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The future of Australian property prices

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DB008 said:
+1
(Ignore engaged)
Click to expand...

ohhh please dont ignore SCM! everyones reactions to his posts have become apart of my daily routine. it reminds me of watching my younger brothers when we were younger, even they were aware the other was doing it for the reaction.

trainspotter, does it bother you at all that you are selling overpriced depreciating assests to those obviously unknowing of the coming fall in prices?
 

Don't forget the World War and nuke...

Hang-on, maybe if someone nukes China, we'll see a massive reduction in the price of properties.

young-gun, l know where your coming from, l've got a younger brother. Just not interested in someone trolling for the sake of it. I asked SCM for a number, from 2012 (as stated by SCM) that the market is 'bursting already/popped'. Can't be that hard to pick a number from the past.
 
young-gun said:
trainspotter, does it bother you at all that you are selling overpriced depreciating assests to those obviously unknowing of the coming fall in prices?
Click to expand...

You've assumed here that:
1) Just because the general trend is downward, the price of every house is going with it. There are some areas still appreciating in value
2) The houses that he owns are overpriced
 
Klogg said:
You've assumed here that:
1) Just because the general trend is downward, the price of every house is going with it. There are some areas still appreciating in value
2) The houses that he owns are overpriced
Click to expand...

i agree with the first point somewhat, although there is much more evidence than a mere downward trend. the second however i do not. because every house in the country is over-priced. if he is selling any houses, then he is selling over-priced houses.....
 
The Florida Real Estate Craze
By Andrew Beattie

When: 1926
Where: Florida

The amount the market declined from peak to bottom: Land that could be bought for $800,000 could, within a year, be resold for $4 million before crashing back down to pre-boom levels. The prices were so inflated that to buy a condo-style property in 1926, you would've had to pay the same as you would now have to pay for a luxury home in the guard-gated communities in Miami ($4,500,000) - without adjusting for inflation!

Synopsis: In the 1920s, the United States of America was chugging along like the British Empire of the 1700s, and it was only natural that people were beginning to believe such prosperity was infinite. But it wasn't the stock market that was the recipient of a bubble. It was the real estate market.

In 1920, Florida became the popular U.S. destination/residence for people who don't like the cold. The population was growing steadily and housing couldn't match the demand, causing prices to double and triple in some cases, which was not exactly unjustified at this point. But, news of anything doubling and tripling in price always attracts speculators. So, once people began pumping huge amounts of money into the real estate market it took off. Soon everyone in Florida was either a real estate investor or a real estate agent.


Read more: http://www.investopedia.com/features/crashes/crashes4.asp#ixzz1rBHvjwHh
 
DB008 said:
I asked SCM for a number, from 2012 (as stated by SCM) that the market is 'bursting already/popped'. Can't be that hard to pick a number from the past.
Click to expand...

No idea what you're talking about here.


young-gun said:
because every house in the country is over-priced. if he is selling any houses, then he is selling over-priced houses.....
Click to expand...

That's correct, and it is a simple fact that some here fail to understand. There are no magic suburbs in Australia which are somehow fairly priced - all property is ludicrously overpriced in this country. All of it - and all of it will drop in price.

Imagine if you took away credit? Median prices will definitely drop to around $150,000 - maybe lower.
 
I bet robots is looking in on this thread having a nice little chuckle.

hello, long weekend up coming up brothers, weather going to be sunshine all the way through,

are you there robots, thread is going down hill, how's it all going? pop in say hello.

see ya later.

ps; my rent went up not down .... oh well, glad i don't rent.....
 

my landlord just had to get my taps fixed and a new hot water system, oh well glad im not a landlord. have a good weekend all
 
young-gun said:
my landlord just had to get my taps fixed and a new hot water system, oh well glad im not a landlord. have a good weekend all
Click to expand...

Simply a cost of doing business.
We just claim it.

Just as we pay for brokerage slippage and tax.
Cost of doing business.

Something you'll understand when you actually DO SOME!
 
tech/a said:
Simply a cost of doing business.
We just claim it.

Just as we pay for brokerage slippage and tax.
Cost of doing business.

Something you'll understand when you actually DO SOME!
Click to expand...

Sounds like a waste of money. What's the point? Don't you trade? Rental yields in Australia are what, 3.5% net. Surely you can make more than that a year with trading?

What's the point?
 
Starcraftmazter said:
Sounds like a waste of money. What's the point? Don't you trade? Rental yields in Australia are what, 3.5% net. Surely you can make more than that a year with trading?

What's the point?
Click to expand...

Depends what you're renting.

I bought the one title with two separate houses. It actually returns about 7.5% gross, which ends up a lot more than 3.% net.
 
Klogg said:
Depends what you're renting.

I bought the one title with two separate houses. It actually returns about 7.5% gross, which ends up a lot more than 3.% net.
Click to expand...

Sure, but that's still below what I would expect any trader can make in a year, so I repeat - what's the point?

This seems the most illogical part to me about "investing" in property if you are a trader - you can always make better returns through trading. So why do people do it?
 

I can't speak for them SCM, but i suspect they have too much capital to trade personally and want to diversify their investments but still be in control....so they don't end up on another thread wondering where their hard earned dough went.

They stopped making land a long time ago, so price shocks aside....they've always got the land, regardless of depreciation on the bricks and mortar.

I would suspect that some, even many successful short term traders also have a portfolio of long term, blue chip stocks that pay good dividends.

CanOz
 

But a trader puts in effort day to day, whereas I collect rent and occasionally organize for something to be fixed in the house...
And that 3% is what I get as an income - I didn't mention the 80% capital gain I've had over the years I've owned it. (Yes, I know this is unrealized, which is why I didn't mention it initially)

Finally, I'm not a trader - I work as an IT contractor. Investments are my way to make my money grow.
 

Ok, I speak for myself only. I can not trade, I don't know how to do it and I am too scared and too stupid to try. Having said that I do invest in stocks and other listed investments long term and for dividends. On average in a passive style of investing that returns me about 6% fully franked. Although that might sound slightly better than real estate both are better than getting a flat 6% in a cash account. So for me it is about spreading the risk. Real estate over the last 35 years of my investing life has been more stable than stocks but I concede, I am not a "trader" in anyway.
 
Initial purchase price $ 90,000-- 1996
Rent return $17500 a year. $ 19.4%/yr
Not to mention the 400% capital gain.
Oh and that's one of them.

Best one returns 23% is owned by my superfund.

Banks love house equity for collateral.
This is where I stop.

Going any further is way beyond the capacity for
The original poster to comprehend let alone
Understand.
 
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