House prices to stagnate for 'years'

[Tysonboss1]

Hi Robots,

Your mates up in Brisbane have the solution ...




http://www.news.com.au/couriermail/story/0,23739,22839431-3102,00.html

It's actually a sound property investment stratergy,.... obviously being abused by some people though.

I have a mate who owns a 5 beedroom house that he rents by the room to 5 students,.....

The house would normally rent for $330 but he rents it for $115 per room and he pays a cleaner to visit once a week to clean common areas and the lawns are mowed fortnightly, he is also looking at options where he could rent the garage out for storage.

So he has turned a negative geared property into a positive cashflow outcome.

 

[robots]

hello,

78% clearance rate in Vic over weekend, I think may see a period of flatness for a few months,

change of government, christmas coming up, I am sure some good results will still be achieved for "wanted" RE

thankyou

robots

 

[Tysonboss1]

I think he means if your a Nurse, Teacher , Policeman , Truck Driver etc he beleives its normal that you cant afford a house in any of Australias capital cities*shrug*

I dont think its normal, or healthy .....

I found this article which talks about how average town house's sell for up to $5m usa dollars in new york city, I wonder how a nurse could make the repayments a a 4 Bed home on a 1/4 acre block in NY.


http://www.nytimes.com/2007/12/09/realestate/09cov.html?_r=1&oref=slogin

 

[wayneL]

Just to let you know, the crash has officially started here in the UK. Whether they can rescue the market with the insane rate cuts, remains to be seen. But good falls are being recorded on the indices.

Some individual areas are being slaughtered.

BTL is dead.

 

[theasxgorilla]

I found this article which talks about how average town house's sell for up to $5m usa dollars in new york city, I wonder how a nurse could make the repayments a a 4 Bed home on a 1/4 acre block in NY.


http://www.nytimes.com/2007/12/09/realestate/09cov.html?_r=1&oref=slogin

Ah, an associated topic well worthy of discussion...modes of living around the world. I believe you are referring to the "The Great Australian Dream".

This dream is not dead, you just have to look elsewhere to find it. By that I mean that the expectations people have about where they can achieve it and by what means needs to change. As your question above alludes to, who in their right mind would expect anyone to be able to live in a house on a quarter acre block on Manhattan island. Even if one could afford it (Trump???) there has been so many decades of speculation in that part of the world that nearly all the single family houses have been torn down and the land given a higher density program. Can we really expect any different from our super-successful, super-cities???

The house in suburbia on a 1/4 acre block isn't just handed out, not that it ever was but lets call a spade a spade...it was easier back then. The script was written, people knew what to expect and what they should be doing. It seems to me that today possessors of the dream represent a social class (the suburban land-owners?), attained only by being born into a generation who owned property pre-boom or by finding a means to achieve upward social mobility in 2007.

If anyone thinks voting Labour in will bring the dream back, for example, I'd suggest that the forces in play are bigger than any government of the day. Expectations (not house prices) are being reset daily.

 

[theasxgorilla]

It's actually a sound property investment stratergy,.... obviously being abused by some people though.

I have a mate who owns a 5 beedroom house that he rents by the room to 5 students,.....

Happens plenty in London. Every liveable space is rented...and those not liveable (of horse stables?!?!) are converted. Am I the only person seeing the writing on the wall?

 

[Tysonboss1]

The house in suburbia on a 1/4 acre block isn't just handed out, not that it ever was but lets call a spade a spade...it was easier back then. The script was written, people knew what to expect and what they should be doing. It seems to me that today possessors of the dream represent a social class (the suburban land-owners?), attained only by being born into a generation who owned property pre-boom or by finding a means to achieve upward social mobility in 2007.

.

this is what I was trying to point out,..... some people that housing beoming un affordable is some un natural phenomnon caused by bad government,... through my posts on this thread I have been trying to point out that it is un avoidable if a city continues to grow.

 

[robots]

hello

 

[wayneL]

The bend at the end of the trend in NZ?

http://www.stuff.co.nz/4318037a13.html

SNIP:
"For the first time we've had a drop in the average sale price, and quite a marked one too," QV spokesman Blue Hancock said.

It was clear the booming property market, which has slowed for three consecutive months, had turned.

 

[numbercruncher]

Ive noticed boatloads of Houses forsale lately, maybe a few spooked punters about ? Just need a couple more rate rises to sort the Wheat from the Chaff

 

[wayneL]

The market here in the UK is in deep doodoo. Some parts of the country have dropped 10% since the summer.

Turnover has stopped and agents have taken to playing solitaire on their computers to look busy (true lol). I was talking to an agent in Stroud:

Me: I suppose there is a lot of BTL property coming on the market.

Agent (with plummy accent): Oh loads, we've all got our fingers burnt and those who aren't meeting the market are going to go broke.

Seeing as she had obviously done some dough as well, I didn't press for more info and changed the subject , but at least she was honest enough to tell me.

 

[wayneL]

London down 5%

http://www.thisismoney.co.uk/mortga....html?in_article_id=426444&in_page_id=57&ct=5

 

[numbercruncher]

ooh thats pretty spooky!

Wonder which UK bank will be the next to become Nationalised ?

 

[Tysonboss1]

Perhaps it's time to start looking for areas with increased yeild,.... perhaps where the price has dropped far enough to bring yeilds close to positive cashflow,....

then find a property that has been owned by a lazy investor where the rental increases and some basic maintenance have not been done so you can kick out the tenant, do a quick repaint and carpet and up the rent and maybe come out with a positve cash flow out come

 

[numbercruncher]

Perhaps it's time to start looking for areas with increased yeild,.... perhaps where the price has dropped far enough to bring yeilds close to positive cashflow,....

Wot you talkin bout Willis ?

Aussie residential prop at Postive - noooooo, where is it ?

 

[wayneL]

Perhaps it's time to start looking for areas with increased yeild,.... perhaps where the price has dropped far enough to bring yeilds close to positive cashflow,....

then find a property that has been owned by a lazy investor where the rental increases and some basic maintenance have not been done so you can kick out the tenant, do a quick repaint and carpet and up the rent and maybe come out with a positve cash flow out come

The market would have to drop a freakin' long way from here for that to be a reality...

 

[robots]

hello,

I am sure the people(renter's) of the UK will be really happy that BTL is dead,

thankyou

robots

 

[wayneL]

hello,

I am sure the people(renter's) of the UK will be really happy that BTL is dead,

thankyou

robots

If it weeds out the muppet LLs they will be, believe me.

 

[robots]

hello,

more likely muppet LL's will greatly increase in the future (or complaints against LL's)

if you look at issues since death of BTL in Aus, the renter will be real happy

thankyou

robots

 

[robots]

hello,

anybody watch Grand Design on thursday (13/12/07),

great show about guy building 2 houses in London, bought block for 50k 8 yrs ago,

now built 2 houses for total cost of 800k, looks as though sold one for around 800k, bank valued around that

note this episode was finalised around sept 07, looks as though things going reasonably well still in UK

he has 800k asset, nah no way,

thankyou

robots