my speciallity on the other hand, is in providing the roofs over your heads...or providing the real estate for the shops that you may frequent, to spend some of those zillions that you earn....
where is all the angst you express.. coming from...
we are all in this together...are we not ?
meanwhile...out there in the real property world ......
oh, why bother...you cannot see the woods for the trees anyway...
so why bother......
you would be hard pressed to find any of the stock gurus, ceo's that you diligently follow....
are renters
or against property investments
or do not hold an impressive property portfolio
Well then i'd like to thanks you for contributing to the oversupply now that we have which is now driving prices down.
Please keep building - takes the worrying out of my game.
I just smile in pity now every time I drive pass a multi development or a high rise getting built, it just shows how blind and desperate developers are and are just increasing the chances of a price crash.
What house shortage?! There never was one to begin with
http://www.theaustralian.com.au/bus...-homes-stockpile/story-e6frg9gx-1225957998574Property Monitors chief economist Dr Andrew Wilson said housing demand and prices would pick up in mid-2011 on the back of wages and population growth and the resurgent mining sector.
"What we are seeing in Melbourne is a pause in the market, mostly caused by a fall off in the bottom end of the market, but it's not a bubble," Dr Wilson said.
"The market was unsustainable because it couldn't be sustained by incomes, but now we are starting to see wages growth that will again fire up demand."
Exactly.
It's timely to reflect on this "expert" quoted commentary from Nov 2010 -
http://www.theaustralian.com.au/bus...-homes-stockpile/story-e6frg9gx-1225957998574
I wonder what the good Dr would be saying NOW, with no mid-year 2011 pick up in housing demand and prices, middle to high range property auctions & sales slumping (let alone the "bottom end") and inventories of unsold, overpriced properties still soaring? Perhaps he could do a refresher course with the good Professor ProBots to bring him up to date on the Real state of Real Estate?
aussiejeff
what i found remarkable about the thread, is that the pro property "sunshine and lollipops" posters largely spoke of their triumphant successes, which is what the bubble was creating.. returns per year greater than income.. and despite pointing out that what they were experiencing was the fruits of a bubble, they blindly could not acknowledge the bubble was in play
Gee, what about all those people saying I was an idiot back in 2007, because I had bought a few houses a few years earlier at a fair price and just planned on holding it and collecting rent with the belief that over time both my income and property value would hold pace with inflation.
I was considered dumb because the stock market was the place to be, thats where all the growth was etc.etc. They were the ones who failed to see a bubble.
Meanwhile my properties have more than exceeded expectations, and could fall and still more than outperform the target I had.
I bought property in the early 2000's with the idea that it would earn around 4% income after costs, and My income and capital would rise along with inflation, It has far exceeded this in both income and capital value.
Do you have any evidence at all supporting your "belief" (faith) that property prices will "hold pace with inflation"?
.
But a larger part
- was a correction from years of stagnation prior
- was a result of steady inflation since
- was the result of growth in number of house holds (population growth etc).
I VERY much dislike how that graph tries to superimpose America onto it, inferring a decrase to 50% of peak prices.
This type of graph is NOT what I am suggesting for australia, but more of a slow, plateau slightly declining (20% of real loss (of which we have seen 5% over the past 6 months)) then a tack up slowly, along a more reasonable course.
Anyone who thinks properties will halve here, is very brave, but a pullback is inevitable, as prices cannot and will not continue to grow faster than inflation.
But you go ahead Sunshine and keep believing, there needs to be someone leading the lost cause.
Cheers
So I eagerly await the correction that the doomsayers predict, However as I said I question the severity given a number of factors.
The Falcon you are correct there are a lot of people that dream of 50% drop but its never going to happen
you need to pray it stops at 50 because it will be going down for years just like USA is still doing after 4 yrs.
In 2035 you can look at the depression ending and thing turning.
Gold is predicted to go to $1330 so cash in when it does.
Why are they doomsayers if they are only predicting a correction and not a crash.
Bulls are just as extreme it seems as bears, both over exaggerate.
High property prices do not benefit society as a whole. Massive debt erodes our standard of living.
Cheers
So 1.4% for the month in Melbourne drop, for July, before a lot of negative sentiment came through,
So hows that compare to some one that invested in the all ordinaries with 10% deposit over the same time frame.
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