The future of Australian property prices

[UBIQUITOUS]

hello,

good evening,

i didn't know where to post this so placed it here.

http://www.smh.com.au/business/home...nths-of-gains-20100730-10yup.html?autostart=1

well done to all of those who didn't buy this year. what a great day.

thankyou

 

[satanoperca]

Hi,

Go Robots, you are on the right path.

A little correction is hardly anything on the road to financial security.

A major correction will prick my ears up, but at the moment cannot see that happening. Maybe it is the calm before the storm, or maybe it is just a little rest stop before the continued march upwards.

Only time will tell.

Cheers

 

[trainspotter]

hello,

good evening,

i didn't know where to post this so placed it here.

http://www.smh.com.au/business/home...nths-of-gains-20100730-10yup.html?autostart=1

well done to all of those who didn't buy this year. what a great day.

thankyou

LOLOL Ubi ....... is this it? This is your response to robots years of campaigning? POINT ZERO .8 PERCENT ??? ROFL ... hahahhahah .......... How much did the schonk market tank today?? IN ONE DAY ??? PMSL....

Oh my !!!!!!!!! I should rush out and sell everything I own in real estate on this catastrophic news !!

*sorry my guts is hurting from laughing too much*

good evening Ubi ... hello

I did not know where to place this so I put it here ....

A rare residential site on Hong Kong's ritzy Victoria Peak fetched $US1.3 billion ($1.5 billion) at auction on Wednesday, boosting one of the world's most dizzying luxury property markets.

http://www.smh.com.au/executive-style/luxury/elite-hk-land-auction-fetches-15b-20100729-10wfl.html

Yes it is Honkers ........ hahahhhahahah a

Oh well ......... how about this then.

HOUSE price growth continues to rise in most capital cities, but the pace of growth is slowing, says online real estate data group Australian Property Monitors.

House prices grew 2.4 per cent around the country in the June quarter, but the annual rate was still strong at 15 per cent. Prices of home units also rose 2.4 per cent in the quarter, with an annual rate of 12.2 per cent.

http://theage.domain.com.au/real-es...-still-rising-but-slowing-20100729-10wsw.html

sunshine and lollipops for all ...... thank you. Oh yeah ...... it's a great day. Going to have breakfast tomorrow on the strip. Eggs Benedict and the sun will be shining ..... keep smiling.

supporter of robots associate professor Trainspotter

 

[UBIQUITOUS]

LOLOL Ubi ....... is this it? This is your response to robots years of campaigning? POINT ZERO .8 PERCENT ??? ROFL ... hahahhahah .......... How much did the schonk market tank today?? IN ONE DAY ??? PMSL....

Oh my !!!!!!!!! I should rush out and sell everything I own in real estate on this catastrophic news !!

*sorry my guts is hurting from laughing too much*

good evening Ubi ... hello

I did not know where to place this so I put it here ....

A rare residential site on Hong Kong's ritzy Victoria Peak fetched $US1.3 billion ($1.5 billion) at auction on Wednesday, boosting one of the world's most dizzying luxury property markets.

http://www.smh.com.au/executive-style/luxury/elite-hk-land-auction-fetches-15b-20100729-10wfl.html

Yes it is Honkers ........ hahahhhahahah a

Oh well ......... how about this then.

HOUSE price growth continues to rise in most capital cities, but the pace of growth is slowing, says online real estate data group Australian Property Monitors.

House prices grew 2.4 per cent around the country in the June quarter, but the annual rate was still strong at 15 per cent. Prices of home units also rose 2.4 per cent in the quarter, with an annual rate of 12.2 per cent.

http://theage.domain.com.au/real-es...-still-rising-but-slowing-20100729-10wsw.html

sunshine and lollipops for all ...... thank you. Oh yeah ...... it's a great day. Going to have breakfast tomorrow on the strip. Eggs Benedict and the sun will be shining ..... keep smiling.

supporter of robots associate professor Trainspotter

What a strange knee jerk post. I'm pretty sure those Melburnians who bought at the beginning of June aren't laughing

The numbers aren't that hard to work out assuming a 'healthy' 15% deposit on a PPOR:

Purchase Price on June 1: -$600k
Deposit: $90k
Mortgage (inc fees etc):$510k
Stamp Duty: -$31k
Legal Fees: - $2k
% fall in June: -1.4%
June 30 value: $591k
Total Profit/Loss in June: -$42k
% Profit/Loss on $90k capital outlay: -47%:

Oh, and to get out of this financial ruin spiral, the agent will have to be paid about $10k-$15k, and the seller would have to probably sell below market value.

Can you please tell me which stocks (including purchase fees) in the ASX 200 lost 47% in June? Can you also tell me how long it take to sell an ASX 200 stock?

Yes, all sunshine and lollipops. Don't look and it's not happening

 

[SM Junkie]

Who would expect any profit holding property over such a short time. I don't get this argument.

It's a long term hold and as far as an investment (not a Primary Place of Residence) goes, the costs are deductible over a set period of time.

When you look for a property that has a growing population, increased infrastructure, employment growth, etc, you sometimes have to wait for these factors to come into play before you can determine the success of your investment decision. You can't judge property on such a short timeframe.

Now just to show how it can work...A relative of mine built in a popular mining town 12 months ago. Overall cost of construction and expenses came to $900,000. Current rent $2,500 pw. Property next door just sold for $1,850,000 (bit older, comparable in size otherwise). Another property on the same street on the market for $1,750,000 (only a single storey). So at current prices, this person is looking at close to $1million profit in 12 months and the mortage is paying for itself.

So for every doom and gloom post I read on here about property tanking, there are examples everywhere of it working. You just need to be smart about your choices!!

 

[drsmith]

A relative of mine built in a popular mining town 12 months ago. Overall cost of construction and expenses came to $900,000. Current rent $2,500 pw. Property next door just sold for $1,850,000 (bit older, comparable in size otherwise). Another property on the same street on the market for $1,750,000 (only a single storey). So at current prices, this person is looking at close to $1million profit in 12 months and the mortage is paying for itself.

SELL!

Leave a little profit for someone else. Popularity of mining towns tends to come and go.

 

[robots]

hello,

good evening everybody,

here they are:

http://www.reiv.com.au/home/inside.asp?ID=162&nav1=1226&nav2=162

top effort, 71%

its all about the rich and the poor really, the banks and those who have the $, thats what the discussion is all about,

knocking the one who has it, tall poppy syndrome

i got headbutted and then elbowed in the head muay thai style at the last same sex marriage rally the minute i mentioned property, amazing reaction

thankyou
associate professor robots

 

[trainspotter]

What a strange knee jerk post. I'm pretty sure those Melburnians who bought at the beginning of June aren't laughing

The numbers aren't that hard to work out assuming a 'healthy' 15% deposit on a PPOR:

Purchase Price on June 1: -$600k
Deposit: $90k
Mortgage (inc fees etc):$510k
Stamp Duty: -$31k
Legal Fees: - $2k
% fall in June: -1.4%
June 30 value: $591k
Total Profit/Loss in June: -$42k
% Profit/Loss on $90k capital outlay: -47%:

Oh, and to get out of this financial ruin spiral, the agent will have to be paid about $10k-$15k, and the seller would have to probably sell below market value.

Can you please tell me which stocks (including purchase fees) in the ASX 200 lost 47% in June? Can you also tell me how long it take to sell an ASX 200 stock?

Yes, all sunshine and lollipops. Don't look and it's not happening

Something wrong with your maths Ubi. I only see .8% retraction from your article so therefore the 600k house is now valued at $595,200. A mere $4,800 loss and not 47%?? This is hardly likely to cause me to suddenly want to sell sell sell ?? Property is long term. Minimum 7 years I believe.

Lets use the 1.4% factor then .... $8,400 negative. Hmmmmm ..... financial ruination ?? I hardly think so.

I also notice the words "probably" used in your post to quantify the sale of the property. How about they probably keep the home and don't sell.

As for the stock quip. DYOR. They are hard to sell when they are in freefall or suspended Ubi. Hahhahahah aha ah ahaaa

 

[Bushman]

Something wrong with your maths Ubi. I only see .8% retraction from your article so therefore the 600k house is now valued at $595,200. A mere $4,800 loss and not 47%?? This is hardly likely to cause me to suddenly want to sell sell sell ?? Property is long term. Minimum 7 years I believe.

Lets use the 1.4% factor then .... $8,400 negative. Hmmmmm ..... financial ruination ?? I hardly think so.

I also notice the words "probably" used in your post to quantify the sale of the property. How about they probably keep the home and don't sell.

As for the stock quip. DYOR. They are hard to sell when they are in freefall or suspended Ubi. Hahhahahah aha ah ahaaa

U's point is that high gearing and high upfront transaction costs means that it doesn't take much of a move south in asset prices to be in 'negative equity' position. 'Negative equity' means that if you were forced to liquidate, you have done your dough and owe the bank some. To some investors, this is not an attractive proposition.

Off course, no need to sell if you can meet the interest costs and are taking a long-term view. Property is a long-term investment blah blah blah.

 

[nunthewiser]

New home sales across WA have plummeted for the third consecutive month, new industry figures reveal, in further confirmation the property sector is struggling under current interest rate settings.

Ahead of tomorrow's Reserve Bank board meeting, the Housing Industry Association reported new detached sales in June fell 5.2 per cent to its lowest level since the height of the global financial crisis.

That followed a 10.7 per cent drop in May. Sales are now down 22 per cent since March.

Nationally, sales of new units and houses were down 5.1 per cent in June and are back to where they stood in December last year.

HIA chief economist Harley Dale said the combination of a winding back of government and monetary policy stimulus was hitting housing affordability.

http://au.news.yahoo.com/thewest/a/-/wa/7686472/new-home-sales-plummet-in-wa/

Yep nailed that top a bewty robots .

but its all good i read it right here......... sunshine and lollipops brothers

 

[wayneL]

Prices in NZ are dropping FWIW.

 

[robots]

hello,

well done Nunthewiser, superb effort

my apologies for not posting up much recently the trauma from my last run in with the socialist crew has taken its toll

just cant understand why they cant discuss and debate things, oh well

sit tight brothers, alls good for tomorrow

thankyou
professor robots

 

[explod]

just cant understand why they cant discuss and debate things, oh well

thankyou
professor robots

Because every time you are tossed a tough question you never answer it, or you say "well done brothers"

And I have requested we get together for a cofee and yarn down here at Mount Martha three times, each time you said you would then have never heard again. Apart from two spiteful type p/m's.

So prove me wrong Confessor to give everyone a good report of a fair person.

This post has nothing to do with property as also do many of Robots posts too.

 

[cutz]

http://au.news.yahoo.com/thewest/a/-/wa/7686472/new-home-sales-plummet-in-wa/

Yep nailed that top a bewty robots .

but its all good i read it right here......... sunshine and lollipops brothers

Hi nun.

Did you manage to offload property into the peak ?

If so congratulations.

Hopefully it's gonna be a soft landing but I do have my doubts.

 

[nioka]

What a strange knee jerk post. I'm pretty sure those Melburnians who bought at the beginning of June aren't laughing

The numbers aren't that hard to work out assuming a 'healthy' 15% deposit on a PPOR:

Purchase Price on June 1: -$600k
Deposit: $90k
Mortgage (inc fees etc):$510k
Stamp Duty: -$31k
Legal Fees: - $2k
% fall in June: -1.4%
June 30 value: $591k
Total Profit/Loss in June: -$42k
% Profit/Loss on $90k capital outlay: -47%:

Oh, and to get out of this financial ruin spiral, the agent will have to be paid about $10k-$15k, and the seller would have to probably sell below market value.

Can you please tell me which stocks (including purchase fees) in the ASX 200 lost 47% in June? Can you also tell me how long it take to sell an ASX 200 stock?

Yes, all sunshine and lollipops. Don't look and it's not happening

Anyone buying a house in June and wanting to sell it in July is a super super optimist and shouldnt operate in the real world. It is like buying a new car and expecting that it retains its value after it is driven out the door. Property is seldom a short term proposition. The costs attached to buying and selling kill that.

 

[robots]

hello,

so there you go, for not answering a tough question have a headbutt, muay thai style elbow to the head, submission hold and then suplexed onto the pavement

amazing, probably get the chair in the back from the socialist crew if i cant answer the tough question at the next rally, oh well

weird and wonderful world, so exhilarating to be part of it

thankyou
professor robots

 

[nunthewiser]

Hi nun.

Did you manage to offload property into the peak ?

If so congratulations.

Hopefully it's gonna be a soft landing but I do have my doubts.

Posted in the "other" property threads my exploits and sales of tassy subdivision and other stuff .

I do currently still hold property and also some land but in a rather fortunate position wise these days on them and not fuseed where the market goes NOR where intrest rates go.

I am concerned for the welfare on a few of the buyers sucked in a while back with the FHBG etc but hey if ppl want to overextend themselves finacially , more power to them .....

IN saying this believe you me .... i will be in line with the rest of us blood sucking vultures to pick through the bones of these "overextended nailed to the wall " homeowners if they have to dumpem

 

[robots]

hello,

have also been a bit concerned about catching up with Explod now he has the terrier x (pit bull maybe?)

with the thread about his new dog and wanting it to "man up" a bit more i worry i might be the test case, oh well

thankyou
professor robots

 

[nunthewiser]

hello,

have also been a bit concerned about catching up with Explod now he has the terrier x (pit bull maybe?)

with the thread about his new dog and wanting it to "man up" a bit more i worry i might be the test case, oh well

thankyou
professor robots

Better move to Detroit and buy an uzi doc.

 

[UBIQUITOUS]

Anyone buying a house in June and wanting to sell it in July is a super super optimist and shouldnt operate in the real world. It is like buying a new car and expecting that it retains its value after it is driven out the door. Property is seldom a short term proposition. The costs attached to buying and selling kill that.

You miss the point. See Bushy's post further up.

Would you buy a stock for the long term if you were going to be 10% out of pocket from the get go? I doubt it.