House prices to stagnate for 'years'

[robots]

hello,

ever been to paris NC?

lets say paris's finest area, around champs elsysee, try $700,000AUS for say 40sqM, yes 40sqM, no car parking either

you still get far more in Syd or Melb for that price

friends just bought 22sqM for $400,000AUS in marais area

nowhere near most expensive

thankyou

robots

 

[ithatheekret]

Yes , we stayed in Ternes for a little while and I had to walk quite a distance to the parking station , from Rue Descombes off of Avenue de Villiers . I parked a car on the street twice the second time it wasn't there when I went back , I thought it got pinched , it was towed away .

 

[Flying Fish]

hello,

ever been to paris NC?

lets say paris's finest area, around champs elsysee, try $700,000AUS for say 40sqM, yes 40sqM, no car parking either

you still get far more in Syd or Melb for that price

friends just bought 22sqM for $400,000AUS in marais area

nowhere near most expensive

thankyou

robots

Lol How can you compare those cities with sydney and melbourne? Time for a realty check

 

[Tysonboss1]

More supply + rising Interest rates + credit crunch = downward pressure on prices.

Developers might be wise to bring new projects to market asap.

:

time will tell,

developers will only develop property when there is enough demand for it,...

the development of apartments works is a cycle just like the rest of the housing market, once yeilds decrease (both rental yeild and the development margin) then developments will slow down or stop till the population growth catches up and soaks up the overflow and then it all starts again.

 

[numbercruncher]

hello,

ever been to paris NC?

lets say paris's finest area, around champs elsysee, try $700,000AUS for say 40sqM, yes 40sqM, no car parking either

you still get far more in Syd or Melb for that price

friends just bought 22sqM for $400,000AUS in marais area

nowhere near most expensive

thankyou

robots

Thats kinda like asking " ever been to Detroit ? " pick up a three bedroom bunglow there for 10k .....

Get far less in Syd and Melb for that price.

lol

 

[Tysonboss1]

Thats kinda like asking " ever been to Detroit ? " pick up a three bedroom bunglow there for 10k .....

Get far less in Syd and Melb for that price.

lol

not really,.... considering sydney has alot going for it such as historically low unemployment, growing population.

 

[theasxgorilla]

developers will only develop property when there is enough demand for it,...

This kind of makes it sound like developers never get caught holding the bag, which is not true. We know that the pro's try to sell as many units off the plan as they can so as to abate their risk as much as possible, but eventually they have to start building. If/When the music stops, as it did back in '02 there were plenty of developments still in progress, with units left unsold. That things never got that bad and came good again in time to save many/most of them is more likely due to good fortune in my opinion, rather than supply/demand mastery.

ASX.G

 

[robots]

hello,

harry trigiboffin was one who in that period of 02 and onwards converted many to serviced apartments ASXGman,

thankyou

robots

 

[theasxgorilla]

not to sure if I would want to be the first buyer though, with that many to be built in the vicinity,

Exactly. You are buying for lifestyle. The reasons listed by YChromosome really. At this point all of the levels of investor have made their money. From the councils releasing 'air rights' over the stations right through to the import company who sold the chattels. Short to medium term capital gains you can forget. Improve the property yourself to increase value...on a brand new apartment? Probably not. Wait 20-30 years and see if we end up with a London/New York style market? Hmmm, time will tell.

ASX.G

 

[theasxgorilla]

harry trigiboffin was one who in that period of 02 and onwards converted many to serviced apartments ASXGman,

Never heard of him. Wonder how he's doing?

 

[tech/a]

http://sunday.ninemsn.com.au/sunday/feature_stories/article_1503.asp?s=1

ASX
Might shed some light?
Think he's surviving.

 

[theasxgorilla]

http://sunday.ninemsn.com.au/sunday/feature_stories/article_1503.asp?s=1

ASX
Might shed some light?
Think he's surviving.

Thanks.

From the article:

"But not everyone's wild about Harry's impact on the cityscape. He fought former Sydney Lord Mayor Frank Sartor for years as council strived to improve the aesthetic quality of Meriton's buildings. As a result of pressure from council, Meriton now holds design competitions attracting the world's best architects to Sydney."

This I support, 110%. Now in Europe, and having visited places famous for their architecture, like Amsterdam, Barcelona, Paris etc. I can see and feel how it makes such a difference to look out your window or walk down the street and see well designed buildings. 50-70's 'brick venereal' has a lot of answer for.

Rant over.

ASX.G

 

[theasxgorilla]

This is a quote from the original article that spawned this thread:

"House prices are likely to stagnate across the country for many years, most likely drifting lower as wages and rents slowly catch up," said analysts Felicity Emmett and Kieran Davies at ABN AMRO.

'Many' I interpret as meaning at least two, but perhaps needing to be more like three or four. Since if you had a house and you bought another one, you still couldn't say you have 'many houses', could you? Anyhow, precision semantics aside, I conclude that these people were simply wrong, wrong, wrong. The article was published in Sept '05. But I bet they get paid a lot of money! Conclusion: listening to the news and experts is likely to be bad for you long term investing health. Better to learn to think for yourself.

ASX.G

PS. Does anybody know Felicity Emmett and Kieran Davies? Are they still at ABN AMRO? We'd love to hear from them

 

[professor_frink]

This is a quote from the original article that spawned this thread:

"House prices are likely to stagnate across the country for many years, most likely drifting lower as wages and rents slowly catch up," said analysts Felicity Emmett and Kieran Davies at ABN AMRO.

'Many' I interpret as meaning at least two, but perhaps needing to be more like three or four. Since if you had a house and you bought another one, you still couldn't say you have 'many houses', could you? Anyhow, precision semantics aside, I conclude that these people were simply wrong, wrong, wrong. The article was published in Sept '05. But I bet they get paid a lot of money! Conclusion: listening to the news and experts is likely to be bad for you long term investing health. Better to learn to think for yourself.

ASX.G

PS. Does anybody know Felicity Emmett and Kieran Davies? Are they still at ABN AMRO? We'd love to hear from them

Whilst I think that the people that wrote the article were generally wrong, there have been places that have been stagnant since this thread started.

The area I live in has been stagnant for the past few years. You couldn't find much here for under 300K when the boom was in full swing, and here we are in 2008 and prices are pretty well the same. Property is moving here, albeit very, very, slowly. Mrs Frink's parents bought a house in July 06- some of the houses they looked at then are still on the market today. Mrs Frink and I started paying a lot closer attention to what was happening in the area this time last year, knowing we would be buying our first home at some stage during the year- when we finally started getting serious about finding a place in late August, there were still quite a few homes for sale that had been listed for most of the year. The house we eventually bought, we picked up for nearly 15% less than it had sold for less than 2 years earlier.

Our little hellhole of a town boomed mainly because of the boom in Sydney, as people came up the coast and bought up what they considered to be cheap houses- half the people that went to look at my dad's house when he was selling it in 2001/02 were coming from Western Sydney. When the boom in Sydney ended, everything came to a grinding halt up here. And it hasn't got going again since.

 

[Tysonboss1]

The area I live in has been stagnant for the past few years. .

you could say the same for certain shares on the stockmarket.

 

[professor_frink]

you could say the same for certain shares on the stockmarket.

And your point is??

 

[Lucky_Country]

hello,

ever been to paris NC?

lets say paris's finest area, around champs elsysee, try $700,000AUS for say 40sqM, yes 40sqM, no car parking either

you still get far more in Syd or Melb for that price

friends just bought 22sqM for $400,000AUS in marais area

nowhere near most expensive

thankyou

robots

And whats the average income in Paris and how do they compare with percentage of income too meet these prices ?
Now back too AUS interst rates up house prices down !
US house prices dropping UK house prices dropping AUS is always 1 year behind the rest of the world !

 

[robots]

hello,

you have the same income issues in Paris as per any other country, alot of workers come in from the outer as trains are very good, as in most of europe

actually I think Aus has led the world, around 03 things stopped for a lot of RE in Aus, our style of BTL evaporated, and then it started up in UK,

why dont many look at getting a higher paying job, I have many friends who are now making $$$ in the building industry, hard work, interesting work but cleaning up

thankyou

robots

 

[Lucky_Country]

I agree there is good money in the building industry tradesmen are now some of the highest pais proffesionals going.
My personal point of view is that most people are not getting the big dollars that trades are now therefore they cant afford higher prices and increased mortgage repayments courtesy of higher interest rates that look like climbing.

 

[robots]

hello,

i guess someone else who can afford will buy then,

thankyou

robots