, believe, recieve. In regard to house prices, wages are a distraction, the house prices are linked to tightness of labor market, wages are two steps behind.

 

[theasxgorilla]

not to mention australias average working week is only 38 hours... and there are masive penalty rates if your boss offers you more work... thats somthing I don't get,.. why should i have a penalty for offering staff more work,...

when you think about it,... no wonder we can't compete with over seas labour,..... the labour unions have priced them selves out of the market

I don't know where to begin on this one. As best as I can put it, because on the other side of the capitalism equation is real people with values beyond money.

 

[robots]

hello,

its amazing the emotion attached to property issues, i find its classic robin hood tale

you dont seem to get the same comments in a stock or commodity thread wanting something to be totally smashed day in and day out,

the property threads are full of troll's but at least ASF plays a great role in moderating the thread and i think many appreciate the honest discussion

have a great day

thankyou

robots

 

[explod]

hello,

you dont seem to get the same comments in a stock or commodity thread wanting something to be totally smashed day in and day out,

robots

No one wants to smash the property thread or property. And yes there are such veheement arguments on many of the other threads.

Property is in fact trashing itself because it became over priced and the bubble has burst and all the good clearance rates in the world cannot stop that fact. Markets (and basically property is a market) go down and markets go up, that is the nature of markets.

 

[professor_frink]

Speaking of robots, why dont the mods ever seem to do something about him ... he is at best incoherent and at worst a huge troll.

"who has bought a front row block for 50k" ... typical robots mix of incoherence and blatant trolling for reaction.

what us mods do, and what you think we do may not be the same thing. How about next time you want to question the way we run this site you do it privately.