Are you worried about the rich not being able to make the repayments now ?
Ever heard of negative gearing ? That's where the taxpayer helps you make the repayments now and in 2020 when you become positively geared you pay some tax back.

When rents go up high enough that buying becomes cheaper they'll sell. The problem we have now is that the rents are too low (or interest rates too high).  If rents were never lower then the interest repayments on a property we wouldn't have a rental shortage then.

Building costs account for a large part of the increase in prices so you are more accurate then all the data and formulas the deniers use to tell us why this can't go on forever and how the prices are unaffordable and have to come down to earth. ( so they can buy cheap ) Never mind that inflation causes wages and building materials to almost double every 10 years or that population numbers are going up, this time its different and prices have to crash 50%. Just ask Scamp, he'll tell you.

ummester wrote:

harb wrote:

kenzel wrote:

Who here still holds this belief for the unforeseeable future? Just curious

There is a good reason for calling it unforeseeable. Was that every ten years ? Someone told me it was every seven years.

Anyway since I can't predict the future I can only look at the past and my own experience.
Lets see,

1985 -$48K
1995- $120K
2005 -$400k
2008-$460K

What do YOU think ? Is this time going to be different or will the history just going to repeat itself ?

Harb,

You are comparing recession times with Boom times – this will scew the results. Also, the 2008 figure is a bit high considerring the year isn'y over yet and prices are going down from 2007.

Ok then, if you are going to remain in denial why don't YOU pick the time frame ?  Btw, wasn't there a recession in the late 80s early 90s or does that not count because we had to have it ?
And why did you think the 2008 figure was a bit high ? Its actually over 40k below the 2007 price and is a real example of what it could actually fetch right now although it could very well go back up to the 2007 prices by X-mas. Maybe you're still hopping for a 40% fall in prices before the end of the year ?

I tried but had to give up after the first page, it was just too depressing.

Mid 5s RBA rate not the variable rate but it could even get to that by X-mas 2009  if things are not picking up over the next 9 months. Someone else told me it was funny when during last May-June while most of the "expert economists" were calling  a couple more rate rises by X-mas I suggested the possibility of a couple of rate cuts.  Bloody hilarious.

What trees ? Looks to me like very large Lantana bushes. I'd get  a mulcher and get rid of the weeds quick smart before the council finds out your allowed them to grow that big and fines you.

Why , you bought a crystal ball from BigW ? Me too.
Mine shows 0.5% RBA cut next month and and banks rushing to be the first to pass it on to their customers. They may be unwilling to lend to each other but only because they'd rather lend it to home buyers, preferably to another bank's home buyers.

I think you are getting confused with B_F's post here, I'm an evil specufestor – I have no friends.
But yes, I too know of couple of bankrupts and one of them twice and with a gambling problem. He has no assets and still managed to score a few major credit cards with $25k+ limits on each with just a couple of payslips of good income. With the same payslips he could walk into any major bank and would have no problem walking out with a $650k home loan if he wanted one. Unlike a solid asset that appreciates in value money is either going around or is going down in value. Having money locked up in the safe is not an option, the banks have no choice but to lend it or lose it to inflation. Its that simple.
45ish, why ?

I think all of them have a timestamp. Why not take them when you hand them the keys then burn a couple of CDs and hand them one to hold?

Is that the same Steve Keen who is wants to sell his house NOW and move into cash ?

No mate, I don't go for foreign rubbish. I drive a holden and ain't nuthin' wrong with da battery.

I only keep property titles in the safe but I do see your point , keeping $100,000 in a safe is not earning you anything. You could also end up ribbed in which case you lose the lot. Putting in in a term deposit at 7% would be safer and return you $386,000 after 20 years which is slightly more then keeping gold in the safe with the added benefit of avoiding the fluctuations.

Stop picking on the old girl, she'll be dead and buried long before unemployment will reach 30% and martial laws are imposed. I think you need to cut down on the late night scary movies and whatever you do stay off the Mad Max trilogies. People have been worried about the collapse of one thing or another long before Jesus was born yet we're still around, chill out and find yourself a gf dude.