hello,
Australia average pretax wage = 55k , average House 440k , thats over 10x post tax income = Does not compute.
ha ha ha ha, guess what NC that tells me RE is as high as ever, so much for stagnation
thankyou very much
robots
With rising fuel prices public transport will become more attractive and I believe in 5 + years housing near major public transport infrastructure will be going up in price as people look to move away from the burbs where they comute for 1 hour + a day by car. Its just not going to be economic to drive 50kms and pay multiple tolls alone the way, i think people will take the transport savings and put them into paying more for better location.
Im not sure thats true, I go into the realty office every two weeks and whack the super cheap rent on the CC for reward points (making it even cheaper rent) and theres always a bunch of board looking salespeople standing around
Sometimes I wonder how the people whom own this house I rent remain solvent, ahh the deductions, gotta love it, benefits us both at the expense of your hard earnt tax
Possibly they purchased the house a good few years ago, and are now enjoying a positively geared investment?
HOUSING (+1.1%)
Most categories of housing recorded price rises this quarter. Main contributors to the increases were increases in house purchase (+1.3%) and rents (+1.6%). This is the largest quarterly rise for house purchases since March quarter 2005.
Average rents rose in every capital city, ranging from 0.4% in Hobart to 3.2% in Perth.
Increases in house purchase prices were recorded in all capital cities, with Brisbane (+3.0%) and Melbourne (+2.0%) being the highest and Sydney (+0.6%), Adelaide (+0.5%) and Perth (+0.3%) being the lowest.
Over the four quarters to December quarter 2007, the housing group rose 4.8%, mainly due to rents (+6.4%) and new house prices (+4.3%).
http://uk.reuters.com/article/propertyNews/idUKNOA14543820080201?rpc=401&hello,
no its not wayne, I have people on the ground over in Derry right now
thankyou
robots
DUBLIN (Reuters) - House prices in Ireland fell for the tenth month in a row in December, bringing the total decline in 2007 to 7.3 percent
What does BTL have to do with it? That's just a rationalization allowing you to deny the facts.hello,
every house dropped by 7.3%, not quite Well Doh!!!
fair bit of BTL in that,
thankyou
robots
That said, there are many here in this market who are having to sell at 2005 prices. Some at even less (and of course some have done alright as well). It is this illiquidity that says IF you want to sell, too early could be good.This thread was started Sep 2005. If you had deferred your purchasing decision in Sep 2005, waiting for the 'inevitable' bust, you would have missed out on substantial capital gains in Melbourne, Perth, Hobart etc.
I think that the Melbourne market will start to take a breather now that interest rates are high. However inner city 'pads' will continue to appreciate as the long term demographic trend of the abandonment of the quarter acre block for the sense of community of the 'bohemian' inner city continues.
Proves two things -
1. get your timing right. No point being a pessimist to early; and
2. don't fight long term societal changes.
Unlike shares, the housing market is illiquid and not prone to the emotional peaks and troughs that the equities market investor has to endure.
What does BTL have to do with it? That's just a rationalization allowing you to deny the facts.
Prices in Ireland are falling.
As they are in the UK and much of western Europe... not to mention the US.
That said, there are many here in this market who are having to sell at 2005 prices. Some at even less (and of course some have done alright as well). It is this illiquidity that says IF you want to sell, too early could be good.
I ain't selling my earlier purchases, but I'm chuffed I didn't buy anything in 2005... very chuffed.
The scary thing about distressed folk trying to hold on here, is that it's only just starting to get bad.
My £0.02
I've readily admitted prices have risen, but have stuck to my macroeconomic view throughout, which is proving to be correct. It is only the perverse pseudo Keynesian nonsense which has propped it up all this time.hello,
you have been in denial for over 2 years wayne, although i do remember one post where u admitted things were going not as you thought
"house prices to stagnate for years" 17/09/05 it started and the denial is still going on yet the indicator many here use: average house price to average income is still as high as ever
thankyou very much
robots
Denial? No. Early? Already admitted.
But they are only playing the overture now. The main show is yet to come.
hello,
who know's what will happen, i surely don't
thankyou
robots
UP TO 300,000 Australians risk losing their homes this year as rising interest rates and the credit crunch fuel severe debt.
As the Reserve Bank prepares to meet on Tuesday to consider another rate rise, analyst Martin North of Fujitsu Consulting predicted a dramatic escalation in defaults on home loans.
Joint research by JPMorgan and Fujitsu Consulting, due to be published next month, predicts that 750,000 owners will be hit by "mortgage stress" in the coming months, meaning more than 35 per cent of their income will be swallowed by home-loan repayments.
Of those, between 250,000 and 300,000 will suffer from severe mortgage stress, where they begin defaulting and risk having their homes repossessed.
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