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Sorry, I tend to rely on information from the Australian Bureau of Statistics. No offense, but they are a lot more credible that your unquoted [made up] sources.
House prices to stagnate for 'years'
- Thread starter krisbarry
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Sorry, I tend to rely on information from the Australian Bureau of Statistics. No offense, but they are a lot more credible that your unquoted [made up] sources.
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Ouch, I think someone is due for an oil change...
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Where is your evidence to support this?
I thought you are in Melbourne, how would you know what is happening in Sydney?
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No, no, no... you've got it all wrong. Robots don't like oil - it's too profitable an investment.
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No, no, no... you've got it all wrong. Robots don't like oil - it's too profitable an investment.
I don't know, there is a pretty loud squeek in here...
Bronte
Trading The SPI for 20+ years
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House prices; rents continue to grow in March quarter
http://reiwa.com/art/art-public-view.cfm?id=8681
http://reiwa.com/art/art-public-view.cfm?id=8681
Bronte
Trading The SPI for 20+ years
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Post #223 from 6th October 2005
Todays West Australian is reporting: "With an additional 3000 people coming to Western Australia
from interstate or overseas every month,....."
Approximately: 100 people a day !!!! Phew!
wayneL
VIVA LA LIBERTAD, CARAJO!
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Interesting article in the Age today.
http://www.theage.com.au/news/busin...out-of-property/2007/04/21/1176697151059.html
It would be interesting to verify some of these claims outlined in the article. A couple of examples that I have encountered in the past few months which makes me wonder about the state of the market are -
1. Brother in law recently purchased his first house. He was the only "real" buyer, rest of the bidders were "investor/developer" types. Bidding started at $250k and was bid up to $324k (his max was $325k) for the property. He thought it was quite interesting (annoyed that he was the only party that was interested in purchasing the property for habitation, whereas the other 3 bidders were investors/developers looking for a ROI.
2. I live in Kew and recently attended an auction a few weeks back. Vendor was asking for $2m+ for said house. Decent turn out (though probably mostly locals wondering who was going to spend $2m on this place). There seemed to be interested buyers. Bidding opened at $1.8m. No bids. Vendor bid placed at $1.9m. "Sound of crickets chirping." House passed in, sold after auction for $2m.
3. Another house in Kew in a street behind us has just come to market for auction in May. Asking price is $5m+
http://www.realestate.com.au/cgi-bi...eader=&c=80721251&s=vic&snf=rbs&tm=1177199810
It's sure to attract a lot of interest, but will be interesting to see if this property sells and at what price. I wonder whether this is a sign for a potential top for the top end of the RE market?
I've been back to Oz for the last 2 years, after spending the last 7 living and working in London. Whilst in London the same issues were being raised in regards to property - prices, affordability, etc, During this time we went through a property boom(and slight decline), tech boom, sept 11, a commodities boom, resurgent stock markets - globally. It has shown amazing resilience. The London/UK property markets took a bit of a bump during that time, but from what I believe have come back with a vengeance with property sales and valuations at highs.(A friend of mine has done pretty well in the RE side of things in the UK and owns a couple of properties in London - he recently got a valuation on one of his apartments in Greenwich and thought that the valuation they quoted was absolutely nuts, so contacted 3 other parties for valuations and all gave round the same estimate. So he's looking to sell up and return to Oz. He'll do nicely coming home with a buck and some change I imagine.
I thought the UK market was topped out when I left, but that beast just seems to keep on going. The Oz market seems to be doing the same thing. The similarities are quite fascinating, but the strength in the RE market just astounds me. I thought it was all coming to an end a couple of years back, but this thing is just playing out the way it's meant to I guess. I was wrong back then, so I no longer have an opinion as to what will happen either way, because frankly I have no idea. I have seen arguments for and against the RE market, but at this point, I would really need a crystal ball to forecast a date and time for when this event. Like all things cyclical this too will come to an end, but how, when, where and why? :dunno:
Anyone care to hazard a guess?
What I do find fascinating is the psychology behind the RE market and how emotional good folk get when discussing the RE market. That is a subject within itself (and probably also the crux of the who/what/why in this booming RE market).
http://www.theage.com.au/news/busin...out-of-property/2007/04/21/1176697151059.html
It would be interesting to verify some of these claims outlined in the article. A couple of examples that I have encountered in the past few months which makes me wonder about the state of the market are -
1. Brother in law recently purchased his first house. He was the only "real" buyer, rest of the bidders were "investor/developer" types. Bidding started at $250k and was bid up to $324k (his max was $325k) for the property. He thought it was quite interesting (annoyed
that he was the only party that was interested in purchasing the property for habitation, whereas the other 3 bidders were investors/developers looking for a ROI.2. I live in Kew and recently attended an auction a few weeks back. Vendor was asking for $2m+ for said house. Decent turn out (though probably mostly locals wondering who was going to spend $2m on this place). There seemed to be interested buyers. Bidding opened at $1.8m. No bids. Vendor bid placed at $1.9m. "Sound of crickets chirping." House passed in, sold after auction for $2m.
3. Another house in Kew in a street behind us has just come to market for auction in May. Asking price is $5m+
http://www.realestate.com.au/cgi-bi...eader=&c=80721251&s=vic&snf=rbs&tm=1177199810
It's sure to attract a lot of interest, but will be interesting to see if this property sells and at what price. I wonder whether this is a sign for a potential top for the top end of the RE market?
I've been back to Oz for the last 2 years, after spending the last 7 living and working in London. Whilst in London the same issues were being raised in regards to property - prices, affordability, etc, During this time we went through a property boom(and slight decline), tech boom, sept 11, a commodities boom, resurgent stock markets - globally. It has shown amazing resilience. The London/UK property markets took a bit of a bump during that time, but from what I believe have come back with a vengeance with property sales and valuations at highs.(A friend of mine has done pretty well in the RE side of things in the UK and owns a couple of properties in London - he recently got a valuation on one of his apartments in Greenwich and thought that the valuation they quoted was absolutely nuts, so contacted 3 other parties for valuations and all gave round the same estimate. So he's looking to sell up and return to Oz. He'll do nicely coming home with a buck and some change I imagine.
I thought the UK market was topped out when I left, but that beast just seems to keep on going. The Oz market seems to be doing the same thing. The similarities are quite fascinating, but the strength in the RE market just astounds me. I thought it was all coming to an end a couple of years back, but this thing is just playing out the way it's meant to I guess. I was wrong back then, so I no longer have an opinion as to what will happen either way, because frankly I have no idea. I have seen arguments for and against the RE market, but at this point, I would really need a crystal ball to forecast a date and time for when this event. Like all things cyclical this too will come to an end, but how, when, where and why? :dunno:
Anyone care to hazard a guess?
What I do find fascinating is the psychology behind the RE market and how emotional good folk get when discussing the RE market. That is a subject within itself (and probably also the crux of the who/what/why in this booming RE market).
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The Age article makes an interesting point.
Buying property for investment, when properly structured, is a far better deal than buying to live.
Geared investors can deduct the expenses and have the government subside their cash costs.
Not only can they deduct the cost of interest, rates and body corporate - they can deduct the non cash costs of depreciation.
Of course the 'investors' are going to out bid the 'residents' - investors have an incredible financing advantage.
Without the tax advantages - anyone buying property in this market for an investment would have to be a complete idiot.
2% yield, no liquidity and undiversified.
The lifestyle benefits are the only reason to buy to live in this market and this is why I cannot understand people buying in far flung suburbs to get 'on the ladder'.
I cannot understand why anyone would want to travel 3 hours a day to buy a property half of the value of the superior one you could afford if you were an investor and renter.
It is the "great australian dream" brainwash that is going to create a lot of broken dreams when it falls in a heap.
Buying property for investment, when properly structured, is a far better deal than buying to live.
Geared investors can deduct the expenses and have the government subside their cash costs.
Not only can they deduct the cost of interest, rates and body corporate - they can deduct the non cash costs of depreciation.
Of course the 'investors' are going to out bid the 'residents' - investors have an incredible financing advantage.
Without the tax advantages - anyone buying property in this market for an investment would have to be a complete idiot.
2% yield, no liquidity and undiversified.
The lifestyle benefits are the only reason to buy to live in this market and this is why I cannot understand people buying in far flung suburbs to get 'on the ladder'.
I cannot understand why anyone would want to travel 3 hours a day to buy a property half of the value of the superior one you could afford if you were an investor and renter.
It is the "great australian dream" brainwash that is going to create a lot of broken dreams when it falls in a heap.
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I thike the comment at the end of this article:
- Most investors are not rich, they're taking the biggest gamble of their lives.
Now I wonder what happens if the government decides to abolish Negative Gearing.
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no government in its right mind would get rid of negative gearing. they tried this before and looked what happened. negative gearing is the ultimate out for the government they don't have to worry about houssing commision
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Thanks for the link, Wayne. Worth the read.
I think negative gearing is the biggest con that the gov has conceived regarding property ownership and has help create this bubble in housing.
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it makes housing more affordable to those who can not buy
wayneL
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Not yet.
Distress sales showing up in my target market though, thinking of bidding on one. But probably still too many muppets around at the moment who will bid over the odds.
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