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Agree.
An intersting article on NG
http://www.abc.net.au/news/stories/2010/04/13/2871852.htm?section=justin
Cheers
That's the whole point - it's not a free market. If it truly were a free market we wouldn't have the gov continually propping it up through tax incentives, subsidies, grants and rest, and it would find a natural price level.
A price level that would hopefully remove it as some kind of growth asset for baby boomer retirement funds and make it just another basic necessity that the population can afford without paying an arm & a leg for?
Top economists want tax loopholes closed
However, the March quarter data shows rent yields falling in three of the eight capital cities, according to APM, making the prospect of investing less attractive to landlords.
Investment in real estate has been slumping, most recently by 1.1 per cent in February, the last month for which data is available.
And rental yields have been lacklustre over the past year
Yeah, sorry Robots, dropped the ball on that one...........been busy. I'm chuffed you think I'm still a school goer must be young at heart
Here it is again
REIV
One can flick through different suburbs.
I should correct you on one point though............it was an almost 14% drop from the peak in Dec 07 to the low in Mar 09.
Since then there's been a 33% increase in just 9 months and an increase of almost 15% over the 07 peak............I don't know but that just seems like bubble territory to me.
cheers
That's the whole point - it's not a free market. If it truly were a free market we wouldn't have the gov continually propping it up through tax incentives, subsidies, grants and rest, and it would find a natural price level.
A price level that would hopefully remove it as some kind of growth asset for baby boomer retirement funds and make it just another basic necessity that the population can afford without paying an arm & a leg for?
why should housing be dirt cheap, only have to look at housing commission areas to see what happens when people get stuff for nothing
thankyou
robots
Agree.
An intersting article on NG
http://www.abc.net.au/news/stories/2010/04/13/2871852.htm?section=justin
Cheers
why should housing be dirt cheap, only have to look at housing commission areas to see what happens when people get stuff for nothing
China's property market in is in a bubble that may burst by as early as this year, hedge fund manager James Chanos said in an interview last week.
The country is "on a treadmill to hell," according to Chanos, who said in January the nation is Dubai times a thousand. "They can't afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing."
The research is coming thick and fast. Thanks to the Age newspaper. I wonder what Melburnians will make of this?
http://www.theage.com.au/business/w...es-surge-fuel-bubble-fears-20100414-sd25.html
Never forget they are a dictatorship that can issue whatever data they want.
In the US, the average home is now worth less than it was in 1980.
Japan has 128 million people to squeeze into a land area half the size of NSW, " says Hoffman. But fall they did: Organisation for Economic Co-operation and Development data shows real Japanese property prices are more than 40 per cent lower than their 1992 peak.
German property prices falling since 1991. Again, it's a country where mortgage rates are lower than rental yields, but past experience is scaring off investors.
The Swiss endured 11 straight years of falling property prices through the 90s and into this decade. There has been some relief in recent years, but those who bought in 1990 are still a long way under water.
Australians need to be wary of the most dangerous thought in investing: that property prices cannot fall.
Australian house prices rose 13.6 per cent last year ....... That's even stronger than in China where house prices are up 10.7 per cent during the past year.
Australian housing is expensive but points out that it is supported by an undersupply....... Worsening affordability is likely to constrain average house price growth to around 5 per cent over the year ........ the absence of higher unemployment, much higher interest rates or a big supply increase, a US-style collapse in Australian house prices is unlikely. None of these seem likely in the short term. In fact, none of these seem likely any time soon."
OK fair call. Agree with you on the grants and like but if you remove the tax incentive (as you call it) on this asset class then it must apply across the board for all investments, otherwise you are infact creating distortions. Why use leverage to invest in property when you can gain the tax benefits from deductions if investing in shares. If this situation developed then nobody in their right mind would invest in property and then vis-a-vie supply of housing would fall. Remove it from shares and developement in infrastructure would slow to a trickle (unless we allow further foreign investment) = OMG this is doing my head in.
I'm from Melbourne and as usual I have no idea about anything coming out of China. Their figures whether good or bad are dubious at best, at worst completely distorted to what suits their needs at a particular point in time. Never forget they are a dictatorship that can issue whatever data they want.
Infomation from China lol.
REIV
hello,
its not that easy Uncle Fest,
tough man, filling in the forms, speaking to the bank on the phone, going to the open for inspections, driving around
exhausting
thankyou
robots
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