House prices to stagnate for 'years'

[Sean K]

lollercoaster Davo since when is presenting links and personal opinions on a subject trolling ?

Something tells me that Davo is fretting that his little piece of Queensland mango farm wont return his projected 50pc.

If you guys think Housing prices at 10x plus Earning ratios is good buying, well go ahead knock yourselfs out, Im basically showing its detachment from any time in history.

ps. whats GHPCF ?

So, what is your intent NC?

What are you telling me to do?

 

[numbercruncher]

So, what is your intent NC?

What are you telling me to do?

Merely adding to the debate that "House prices to stagnate for 'years'"

I dont think that Ive attempted to tell you to do anything ?

Each to their own on Investment decisions!! and after all we all need a roof over our heads hey!

 

[Sean K]

Merely adding to the debate that "House prices to stagnate for 'years'"

I dont think that Ive attempted to tell you to do anything ?

Each to their own on Investment decisions!! and after all we all need a roof over our heads hey!

Aren't you telling me, and anyone else, to sell my house?

 

[numbercruncher]

Aren't you telling me, and anyone else, to sell my house?

Nope not this little black duck, are you telling me and everyone else to buy a house?

 

[Sean K]

Nope not this little black duck, are you telling me and everyone else to buy a house?

Since we're putting it on the table, buying a house to live in, is a financially bad decision, imo, atm.

However, buying a home, as a lifestyle investment, can not be financially assessed. It can be priceless!!

So, depends on the angle...

I still don't get your point exactly.

Investors - stick to stocks away from real estate?
Investors in real estate - sell up?

 

[Kathmandu]

lollercoaster Davo since when is presenting links and personal opinions on a subject trolling ?

Something tells me that Davo is fretting that his little piece of Queensland mango farm wont return his projected 50pc.

If you guys think Housing prices at 10x plus Earning ratios is good buying, well go ahead knock yourselfs out, Im basically showing its detachment from any time in history.

ps. whats GHPCF ?

Actually, I think you will find I was in it for a 20% slice ($390 spend $470 sell), but since I started, prices have passed that.

Similar 12 mth old houses have sold recently for $500k+, so I have no reason to expect mine not to. While I cant see the $600k like the REA's have priced them at, I feel $550k will be achievable, which put's my not quite as flash house around $520k (about 35%)

GHPCF = Global House Price Crash Forum (Australia) have a look, make new friends.

Dave

 

[robots]

hello,

looks like you will do well kathmandu,

http://www.theaustralian.news.com.au/story/0,25197,22353393-12377,00.html

i think you're increases are locked in, as might see a period of little flatter growth over the next few months

good stuff, keep bringing in those immigrants little johnny

thankyou

robots

 

[robots]

hello,

global house price crash forum, is it still going?

does anybody have the new address

thankyou

robots

 

[wayneL]

hello,

global house price crash forum, is it still going?

does anybody have the new address

thankyou

robots

There are dozens of Bearish RE forums and hundreds of blogs... google is good.

 

[Flying Fish]

hello,

looks like you will do well kathmandu,

http://www.theaustralian.news.com.au/story/0,25197,22353393-12377,00.html

i think you're increases are locked in, as might see a period of little flatter growth over the next few months

good stuff, keep bringing in those immigrants little johnny

thankyou

robots

Fudged figures. Does anyone really believe that units cost 400K lol

The housing market is in for a rude awaking

 

[numbercruncher]

Its actually starting to get quite amusing ...

We live in a country the size of Europe yet have a population not much more than some of the larger cities in the world , so its not like we have a shortage of land.

Its kind of fun to see how high the realestate/lending sharks can talk this whole deal up before implosion time!

Implosion will probably coincide with Johnny being voted of the Island so he can blame his opposition and get back in as the boss in four years time

 

[chops_a_must]

Fudged figures. Does anyone really believe that units cost 400K lol

The housing market is in for a rude awaking

They very well do here in Perth. It costs about $100,000 more for a 2 bed 1 bathroom unit in West Perth than the same thing in Southbank Melbourne. Just silly... long term that is just moronic.

 

[Kathmandu]

Fudged figures. Does anyone really believe that units cost 400K lol

The housing market is in for a rude awaking

Well, heres 20 pages worth of units in QLD over $2,000,000.00 (two million dollars for those that can't understand big numbers)

http://www.realestate.com.au/cgi-bi...t+Living,Serviced+Apartment,Studio,Unit&o=def

I'd say their toilet cost about $400k

Dave

 

[numbercruncher]

Would you not be asking yourself why there is over 20 pages of these shacks forsale ? If demand was hot would there not only be 1 or 2 pages ?

 

[numbercruncher]

AN AVERAGE house in an average suburb, with an average mortgage ”” a decade or so ago, it almost would have been a birthright. But not now. With Australia having the worst housing affordability of any developed English-speaking nation, a growing chorus of economists, lenders and politicians are calling for interest payments on mortgages to be tax deductible.

http://www.theage.com.au/news/national/the-australian-nightmare-can-we-find-a-better-way-/2007/09/01/1188067438559.html


I like the idea of tax deductible mortgages like other countries, even up the playing field, but it would essentially have no one paying income tax anymore Investors and occupiers alike writing of there entire income tax in deductions virtually!

Whats you feeling folks ? Realestate bulls would probably love it too, would keep prices up im sure!

 

[doctorj]

I doubt making interest payments on mortgages will make houses any more affordable for anyone but those who already own them (primarily the baby boomers).

As we saw with the first home buyers grant, all it seems to achieve is to drive up prices. What would make this any different?

Furthermore, it would encourage further investment in unproductive capital.

http://www.theage.com.au/news/natio...d-a-better-way-/2007/09/01/1188067438559.html


I like the idea of tax deductible mortgages like other countries, even up the playing field, but it would essentially have no one paying income tax anymore Investors and occupiers alike writing of there entire income tax in deductions virtually!

Whats you feeling folks ? Realestate bulls would probably love it too, would keep prices up im sure!

 

[wayneL]

http://www.theage.com.au/news/national/the-australian-nightmare-can-we-find-a-better-way-/2007/09/01/1188067438559.html


I like the idea of tax deductible mortgages like other countries, even up the playing field, but it would essentially have no one paying income tax anymore Investors and occupiers alike writing of there entire income tax in deductions virtually!

Whats you feeling folks ? Realestate bulls would probably love it too, would keep prices up im sure!

According to the Austrian economic theory (as per the videos I posted elsewhere) a bust is unavoidable where there has been a boom.

Trying to avoid the bust is counterproductive and prolongs malinvestment.

One way or another, house values will return to historic norms.

 

[trinity]

I doubt making interest payments on mortgages will make houses any more affordable for anyone but those who already own them (primarily the baby boomers).

As we saw with the first home buyers grant, all it seems to achieve is to drive up prices. What would make this any different?

Furthermore, it would encourage further investment in unproductive capital.


Quote:
Originally Posted by numbercruncher
http://www.theage.com.au/news/nation...067438559.html


I like the idea of tax deductible mortgages like other countries, even up the playing field, but it would essentially have no one paying income tax anymore Investors and occupiers alike writing of there entire income tax in deductions virtually!

Whats you feeling folks ? Realestate bulls would probably love it too, would keep prices up im sure!

Agree, an increase in first home buyers grant and the such would only drive prices up.

But, I read a few months ago, that Mr Rudd is suggesting that a "super"-like savings account for first home buyers. Not too sure whatever happened to it after he had his housing summit.

What are your opinions on that?

thanks.

 

[Lucky]

Fudged figures. Does anyone really believe that units cost 400K lol

The housing market is in for a rude awaking

Flipping through the good old Herald Sun today; Business section; sub-category Property; read that a 2 bedroom ground floor unit went for $535k as an owner occupied property. From memory it was either Malvern or Hawthorn(or neither of them?!?). So I guess someone believes it's worth it...:dunno: :sheep:

 

[theasxgorilla]

I like the idea of tax deductible mortgages like other countries, even up the playing field, but it would essentially have no one paying income tax anymore Investors and occupiers alike writing of there entire income tax in deductions virtually!

In Sweden it works as you describe. When most people pay 32% tax, and the top bracket is 52-55% (there are only 2 brackets) the savings each month are extra-ordinary. Imagine a $2,100 p.m mortgage repayment costing $1,400 after tax. $700 p.m if you're a couple. Then imagine what kind of a place you could buy with a 4% mortgage instead of 8%! Thanks to low interest rates and the interest deductions I get three times as much house for half the monthly outlay than I had in Aust.

Would it work in Australia? Well, it's already in Aust, just in a different place within the system. Rental properties. If you want the same benefits in Aust you have to get it via rental properties. This has the benefit of encouraging the upper/middle classes to provide flexible housing solutions for the society. Unfortunately it also results in run down houses maintained on a shoe string budget lived in by tenants who couldn't care less about up keep cos it's not their house. There is definately more pride in the way people look after their houses over here. And next to no-one owns rental properties because you don't need one to save tax cos you can do it with you PPR.