House prices to stagnate for 'years'

[wayneL]

In the Torygraph today

http://www.telegraph.co.uk/money/ma...AVCBQUIV0?xml=/money/2008/01/06/cnrock106.xml

 

[theasxgorilla]

Nationalisation??? WTF!?!

 

[wayneL]

Nationalisation??? WTF!?!

Yup!

Remember, free enterprise 2000's style means privatize profits and socialize losses; moral hazard is now an illegal phrase

 

[professor_frink]

Yup!

Remember, free enterprise 2000's style means privatize profits and socialize losses; moral hazard is now an illegal phrase

Personally, I'd prefer to see that than see struggling financial companies being bailed out by SWF's. We have already given our manufacturing bases to countries like China under the banner of globalisation, we don't really need to give them our financial companies as well. What power will the west have left if we do?

 

[wayneL]

Personally, I'd prefer to see that than see struggling financial companies being bailed out by SWF's. We have already given our manufacturing bases to countries like China under the banner of globalisation, we don't really need to give them our financial companies as well. What power will the west have left if we do?

Can't disagree with that at all.

It's a pity "they" didn't understand that when the bears were being scoffed and ridiculed; when this situation could have been headed.

 

[theasxgorilla]

What power will the west have left if we do?

Those things they cannot take, our constitutions, legal systems, and business practises...which of course in the US includes good ol' Chapter 11.

 

[numbercruncher]

Hello,

The Average Australian House price is now 442k.

The Average Australian wage is now 55k.

Borrowing calculator says 55k wage can borrow 220k. (using approx 50pc of your after tax income to service loan)

Interest rates are rising.

Better grab a liar loan now before you are forced to share a park bench with the poor people.

Thankyou.

Disclaimer: The above forementioned advice splurted out after my body was possessed by the spirit of a long deceased realesate agent.


PS: Where are War Widows, Elderly etc on 12k pensions living nowadays ?

 

[Julia]

PS: Where are War Widows, Elderly etc on 12k pensions living nowadays ?

They are doing it very tough if they are renting, a little better if they own their own homes. A couple can cope with their combined pension but for single people their income is woefully inadequate.

 

[numbercruncher]

They are doing it very tough if they are renting, a little better if they own their own homes. A couple can cope with their combined pension but for single people their income is woefully inadequate.

I agree its a big issue going forward, one that I doubt the Government can afford to remedy ...

Currently, for every person aged 65 and over, there are about 5.3 people of workforce age. By 2043, this will decrease to about 2.5 people of workforce age.

http://demographics.treasury.gov.au/content/_download/flexible_retirement_income_system/HTML/retirement.asp


So less and less workers to provide ever increasing revenue and aged services!

 

[radar23]

I bought my first house last year in a Perth inner suburb at the height of the WA housing bubble/boom, since then the prices have frozen, if not reduced somewhat. Since I am an owner occupier and do not intend to sell for many year I figure I'll be fine in the long run.

Although it is quite unnerving to see bigger and better house go up for say for tens of thousands less than what I bought mine for a year later. Doh!

Radar

 

[numbercruncher]

I bought my first house last year in a Perth inner suburb at the height of the WA housing bubble/boom, since then the prices have frozen, if not reduced somewhat. Since I am an owner occupier and do not intend to sell for many year I figure I'll be fine in the long run.

Although it is quite unnerving to see bigger and better house go up for say for tens of thousands less than what I bought mine for a year later. Doh!

Radar

You should becareful of sharing such real life experiences around here, the resident Realestate will always be booming anti trust committee will be all over you like a rash.

 

[professor_frink]

Those things they cannot take, our constitutions, legal systems, and business practises...which of course in the US includes good ol' Chapter 11.

I wonder how much those things will matter if the US can't afford to impose itself on the rest of the world, and China and Russia can. Bring on nationalisation of the financial sector if it keeps them out of the hands of the Chinese, Russians and middle eastern countries.

Or maybe I'm just too paranoid about this sort of stuff!

 

[Lucky_Country]

"the next hot spot" "missing out again" all terms used too hype up the real estate market.
Hype combined with real estate fees combined with rising interest rates make property almost not worth the effort not many i trust in real estate !

 

[prawn_86]

I wonder how much those things will matter if the US can't afford to impose itself on the rest of the world, and China and Russia can. Bring on nationalisation of the financial sector if it keeps them out of the hands of the Chinese, Russians and middle eastern countries.

Or maybe I'm just too paranoid about this sort of stuff!

I have to admit that everytime i heas stories like this i cant help but smirk.

The US's complancey, arrogance, and debt laden government deserves nothing more than to crumple imo.

Saying that however, i do not wish for our Western lifestyle to change, so its kind of a catch 22 for me...

China has a long term plan (ie > 100yrs) imo, and wether that involves changing the world economy away from a market state remains to be seen, but im happily watching, as there is nothing i can do about it.

If only it was the complacent world leaders that suffered, not the public

 

[ithatheekret]

You should becareful of sharing such real life experiences around here, the resident Realestate will always be booming anti trust committee will be all over you like a rash.

LMAO

 

[awg]

Some personal observations of Real Estate prices in NSW.

I sold 3 townhouses I owned in Northern Sydney Beaches district 4 years ago
( invested the proceeds in Oz stocks!).

My development partner only just sold his 3 identical townhouses in the same development..he got slightly less than i got 4 years ago!

I live in Newcastle NSW. MY suburb is upmarket beachside. Prices have fallen 10% in 07 in my suburb!!. Places are on the market for longer in the last 6 months..ie over 3 months..I have not seen that before.

I recently bought an inexpensive place nearby, after they dropped the asking price 20%. There were some other reasons apart from Capital Gain, that I purchased it..ie it has some storage space, which I need, local place for my kids to live later, good renter, gearing, diversification, etc etc.

Although statistical info shows prices have risen 6% in the last quarter for that suburb, I did not, and do not believe that it was a really good purchase from a Capital Gain perspective, which is the main deal for RE.

I had it rented out to a very good tenant within 10 days of purchase at a gross yield of 5.2%. I had a large number of applicants and could have got a higher rent if I had chosen to.

I think we will see a fall in local prices, especially in the middle range, in 08.

 

[professor_frink]

Hello,

The Average Australian House price is now 442k.

The Average Australian wage is now 55k.

Borrowing calculator says 55k wage can borrow 220k. (using approx 50pc of your after tax income to service loan)

Interest rates are rising.

Better grab a liar loan now before you are forced to share a park bench with the poor people.

That part of your post seems to be a rather simplistic argument- there are a wide range of incomes and house prices out there, and you seem to always base these kinds of comments around people having to borrow the entire amount to buy a house.

Never thought I'd be saying this, but I'm going to make a robots-like comment- if someone wants to buy a house, work hard, save and buy something in a price range they can afford and everything should be alright.

If people don't like what's out there in a price range they can afford, then they can rent, and invest the difference until they can afford what they want.

The ones who are going to end up poor are the people who rent instead of buy, and spend all of their disposable income on pointless crap.

 

[numbercruncher]

The time has come when people are forced to consider the full ongoing cost of home ownership. Capital gains are no longer guaranteed to cover the gap.


A 440k Median priced home in NSW, will cost you 15k in Duty and another 15k to sell it, you need it to rise nearly 10pc just to break even on the buy/sell spread.

We are barrelling down on an era of 9 to 10pc Interest rates.

How much room for capital Growth does the most bullish of the property bulls realistically see here?

 

[professor_frink]

The time has come when people are forced to consider the full ongoing cost of home ownership. Capital gains are no longer guaranteed to cover the gap.


A 440k Median priced home in NSW, will cost you 15k in Duty and another 15k to sell it, you need it to rise nearly 10pc just to break even on the buy/sell spread.

We are barrelling down on an era of 9 to 10pc Interest rates.

How much room for capital Growth does the most bullish of the property bulls realistically see here?

Maybe I'm looking at buying a house from a slightly different perspective to most- The prospect of a capital gain hasn't even been considered by Mrs Frink and myself- buying a house, for us, is a hedge against the general market rising, and locks in(roughly) the cost of us having a roof over our heads. The issue of capital gains is one for the property investor, not a home buyer. Any gain in the price of the house we've bought is going to be offset by the rise in every other equivalent home in the area, making it rather pointless to think about.

 

[robots]

The time has come when people are forced to consider the full ongoing cost of home ownership. Capital gains are no longer guaranteed to cover the gap.


A 440k Median priced home in NSW, will cost you 15k in Duty and another 15k to sell it, you need it to rise nearly 10pc just to break even on the buy/sell spread.

We are barrelling down on an era of 9 to 10pc Interest rates.

How much room for capital Growth does the most bullish of the property bulls realistically see here?

Hello,

who knows NC?

I dont, all I know is prices are still solid in the blue chip areas across Aus, thats all

happy new year

thankyou

robots