House prices to stagnate for 'years'

[Freeballinginawetsuit]

O.K., thanks for the conversation its been enjoyable. I think your RIN is a good long term hold as a bottom pick. If you ever come to West Oz I will show you some of the nice sites, its not all that bad over here.

 

[krisbarry]

I'm from a small town myself Prof. Lived in one over 20 years.

Lived in Sydney nearly 10 years now.

It constantly pis*ses me off when people from smaller towns make judgements on city slickers renting. As if owners are superior.

I've seen both sides. I like smaller towns more than Sydney actually and will eventually leave Sydney, when who knows, but cause I rent I am free to move when and where I like!

I'm in no way against small towns, I am against owners that think they are superior to renters though.

Realist please....give it a rest, you will do your head in over this!

Don't say I didn't warn ya....been there done that.

I am saying it in the nicest possible way and I mean no harm at all.

 

[krisbarry]

This thread needs to ble closed down now...where is that padlock?

...too many people with such conflicting views and it is now becoming very un-healthy for the good of mankind

 

[Realist]

O.K., thanks for the conversation its been enjoyable. I think your RIN is a good long term hold as a bottom pick. If you ever come to West Oz I will show you some of the nice sites, its not all that bad over here.

Thanks, as you can tell I enjoy a good argument.

I love WA, been to Perth only once but really liked it. I like Margaret River wine, When it's house prices crash I may even move there..

I rate Perth as a very livable city, nice weather, beaches and friendly people. But I'll be honest the WA economy despite all the recent resource hype is not good, houses are tremendously overvalued now, and you may be in for hard times in years to come, just like sydney is copping now.

 

[Bronte]

An absolutely Superb place Perth.
We saw at least 50 cities around the world before choosing to settle here.
Renting a new beach house here in the west is paradise
Why do we rent??? Business premises are tax deductable.

 

[ducati916]

The easiest conclusion is simply to calculate the value of your proposed investment, thus there is no argument.

Investment Value = Annual Rental Return * Required Return [capitalised] - [Interest rate - Inflation rate]

End of argument.
jog on
d998

 

[Jay-684]

The average house price where I live is $1.9M. Seriously - Lower North Shore!

I live in an apartment worth $650,000. It has body corporate fees of about $6,000 per year (it has a shared pool, spa, gardens etc.)

I share with a girl, I pay $175 per week in rent.

The apartment has gone down about $80K to $100K in the past 3 years.

Do your maths again. I am right!!!

Where do you live on the North Shore? I'm guessing Mosman...

as for saying its expensive, there are plenty of other areas in Sydney cheaper, including on the North Shore eg Crows Nest, Cammeray, St Leonards. They all have an abundance of apartments and the shops etc arent nearly as expensive. Woolies Neutral Bay is a RIP OFF!

 

[Jay-684]

At 22 years of age I had no money infact owed money from a student loan.

I was basically bankrupt in 2000 - working in IT and having IT shares was not helpful in the biggest crash of our lifetimes. I've seen bad times. Never been given any money by parents or inheritance. I've done it myself through tough times.

If you wanna ask someone who is rich how to make money send Paris Hilton an email.

If you can buy a house in Sydney over the next year you are doing very very well, especially considering how young you are!

At your age I'd recommend travel, money is one thing, your life is the most important thing. Mortgaging yourself to the hilt at a young age limits your options.

Travel is definately on my list... been overseas 3 times with friends in the last 18 months. Love it.

 

[krisbarry]

Woolies Neutral Bay is a RIP OFF!

LOL, the whole of Sydney/NSW is a rip-off!

thats why the rest of Australia's population (14 million people) do not live in Sydeny/NSW.

Housing, food, entertainment etc etc.

I just question the true value of Syndey/NSW sure its a nice state/city but is it worth struggle street for an entire life to afford just the average!

That said, I was on the harbour, watching the fireworks on New Years Eve (millenium) and that was just awesome.

Syndey/NSW nice place to visit, but forget living there.

 

[Realist]

Why do we rent??? Business premises are tax deductable.

You rent.

You must be poor....

 

[Realist]

Where do you live on the North Shore? I'm guessing Mosman...

as for saying its expensive, there are plenty of other areas in Sydney cheaper, including on the North Shore eg Crows Nest, Cammeray, St Leonards. They all have an abundance of apartments and the shops etc arent nearly as expensive. Woolies Neutral Bay is a RIP OFF!

Correct, it is Mosman.

And yes Woolies Neutral Bay was on A Current Affair a few years back, it is Australia's most expensive supermarket, and yes I shop there quite often, unfortunately. Not much other choices.

I've looked at buying in Cammeray, nice area, bit quieter, and a bit cheaper. I play golf at that 9 hole course there every so often. May buy there next year if proces go down a bit more.

 

[Realist]

LOL, the whole of Sydney/NSW is a rip-off!

thats why the rest of Australia's population (14 million people) do not live in Sydeny/NSW.

Housing, food, entertainment etc etc.

I just question the true value of Syndey/NSW sure its a nice state/city but is it worth struggle street for an entire life to afford just the average!

That said, I was on the harbour, watching the fireworks on New Years Eve (millenium) and that was just awesome.

Syndey/NSW nice place to visit, but forget living there.

You get what you pay for.

As I said I'm not from Sydney originally, and I don;t want to end up here forever.

However, Sydney has great weather, great beaches, an excellent career opportunities, a great nightlife, restaurants, okay bars, lots of nice golf courses, lots of great sport and events, it is an exciting and beautiful place to live.

On the other hand it is expensive, stressfull, has traffic problems, and people are rude.

There's no Utopia though. Sydney is a world class city, and for young people it provides excitment and opportunity that nowhere else in Australia does.

For kids, and families it aint a great city to live though. I agree.

 

[Bronte]

An absolutely Superb place Perth.
We saw at least 50 cities around the world before choosing to settle here.
Renting a new beach house here in the west is paradise
Why do we rent??? Business premises are tax deductable.

Poor....used to be
We rent now and for us it is wise to.
Of course we own lots of Investment Property.
If we see a 42% drop in real estate prices we would consider buying again

 

[Realist]

We rent now and for us it is wise to.

Very smart...

 

[Bronte]

Very smart...

Thank you

 

[Julia]

Realist

You promote the benefits of being an employee rather than having your own business.

I can't help thinking, in view of the amount of time you spend on this site, that I'm rather thankful you are not my employee.

Julia

 

[Realist]

Realist

You promote the benefits of being an employee rather than having your own business.

I can't help thinking, in view of the amount of time you spend on this site, that I'm rather thankful you are not my employee.

Julia

You are exactly right Julia, for once.

If I ran my own company I may have to do some work.

 

[Jay-684]

Not specifically related to the thread topic, but for anyone who thinks more people make more money from shares than property, the industry with the most number of people in the BRW Rich 200 is infact property. Obviously thats not simply through owning investment property, but also through property development, construction etc

 

[Jay-684]

And the approximate total value of Australias residential properties is $2.3 trillion!

 

[Judd]

And the approximate total value of Australias residential properties is $2.3 trillion!

Which raises the question of why, if it is such a wonderful investment, that every fund manager or superannuation group have not bought every single residential rental propert in Oz. I asked that question of a fund manager once and the reply was "It's a cottage industry and the yields are cr*p."