- Joined
- 6 March 2008
- Posts
- 235
- Reactions
- 0
smells like deflation??
So where are the positive signs going forward in any market ??? there are non.
One of the Australian property permabulls in this thread was lipping on about how India's middle class is about to come online and send demand for resources through the roof along with His house price ...... aside from the BHP boss dissagreeing with the said thread contributor here is some more evidence to the contrary ....
http://www.reuters.com/article/2012/05/22/us-india-devaluation-idUSBRE84L0N920120522
I think some people just assume that Large populations equal large economy - but the opposite can be very much more the reality. Kind of like if your own Home had 10 dependant mouths to feed instead of four -
The above graphic exploded on Facebook this weekend. It shows how many minimum wage hours a worker needs to work in order to be able to afford a two-bedroom unit at “Fair Market Rent” in any given state. The FMR is a figure determined by the U.S. Department of Housing and Urban Development (HUD).
The numbers don’t show any discernible trend aside from perhaps 1) states with high cost of living/rent such as NY, NJ, DC, MD require the most man hours and 2) the minimum wage is too low. The latter, of course, is the point of this graphic.
Is it better to rent or buy? Ken Johnson of Florida International University and Eli Beracha of East Carolina University recently crunched the numbers in 23 cities.
Nationwide, they found prices have dropped enough, and rents have risen enough, to make buying the better deal. But results vary.
In Dallas, for example, you're likely still better off renting, despite reasonable home values of less than $140,000.
For one thing, rents are cheap too; nice, one-bedrooms go for as little as $500 a month. Prices are only about 18 times the annual rent of comparable homes.The big factor, however, is home price appreciation, which has been very slow historically here. There's a lot of land available for development and few regulatory barriers to discourage builders. That has kept home values from rising quickly. So even today's buyers can't expect their home equity to rise very much.
Iceland’s crisis-management policies are creating the island’s next property bubble less than four years after its banking meltdown threw the economy into its worst recession.
Prices for new homes touched a record last quarter, having surged 40.1 percent since the final three months of 2010, according to estimates by the National Registry of Iceland in Reykjavik. Average house prices have risen 11.3 percent since the market bottomed at the end of 2009, according to central bank data at the end of the first quarter.
I think thats rather misleading - perhaps its tipping jobs? They have lower minimum ...
But anyway - stacks of cities in US with houses under 100k and household incomes over 50 .... US has alot more potential than we do I feel .....
Australian residential building approvals fell 8.74 per cent to 10,330 units in April.
This compares to a downwardly revised 11,312 units in March, seasonally adjusted.
In the year to April, building approvals were down 24.1 per cent, the Australian Bureau of Statistics (ABS) said on Thursday.
Economists' forecasts had centred on a 0.5 per cent rise in approvals in April.
And even if they don't the rental yields in many places are double what they are in Australia. No true investor would ever touch Australia with a 10 foot pole, with our chronic oversupply of housing.
If you combine this with the fact that our currency is on the way down, clearly investing in US real-estate is by far the best way to go, if one must invest in real-estate at all.
Not siding either way on Aus property, but your suggestion of investing in US property is probably not a great idea either...
You're taking on FX risk, which can be huge at times... that is, unless you buy some form of hedge/insurance against this, which would cost you a fair bit anyway.
http://www.thebull.com.au/articles/a/28686-building-approvals-fell-8.74-in-april.html
Can only get worse in the near term surely .....
Just one thing, if house builds are declining, would that not limit supply thus stabilising prices, if demand is constant?
Just one thing, if house builds are declining, would that not limit supply thus stabilising prices, if demand is constant?
Demand wil drop like a stone, just like it's doing now.
its very hard to really know what is happening right now most data is old and the action that created the data even older and the intent of the action ie, organising finance searching etc older still by the time you start to see positive signs the market could well have been running away for close to 12 months, people really need to start looking forward rather than back. all the data is good for is predicting the past.
Isn't the system a bit different in that certain taxes and rates, if not paid, attach to the house and not it's owner? I remember hearing that this surprised people who were buying "cheap" houses and having to fork out a lot more money on top of this.I didn't suggest it - I clearly said if one must invest in real estate - then US is far better than Australia.
Isn't the system a bit different in that certain taxes and rates, if not paid, attach to the house and not it's owner? I remember hearing that this surprised people who were buying "cheap" houses and having to fork out a lot more money on top of this.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?