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House prices to stagnate for 'years'

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hello,

Dow down ANOTHER 2% on friday

bumper weekend for RE i would imagine, looks as though the credit crunch everybody is fascinated with is only knocking the share markets around, amazing

get me some of that furphy, great stuff kathmandu

thankyou

robots
 
Well buying RE straight after the 87 stock market crash would have been a cracker move.

Though you could have sold in the early 90's and saved yourself a decade mostly.
 
If theres ever a recession again there will be total carnage im sure of it.

House prices at 10x average salaries - was 3 when i bought my first house.

Its maddness, its also kinda cute and kinda amusing.

Keep up the good work realestate dudes.


 
House prices at 10x average salaries - was 3 when i bought my first house.
Click to expand...

10x?

In my area the average wage would be 55K
The average house $300k.

Sure in some areas you could get that but who on an average wage would be looking at $1mill or even 700K properties.

Take into account deposits and this figure gets less.

You can make it what you want to suit an arguement.
 
Figures released by the Real Estate Institute of Victoria reveal the median price jumped more than 10 per cent in the June quarter to a new high of $420,000.
Click to expand...

http://www.abc.net.au/news/stories/2007/07/28/1990794.htm


Excuse the oversight, make that 8x ....... (maybe after stamp duty etc 9x)


Big difference though eh ? Nation of debt slavery .....

Happy house buying punters !

 
Just cracked some numbers .....


Australia average Mortgage 300k, average income 55k (43 after tax) , average Interest rate 8.3pc.

Monthly income 3580
Monthly mortgage repayment 2264
----------------------------------
Left over 1316


Would someone please raise Interest rates 5pc so average wages match average mortgage repayments afterall Inflation is our primary concern!


Anyone got a pin ?
 
THE prospect of interest rates jumping to 6.75 per cent in early 2008 increased significantly yesterday following the release of the Reserve Bank of Australia's statement on monetary policy.
Click to expand...

http://www.news.com.au/heraldsun/story/0,21985,22241622-661,00.html


Credit crunch coming, Lenders turning away High risk people , Recession in SA, Stock market break down, familys going broke ....

Let us know how things boom this weekend Robobotics see if you can hook up some 105pc mortgages. Maybe a 10pc jump in prices this week as well ?

 
hello,

no problem numbercruncher,

will let you know what happens on the weekend, but all looks good since the numbers are coming into the country

I just hope you have read all my posts to understand that I am only reporting on the state of the RE market, no predictions, no crystall balls, just the real life facts

property is a very individual thing, go for a walk and see what you find

thankyou

robots
 

Thanks Robots ...


I do read all your posts with great fervor! and probably more so at this point in time than ever!

Looking forward to the update

NC
 


Yes SFA left over, for every day living.

If you're looking for parity between wages and mortgage repayments, try the sydney market, Avg house price ~500K and earnings ~55K-60K. Reckon that will go pretty close.
 

Forgetting the idiot factor who take out lodoc loans---they deserve to go belly up.

20% down leaves $260K
Lets say 8% = $1,733 (nominal) / mth.
Get creative and get a boarder + $480/mth.

Do as a friend of mine did and rented out / room to hosties staying O/N's in Perth both domestic and international (Nice pad). and obviously single.

Look its tough for those starting out but was just as tough for me when I was on $27/week.35 yrs ago.
 

http://www.yourmortgage.com.au/news/1747/default.aspx


wow its even worse than i realised, must be alot of baked beans on toast happening now a days
 
I don't think the property market in prime areas of interests is affected at all by the affordability of the first home buyers. Pushing up the market by first home buyers from the bottom is negligible compared to people with money sucking the price up from the top. A few multi-million dollars transactions will boost up the median prices in good suburbs, while the investors mop up all the inner city smaller properties. The outer areas are left for first home buyer if & when they can afford it, if not, the prices of these will decrease. Since they are not high priced properties to start off with, 10-20% decrease in say $200000 range is not going to affect the big picture. I think there are enough people with real money to keep the market UP.
 
hello,

gee numbercruncher you could be right with your prediction of 10% rise in RE this weekend with the DOW diving AGAIN last night, ASX will probably follow

the big four are standing tall, so those on above board income (payg) and deposit will be fine i believe

thankyou

robots
 
You go you good thing !!


Make sure they understand to bid up up up ^ , 105pc mortgages to maximise those neg gearing incentives !!


Skys the limit !! 500k house today is the million dollar house of next month !

All that speculative cash puring out of stocks and driven by bad sentiment has to go somewhere!! and god forbid people actually wanting to sit on cash when opportunity abounds like this!

 
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