I would agree this is a possibility, however, in this scenario wouldn't it scream buying opportunity to you if it happened??? How long would any inflation driven downward price correction last? Only until the rental yields started rising even further from their "adjusted" level right, then prices would take off again with almost 100% certainty.
The future of Australian property prices
- Thread starter Joe Blow
- Start date
I would agree this is a possibility, however, in this scenario wouldn't it scream buying opportunity to you if it happened??? How long would any inflation driven downward price correction last? Only until the rental yields started rising even further from their "adjusted" level right, then prices would take off again with almost 100% certainty.
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It would but that's not now.
Right - that scenario (rising inflation, interest rates, bank returns and falling property prices with rising rental yields) is not now, I agree. but it is a situation to be on the look-out for.
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Is this the smart money starting to head for the exits ?
"A RECORD 2560 auction listings this month will test the resilience of the Sydney residential market.
It is well above the 1700 May auction average of the past five years and the previous record of 2160 in May 2002, according to Australian Property Monitors."
http://www.smh.com.au/business/reco...s-will-test-anxious-agents-20100430-tza0.html
"A RECORD 2560 auction listings this month will test the resilience of the Sydney residential market.
It is well above the 1700 May auction average of the past five years and the previous record of 2160 in May 2002, according to Australian Property Monitors."
http://www.smh.com.au/business/reco...s-will-test-anxious-agents-20100430-tza0.html
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one thing this thread seems to miss is that life and realestate investments do exsist outside of vic ,qld,wa,nsw . money to be made elsewhere dyor .......
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We didn't get Robots' usual REIV auction clearance rate spruik yesterday. I guess the reason is in the details below:
http://reiv.com.au/home/inside.asp?ID=162&nav1=1226&nav2=162
775 so far this week. That is a LOT of people wanting to sell!!!!!
Number of auctions increasing. Clearance rate falling. Oh dear
http://reiv.com.au/home/inside.asp?ID=162&nav1=1226&nav2=162
775 so far this week. That is a LOT of people wanting to sell!!!!!
Number of auctions increasing. Clearance rate falling. Oh dear
hello,
yes sorry brothers for not reporting in last night with the clearance rates,
pre-occupied with sorting things out for the move, its going to be great with the tenants in my 2 places covering expenses on new place,
and if need a boost then will get down to Harvey's joint and pickup a new set of bunk beds, sneak a few in
maybe work 6-7mths of the year, kick back, ride the trains, the pushie, grow some vegetables, gee life is easy
it is sunshine and lollipops Nun,
thankyou
robots
yes sorry brothers for not reporting in last night with the clearance rates,
pre-occupied with sorting things out for the move, its going to be great with the tenants in my 2 places covering expenses on new place,
and if need a boost then will get down to Harvey's joint and pickup a new set of bunk beds, sneak a few in
maybe work 6-7mths of the year, kick back, ride the trains, the pushie, grow some vegetables, gee life is easy
it is sunshine and lollipops Nun,
thankyou
robots
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I'm glad that you have seen sense and are not negatively geared on your new purchase. The old Robots would have tried to buy 2 properties with that deposit but times are tough. It's never wise to over extend yourself especially with the grim outlook ahead.
hello,
grim outlook in your mind,
with the time off next year i might take it upon myself to chase down a few legends of ASF that have disappeared:
Numbercruncher - QLD somewhere,
Knocker - internet cafe in Europe or on cruiser
Pepperoni - sydney somewhere
kimosabi - WA
chops a must - WA, combine this with Kimosabi
going to be great
thankyou
robots
grim outlook in your mind,
with the time off next year i might take it upon myself to chase down a few legends of ASF that have disappeared:
Numbercruncher - QLD somewhere,
Knocker - internet cafe in Europe or on cruiser
Pepperoni - sydney somewhere
kimosabi - WA
chops a must - WA, combine this with Kimosabi
going to be great
thankyou
robots
Morning Robots,
daughter went to a couple of inspections in Toorak yesterday, first one a 2 bdr they want $600 k's, heaps of asians interested, second a 1 bdr for , originally 350...now its going to auction....lots of asians again...
prices last year were 200k's below the current asking prices....she has decided she wants to live in Toorak now too.....
also, there is one across the road in Sth Yarra for 500k's.....50 yards away...better value....
however I bet they all go for above the asking prices
cheers
daughter went to a couple of inspections in Toorak yesterday, first one a 2 bdr they want $600 k's, heaps of asians interested, second a 1 bdr for , originally 350...now its going to auction....lots of asians again...
prices last year were 200k's below the current asking prices....she has decided she wants to live in Toorak now too.....
also, there is one across the road in Sth Yarra for 500k's.....50 yards away...better value....
however I bet they all go for above the asking prices
cheers
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With today's announcement that this government will increase employer super contributions to 12% over the next 10 years, it is sure to have a negative effect on the already weak wage growth.
With increasing interest rates, how can anybody now justify buying an investment property with the view of negative gearing?
First FHBers were priced out of the market. Then foreign investment criteria became stricter. Now investors have their main incentive for buying property seriously weakened. Yet there are still people out there who think RE prices will keep on rising and rising at a rate in excess of inflation.
With increasing interest rates, how can anybody now justify buying an investment property with the view of negative gearing?
First FHBers were priced out of the market. Then foreign investment criteria became stricter. Now investors have their main incentive for buying property seriously weakened. Yet there are still people out there who think RE prices will keep on rising and rising at a rate in excess of inflation.
hello,
good arvo Kincella,
yes I reckon most agents are advertising about 50-80k off the mark at the moment
great area everything around, thats the price though man and if she grab one will be on the road to utopia
walkin the tan, sipping latte's, getting a zinger burger from KFC, enjoying the greatest city on earth
thankyou
robots
good arvo Kincella,
yes I reckon most agents are advertising about 50-80k off the mark at the moment
great area everything around, thats the price though man and if she grab one will be on the road to utopia
walkin the tan, sipping latte's, getting a zinger burger from KFC, enjoying the greatest city on earth
thankyou
robots
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Sounds great doesn't it.
Australians having to compete against Asians when buying a home! F^&(#n fantastic!
$600K for a 2 bedroom unit. Wow, thats well above the average wage to pay that sucker off
I wonder if this guy knows what he's talking about....
http://www.theaustralian.com.au/bus...-price-implosion/story-e6frg9gx-1225861304871
He doesn't mention the supply issue but touches on some great points I think.
hello,
a couple of things he doesnt touch on either Go Nuke:
a. go shopping at Walmart and as you picking up the 5 gal dip, 5 gal coke, 5 gal dorito's, 5 gal sour cream grab yourself am AK47, an Uzi, grenade launcher, rambo knife, taser, silicencer for the 9mm
b. they live in a concrete jungle, here we have trees and birds and special people who make this place one great joint
c. yeah man roll on the treadly down to Brooklyn and hook yourself up some crack, every street corner, pipes, caps
but i am glad they exist because people get an understanding of the paradise we have here
apologies, I forgot Mr Burns on the list the other day
thankyou
robots
a couple of things he doesnt touch on either Go Nuke:
a. go shopping at Walmart and as you picking up the 5 gal dip, 5 gal coke, 5 gal dorito's, 5 gal sour cream grab yourself am AK47, an Uzi, grenade launcher, rambo knife, taser, silicencer for the 9mm
b. they live in a concrete jungle, here we have trees and birds and special people who make this place one great joint
c. yeah man roll on the treadly down to Brooklyn and hook yourself up some crack, every street corner, pipes, caps
but i am glad they exist because people get an understanding of the paradise we have here
apologies, I forgot Mr Burns on the list the other day
thankyou
robots
hello,
cant believe no-one posted this up:
http://www.theage.com.au/business/home-prices-surge-record-20-20100503-u2im.html?autostart=1
OH YEEEEEEAAAAAAH, well done brothers holding the assets, keep plugging away at things
great decisions you have made at a time when the media and people with vested interests tried to ridicule us, poke a stick at us, bully boy us,
hang onto those title slips, walk tall man
thankyou
robots
cant believe no-one posted this up:
http://www.theage.com.au/business/home-prices-surge-record-20-20100503-u2im.html?autostart=1
OH YEEEEEEAAAAAAH, well done brothers holding the assets, keep plugging away at things
great decisions you have made at a time when the media and people with vested interests tried to ridicule us, poke a stick at us, bully boy us,
hang onto those title slips, walk tall man
thankyou
robots
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And the ball is back in your court Robots with
http://www.theaustralian.com.au/business/property/housing-tipped-for-price-implosion/story-e6frg9gx-1225861304871
Cheers and a great day in the market today, got to love a bit of panic.
http://www.theaustralian.com.au/business/property/housing-tipped-for-price-implosion/story-e6frg9gx-1225861304871
Cheers and a great day in the market today, got to love a bit of panic.
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It a bit hard for you to comment on another country since trains don't go overseas
Sure you didn't mean Braybrook?
Or StAlbans, which you apparently have a IP there. You don't know the town very well, do you.
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In relation to commercial property (retail), Westfield's latest quarterly report contains some interesting information in specialty store rents from the countries in which it operates.
Australia: $AUD 1,376 psm
New Zealand: $NZ 1060 psm
UK (pounds): 626 psm
USA: $US 42.87 psf (~$US 430 psm)
On a constant currency basis, all are much more expensive than the USA but Australia is now significantly higher than the UK and NZ.
Australia: $AUD 1,376 psm
New Zealand: $NZ 1060 psm
UK (pounds): 626 psm
USA: $US 42.87 psf (~$US 430 psm)
On a constant currency basis, all are much more expensive than the USA but Australia is now significantly higher than the UK and NZ.
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RBA cash rate up .25% to 4.5%
cheers
cheers
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http://www.rba.gov.au/media-releases/2010/mr-10-07.html
With inflation now at the top of the target range, the RBA appears to be going to flirt with letting it slip over the top of that range for a bit in the hope that the can retrieve it later, possibly after the election.
At the very least, near term interest rate responses to inflation will be reactive rather than proactive.
The inflation monster with it's paw out of an ajar cage door is eying an RBA looking ever more wobbly on its tightrope.
Interest rates are now neutral......
for an inflation rate of 2–3 per cent.....
averaged over time.
With inflation now at the top of the target range, the RBA appears to be going to flirt with letting it slip over the top of that range for a bit in the hope that the can retrieve it later, possibly after the election.
At the very least, near term interest rate responses to inflation will be reactive rather than proactive.
The inflation monster with it's paw out of an ajar cage door is eying an RBA looking ever more wobbly on its tightrope.
