I can afford a house

[numbercruncher]

Some amazing/surprising news, Sure answers one of the Questions with property in Vic/Melb regarding demand !

Melbourne's population will hit five million by 2032, shattering government predictions and putting pressure on infrastructure, housing and the environment, new figures reveal.

The figures, released by the Australian Bureau of Statistics and published in The Age, show Victoria's population rose by more than 74,000 people in the year to March - or 1,400 people a week, and is expected to rise.

Migrants accounted for 58 per cent of that population growth, while births exceeded deaths by 31,131 over the period, the figures showed.

Melbourne's population was expected to be 4.9 million in 2031, up from 3.7 million today.

http://news.ninemsn.com.au/article.aspx?id=229799

Wow Imagine Melbournes population swelling 50p/c ? Can they handle it, got enough water ? nope Enough Houses ? nope , as mentioned the demands on Infrastructure will be huge at projected growth rate !

 

[Kathmandu]

Some amazing/surprising news, Sure answers one of the Questions with property in Vic/Melb regarding demand !




http://news.ninemsn.com.au/article.aspx?id=229799

Wow Imagine Melbournes population swelling 50p/c ? Can they handle it, got enough water ? nope Enough Houses ? nope , as mentioned the demands on Infrastructure will be huge at projected growth rate !

So, are you getting in on some of the action NC

Supply and demand on quality property will make prices go through the roof

Dave

 

[theasxgorilla]

Supply and demand on quality property will make prices go through the roof

As I have stated elsewhere...my concern with regards to re-entering the Melbourne/Vic property market over the next 5 years is not that I will buy something that tanks. More so that property, wages and Euro-block currencies won't keep pace with the Melb property market (as priced in AUD) and stuff stops looking cheap (which many 'quality' parts still are to my perception at present levels).

Stockholm was recently voted the most liveable city by Readers Digest and Melbourne has tied with Vancouver in other '04 and '05 studies by The Economist. Looks like I've got both my bases covered!

 

[Flying Fish]

Some amazing/surprising news, Sure answers one of the Questions with property in Vic/Melb regarding demand !




http://news.ninemsn.com.au/article.aspx?id=229799

Wow Imagine Melbournes population swelling 50p/c ? Can they handle it, got enough water ? nope Enough Houses ? nope , as mentioned the demands on Infrastructure will be huge at projected growth rate !

I do not understand. Melbourne and Victoria has nothing to support this country. They do not do anything down there anymore. Will it become a big retirement villgae?

 

[theasxgorilla]

I do not understand. Melbourne and Victoria has nothing to support this country. They do not do anything down there anymore. Will it become a big retirement villgae?

Do your homework Flying Fish.

Melbourne contributes to GDP via SPORT! Melbourne GP, MotoGP, Australian Tennis Open, Boxing Day Test, Bells Beach Surf Classic, Melbourne Cup, Spring Racing Carnival, AFL home-and-away season (80,000 crowds to key games) plus the Grand Final (100,000 capacity crowd)...the list goes on.

 

[nioka]

Do your homework Flying Fish.

Melbourne contributes to GDP via SPORT! Melbourne GP, MotoGP, Australian Tennis Open, Boxing Day Test, Bells Beach Surf Classic, Melbourne Cup, Spring Racing Carnival, AFL home-and-away season (80,000 crowds to key games) plus the Grand Final (100,000 capacity crowd)...the list goes on.

All that and nothing PRODUCTIVE. (and nothing that couldn't be, or isn't, done elsewhere.)

 

[krisbarry]

New update...and again I checked my account balance today and it now sits at over $57,000. Not bad going. I love this bull market.

The stock market is running much harder than the housing market.

 

[Nyden]

New update...and again I checked my account balance today and it now sits at over $57,000. Not bad going. I love this bull market.

The stock market is running much harder than the housing market.

Stop the clock, may I ask how old you are? I'm just wondering, as you seem to place a lot of emphasis onto your super. Is there a reason for this? I guess I just don't understand why you don't focus more on your portfolio? (Or do you? Perhaps I'm making inaccurate assumptions! )

Super is all about the long term afterall!

 

[BIG BWACULL]

Stop the clock, may I ask how old you are? I'm just wondering, as you seem to place a lot of emphasis onto your super. Is there a reason for this? I guess I just don't understand why you don't focus more on your portfolio? (Or do you? Perhaps I'm making inaccurate assumptions! )

Super is all about the long term afterall!

Maybe he doesnt have a portfolio he'd prefer to have it managed and thus pump
it into his super account, or his portfolio is not doing as well as he likes :dunno:

Hey clocko what about an update on your personal portfolio and how well thats going or is it a shocker

 

[Nyden]

Maybe he doesnt have a portfolio he'd prefer to have it managed and thus pump
it into his super account, or his portfolio is not doing as well as he likes :dunno:

Hey clocko what about an update on your personal portfolio and how well thats going or is it a shocker

Perhaps!

I just don't understand is all, I mean - you can't even touch super until you're of that certain age. I'd prefer to manage my own little nest egg!

I'm not criticising him, I'm just a little intrigued! I wish to know why :

 

[theasxgorilla]

All that and nothing PRODUCTIVE.

You don't think any of these events bring money into the country? You may not have been to Melbourne in the last 10 years...you'll find it's a very rich city. Something must be keeping it going.

 

[Nyden]

You don't think any of these events bring money into the country? You may not have been to Melbourne in the last 10 years...you'll find it's a very rich city. Something must be keeping it going.

Certainly isn't our cuckoo weather
Melbourne is a fantastic city - and Victoria is a wonderful state; within Victoria you can find much beauty in our landscapes - our wine isn't bad either!

 

[krisbarry]

The weekend rolls around, and its a long one at that. Nice to see Port Adelaide in the Grand Final - Go The Power!

I just checked my super and it now sits at over $58,000

I like the idea of this new package that allows first home buyers to have first pick at homes. They are being offered at cheap prices and are locked out to investors. Finally the South Australian Governement have a great idea.

I say 100% of the housing crisis can be blamed on these factors...

20% Greedy Investors
20% Too generous tax system
20% High migration Levels
20% Low Interest rates for far too long
20% Lack of building new homes

 

[wayneL]

I say 100% of the housing crisis can be blamed on these factors...

20% Greedy Investors
20% Too generous tax system
20% High migration Levels
20% Low Interest rates for far too long
20% Lack of building new homes

Kris,

Those are factors, but THE biggest factor is loose credit. Without this, none of the above matters much. Tight credit will take out the housing market, pure and simple.

 

[Shane Baker]

Kris,

Those are factors, but THE biggest factor is loose credit. Without this, none of the above matters much. Tight credit will take out the housing market, pure and simple.

and the stock market and the car market and anything you borrow money for. Once the cost of interest becomes a fiscal drag whether it be on homes or other types of assets then we will see less money chasing assets and less price appreciation as a result.

 

[wayneL]

and the stock market and the car market and anything you borrow money for. Once the cost of interest becomes a fiscal drag whether it be on homes or other types of assets then we will see less money chasing assets and less price appreciation as a result.

It's not just the cost of credit (interest rates), it is more the availability of credit (lending criteria)... also the desirability of credit.

For e.g. Look at Japan, negligible rates, yet still a deflationary bust.

 

[Shane Baker]

It's not just the cost of credit (interest rates), it is more the availability of credit (lending criteria)... also the desirability of credit.

For e.g. Look at Japan, negligible rates, yet still a deflationary bust.

I think we are on the same hymn book Wayne. I was alluding to the desirability of credit and its effect on asset prices.The desirability of credit is reflected in its cost and availability. Low cost and easy availability leads to asset inflation. The cost may increase but if asset inflation is much higher then the credit is still desirable. It is when the tipping point is approached where sufficient asset inflation does not occur or that the interest debt cannot be serviced, that it then becomes undesirable. That explains Japan's experience IMHO in that asset price inflation didn't exceed the cost of business (interest rates) so the yen carry trade appeared with Mrs Watanabe entering the fx arena.

If interest rates are high enough to discourage the use of credit and encourage savings then money supply is reduced ala the Paul Volcker solution in the 1980's. Of course they could just stop printing the stuff..but where would we get our next asset bubble from then?

 

[wayneL]

I think we are on the same hymn book Wayne. I was alluding to the desirability of credit and its effect on asset prices.The desirability of credit is reflected in its cost and availability. Low cost and easy availability leads to asset inflation. The cost may increase but if asset inflation is much higher then the credit is still desirable. It is when the tipping point is approached where sufficient asset inflation does not occur or that the interest debt cannot be serviced, that it then becomes undesirable.

If interest rates are high enough to discourage the use of credit and encourage savings then money supply is reduced ala the Paul Volcker solution in the 1980's. Of course they could just stop printing the stuff..but where would we get our next asset bubble from then?

Well we'll have to start back on tulip bulbs I guess.

 

[Smurf1976]

Absolutely agreed it's the loose credit although the nominal interest rate is also highly significant.

Most people don't seem too concerned about debt right now. That's what's keeping house prices up IMO. The moment they get worried is when the trouble starts.

Looking at the markets, I think we're in for another 0.25% interest rate rise either October or November and quite likely another one early next year. Combine that with the Christmas credit card bills, effects of the drought on food prices and back to school expenses rolling in and it might get rather interesting.

 

[krisbarry]

Ohh and what do you know...I just checked my account balance and it now stands at over $59,000. Love this bull run