Australian (ASX) Stock Market Forum

House prices to stagnate for 'years'

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hello,

explod, suburbs around melb have had great increases over the past 12 mths, I have been sharing my experiences in relation to this, i apologise

things are going to roll on unless something changes in the labor & materials involved in building

yeah too right I am nasty when it comes to people with their hand out and then getting on forums and newspaper forums canning property because they can't live in a capital city penthouse

feed up with it, down the street corner wanting a dollar of my hard earned, like its someone's right to get a free dollar and get put up at the Windsor

kids with 5k tattoo's on legs and arms, 20 pairs of trainers, going to every dance party known to mankind and flipping 20 pills

thankyou

robots
ROTFL. I think you have a severe case of cognitive bias. I doubt any of us here fit your description.
 
hello,

you should check the drug taking thread, even one guy has amphetamine in his nick, lets run a topic on tattoos

thankyou

robots
 
hello,

you should check the drug taking thread, even one guy has amphetamine in his nick, lets run a topic on tattoos

thankyou

robots
Are these people involved in discussion on property?

Nope.

BTW, you might be surprised how many property owners have tattoos and take drugs. Some might even have 20 pairs of trainers. :rolleyes:
 
hello,

good one, the property owners arent going on about unaffordable prices

thankyou

robots

Nonsense!

I'm a property owner and perhaps the most vocal. Some of the other bears are also owners. You can cancel that little fallacy.
 
hello,

good one, the property owners arent going on about unaffordable prices

thankyou

robots


I try to refrain from using personal examples because publicly available information is more than convincing enough, at the end of the day anyone can makeup anything on a forum.

But .... two of my closest have equity stakes/part ownership of Land developments all over the countryside and even they know its unsustainable, they just dont admit it publicly ! It doesnt take Einstein to work out average house price divided by average income = BUBBLE

Its you realestate sharks/lobbyists combined with freeballing bankers and the media thats made them stinking rich, all they had to do was buy land off farmer Joe, slice n dice , rinse n repeat, money for jam.

Land developers would and always will continue to clean up even at fair value let alone this ridiculous price level that the realestate sharks have pushed it to, like Ive said, Im convinced that if market forces dont fix it, the Labor party will.

Thankyou
 
Wayne.
My suggestions still stand.
The $20/hr guy with no collateral wont be able to get in the market now or 8 yrs ago or if the property market comes off 40%.

If he's a smart $20/hr guy he wont stay on $20/hr long and will be in a position to become involved as he ticks the boxes so to speak.

I wouldn't be recommending getting into the market either without ticking most of the boxes and learning "The Trade".

No doubt its tough we have all been the $20/hr guy except some of us were the $20 a week guy! But we found a way.
Well some of us did.

Hi Tech

Your first paragraph is rubbish. From 2001 new graduates in my industry took advantage of the first home buyers grant to buy properties and I can tell you they weren't even on $20 an hour. To top it off most of them were single.

Cheers
Happytrader
 
ROFL.

Increasing rents are a major reason for the CPI increase.

I would indeed laugh if property investors were the cause of their own demise. Poetic justice for screwing over the youth.
 
Buying something and hope someone will come and pay a higher price to me is an unsustainable model, doesn't matter what it is be it property or shares.

I have a house and I do feel my house is over value based on average income and rent yield. I do feel for those people trying to get into the market at the current price.

All I can say is have fate in the system and the market, something that is artificially inflated will be corrected at some point in time by the market.

And that time may be soon :D

I repeat my uncle Warren teaching. When you cant find something worth wise to buy, keep it in cash
be it property or shares.

The time will come when that cash is very handy :), like this week for me.
 
I hope house prices fall. I'll need to buy a home within a few years, and I'm not looking forward to paying 8x my net income. A lengthy American recession should clinch it.

Baby boomers will cry a river, I just hope the government doesn't try to bail them out.
 
Purely from an economic standpoint, it's an appalling misallocation of resources when so much of our pitiful national savings are poured into such an unproductive asset class.

ROE - it may gall recent buyers of property, but a fall in property prices would not really hurt most owner occupiers (not talking about investors here)...if you move house you are buying and selling in the same market. Those upsizing would be advantaged by price falls and those downsizing, selling out for retirement would be disadvantaged. Most - who don't change residence - wouldn't be affected at all, except for their paper wealth.

Investors would scream blue murder but all investment carries risk.
 
I hope house prices fall. I'll need to buy a home within a few years, and I'm not looking forward to paying 8x my net income. A lengthy American recession should clinch it.

Baby boomers will cry a river, I just hope the government doesn't try to bail them out.

hello,

here we go, the violin out again

how about people get a better paying job, oh no, a bit of hard work maybe

if you dont like the prices or cant afford RE then rent instead

plenty here telling its the way to go,

thankyou

robots
 
hello,

here we go, the violin out again

how about people get a better paying job, oh no, a bit of hard work maybe

if you dont like the prices or cant afford RE then rent instead

A little unrealistic. A typical Sydney resident would need to boost his earnings 250% for median house prices to became affordable. It's more realistic for house prices to take a significant hit, through many years of depreciation. Of course, it's suits established home owners to chide first home seekers to "work harder" - harder than they themselves ever had to work!

In the unlikely event that the market doesn't correct, I might keep sharing a flat and buy a more reasonably priced home in Canada or the United States instead.
 
Hello Robots,

Never got around to it, but for the record, tell us about your realestate portfolio please :)

Thankyou
 
hello,

I have 2 units

i guess you need some more "noise" because the "property is going to crash" line is wearing thin isnt it

thankyou

robots
 
My opinion is that property will never crash here in Australia. I have bought and sold about 12 properties over my lifespan and I only lost on one. It was a investment unit on the Gold Coast in the early 90's. I bought it as an investment and it never went up. It was 1 block from the beach in Burleigh Heads. I held for 4 years from memory. The only reason I sold was because where I was living in Sydney I could see much bigger potential for a capital gain so I sold Gold Coast to pay for the deposit in Sydney.

Sydney shot up big time, my decision was wise and I was lucky too but most of it was calculated as I knew there was going to be good capital appreciation with the lead up to the Olympics.

The most important thing to remember as an investor is that property is still the most preferred investment for Australians in general. There is nothing you can say or do to change another persons view on this, I have tried but in the end they do have valid arguments. The most valid argument is, "yeah but you made most of your money in property didn't you"? And of course I did but I am out now and into the sharemarket except for our own principle place or residence.

What I am trying to say is that residential property will never crash in Australia. Too many people love it, prefer it, understand it and view it as low risk. With that sort of a love affair and demand with property you will always do ok as long as you buy correctly in the right area at the right price. Good luck to you all.
 
hello,

I have 2 units

i guess you need some more "noise" because the "property is going to crash" line is wearing thin isnt it

thankyou

robots


Hello


Thats nice, have good tenants ? you should raise their rents, free loading hippys living cheap off your dime :rolleyes:

Erm im not sure ive quite worded as you have, Im saying it will return to its long term mean, ie/ affordable for the average wage as reported by the Bureau of stats.

;)
 
hello,

just helping people out NC, like all good members of the community do,

cant cope with those who want it all on a plate as mentioned yesterday

thankyou

robots
 
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