The future of Australian property prices
- Thread starter Joe Blow
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Dear student Robots. Here is your mid term exam:
Examine the following link:
http://theworldsrichest.com/
Q1. How many on this list have made it big from negatively gearing property, as opposed to investing in companies?
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Must be something to this property thingy. Afterall, Mohamed Al Fayed, the flamboyant businessman who has controlled the Harrods department store in London for a quarter-century, sold the landmark business and iconic building to Qatari investors on Saturday, for a reported £1.5 billion. Must be money in real estate then !
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He bought it for 800million quid, 25 years ago. Hardly great capital appreciation. Australia's different though. You can buy a unit in StKilda today and in 5 years it will be worth less than it is now.
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He bought it for 800million quid, 25 years ago. Hardly great capital appreciation. Australia's different though. You can buy a unit in StKilda today and in 5 years it will be worth less than it is now.
Talk about a bad deal ! Must have had a lot of floor stock and apparently jewels worth millions went missing from a safety deposit box ! Maybe Fayed was like ALan Bond was to Packer? You mean he only doubled his money in 25 years?? What a shame. He should be taken outside and flogged with a cat o' nine tails dipped in salt and vinegar !! How dare he !Can I buy 5 of these units please UBI ? One for Santa Claus, one for the Easter Bunny and one each for the three ugly sisters. No wait ....... these are mythical creautres. You get my drift.
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You would be happy with just over 100% in 25 years?
I don't reckon I know ANYBODY who would be. Then again, I guess investing in real estate moulds some people to have low expectations.
wayneL
VIVA LA LIBERTAD, CARAJO!
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A non sequitur and frankly, a foolish and puerile comment.
Property bear <> poor investor.
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FWIW, I believe generally lower than now, take Sydney as a reference if needed - what measure would you like? Not willing to put a figure on it. 30k play money on cfd's...rest in cash @6% and 10% gold bullion, and the house I live in. Liquid, instantly redeemable and withdrawable.....apart from the house & land, but it will be utilised for food production.
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Sorry.
Couldn't help this one. Too much bile rising....
No-one is backing up with FACT.
Dear kincella - direct from the National Archives Currency Converter...http://www.nationalarchives.gov.uk/currency/results1.asp#mid
1.00 pound in 1985 = 2.01 pounds today
So, 800 Million purchase in 1985 is actually worth 1.608 Billion today.
Throw in fees, taxes etc....??
So, FACT = He sold at a relatively LARGE LOSS OF MONETARY VALUE after 25 years.
Please, do research before posting.
Thankyou.
Goodbye.
wayneL
VIVA LA LIBERTAD, CARAJO!
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Yeah, and just chucking the dosh into the SP500 would seen a 5 or 6 bagger, crashes 'n all.
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Thanks Uncle. Maybe major capital CITIES as you refer to will feel the pinch in future due to bearish current markets fueled by FHOG's, overseas buyers and such like inflationary pressures. Good to see a diversified portfolio. Major asset being the house I see is a definite plus with residential security backing.
at least it kept pace with inflation, all the holding costs are tax deductible....or the tenant pays all those costs.....
it was commercial property....a bit different from the ordinary house....
so there is the devaluation at work...today you need 1.6 billion to buy the same thing that cost 800 million....only 25 years ago
on average the dollar devalues 95% in 70 years....looks like its devaluing faster now
he will still have to pay capital gains tax on the difference.....
good luck with waiting for our property prices to drop.....if the UK is pound is anything to go by
it was commercial property....a bit different from the ordinary house....
so there is the devaluation at work...today you need 1.6 billion to buy the same thing that cost 800 million....only 25 years ago
on average the dollar devalues 95% in 70 years....looks like its devaluing faster now
he will still have to pay capital gains tax on the difference.....
good luck with waiting for our property prices to drop.....if the UK is pound is anything to go by
Dear student Robots. Here is your mid term exam:
Examine the following link:
http://theworldsrichest.com/
Q1. How many on this list have made it big from negatively gearing property, as opposed to investing in companies?
hello,
exactly Ubiquitous, whats your interest in property then, who is negative geared? its like that guy who was here a few years ago who owned every company in australia (stop the clock?)
surely investing in companies is the way to go yet strangely this far profitable route (apparently) closed out all the Storm investors, banks margin loan only 70% or a lot less against the security, yet its the golden egg
great posts Kincella, you hit the nail on the head brother and even after all we do for the community through education many will still be putting the hand out at retirement, especially those in the 20-30 age bracket now
thankyou
robots
yes Robots,,,,I tried to get them to take a different approach awhile back...to show them just how fast the dollar devalues....
its not so much house prices rising......or electricity costs up 30%, or food up 15%....
its the other side of the coin.....the devaluation of the dollar, and what it can buy now or later.....
so the longer they wait, the less it buys, or the more dollars required, to buy the same old thing...
god help those who leave it sitting in the bank....watching it dwindle away without even touching it, apart from giving the taxman his cut....
unless they are good workers, and put away a whole load of stash to compensate for the dwindling dollar...
btw the govnuts have been spending so hard and fast lately, they will need to print some more money...to devalue it even further...
lets see the bad news due out tomorrow...
its not so much house prices rising......or electricity costs up 30%, or food up 15%....
its the other side of the coin.....the devaluation of the dollar, and what it can buy now or later.....
so the longer they wait, the less it buys, or the more dollars required, to buy the same old thing...
god help those who leave it sitting in the bank....watching it dwindle away without even touching it, apart from giving the taxman his cut....
unless they are good workers, and put away a whole load of stash to compensate for the dwindling dollar...
btw the govnuts have been spending so hard and fast lately, they will need to print some more money...to devalue it even further...
lets see the bad news due out tomorrow...
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And this is one of the reasons IR's will continue to rise, because the Govnuts reckless spending is addition to inflationary pressures.
I agree, the Fed Budget will finally give us some idea of how stupid Chairman KRUDD and Co have been with future taxpayers dollars.
Cheers
hello,
yes thats right Kincella and its a given for the rest of our lives
fantastic posts by the way, yes maybe bad news for some tomorrow but thats why me and you brother make our own path
get to kick back, spend time with family, educating and helping the community,
thankyou
robots
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Dear student Robots. Here is your mid term exam:
Examine the following link:
http://theworldsrichest.com/
Q1. How many on this list have made it big from negatively gearing property, as opposed to investing in companies?
I would like to ask a similar question.
Q1, How many of the guys listed made their money "Share Trading".
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Thats right,
Property investing is all about securing an inflation hedged income stream,
The income stream from an investment property is not the biggest in percentage terms, But it is by far the safest income stream that remains hedged against inflation. Not to mention it is paid weekly.
Most of the arguments against property are in relation to debt, But this is a separate topic that affects all asset classes.
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It remains to be seen if it is a safe investment, backed by nothing more than the
belief by the general public that 'property prices never go down", and aided by flawed government policies ie immigration, subsidies and NG? And the banks contribute the most by indebting a large swathe of the population to mortgage stress. And a little bit of supply and demand imbalance again caused by flawed gov policies? Plenty of cheap land in better lifestyle regional areas.
"hedged against inflation" - that would apply only if the return is above inflation? You don't see property investors subtracting out the loss from inflation when they do their sums on how much money they made from an investment?
I think the sweet spot for property (low rates, foreign investment, gov subsidies) has passed and is on the top taper now (blow off tops from the stragglers buying), the stress wave is working it's way up from the bottom, as it did just before the GFC.
