Compound growth in house prices over ?

[DANNO178]

Originally Posted by b0son

To use your own argument... your suburb doesnt necessarily reflect the state of the universe.

Once again nothing to argue , was merely stating my observations , nothing more . Maybe you can show us your area and we can see how its going and how it goes. Can you please point out to us all what it is exactly that you disagree with from what I have said , that way we can have it on paper and see who was right and who was not. So far you have told us that your friends and family owe money on property and then inferred that because you think they are all going fine , that everything in the universe is fine. What else would you like to tell us about property and the economy . Do you expect property to rise or fall over the next year or two . Do you think gold will rise or fall over this time . Do you think that the economy is doing fine ?

Any chance you could step up and show what your made of or can we expect you say nothing because you fear you will be wrong . Guess we will all find out soon enough weather you can walk the walk or just talk the talk , I know where my money will be....

[b0son]

Originally Posted by DANNO178

So far you have told us that your friends and family owe money on property and then inferred that because you think they are all going fine , that everything in the universe is fine.

I did?? I think you've mistaken me for someone else.

Guess we will all find out soon enough weather you can walk the walk or just talk the talk , I know where my money will be....

You cant even keep up with who said what... why would I care to jump through your hoops....

[BA GT-HO]

Originally Posted by DANNO178

Once again nothing to argue , was merely stating my observations , nothing more . Maybe you can show us your area and we can see how its going and how it goes. Can you please point out to us all what it is exactly that you disagree with from what I have said , that way we can have it on paper and see who was right and who was not. So far you have told us that your friends and family owe money on property and then inferred that because you think they are all going fine , that everything in the universe is fine. What else would you like to tell us about property and the economy . Do you expect property to rise or fall over the next year or two . Do you think gold will rise or fall over this time . Do you think that the economy is doing fine ?

Any chance you could step up and show what your made of or can we expect you say nothing because you fear you will be wrong . Guess we will all find out soon enough weather you can walk the walk or just talk the talk , I know where my money will be....

Why the attitude?

For what it's worth, I sold a property 3 months ago and it sold quickly to investors, for a good price and more than I expected in the flat market.

Two weeks ago a neighboring property also sold quickly but I am unsure of what price it sold for. (It was advertised for a touch more than mine.) An investor also purchased it.

Goes to show that good property is still retaining value and that investors are still out there buying. There are some houses in my area that are sitting unsold for a long time, but usually there is a fundamental reason for this. (Unrealistic price, main roads, disrepair and refusal to budge on price)

[BENT_8]

The whole economy is stuffed and the only people talking it up are politicians.
The only thing going up in this country is fines, fuel and utilities.

Im no economist, or financial expert, but heres what i do know...

I drive a truck for a living, i work for a company who delivers to the largest retailers in SA, 1 of them a large grog chain.
12 months ago 6 of us were moving 50-60 pallets of freight a day each, 5 days a week to said retailers.
Currently i am getting 1 day a week and 2 people were laid off...the remaining 3(full timers) are sharing 80 pallets a day between them.
Every week i hear the same thing..it will pick up, it has to pick up, its never been this bad before etc. etc.
Even the old timers who've seen the whole rollercoaster before say its never been so bad.

We are on a knife edge at the moment.

The old saying goes 'without trucks, Australia dies'.
Well the trucks are idle, what does that say for Australia...

[b0son]

Originally Posted by BENT_8

Well the trucks are idle, what does that say for Australia...

They're shopping online, and the couriers/Aus Post are flat out.

[BENT_8]

Originally Posted by b0son

They're shopping online, and the couriers/Aus Post are flat out.

Yes, but buying offshore does nothing for manufacturing, transport and retail in this Country does it.

Cant see how thats a positive.

[zilo]

Originally Posted by BENT_8

The whole economy is stuffed and the only people talking it up are politicians.
The only thing going up in this country is fines, fuel and utilities.

Im no economist, or financial expert, but heres what i do know...

I drive a truck for a living, i work for a company who delivers to the largest retailers in SA, 1 of them a large grog chain.
12 months ago 6 of us were moving 50-60 pallets of freight a day each, 5 days a week to said retailers.
Currently i am getting 1 day a week and 2 people were laid off...the remaining 3(full timers) are sharing 80 pallets a day between them.
Every week i hear the same thing..it will pick up, it has to pick up, its never been this bad before etc. etc.
Even the old timers who've seen the whole rollercoaster before say its never been so bad.

We are on a knife edge at the moment.

The old saying goes 'without trucks, Australia dies'.
Well the trucks are idle, what does that say for Australia...

Yours is a barometer that that I hear repeated time after time.

And am seeing it first hand on approx the same magnitude as the pallets you describe.

Even the owner of one of the largest miners last week was hauled in by the bankers for a breach of caveat of his loans, luckily a US bank stepped up to the refinancing plate....only 8 months ago he was all public about how the boom was here to stay.

Not pretty....

In 12-18 months we will catch up to the rest of the world is the advice I have had.

House prices on average $5-600k...?
absolutely dreaming if we think that can be sustained.


We can't all buy Jim's Mowing trailers...

[flappist]

And another one bites the dust.

Historically the economy has gone through cycles which implies a circular motion.....not unlike this thread.

[russellw]

I am going to give this one more try. One user will not have access to this area again so hopefully everyone else can remain civil and remember that others are entitled to their opinion.

Cheers
Russ

[2011G6E]

The rental market is insane out here too, not only house prices. However, maybe they're starting to take a knock.

Maybe six months ago, there were shocked reports that three bedroom houses in the mining town of Moranbah were renting for up to $3000 to $4000 a week.
Just the other day there was a shocked news item on the local news saying that there were actually houses for rent there now for around $300 a week. Good...some greedy landlords are taking a smack on the bum, and about time. Normal workers like teachers and nurses and shop assistants have to live somewhere...

[b0son]

Originally Posted by 2011G6E

Good...some greedy landlords are taking a smack on the bum, and about time. Normal workers like teachers and nurses and shop assistants have to live somewhere...

Its simple supply and demand. If the miners are happy to pay top dollar to rent, the landlord has every right to charge it. Just like supply and demand ensures miners and associated industries get paid top dollar for work that gets paid far less outside the mining industry. You cant have your cake and eat it too.

[MAD]

Mining towns need more than just miners to survive.
Just because they can pay it, doesn't mean that's what should be charged.

Or do you have rates for miners and non-miners?

[b0son]

Originally Posted by MAD

Mining towns need more than just miners to survive.

If they need local services to survive, why arent the locals charging more.....

[Yellow_Festiva]

Originally Posted by 2011G6E

The rental market is insane out here too, not only house prices. However, maybe they're starting to take a knock.

Maybe six months ago, there were shocked reports that three bedroom houses in the mining town of Moranbah were renting for up to $3000 to $4000 a week.
Just the other day there was a shocked news item on the local news saying that there were actually houses for rent there now for around $300 a week. Good...some greedy landlords are taking a smack on the bum, and about time. Normal workers like teachers and nurses and shop assistants have to live somewhere...

Rentals are like that in Sydney as well. When I sold my house 2 years ago I helped one of my last house mates find another place.

What a joke. He was turning up to advertised inspections and getting in a line of 30 people. Or would book a 'private' viewing and still walk through with 5 other people. He finally found a place after 3 months and many knock backs. In the end he took the advice of a work mate and added 5% to the asking price and 'scored' a 1br granny flat for $280 a week....

I bought a 1br unit several years ago and the rent for that place started at $110pw, it's now $250 a week! Insane if you ask me....

I think the previous theme of banks returning to the 'good old days' with how they lent money is a very bad idea. Any major change in the industry will cause a tidal wave of financial destruction. The only way to remedy the situation (if you believe there is a problem in the first place) is to to hold things how they are and apply changes to future borrowers in a VERY gradual way.

As for the gold vs property debate.... There are things in life that are certain. Taxes, death and a growth in population. Real estate as a commodity will be just as necessary as gold as a rare natural resource.

People still need a place to sleep. While gold has shown exceptional recent growth it is all a gamble in the end.

Life is a gamble. Past trends, while great to refer to cannot be an iron clad judge of future trends. If you make or lose money while investing has more to do with luck, timing and to what advice you choose to listen to or ignore.

Life isn't 100% "What you make of it" more like 50%. The other 50% is "What others make it for you".

Oh, thanks for re-opening the thread ;)

[flappist]

Originally Posted by b0son

If they need local services to survive, why arent the locals charging more.....

Unfortunately the miners like to earn big money but not pay it.
This is a major component of why the FPV dealer in Emerald bit the dust.

But this attitude is not just confined to miners. How many bazillion threads are on here whinging about Australian prices of [whatever] compared to elsewhere and how someone is superclever buying their [whatever] on the internet.....

[Smoke Pursuit]

DANNO178 sounds like someone else that use to partake in these debates.

In Brisbane things are still pretty steady, i sold my block of land last year (making a profit on what I purchased it for in 2009) and bought another new property (got 10 kay off the price thanks to the state gov). Where that sits now really doesn't bother me as we have a house to live in, I still have my investment properties which are sitting tight (not doing much) but I am getting more money for them each review (and interest is alot cheaper then what it was).

I don't think anyone is right or wrong, we all take risks in hope of giving ourselves a better life one day. Whether the risks pay off or not is questionable but there are plenty of people my age (27) who still own nothing. While I haven't made anything on my investments yet atleast they are nearly paying for themselves and I'm not out blowing the money on overseas holidays and **** every weekend. Sadly for some of us we missed the good times, but hopefully they will come again.

[Smoke Pursuit]

Originally Posted by flappist

Unfortunately the miners like to earn big money but not pay it.
This is a major component of why the FPV dealer in Emerald bit the dust.

But this attitude is not just confined to miners. How many bazillion threads are on here whinging about Australian prices of [whatever] compared to elsewhere and how someone is superclever buying their [whatever] on the internet.....

FPV dealer in Emerald is coming back!!!! I know the guys who will be running it. There was a bit more to why the original dealer bit the dust.

[Yellow_Festiva]

Originally Posted by DASH GT

In Brisbane things are still pretty steady, i sold my block of land last year (making a profit on what I purchased it for in 2009) and bought another new property (got 10 kay off the price thanks to the state gov). Where that sits now really doesn't bother me as we have a house to live in, I still have my investment properties which are sitting tight (not doing much) but I am getting more money for them each review (and interest is alot cheaper then what it was).

I don't think anyone is right or wrong, we all take risks in hope of giving ourselves a better life one day. Whether the risks pay off or not is questionable but there are plenty of people my age (27) who still own nothing. While I haven't made anything on my investments yet atleast they are nearly paying for themselves and I'm not out blowing the money on overseas holidays and **** every weekend. Sadly for some of us we missed the good times, but hopefully they will come again.

DASH, by the sounds of things you are on the right track. The 'good times' are gone, but you just need to make do with what opportunities are available.

Cheers!

[2011G6E]

House prices in Rockhampton/Gracemere are pretty much steady with a downward trend over the last four years...despite what real estate agents have been saying in the local paper trying to beat up the market, but we've been watching the real estate guides and they are dropping.
For instance, we saw a nice house at Gracemere which had everything we liked, priced at $299,000 (dropped from $305,000 after two months on sale. We offered $274,000 and the people are apparently thinking hard about the offer and will most likely take it. It's a real buyers market, and if you are in the position of not actually needing to buy a house and can sit back and make offers and wait, you're ahead straight away, as sellers know there are plenty more houses for sale around the area, and they haven't really got anything unique and special.

Mining towns: houses don't cost any more to build out here than they do at the coast. A cheap kit home that took a couple of weeks to throw up near me was for sale for nearly half a million but is rented out for $850 a week. The only reason these sort of rents are possible is that mines are willing to rent lots of houses and write off the expense, giving the workers subsidised rents.
However, the expansion of mining camps means that finally the mines are realising they were spending way too much for houses, and that men can be bussed in and put up in camps, then bussed home again.

[zilo]

Watching ABC "The Business" doesn't look good.

25% official unemployment in some countries....oil price actually going down????

interest rates dropping....

Chinese downturn bigger than once thought...

A constant comment that our private housing debt is much higher than Us and spain before the crashes there...

Something big going on and hasn't hit here in Aus yet.....

[Franco Cozzo]

Originally Posted by Ugg

Something big going on and hasn't hit here in Aus yet.....

We're always the last to get everything

The way I see it is everything is life is a big gamble, you can plan out everything, try do this/that but in the end you just choose which way to go and you don't really know where it leads, it just turns out how it does.

Its all a big race in the property market to buy investment properties, to me it doesn't really matter who has the most money when they're dead, because they're still dead and you can't take it with you, well you can but it isn't much use to you or anyone else, lol.

No one goes to their graves wishing they worked more to get more money.

As long as my choices lead me to being happy, thats all I really care about.

[b0son]

Originally Posted by Ugg

interest rates dropping....

too little too late. our RBA has been caught asleep at the wheel. we should have had substantial rate cuts a year ago. the writing on the wall for the resources sector has been there for at least that long, just noone wanted to believe it.

[sarrge2001]

The Darwin property market is taking off again (rentals and sales), on the back of the Inpex project.

We rented a small 4 bedroom, two bathroom house in the Northern suburbs at $600 a week. At the lease end that went up to $720 a week. We found a much nicer place in the same suburb but we are paying $750 a week - 4 double bedrooms, 2 bathrooms, pool, double garage. Personally I think that is undervalued by $50 to $100 a week in the rental market but I'm happy to take advantage of that.

I also own a two bedroom investment unit in town. New unit blocks consisting of two bedroom units are being built for investment properties with the bait being "Inpex have signed an agreement to rent these for $900 a week"

I have had a good tenant in place for 3 years who wants to stay. So at the end of her lease, the rent went up $25 to $500 a week (a return before tax of over 6.8%). It didn't go up at all at the end of the last lease.

Realistically, I could probably get $600 a week without too much trouble, but at $500, she's happy, I'm happy and also have the confidence that my tenant will look after the place, rather than take the chance that a bunch of yobbo's will rent it out if I put the rent up too much and she leaves.

Capital value is also on the up again (finally) which was why I bought the place - probably around 6-8% over the last 9 months........

I don't begrudge anyone the $$$ they can get for rent but at the end of the day, I can sleep at night, and the security of a good tenant is worth $$

[flappist]

Originally Posted by Ugg

Watching ABC "The Business" doesn't look good.

25% official unemployment in some countries....oil price actually going down????

interest rates dropping....

Chinese downturn bigger than once thought...

A constant comment that our private housing debt is much higher than Us and spain before the crashes there...

Something big going on and hasn't hit here in Aus yet.....

Doom and gloom, doom and gloom.

It is far more simple than most on here know and there is NOTHING that any of us can do about it.

There are three possible scenarios
1) It turns around like it always has.
2) It settles as it is now.
3) It falls in a big heap.

If it turns around then life goes on.
If it settles then life goes on.
If it falls in a big heap then the banks won't take everything as it has no value to them and those who have lots of money will lose it all as a litre of milk will be AUD$1,000,000 or 2.50 sheckles (remimbi maybe) and 20kg of gold will be worth less than a single 7.62mm cartridge.

I remember in the 70s with the "red peril" all of the bomb shelters and food and weapons hoarding and the constant bleating by "experts" on how we will be over run any minute by the commos.

So rather than run around screaming the sky is falling and pretending that you are clever protecting yourself from whatever doom you see coming why not just get out there and do your best to help Australia and Australians.

Buy a house and an Australian car.
Buy Australian food and goods.
Have a holiday in Australia.
Talk Australia up not down.

And the last point. If you KNOW there really is a disaster looming and the only way to protect yourself is to manipulate your financial position at the extense of others then why would you tell those whom you taking from know that you are doing it?

[Dr Jekkyl]

I am convinced that the s#%t is going to hit the fan.

Governments and the private sector internationally have based their financial decisions on a series of assumptions, the crux of which is the continuance of economic growth at rates seen only in the last 20 years.

Helen Keller would see, hear and communicate that this was unsustainable.

[sarrge2001]

Originally Posted by flappist

.........
Buy a house and an Australian car.
Buy Australian food and goods.
Have a holiday in Australia.
Talk Australia up not down.

Saw a Dick Smith foods liftout in the paper the other week - interesting reading

Imported peanuts in Kraft Peanut Butter!
Imported orange Juice concentrate from Brazil in just about every Orange Juice!
Woolworths Salted Pistachios (yum) - American nuts packed in Australia!

Say what you like about Dick (and i'm not a fan of the hypocrisy of forgetting to mention the tonnes of imported electronic cr*p that he used to sell) at least he is getting behind local producers.

I always buy Aussie grown/produced/owned food where I can - I figure if it costs me $5 a week extra, big deal!!

[Chopped]

Will the changes of the First Home Buyers Grant have any effect on the market ?

$7000 First Home Grant (for new or existing homes) will be dropped and replaced by $15000 First Home Grant (new homes only).

I think it's a win for the construction industry.

[Dash_XR]

It only paid stamp duty anyway, are they doing it because no ones buying new houses?

[Smoke Pursuit]

Originally Posted by flappist

Doom and gloom, doom and gloom.

It is far more simple than most on here know and there is NOTHING that any of us can do about it.

There are three possible scenarios
1) It turns around like it always has.
2) It settles as it is now.
3) It falls in a big heap.

If it turns around then life goes on.
If it settles then life goes on.
If it falls in a big heap then the banks won't take everything as it has no value to them and those who have lots of money will lose it all as a litre of milk will be AUD$1,000,000 or 2.50 sheckles (remimbi maybe) and 20kg of gold will be worth less than a single 7.62mm cartridge.

I remember in the 70s with the "red peril" all of the bomb shelters and food and weapons hoarding and the constant bleating by "experts" on how we will be over run any minute by the commos.

So rather than run around screaming the sky is falling and pretending that you are clever protecting yourself from whatever doom you see coming why not just get out there and do your best to help Australia and Australians.

Buy a house and an Australian car.
Buy Australian food and goods.
Have a holiday in Australia.
Talk Australia up not down.

And the last point. If you KNOW there really is a disaster looming and the only way to protect yourself is to manipulate your financial position at the extense of others then why would you tell those whom you taking from know that you are doing it?

Some people need to take this on board...

[buggerlugs]

http://www.news.com.au/realestate/ne...-1226497332060
Uh oh............