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House prices to stagnate for 'years'

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robots said:
hope some sydney people can let us know the state of their market, because I understand from my own research things are solid there
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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.
 
hello,

solid prices in Sydney at the moment, hope everybody can go out and have a look around

people are hanging on to their selling price and getting multiple bidders both at auction and private sale

thankyou

robots
 
robots said:
hello,

solid prices in Sydney at the moment, hope everybody can go out and have a look around

people are hanging on to their selling price and getting multiple bidders both at auction and private sale

thankyou

robots
Click to expand...

Where is your evidence to support this?

I thought you are in Melbourne, how would you know what is happening in Sydney?
 
hello,

good property (over all price brackets) is solid and definitely has not sat idle

has the crash turned up yet?

thankyou

robots
 
Bronte said:
Perth real estate is certainly not stagnant.
86 people a day are presently migrating to WA
This equates to 50/60 extra homes required per day.
We have been busy buying prime real estate since 1998
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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!
 
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).
 
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.
 
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
 
BSD said:
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.
Click to expand...

You forgot to add indivisibility.
 
hello,

great stuff, keep it coming

thanks wayne for digging up another great story for everybody to read this weekend

is it buying time yet, got the piggy bank ready

thankyou

robots
 
Kimosabi said:
Now I wonder what happens if the government decides to abolish Negative Gearing.
Click to expand...

I think negative gearing is the biggest con that the gov has conceived regarding property ownership and has help create this bubble in housing.
 
robots said:
hello,

great stuff, keep it coming

thanks wayne for digging up another great story for everybody to read this weekend

is it buying time yet, got the piggy bank ready

thankyou

robots
Click to expand...
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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