The future of Australian property prices

[robots]

To those crippled with fear it has seemed that way for around 10 yrs.
Then It was that way in the late 80s
Then again in the late 60s
It will remain that way through out time.

You'll either do something or do nothing.
Most do nothing and get the required result--nothing.
Understand risk--do due diligence.
Think outside the buy and hold square (although that's also fine if geared correctly).
Find a property/mentor and un shackle the fear.

Hello,

Just letting everybody know I will stick my hand up for anybody who needs a property mentor.

My background:

* been invested in RE for the past 11yrs
* have been awarded an Associate Professorship by Melbourne University for research undertaken on residential property (all self funded to by the way).
* one of only five of the true visionaries of society who have consistently called it.
* interest rate strategist

Just pop me a PM or post any questions you may have on the forum.

Thankyou
Professor Robots

 

[prawn_86]

Hello,

Just letting everybody know I will stick my hand up for anybody who needs a property mentor.

My background:

* been invested in RE for the past 11yrs
* have been awarded an Associate Professorship by Melbourne University for research undertaken on residential property (all self funded to by the way).
* one of only five of the true visionaries of society who have consistently called it.
* interest rate strategist

Just pop me a PM or post any questions you may have on the forum.

Thankyou
Professor Robots

Can you prove that Professorship? :

 

[robots]

OK lets suppose that the bears overcome their fear or whatever the bulls think the reason is that bears are bears.

What would you suggest is the type of property opportunity to be pursued and why?

Hello,

oh great, for those interested in the buy and hold job i believe the regional towns of Ballarat and Bendigo offer enormous potential

houses on 600-700sqM with some reasonable features

Kyneton has a long way to go as it attracts all the surplus plus others from the Daylesford area. Piper st already tight to get in and I expect the main st to change for the better also.

Thankyou
Associate Professor Robots

 

[wayneL]

Hello,

oh great, for those interested in the buy and hold job i believe the regional towns of Ballarat and Bendigo offer enormous potential

houses on 600-700sqM with some reasonable features

Kyneton has a long way to go as it attracts all the surplus plus others from the Daylesford area. Piper st already tight to get in and I expect the main st to change for the better also.

Thankyou
Associate Professor Robots

Why?

What're the figures?

 

[explod]

Hello,

Just letting everybody know I will stick my hand up for anybody who needs a property mentor.

My background:

* been invested in RE for the past 11yrs
* have been awarded an Associate Professorship by Melbourne University for research undertaken on residential property (all self funded to by the way).
* one of only five of the true visionaries of society who have consistently called it.
* interest rate strategist

Just pop me a PM or post any questions you may have on the forum.

Thankyou
Professor Robots

Just a couple of holes there ole champ.

Post Graduate Research opening the way to an Associate Professorship cannot be brought, it is either a scholarship funded by the Institution or private sector, in this case perhaps the Real Estate Insititute.

If you are an Associate Professor you are not entitled to use the title of Professor.

You are not trying on those old porkies of the past there Confessor, are you?

 

[wayneL]

Just a couple of holes there ole champ.

More like a great yawning chasm.

 

[Mr Z]

I love it... you make a rational decision to invest elsewhere based on the available data and somehow you are "crippled with fear".... oh do me a favor and stop playing pocket billiards!

 

[robots]

Why?

What're the figures?

Hello,

the figures are as everyone knows, 5-7% gross yield, hoping for capital growth

just like buying shares actually, try and pick a good one, do the research on the stock or the town, suburb etc

only difference is with a property its in your hands with equity in other peoples hand, oh well

thankyou
associate professor robots

 

[wayneL]

Hello,

the figures are as everyone knows, 5-7% gross yield, hoping for capital growth

just like buying shares actually, try and pick a good one, do the research on the stock or the town, suburb etc

only difference is with a property its in your hands with equity in other peoples hand, oh well

thankyou
associate professor robots

1/ Can you give examples of these gross yields?

2/ What is the nett yield?

 

[skcots]

Hello,

the figures are as everyone knows, 5-7% gross yield, hoping for capital growth

just like buying shares actually, try and pick a good one, do the research on the stock or the town, suburb etc

only difference is with a property its in your hands with equity in other peoples hand, oh well

thankyou
associate professor robots

As you said you pick the investment. Its nice not having to arrange tradespeople to repair termite damage done to your shares.

Another difference is if a better opportunity arises you can sell your equity in 2 seconds. oh well

 

[explod]

just like buying shares actually, try and pick a good one, do the research on the stock or the town, suburb etc

thankyou
associate professor robots

Get the impresion you know little about shares, for example I never collect dividends, just take the profits on trades.

 

[prawn_86]

Can you prove that Professorship? :

No answer. As i thought. Mis-representation of a title

 

[wayneL]

I'm blogging the exercises on "the other site" if interested.

Can't even if I wanted to. I seem to have been banned for something I said on this forum. :dunno:

 

[tech/a]

Can't even if I wanted to. I seem to have been banned for something I said on this forum. :dunno:

I seen to suffer similar fates here from time to time.
Nature of the beast.

 

[trainspotter]

Can't even if I wanted to. I seem to have been banned for something I said on this forum. :dunno:

Or no response? Hmmmmmmmmm?

 

[trainspotter]

So what is the future for Australian Property prices? Patchy at best. Do the research seems to be the most common aspect of this jewel. Pick where you are going to buy. Have good equity (Like tech/a 30% to 40% deposit) behind you is another. Income is supreme. If you can't afford it then don't do it is a recurring theme. Many, many things make property investing a black science. Some you lose, and some you don't make as much money as you thought. Having the ready reserve of cash to prop the construct time and or rates etc (outgoings or holding costs) is another. It is not Utopia. It is not for everybody to invest in. You have to know what you are doing.

robots has his PPOR and an IP and he is happy.
Tech/a is out buying industrial land in Adelaide with his SMSF.
Kincella has taken a treechange and is extremely happy with his purchase.
Trainspotter has a couple of unit developments and houses under construction.


YES house prices are on the wane for 4 consecutive months now. We all agree on this subject matter at hand. LOOK on the bright side. The housing slump has caused the RBA to leave interest rates on hold.

It must be true. I read it here. http://www.theage.com.au/business/housing-slump-may-help-keep-rates-on-hold-20100930-15zbv.html

AUSTRALIA'S housing recovery has vanished. Dwelling approvals plunged again in August to their lowest level in a year, throwing serious doubt on the prospects of another rate rise soon.

With the federal government's stimulus programs coming to an end, the banks turning away builders, and six rate rises in the past year deterring buyers, seasonally adjusted housing approvals fell 4.7 per cent in August to 13,049.

 

[satanoperca]

The housing slump has caused the RBA to leave interest rates on hold.

Oh please, what bloody slump, a whole 2% decrease after increases of 10% p.a in the last year.

You are being insulting to property bears, go cover yourself in honey and let them gorge.

And secondly when was it the RBA directive to control property price growth through interest rates. If this is the case, then we are stuffed.

Cheers

 

[financialdonk]

Something must give: ANZ Eric Johnston
October 7, 2010
.ANZ has warned that ''something has to give'' on interest rates, as chief executive Mike Smith left the door open for a repricing of mortgages even though the official cash rate remains on hold.

Mr Smith also responded to comments by Treasurer Wayne Swan that banks had no justification for pushing through out-of-cycle rises, saying this was a matter of opinion.

''He's quite entitled to his views as I am mine,'' Mr Smith said.

Advertisement: Story continues below The Reserve Bank's decision on Tuesday to keep the cash rate on hold was a setback for the big banks, which had wanted to increase mortgage rates by more than the RBA's rise to recoup higher funding costs.

Although some may be tempted to increase rates, most big banks, including ANZ, have indicated they are likely to leave them steady for now.

Westpac has gone a step further by saying it would defer any decision about interest rates until after next month's RBA meeting, which is scheduled for November 2.

In recent days, Mr Swan warned the banks they could not be justified in raising interest rates.

''(The bank's) profits at the moment are healthy, their net interest margins are back to the level that was last seen prior to the global financial crisis, and some of their liabilities are much less than they thought would have occurred some time ago,'' Mr Swan said.

But Mr Smith, speaking after a Australian Institute of Company Directors briefing yesterday, said funding costs were clearly putting margins under pressure. ''The fact of the matter is we're paying 160 basis points more for deposits than we were pre-crisis and we're only up 100 basis points for mortgages,'' he said. ''Something has to give at some stage.''
When asked if ANZ would increase its mortgage rates, he said: ''We just continue to monitor the situation.''

ANZ and National Australia Bank are not under as much pressure to raise rates compared with their bigger rivals. Both have a relatively modest mortgage portfolio, meaning the bulk of their earnings is generated from business loans.

Mr Smith also pointed to signs that business is starting to borrow again, ending the near two-year drought in demand for credit.

''We're beginning to see demand from the capex side, which is encouraging because that shows there is an increasing amount of optimism in the business community,'' Mr Smith said.

His comments came as ANZ detailed plans to pay a $4000 childcare allowance to employees as part of measures aimed at recruiting and retaining women. The plans will also include superannuation on all forms of paid parental leave.

Separately, Mr Smith said ANZ was going ahead with due diligence on South Korea's Korea Exchange Bank. But he declined to comment on whether ANZ would be forced to undertake a capital raising to help fund such a move.

ANZ has previously confirmed it is inspecting the books of Korea Exchange Bank to buy a 57 per cent stake, valued at about $4.5 billion at present market prices.

Source: The Age

 

[trainspotter]

Oh please, what bloody slump, a whole 2% decrease after increases of 10% p.a in the last year.

You are being insulting to property bears, go cover yourself in honey and let them gorge.

And secondly when was it the RBA directive to control property price growth through interest rates. If this is the case, then we are stuffed.

Cheers

Irony escapes you doesn't it satanoperca. When I wrote "It must be true. I read it here" folowed by a link to The Age didn't ring any alarm bells for you?

And secondly the RBA has been using interest rates to stimulate/stagnate the property prices of Australia for years as well as the economy. Remember Paul Keating telling us he had his hands firmly on the levers to the RBA ??? NO ???

I will now go and cover myself in sweet yellow liquid produced by bees and wait for the property bears to feast upon my unworthy carcass, to which I will continue to insult them further. :

 

[Quincy]

I will now go and cover myself in sweet yellow liquid produced by bees and wait for the property bears to feast upon my unworthy carcass, to which I will continue to insult them further. :

It is more likely that those bears will be giving you a damn good tongue lashing.

It looks like the the currency domino in China is really starting to wobble now - quick - sell all your non-essential property holdings and batten down the hatches before it's too late.

CHINESE premier Wen Jiabao asked EU leaders to tone down their attacks on Beijing in an escalating battle over the value of key currencies.

"If the yuan is not stable, it will bring disaster to China and the world," he said last night in a speech to top EU officials and businesspeople, who have recently joined the US in publicly demanding that Beijing let the value of its currency appreciate.

China, too, has too much to lose by floating its currency, Mr Wen argued. "If we increase the yuan by 20 per cent or 40 per cent, as some people are calling for, many of our factories will shut down and society will be in turmoil," he said.

http://www.theaustralian.com.au/bus...emier-wen-jiabao/story-e6frg90x-1225935233723