I have given up buying a house

[nizar]

Between 1955 and 1990, land prices in Japan appreciated by 70 times while stocks increased 100 fold!

Damn thats a fair effort!

Thanks Wayne, thats a really good article...

 

[Bronte]

We used to say to people....
"It doesn't matter how you make your money....
Buy Real Estate"
So pleased we followed our own advice
We made our money 'Trading the SPI' using Gann.

Boom leaves Perth houses more pricey than Sydney ’s
Found this:http://www.thewest.com.au/default.aspx?MenuID=77&ContentID=6962

 

[juddy]

The US housing market: a Japanese comparison

from http://www.shloky.com/files/Japland.jpg

 

[wayneL]

The US housing market: a Japanese comparison

from http://www.shloky.com/files/Japland.jpg

A man what an excellent chart... saving that one.

Thanks Juddy

Cheers

 

[cogidubnus]

It will end in tears. What happens if the government decides to do away with personal income tax or reduce it to 30%? There will be no benefit of negative gearing but people will still owe lots of money on homes. As with anything, the minute the entire poplace gets on to a perceived good thing it becomes blown out of proportion.

 

[clowboy]

Wishful thinking,

Doing away with personal income tax.

If they where really smart and really want to minimise/get rid of negative gearing then they would slowly phase personal income tax down to 30%.

When you actually stop and think about it the small 3% (or whatever it was) reduction in the top tax bracket actually has a very big impact on negative gearing, and yet noone has said a thing. year by year a 2% reduction is the way to go. That and an increase in super contributions and softening of rules.

An article in yesterdays west was saying that an average worker (50k Pa) still had to contribute 4k a year of there own money to super just to retire on 40k a year or something like that, I thought, Ha how many people are going to do that?

 

[cogidubnus]

Wishful thinking,

Doing away with personal income tax.

If they where really smart and really want to minimise/get rid of negative gearing then they would slowly phase personal income tax down to 30%.

When you actually stop and think about it the small 3% (or whatever it was) reduction in the top tax bracket actually has a very big impact on negative gearing, and yet noone has said a thing. year by year a 2% reduction is the way to go. That and an increase in super contributions and softening of rules.

An article in yesterdays west was saying that an average worker (50k Pa) still had to contribute 4k a year of there own money to super just to retire on 40k a year or something like that, I thought, Ha how many people are going to do that?

Is that 4K on top of what the bemployer contributes? You mean something like 8K into supa a year?

 

[clowboy]

Yes 4k on top of employer contibutions.

I haven't actually tested any of the figures from the article becuase to me it seems irelevant but they where saying that even someone on a much as 100k a year still needs to add like $1000 a year of there own money.

It also mentioned a doubling of the cost of the age pension over the next X years which it stated would cause this years budget surplus of 10 billion to become a deficiet of 10 billion.

Personally I have always looked at it that I will have to fund my own retirement myself and any super I have will be the luxuries.

 

[cogidubnus]

I will buy a bus and live in it.

 

[YChromozome]

For a fraction more than a bus you could of brought a 1 bedroom unit in Cabramatta last weekend for $95k

It sold in 2003 for $262,500. A bargain.

Bought for $262,500 in 2003, sold for $95,000 last week - Sydney Morning Herald, 17 Sep 2006

 

[brisvegas]

in todays brisbane sunday mail the median house price in my suburb is up 14% in last 1/4er at 385k which compares nicely with 05 median at 330k . it aint all gloom and doom guys . right place and right property still provides opportunity


.................... bris

 

[Julia]

in todays brisbane sunday mail the median house price in my suburb is up 14% in last 1/4er at 385k which compares nicely with 05 median at 330k . it aint all gloom and doom guys . right place and right property still provides opportunity


.................... bris

Pretty much the same as in my area, also in Qld.

However, I can only too clearly recall that I bought this house at the beginning of 1993 and for the next five years would have lost a substantial amount had I wanted to sell. These days it's worth well over double what I paid, so it just demonstrates again the cycles in which housing prices go and down.

Julia

 

[clowboy]

ycromozome,

what sort of an area is that, if you know?

As in, is it inner city, outer suburbs, posh, trashy etc etc?

Just to get a feel for the area and compare that to my local backyard.

Thanx

 

[Smurf1976]

For a fraction more than a bus you could of brought a 1 bedroom unit in Cabramatta last weekend for $95k

It sold in 2003 for $262,500. A bargain.

Bought for $262,500 in 2003, sold for $95,000 last week - Sydney Morning Herald, 17 Sep 2006

I don't give a damn about averages... If you just want a house to live in then delaying your purchase has been a very smart move if you're wanting to buy in Sydney.

I haven't seen any falls this dramatic here in Tassie but there are more and more examples of asking prices 15% down from the peak and still sitting there with no apparent interest. Assuming they are willing to negotiate, we're looking at falls in the order of 20% from peak selling prices.

That said, there are still some properties selling quickly so the market seems to be mixed. The falling prices started in houses priced around the average and this now seems to be spreading to the cheaper suburbs as well. More expensive properties don't seem to have really been affected so far. So a "split" market - those willing to spend a more than the average are still buying but the other half is haggling down the price or not buying at all.

Just based on my own observations around Hobart. Not a hard thing to do when Friday's paper is literally about 55% filled with "real estate". That in itself says rather a lot IMO.

Adjusting for population difference, Melbourne would have a 1000 page real estate section in the paper and even Adelaide would have over 300 pages of houses for sale to be comparable with the space taken up by it in Hobart. A lot of houses for sale down here. Rising supply, demand stagnant at best - you know the next bit...

 

[Happy]

From ABC, September 29, 2006
Housing affordability 'deserves federal focus'


State and territory housing ministers have called on the Federal Government to make the housing affordability crisis a national priority.
Ministers met in Canberra today and have agreed to do more to help expand the community housing sector, make it easier for first home buyers to get into the market, and boost the supply of low cost private rentals.
ACT Housing Minister John Hargreaves says the states and territories cannot tackle the problem alone.
"[We] tried to press the Commonwealth Government to take a greater leadership role on what is a national problem needing a national solution," he said.
"Within this national solution, we need to work together and tackle issues around low cost housing."

With bit of luck, we might have an answer and topic starter affordably priced property or rental accommodation.

 

[krisbarry]

Glad I didn't listen to the rest, yep as I have stated before, that over the past year I have diverted all my house deposit savings into my superannuation, geared it up and its all in Australian Shares.

...And today I am saying WOOOSHKA!

Glad I didn't follow the sheep and buy an over-hyped over-priced house, knowing now that I would have no equity in it, or even worse negative equity!

Sometimes its always good to take a different route in life, no matter how many people say I am wrong, today I couldn't give a stuff. I actually made the right choice, the best choice, the most profitable choice.

 

[krisbarry]

Still running at an impressive return:

Colonial First State Geared Share (superannuation)

1 year 42.92%
2 Year 43.98%
3 year 42.36%

Better returns than any bloo_dy over priced, over hyped Australian housing market, even better than the Perth housing market.

 

[clowboy]

Well the latest stats out on perth market was 45% for the last year so not quite.

Still 42% is fantastic, can't complain with that

 

[tech/a]

Still running at an impressive return:

Colonial First State Geared Share (superannuation)

1 year 42.92%
2 Year 43.98%
3 year 42.36%

Better returns than any bloo_dy over priced, over hyped Australian housing market, even better than the Perth housing market.

Read the fine print.

NETT DISTRIBUTED RETURN.

You cant fool all the fools all of the time
But you can fool most of the fools most of the time.


Thats 10% since inception.

Had to take 2 piks as it was/is to wide.

 

[Ken]

sustainable returns?