Sean K
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All the firefighters must be rushing to snap them up. 70s was a quality style that will last through the ages.
House prices to keep rising for years
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explod
explod
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When you are saying 70% I take it you are talking the % of sales, i.e. clearance rate.
Why do you say it should hold, you give no reasons.
Of course clearance rates tell us nothing about the value of the market or the volume. If more people try to sell and are prepared to drop prices then the clearance rate could go up, you would say 80% is good, when in fact an examination of all the demographs could paint an entirely different picture. Clearance rates on thier own are absolutely meaningless.
I wonder why you post if you have little or nothing to say or is it amusement at creating ripples on the pool?
I would be most interested if you would kindly answer the above points
hello,
another great article:
http://business.theage.com.au/housing-affordability-slumps-to-new-low/20080228-1vhe.html
this is interesting because with maybe 12 rises happening the prices are still SOLID (not rising 20%/pa, I said solid)
it also highlights the room for rent increases in the future, as at 26% of wage is still very low I believe and will be interesting to watch,
thankyou
robots
another great article:
http://business.theage.com.au/housing-affordability-slumps-to-new-low/20080228-1vhe.html
this is interesting because with maybe 12 rises happening the prices are still SOLID (not rising 20%/pa, I said solid)
it also highlights the room for rent increases in the future, as at 26% of wage is still very low I believe and will be interesting to watch,
thankyou
robots
wayneL
VIVA LA LIBERTAD, CARAJO!
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Presuming you were answering explod, his questions are very much on-topic, i.e. the reasons behind house price rises or falls.
hello,
any chance of telling me which part of the explod post related to this?
thankyou
robots
How can you say rising rents are really a good thing without being incredibly selfish?
Would you prefer people to be spending 90% of their income on rent, and therefore unable to afford food, clothing, and money to be able to send their kids to school each week? As long as it's making you wealthy, who cares right?
Because eventually something has got to give, and people will refuse to pay those prices. They'll either move outwards, or share cooped up five deep with others (such as London), which really isn't improving demand. Or eventually skip the rent altogether. Last 2 renters next to me have done this, taken a few weeks until they've been able to be kicked out too. This is rampant on the Gold Coast. Extra insurance costs to you again can't be good there.
As well as driving rents higher, it eventually shoots demand for buying, as nobody can afford to save enough to ever purchase.
Also rising rents are included in inflation figures, which of course drive up interest rates - meaning you the owner is also squeezed eventually.
One thing that does confuse me a little is this much touted "shortage" in rental property. Last I checked on any of the property websites, there is pretty much rental available in any suburb you could care to name in QLD. So there does appear to be any shortage of rental at all.. What there is a shortage of is *affordable* rental, that the average family can afford. Some of the upper end of market confuses me a little - if you can afford $800/wk for rent, wouldn't you be obviously in a position to buy a place? Obviously I see a place for professionals that may move around a bit, however seems a lot out there. It's easy to scale back into a cheaper property at that end, but on the lower end, it's probably a case of scaling into the street
I'd be interested in any views on this by those who may know a little more as to how it may pan out eventually with things going this way. Maybe I'm the wrong demographic, however most of my friends and collegues are not receiving 10% pay rises each year to put up with large increases in mortgages, or rental, and rising costs for many other things - despite some of the wage inflation claims put out there.
Would you prefer people to be spending 90% of their income on rent, and therefore unable to afford food, clothing, and money to be able to send their kids to school each week? As long as it's making you wealthy, who cares right?
Because eventually something has got to give, and people will refuse to pay those prices. They'll either move outwards, or share cooped up five deep with others (such as London), which really isn't improving demand. Or eventually skip the rent altogether. Last 2 renters next to me have done this, taken a few weeks until they've been able to be kicked out too. This is rampant on the Gold Coast. Extra insurance costs to you again can't be good there.
As well as driving rents higher, it eventually shoots demand for buying, as nobody can afford to save enough to ever purchase.
Also rising rents are included in inflation figures, which of course drive up interest rates - meaning you the owner is also squeezed eventually.
One thing that does confuse me a little is this much touted "shortage" in rental property. Last I checked on any of the property websites, there is pretty much rental available in any suburb you could care to name in QLD. So there does appear to be any shortage of rental at all.. What there is a shortage of is *affordable* rental, that the average family can afford. Some of the upper end of market confuses me a little - if you can afford $800/wk for rent, wouldn't you be obviously in a position to buy a place? Obviously I see a place for professionals that may move around a bit, however seems a lot out there. It's easy to scale back into a cheaper property at that end, but on the lower end, it's probably a case of scaling into the street
I'd be interested in any views on this by those who may know a little more as to how it may pan out eventually with things going this way. Maybe I'm the wrong demographic, however most of my friends and collegues are not receiving 10% pay rises each year to put up with large increases in mortgages, or rental, and rising costs for many other things - despite some of the wage inflation claims put out there.
tech/a
No Ordinary Duck
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There has to be people who invest in property for rental.They should be entitled to recieve that which the market is prepared to pay---just like anyone in business they are entitled to profit.Do you shoot the butcher down because his prices are amazingly high for a piece of Fillet Steak---no you buy what you can afford and do all you can to better yourself so you can afford that which you wish.
And if the owner skips payments he gets repossesed by the bank!
And so they should and so should those who cant pay for their IP.As cruel as that is in some circumstances.
Yes a fact of life the CYCLE will come and go again and again probably twice in your lifetime and possibly once again in mine.We ALL (Investor and consumer) need to take care of our OWN business.
One thing that does confuse me a little is this much touted "shortage" in rental property. Last I checked on any of the property websites, there is pretty much rental available in any suburb you could care to name in QLD. So there does appear to be any shortage of rental at all.. What there is a shortage of is *affordable* rental, that the average family can afford. Some of the upper end of market confuses me a little - if you can afford $800/wk for rent, wouldn't you be obviously in a position to buy a place? Obviously I see a place for professionals that may move around a bit, however seems a lot out there. It's easy to scale back into a cheaper property at that end, but on the lower end, it's probably a case of scaling into the street
Then affordable rental is at a shortage.
There will be hardship for some in both the Owner and the Rentor sectors.
Rent/Wages and affordability will eventually return to a more normal status and in time will fall to the low ebb (Opportunity) and rise eventually again to similar to today (Hardship).The only difference is that perhaps next time round you'll possibly recognise it---what you do then will be an individual thing.
t/a - I'm not attacking property owners for wanting to receive good returns for their property, make a profit, or property investment at all. I have no sympathy for renters who do not pay their rent, or do not appreciate what they are given. Sorry if it seemed I was somehow attacking the concept of renting or property investment.
I'm just worried about the end result of affordability for everybody, whether you are an owner/occupier, investor, renter or even developer. Robots seems to be implying it's a good thing that rents are going up and affordability is going down.
Maybe it's just the cycle changing as you say, but I am hoping it's not a painful shift. It looks like it's worrying at the moment for quite a few people no matter where they sit. I may have not lived through many boom and bust cycles, but the last big bust cycle in the early 90's that I can remember resulted in a lot of pain for many people. It's depressing to be honest that we may be heading back to that sort of situation.
I'm just worried about the end result of affordability for everybody, whether you are an owner/occupier, investor, renter or even developer. Robots seems to be implying it's a good thing that rents are going up and affordability is going down.
Maybe it's just the cycle changing as you say, but I am hoping it's not a painful shift. It looks like it's worrying at the moment for quite a few people no matter where they sit. I may have not lived through many boom and bust cycles, but the last big bust cycle in the early 90's that I can remember resulted in a lot of pain for many people. It's depressing to be honest that we may be heading back to that sort of situation.
Its trickle down.
Lots of people have been saying that RE is a bad investment, too pricey, not good enough rental returns. Thats another way of saying that there is too much rental stock, too many investors competing with each other for too few renters. The inevitable happens...investors stop investing until there are enough renters desperate enough to rent for the rent to go up enough to make property worth investing in again.
So we have a correction happening.
Rent is too cheap at the moment.
Or property is too expensive.
Or both.
Which of these conclusions we make will determine which way we invest in the future, even if we stand by and do nothing but watch.
To my mind, rent is way too cheap. I think there is going to be a wage breakout and inflation. House values may go down a little for a while with respect to an increasing average wage, but property prices (with land) will continue to rise in dollar terms.
My
fwiw
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Newsflash ... distresssed property owners on the increase ... look
Bwahahaha ... the re agents wont go broke .. they are making a killing off ignorant morons who bury themselves in debt to buy properties which they then need to sell after they have to sell their bike ..... having already sold their car.
Property will go up forever ... I read it in the daily telegraph and heard about it on the block before they lost their shirts .... just read this link to zoo magazine ... bahahaha classic thread dont let it stop pleeeeeese!!!!! hahahaha
Bwahahaha ... the re agents wont go broke .. they are making a killing off ignorant morons who bury themselves in debt to buy properties which they then need to sell after they have to sell their bike ..... having already sold their car.
Property will go up forever ... I read it in the daily telegraph and heard about it on the block before they lost their shirts .... just read this link to zoo magazine ... bahahaha classic thread dont let it stop pleeeeeese!!!!! hahahaha
hello,
sorry about that dreadful typo,
this is amazing, people ride JB HiFi from $2 to $12 because they are making 5000% on dvd, plasma and lcd's but thats okay, lets not worry
if property owners want to make something on their hard earned they are satan or the devil,
all I know RE has helped me reach utopia
and rent increases will play a large factor in maintaing prices I believe
thankyou
robots
sorry about that dreadful typo,
this is amazing, people ride JB HiFi from $2 to $12 because they are making 5000% on dvd, plasma and lcd's but thats okay, lets not worry
if property owners want to make something on their hard earned they are satan or the devil,
all I know RE has helped me reach utopia
and rent increases will play a large factor in maintaing prices I believe
thankyou
robots
tech/a
No Ordinary Duck
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This demographic---can you supply me with some figures relating to % of buyers which fit here?
Of property sold in any one weekend what % of buyers are ignorant morons burying themselves in debt to buy?
Is anyone who buys NOW automatically classified in this demographic?
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One thing that does confuse me a little is this much touted "shortage" in rental property. Last I checked on any of the property websites, there is pretty much rental available in any suburb you could care to name in QLD. So there does appear to be any shortage of rental at all.. What there is a shortage of is *affordable* rental, that the average family can afford. Some of the upper end of market confuses me a little - if you can afford $800/wk for rent, wouldn't you be obviously in a position to buy a place? Obviously I see a place for professionals that may move around a bit, however seems a lot out there. It's easy to scale back into a cheaper property at that end, but on the lower end, it's probably a case of scaling into the street
This may really depend on where you are looking. We have all heard the horror stories of people basically auctioning of rental properties in Sydney. Well, I can confirm that this has happened to me. My last move, I turned up early to the arranged inspection to find 8 other couples there as well (and this is in North-West Sydney). After submitting my application, the agent got back to me asking if I can "sweeten" the deal. In the end I ended up paying an extra $5 on top of the asking rent, plus 6 months in advance! Luckilly for me we just sold our house, and had that sort of spare change lying around.
This compares to 4 years ago when I was looking for rentals in Sydney's North - I had the pick of the bunch, no one else "bidding" and could even negotiate the price down!
My conclusion - rental shortage is real in Sydney!
numbercruncher
Beware of Dropbears
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So are the people from the REIA a pack of muppets as well ? are they as stupid as us RE bears in this thread ? When do RE bulls begin to think " Houston we have a problem " , will the 10pc mortgage get you thinking ?
http://news.ninemsn.com.au/article.aspx?id=308694
Peak Debt
http://news.ninemsn.com.au/article.aspx?id=87372
http://news.ninemsn.com.au/article.aspx?id=308694
Peak Debt
http://news.ninemsn.com.au/article.aspx?id=87372
explod
explod
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Please explain why you conclude that the numbers are still up there. I spoke to a real estate agent today who said they are knocking back stock because there is more coming in than going out and this has been the case for 3 months here on the Mornington Peninsula.
Signs are up everywhere and "for let" everywhere here too. A lot of people trying to get rid of the second coastal property/investment big time.
Looking bad to me.
thankyou
numbercruncher
Beware of Dropbears
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Trolling ?
Least my input is Generally backed by news articles etc ....
Do you have anything to add to the REIAs prediction that prices will fall if rates continue to rise ? are they wrong ? and if so, why ?
hello,
to me you just trolling with the usual statements:
peak debt, X times earnings, wage inflation, re going to crash, nusres and school teachers cant afford a house
look at it from my point of view,
I have already stated I wouldnt have a clue what is going to happen and nor do you, but I am invested in direct property and direct shares and will go with the flow
ps. financial planner wouldnt like that, no rolling commission there
thankyou
robots
to me you just trolling with the usual statements:
peak debt, X times earnings, wage inflation, re going to crash, nusres and school teachers cant afford a house
look at it from my point of view,
I have already stated I wouldnt have a clue what is going to happen and nor do you, but I am invested in direct property and direct shares and will go with the flow
ps. financial planner wouldnt like that, no rolling commission there
thankyou
robots
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