House prices to stagnate for 'years'

[numbercruncher]

One of my Cousins whom is a Teacher has just moved to the US, getting married to a state trooper she met, but anyways, I forget the town she is in, apparently a nice place, she found a House she likes, freestanding for 40k! Its gone to the other extreme, people could pay off a house in 12 months easy!

 

[robots]

hello,

you just need to get down to walmart to pick-up a 9mm and a 303 to pop cap to stay alive,

probably best to join the lynch mob

thankyou

robots

 

[MyNameIsEarl]

This thread is what initially got me to sign up to ASF- constant source of infotainment!!

A few points I would like to add:

- People who talk of gen Y (as if an entire age group has similar tendencies) being the "me" generation, no savings, credit trapped etc. who do you think taught them this? I believe it has more to do with how you are raised vs. the era you are raised. Most of my peer group (mid-late twenties) are in the market and manage their finances well. The people I know who aren't are the ones whose parents have allowed them to stay at home board free whilst still working full time, tender to their every need etc. and still save nothing. How can you blame the kids?

- I find it frustrating that people talk as if either owning a home or owning shares is a choice. I am choosing to own my home so that I can afford to invest in more shares. I bought about two years ago and already my payments are similar to what I would be paying to rent. I just bought what I could afford, which is a fair way below the average.

- As a single guy paying off a house, I would love to be one of these "struggling" couples!!!!

 

[wayneL]

hello,

you just need to get down to walmart to pick-up a 9mm and a 303 to pop cap to stay alive,

probably best to join the lynch mob

thankyou

robots

Total rubbish.

I grew up in the states and never even saw a gun. Some areas are bad, but most middle class are as safe as.... errr, houses.

 

[robots]

hello,

that 40k bargain could well be in a bad area, you see plenty of action on "cops"

guys riding around on pushies with loaded in pocket,

people waving guns in the air, school shooting after school shooting,

no, no guns there

guess thats why it is 4x earnings or so

thankyou

robots

 

[wayneL]

hello,

that 40k bargain could well be in a bad area, you see plenty of action on "cops"

guys riding around on pushies with loaded in pocket,

people waving guns in the air, school shooting after school shooting,

no, no guns there

guess thats why it is 4x earnings or so

thankyou

robots

Depends,

Could be in a bad area of course, but we don't have that info.

But I'm telling you that I grew up in LA, and I have rellies in North Carolina and Atlanta Georgia. WE never owned guns, nor ever saw anyone use a gun. Relatives alo do not own guns, nor have been threatened or shot or whatever.

I can buy a nice house in NC for about 120k in a safe area with excellent job prospects (technology triangle)... and won't have to own a gun.

 

[numbercruncher]

that 40k bargain could well be in a bad area, you see plenty of action on "cops"

I cant say with absolute conviction if the area is nice or not, I havnt visited, but im pretty sure they wouldnt live in a dodgy area, the husband to be is a state trooper so he can just tazer the dodgy neighbours or whatever it is you see everyone doing on "cops" ?

I think its time for you to quit watching Bubblevision Robi, stick with the Internet

 

[robots]

hello,

was so disappointed when cops was taken off Ch10, hit the internet for more entertainment like Earl,

hope it is back on soon, always great entertainment seeing the streets of south central

thankyou

robots

 

[IFocus]

Total rubbish.

I grew up in the states and never even saw a gun. Some areas are bad, but most middle class are as safe as.... errr, houses.

Wayne serious question, given the legal hand gun ownership levels in the states who is it in your experience that has guns in the US .

 

[Tysonboss1]

I've just done a quick calculation on what was paid for my house 14 years ago versus what it's worth now, and it averages 9% p.a.
There have been no mortgage payments but it would be necessary to deduct ongoing maintenance and improvements which would probably bring it down to about 8.5% p.a.

And then there's the immeasurable benefit of never having to worry some landlord is going to throw you out and the further benefit of being able to whatever you want.

you should also take into account the rental return, Even though it is owner occupier you should take into consideration the rent saved by not having rental increases over the last 14 years.

 

[numbercruncher]

Bit more evidence for the Aussie property Bears ...

Australian mortgage-backed bond sales fell to the lowest in three years as the fallout from the U.S. housing recession cut demand for the assets in the second half of the year.

Sales of bonds backed by Australian home loans plunged 87 percent in the last six months to A$5.9 billion ($5.2 billion), from a record high of A$44.4 billion in the first half of the year, according to Deutsche Bank AG. Issuance fell 12 percent this year to A$50.3 billion, the lowest since 2004.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aBxM3WhR5tS4&refer=home

It's a sad state of affairs when the number of home repossessions have almost doubled in the last year across the country

In the fall-out from 11 straight interest rate rises, nearly 80 people a week in New South Wales alone are given their marching orders after defaulting on their loans.

In Sydney, the south-west has been confirmed as Australia's worst area for mortgage pain.

One in two homeowners like Leanne James have been pushed to the brink after defaulting on her loan.

http://au.todaytonight.yahoo.com/article/317870/consumer/sharks-tightening-mortgage-belt

 

[wayneL]

Wayne serious question, given the legal hand gun ownership levels in the states who is it in your experience that has guns in the US .

Hunters, people in inner cities, criminals. Don't get me wrong, lots of people have guns and there is certainly a gun problem in the US.

But in normal middle class areas where most of us would live, it is not an issue.

 

[wayneL]

FYI

http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article3260831.ece

 

[theasxgorilla]

But, but, but, housing prices never go down, do they?

I've seen similar price drops in West Virginia as well.

My entry into Real Estate will be when there's Real Estate spruiker's blood on the streets...

Yeah, you property bears would love that site. All the evidence you need.

Remember, those are property bears prices...low-ball offers intended to do one thing and one thing only...pick up the mother of all bargains. You could see similar activity (granted, not to the same extreme) during '04 right here in our very own cities. Few can accept such low prices, so the reality will be that few properties sell for those initial offers. 20% discounts off realistic values would be a good deal, IMO. Those valuations are also probably inflated to hell, so you'll notice I just said realistic valuations. It's not unusual for real estate agents to be off 10% or more from reality with the tops of their ranges.

If you are going to get bargains, the coming months will be the time to do it. Be realistic. You won't pick up a palace for half-price. This isn't some country with a completely defunc economic and social structure...it's the US.

ASX.G

 

[wayneL]

This property was sold at auction on 11th Dec 2007 for £115,000 (You can look up the auction results under that date on www.auction.co.uk ). The sale is too recent to appear on www.houseprices.co.uk.

But have a look what was paid for this property only 18 months ago

 

[robots]

hello,

thats typical BTL wayne, any chance for some stats on a nice london place,

this why I say same thing happened here in Aus to the BTL in melb 03-04 (docklands etc), many prices dropped the "developer" profit,

but it is catch twenty two because "accommodation" needs to be built by somebody and it was developers at that time (02-04)

it is only now the "investor" is starting to catch up with capital gain,

this stuff still goes on and many people get hoodwinked by salesman

thankyou

robots

 

[wayneL]

hello,

thats typical BTL wayne, any chance for some stats on a nice london place,

this why I say same thing happened here in Aus to the BTL in melb 03-04 (docklands etc), many prices dropped the "developer" profit,

but it is catch twenty two because "accommodation" needs to be built by somebody and it was developers at that time (02-04)

it is only now the "investor" is starting to catch up with capital gain,

this stuff still goes on and many people get hoodwinked by salesman

thankyou

robots

Will post as I come across them.

 

[stock_man]

Was just thinking of the possibilities if property prices came down.....

Using loan portability (transfering the loan from 1 security to the next), I could upgrade my house from out in the suburbs to a beach location!

True I wouldn't want to sell my house due to possible negative equity, but why not just increase the living value by changing location, house size/quality etc?

Sounds great to me.

 

[Tysonboss1]

Was just thinking of the possibilities if property prices came down.....

Using loan portability (transfering the loan from 1 security to the next), I could upgrade my house from out in the suburbs to a beach location!

True I wouldn't want to sell my house due to possible negative equity, but why not just increase the living value by changing location, house size/quality etc?

Sounds great to me.

Nice thought isn't it,.... bit of a pipe dream though.

I don't see property dropping that dramatically any time soon, and if it does it won't be down for long.

 

[Kimosabi]

Nice thought isn't it,.... bit of a pipe dream though.

I don't see property dropping that dramatically any time soon, and if it does it won't be down for long.

That's what everyone thought in the US 2 years ago. Wait until the Credit Crunch hit's commodities. Then we'll see Aussie House Prices come back to reality...

It's coming, I can smell it in the air, like I can smell the rancid oil from dead humanoids...