Same reason oil, coal, uranium, copper, zinc and other commodities are going up. Lack of exploration 4 or 5 years ago when this stuff was almost worthless, and now demand from China means supply can’t keep up.

A chart of prices. Much more than doubled over 5 years.

http://www.kitcometals.com/charts/nickel_historical_large.html#5years

Not much anyone can do about the grape glut. I feel sorry for the ones who have been in it for years, it’s a great industry.

I don’t feel sorry for the ones who got in in the last few years, anyone could see what was going to happen.

As for the Managed investment Schemes, that is one huge bubble that is about to burst. I urge everyone to be…[Read more]

DLPP says,.

“So I don’t see how that will help our BOP situation – the banana republic situation you talk about will not go away and just got worse.

Ie the smart nation once again exports raw materials and buys it back as dvd’s and highly processed textiles and value added products. eg we become a price taker rather than price maker.”

You…[Read more]

Yep, but I don’t think we have a choice. We have no manufacturing industry anymore. If it wasn’t for mining, this country would be a banana republic. Thank god for our mineral wealth. Mining is now providing well over 50% of our export income. It will increase even further.

Watch what happens to New Zealand in the next few years. It’s a little…[Read more]

Yep, the cycle is just about complete. Even bush hovels are down to 5% rental yields.

Sydney is the next place to invest for the next cycle. Ideal time is in about 2012. Can’t wait!

Check out this chart.

http://forum.globalhousepricecrash.com/index.php?act=Attach&type=post&id=4

Pretty obvious to me.

Good luck.

Looks over to me.

Booms generally finish when there isn’t a skerick of value left. Where is the value when average people on average wages can’t afford a home, and people can rent for half the cost of buying.

Will be good buying again in about 8 years. Just like the last cycle.

Good luck.

Please, when you move this brick house, can you give me a call!

I want to bring my video camera. I could win some money.

Good luck.

What return are you going to get?

If the yield is good enough after costs it might be worth thinking about. But then if the yield was hugely cashflow positive, then why aren’t the developers making the cash?

Avoid.

Steve’s books were an inspiration. Showed exactly what could be done 5 years ago.

Why do you think Steve is now investing in shares, and property overseas?

The books by all the property gurus are what sent property prices to the ridiculous levels they now are. Plenty of positive cashflow propertys out there, problem is, no one wants to live in…[Read more]

Very interesting, and scary I must say.

There is some cheap houses in the States isn’t there? No wonder Steve is over there looking about.

Good luck.

And one other thing Michael. You say,…

“ By 1989–90, interest rates and inflation were again too high and led to the famous ‘recession we had to have’ – a heaven-sent excuse for procrastinators to stay out of a property market awash with bargains!”

Well as far as I know, 89/90 was the top of the previous cycle. Where were the…[Read more]

Micheal Says,

“every time this part of the property cycle comes around I hear the same argument”

Couldn’t have put it better myself. And where are we in the cycle compared to the last one? I would say about 1992. Gee, a few more flat years to go yet. Must be better places to put money, surely?

Good luck.

The fact that cash flow positive property can only be found in a mining town or some dump in the sticks with a falling population simply means that property is overvalued. You just have to either wait years for fundamentals to catch up, like in the early nineties, or hope for a crash.

Just sit back and watch the show. Start buying when Sydney CBD…[Read more]

I’m a bit like foundation. Fortunately I saw an oppitunity in the sharemarket. Still hold all.

High oil prices will be good for the economy. Australia is a net energy exporter. The money being made now from coal and gas and soon uranium is astronomical. We still produce a lot of oil as well though we are net deficient. Grain for ethonol.

It…[Read more]

Lupus 1704.

Selling obviously means the properties are now cash flow negative on current values rather that purchase price. Nothing wrong with that. For example, a Sydney property that was purchased in 1960 could be returning a yield of 40% on purchase price. It may only have a rental yield of 3% on current values. It’s overvalued.

Maybe he…[Read more]

I think your spot on Ned.

It’s a joke what’s happened in small towns. Most small towns should have a rental yield of 10%. Let’s face facts, land will never be short. Most small towns near me are down to 5% yields. This is one big potential bust. Wont be a bust though, just a decade of no growth. What an investment? A decade of no growth, negative…[Read more]

I think it will be a long time yet. How long after the last boom? 1990, to about 1998? That’s about 8 years. Only had 2 flat years now. Values now are still too high. The market simply just got ahead of itself. Average people on average wages could no longer afford an average house. Property will stay flat until it’s good value again.

Also, the…[Read more]

Flats do have land content, though usually not as much as a house. A block of units in a great spot could have a lot more land content than a house at Woop-Woop.

Good Luck.

Ausprop.

After this 10% correction of the last few months, the sharemarket was at 14 year low PE’s. It was about a price to earnings of 14 from memory. A Sydney house with a rental yield of 5%, has a PE of 20. That’s gross too.

It means that company profits have been increasing faster than the share prices. That won’t and can’t continue, but…[Read more]

In 20 years time, anyone who buys now will probably think it was the right time.

However, all I know is that after a property cycle peak, it often takes years for prices to recover, after a healthy correction.

For example, after the 1980 peak, there was a drop, and it took 7 years to get back to the highs. After the 1989 peak, there was a drop,…[Read more]