In an inflation scenario, you want have real items so stuff, very rarely does RE fall if inflation explodes.it may not rises as much but I doubt real estate prices will fall with inflation..but they might in a depressionJust an interesting tidbit
And apologies for mistakes galore in that short post..more than my usual high levelIn an inflation scenario, you want have real items so stuff, very rarely does RE fall if inflation explodes.it may not rises as much but I doubt real estate prices will fall with inflation..but they might in a depression
a major war for nearly five years might have influenced that ( lots of men were overseas getting shot or shouted at , aka not rolling in money )Just an interesting tidbit
in theory rising inflation would be soften the selling pressure ( more loans liable to be refinanced/roll-over ) than lender foreclosures , a depression means few jobs/income and plenty of forced sellers ( a lender is more likely to extend a mortgage , if you still have a regular income , and the underlying asset isn't plummeting towards zero/unsaleable )In an inflation scenario, you want have real items so stuff, very rarely does RE fall if inflation explodes.it may not rises as much but I doubt real estate prices will fall with inflation..but they might in a depression
Probably a wise move in the current climate. As having had 3 rentals in recent times, 2 of which were a nightmare , with one being called a C18 which in insurance parlance is a house in the country being 18 inches high. Mongrel scum low life tennants burnt it to the the ground. Off loaded one and the other on the farm remains vaccatedI'm out of step with a lot of people as I view houses as a place to live and not an item from which to make money out of other people. I've never been interested in property as an investment.
Yep, the inherent contradiction.... one's PPR should be classified as a "lifestyle option " and not a measure of wealth, but a lot of people treat it as part of their asset mix... I view houses as a place to live and not an item from which to make money out of other people. ...
I've made a few arguments to friends about that. They would mention house prices, etc., and asked why it would matter if its their residence? If it's a place to live then the market value shouldn't mean much. (It obviously effects council rates etc., but its resale value shouldn't matter.)Yep, the inherent contradiction.... one's PPR should be classified as a "lifestyle option " and not a measure of wealth, but a lot of people treat it as part of their asset mix.
It was our position about having any investment property no matter the climate applicable at the time.Probably a wise move in the current climate. As having had 3 rentals in recent times, 2 of which were a nightmare , with one being called a C18 which in insurance parlance is a house in the country being 18 inches high. Mongrel scum low life tennants burnt it to the the ground. Off loaded one and the other on the farm remains vaccated
I've made a few arguments to friends about that. They would mention house prices, etc., and asked why it would matter if its their residence? If it's a place to live then the market value shouldn't mean much. (It obviously effects council rates etc., but its resale value shouldn't matter.)
Scary, poor buggers....Your home is not your castle unless you dig really, really deep before handing over the cash.
Five years after buying their home for $1.2 million, Jess and Jackie find out they never legally owned it
Jess and Jackie Morecroft purchased their Gold Coast home at auction five years ago, but earlier this year a court ruled the home was never really theirs and it still belonged to the previous owner.www.abc.net.au
from Jarad Dillian's column, The 10th Man. He's American, so I'll edit a bit....... one's PPR should be classified as a "lifestyle option " and not a measure of wealth, but a lot of people treat it as part of their asset mix.
from Jarad Dillian's column, The 10th Man. He's American, so I'll edit a bit...
"For personal finance purposes, I like to tell people that a house is not an investment. A house is negative carry. You’re paying the mortgage, you’re paying property taxes, you’re paying insurance, and you’re paying for maintenance, which averages around 1% of the value of the home each year. Stocks and bonds are positive carry, like most investments—you earn dividends and interest.
"But for some people, a house is the best investment they’ll ever have. The 30-year .. mortgage is kind of a forced savings program—it forces you to build equity in your house over time. Some people live in the same house for 30 years, have no savings and no investments outside of the home, but find they are living in a .. house that is completely paid off....
"Plus, housing prices do go up over time—around 4% annually, keeping up with inflation. That’s not as good as stocks, obviously, but there’s a lot less volatility. That’s one advantage to investing in your own home: You can’t look up the price on your phone every day and be influenced by the volatility. Okay, you can, but I recommend against it.....
"Anyway, housing is a great investment because people never look at the price, and they let it compound forever, unlike a stock, where they watch the price every day and get shaken out.
"So, for personal finance purposes, a house is not an investment—it physically depreciates and costs you a lot of money. But for investment purposes, it is, as people found out in the last couple of years...
It's all about location. Bought in prime locations, properties will appreciate over time.from Jarad Dillian's column, The 10th Man. He's American, so I'll edit a bit...
"For personal finance purposes, I like to tell people that a house is not an investment. A house is negative carry. You’re paying the mortgage, you’re paying property taxes, you’re paying insurance, and you’re paying for maintenance, which averages around 1% of the value of the home each year. Stocks and bonds are positive carry, like most investments—you earn dividends and interest.
"But for some people, a house is the best investment they’ll ever have. The 30-year .. mortgage is kind of a forced savings program—it forces you to build equity in your house over time. Some people live in the same house for 30 years, have no savings and no investments outside of the home, but find they are living in a .. house that is completely paid off....
"Plus, housing prices do go up over time—around 4% annually, keeping up with inflation. That’s not as good as stocks, obviously, but there’s a lot less volatility. That’s one advantage to investing in your own home: You can’t look up the price on your phone every day and be influenced by the volatility. Okay, you can, but I recommend against it.....
"Anyway, housing is a great investment because people never look at the price, and they let it compound forever, unlike a stock, where they watch the price every day and get shaken out.
"So, for personal finance purposes, a house is not an investment—it physically depreciates and costs you a lot of money. But for investment purposes, it is, as people found out in the last couple of years...
Scary, poor buggers....
I would say i disagree as they are unable to enforce it from what i read then. And to get a chance to get paid, they may have to get in the courts again..with what money and while they are booted out of their home with nothing...but a mortgage to pay...Yes and No. The Court has determined they are entitled to $2.7m in compensation from the Queensland State Government.
Gold Coast couple awarded $2.7 million in compensation over lost house
The Queensland state government has been ordered to pay compensation to a couple whose house was given back to the previous owner by a court, five years after it was sold.www.abc.net.au
It sounds like the Govt has found yet another way of keeping the ponzi rolling on.
From July 1 this year, friends, siblings and other family members will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee.Eligibility for Home Guarantee Scheme expanded to include, friends, siblings and guardians
Friends, siblings and family members will be able to jointly apply for federal government home buyer guarantees under several eligibility changes to come into effect from July 1 this year.www.abc.net.au
These schemes will also be available to non-first home buyers who have not owned a property in the past 10 years.
For both the First Home Guarantee and Regional First Home Guarantee schemes, the federal government acts as guarantor on up to 15 per cent of a loan. This enables eligible home buyers to purchase a home with as little as a 5 per cent deposit without paying lenders mortgage insurance.
The criteria for Family Home Guarantee applicants will also be expanded beyond just single natural or adoptive parents with dependents.
This change means the guarantee will become available to eligible borrowers who are single legal guardians of children, such as aunts, uncles and grandparents.
Under the Family Home Guarantee, the federal government acts as guarantor on up to 18 per cent of a loan. This enables eligible home buyers to purchase a home with as little as a 2 per cent deposit without paying lenders mortgage insurance.
"We know friends and family members are already teaming up to secure their own place to call home," Ms Collins said.
"Our actions will allow them to access vital assistance, just as couples have been able to previously."
The government says allowing non-first home owners who haven't owned a property for ten years to access the schemes will be beneficial to people who have fallen out of home ownership due to financial issues or relationship breakdowns.
700,000 migrants will keep the prices bouyant, clever really, it certainly doesn't look good for Aussie youth IMO, a lot of competition is on the horizon and coming from poorer countries their expectations will be a lot lower.I'm glad they're trying to do something, but like your initial comment: its just keeping the same thing rolling, isn't it? No mortgage lenders insurance .... great. But people are still going to be leveraged to the hilt. That's when changes in interest rates really effect people ....
If a large part of the issue is supply vs demand, then why are they increasing the demand? They need to increase the supply ... not a quick feat. Why not add greater incentives for new houses. Or new developments. Maybe they already do? (I'm actually unsure.) Either way, this seems doomed to perpetuate the same issue and is unlikely to make things more affordable—its just making it easier to leverage.
It baffles me that an asset class that has all the hallmarks of an overinflated asset, that is in a bubble, that they continue to inflate said bubble...
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