Australian (ASX) Stock Market Forum

Opportunity -- Property -- After 20 yrs its here again

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Go to ABC iView and look at tonights news.

Crisis loom in Unit market.

Not even whatsisname in Sydney, will be able to spruik his way out of Building Surveyors indemnity rising 12 fold to $120,000 with a $200,000 per unit excess.

No Building Surveyor's tick, no units built.

And those that have been built may crumple even with our infrequent small earthquakes, floods and rain.

gg
 
Again, there is always a correlation between the prices as they both fundamentally provide the same need, shelter.
That is not to say the correlation is 1:1, but there is a ratio between the prices, that said if we live in a capitalistic community, which we do.
Example if a 2br apartment is worth $200K and a 2br house is worth $800K, how long can the house sustain the price.
 
satanoperca said:
Again, there is always a correlation between the prices as they both fundamentally provide the same need, shelter.
That is not to say the correlation is 1:1, but there is a ratio between the prices, that said if we live in a capitalistic community, which we do.
Example if a 2br apartment is worth $200K and a 2br house is worth $800K, how long can the house sustain the price.
Click to expand...
re. Units vs Houses.

I've only ever rented units as a tenant and the owners were made quite aware of any faults etc. so overall it was profitable for me to have someone else provide the upkeep of my dwelling.

My guess is, and I may be wrong, that more units are rented than houses.

Thus as my good friend Donald Rumsfeld said

Reports that say that something hasn't happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don't know we don't know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.

I'd be wary of buying a unit for rental over a house. Just my opinion.

gg
 
Garpal Gumnut said:
re. Units vs Houses.

I've only ever rented units as a tenant and the owners were made quite aware of any faults etc. so overall it was profitable for me to have someone else provide the upkeep of my dwelling.

My guess is, and I may be wrong, that more units are rented than houses.

Thus as my good friend Donald Rumsfeld said

Reports that say that something hasn't happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don't know we don't know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.

I'd be wary of buying a unit for rental over a house. Just my opinion.

gg
Click to expand...
I agree, however it is never a simple equation.

Land will always appreciate, the old saying, they are not making more of it, so a house or more to the point - the land component will increase in time, the apartment has less of, so it capital appreciation is less.

That is in simple form, but are dumb arse tax laws that make shelter and investment, screw the figures, as a new apartment has a greater tax advantage or an old house, with depreciation allowance.

So was I to invest in land(houses) or apartments (services), no, both are for shelter, I prefer to invest in innovation/creation/growth/improvement/employment in living standards for all.

Dependents on your convictions and whether you can stand by them.
 
people always say they can't make more land but the government sits tight on it and slowy drip feeds and releases more land. I have seen one estate in Mulgrave SE Melbourne which has been releasing more and more lots since early/mid 2000s so it seems there is still quiet a bit of land "to be made"
 
Mr Z said:
I think that is quite probably best case, we should end up looking like Perth at the least. JMO.
Click to expand...
It's a huge correction in price to get to that level, but then again have to be open minded to the possibility.
It wouldn't feel cosy living in a house that is worth a lot less than paid for if that was the case in my situation. But a scenario like that would also benefit people who have struggled to enter the housing market that has run hot for years. So there is always two sides to the equation, whether we like it or not.
 
aus_trader said:
So there is always two sides to the equation, whether we like it or not.
Click to expand...

This is the problem when an irresponsible central bank foments a property bubble. You can't undo it without significant damage. In the end it is much better to let a free market oscillate on real inputs rather than miss price money to achieve a short term economic outcome. It's akin to taking cocaine too run a marathon, might work a few times but in the end doing the fundamental work is a far more sustainable route.

JMO... etc

Gold is good insurance, maybe hedge your property exposure a little AND hope you never need to cash the insurance.

Just a thought.
 
make the point that all currency is a made up human thing (all money is a synthetic product) ....... there are no laws of nature that currency should follow as money does not exist in the "natural world", so it is pointless trying to expect it to be anything other than a manipulated human invention.
 
HelloU said:
make the point that all currency is a made up human thing (all money is a synthetic product) ....... there are no laws of nature that currency should follow as money does not exist in the "natural world", so it is pointless trying to expect it to be anything other than a manipulated human invention.
Click to expand...

You need to stick all FIAT currency into that statement. Also that doesn't have to be so, it could theoretically be implemented in way that it mimics the better features of a commodity based currency. That isn't likely to happen but... you never know. As a side note I am watching Kinesis Money with interest.
 
againsthegrain said:
people always say they can't make more land but the government sits tight on it and slowy drip feeds and releases more land. I have seen one estate in Mulgrave SE Melbourne which has been releasing more and more lots since early/mid 2000s so it seems there is still quiet a bit of land "to be made"
Click to expand...

Unlike in the US of A this is how it works
Developers buy very large swathes of land normally at broad acre farm rates.

They lobby councils to change zoning immediately adding massive $$s to their investment

Now both investors and council aren’t stupid they know an area at various times can only take the release of x amount of building blocks

So subdivisions are cut up and sold in Stages from 30 to 100 at a time

Now that can take 10 or more years to subdivide and sell it off

Kabooom more $$s in appreciation
More $$s in smaller lots

Eye watering profit if you get it right.

Back to work!
 
Researching properties I am looking at common to see now advertised $200k below price paid in 2014 ish must be hurting some one.
 
Sure but if you have it as part of your income strategy then that's a hefty tax loss write off.
Sure there will be some who lose the lot but if they are doing $$s in this environment then better now for everyone
including the lender than later when Interest rates are climbing.

On the other end of the scale someone did very well.

I cant see much different with Stock market losses.
You can do your shirt--then some!!
Some of course buy new suits.

Banks are well aware of this and why rates are low its still pretty hard to get $$s if you
aren't well asset backed, or have a big slice of equity.
 
tech/a said:
I cant see much different with Stock market losses.
You can do your shirt--then some!!
Some of course buy new suits.
.
Click to expand...
It was only two years ago, that the people were screaming that the young couldn't buy into the market and the Government should be helping them.
Now most that did jump into the market, are screaming in pain, I guess we just like to feel sorry for people it is human nature.
When the stock market swings up and down, you don't hear a peep, about those getting burnt.
I guess there isn't the personal emotion involved, as there is with a house and its price.
 
sptrawler said:
When the stock market swings up and down, you don't hear a peep, about those getting burnt.
I guess there isn't the personal emotion involved, as there is with a house and its price.
Click to expand...
Plus the suckers (aka us) do not realise that this 1% fall means their super lost more on such a day than they will do in the week.
As both sides of government plus unions/finance lobby want the gravy pot to continue, you will not expect to see this changed.
Let's just keep the labour class war friendly:" bloody rich bastards lost 24 billions today..."
-> teach them a lesson say the blue collar working before forking 10pc of his income to the comrade in charge of his industry fund...
or to be fair to the hedge fund on his way to the bahamas
Super is such a great industry to be in here: no real risk, forced contributions every month, no risk of shame: do you even know who is in charge of your super: the name of the CEO or his team?
A dream come true, the perfect merger of communism and twisted capitalism
 
qldfrog said:
Plus the suckers (aka us) do not realise that this 1% fall means their super lost more on such a day than they will do in the week.
As both sides of government plus unions/finance lobby want the gravy pot to continue, you will not expect to see this changed.
Let's just keep the labour class war friendly:" bloody rich bastards lost 24 billions today..."
-> teach them a lesson say the blue collar working before forking 10pc of his income to the comrade in charge of his industry fund...
or to be fair to the hedge fund on his way to the bahamas
Super is such a great industry to be in here: no real risk, forced contributions every month, no risk of shame: do you even know who is in charge of your super: the name of the CEO or his team?
A dream come true, the perfect merger of communism and twisted capitalism
Click to expand...
yep, bony rabs said super was a con
 

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