@ Freckle, not very different here in Brisbane. Properties around us, especially those on the water overlooking marina births (Manly) use to be hard to get. If one comes on the market, it used to get snapped by the buyer within days.Now, we have number, all well over 1Mil mark sitting on the markets for well over 6 months. More and more coming up…[Read more]
simple wrote:
+1In simplified form, if you are in debt – inflation is good. That is assuming business, not personal debt.If you are saver (in fiat currency), inflation is reducing your savings and is bad for you.I have lived thru inflation and hyperinflation in Poland 1990, Russia 1992 and few others. General rule is, as…[Read more]
I would disagree.
You buy a house for 500K, rent it out and if properly done brake even, not even considering tax. That at 100% finance, with zerro capital outlay.
Now, in 5 years from now, your loan is still 500K, but tenants pay more (min 3% rent increase/year).
So, you have an income, thank you inflation.
simple wrote:
+1In simplified form, if you are in debt – inflation is good. That is assuming business, not personal debt.If you are saver (in fiat currency), inflation is reducing your savings and is bad for you.I have lived thru inflation and hyperinflation in Poland 1990, Russia 1992 and few others. General rule is, as…[Read more]
fWord wrote:
and use the profit for whatever they see fit,
And that’s the problem with the definition of profit over time. You may have more dollars in your wallet but if the dollars you had 20 years ago bought a dozen eggs and the dollars from the sale still only buy a dozen eggs 20 years later then are you actually any…[Read more]
+1In simplified form, if you are in debt – inflation is good. That is assuming business, not personal debt.If you are saver (in fiat currency), inflation is reducing your savings and is bad for you.I have lived thru inflation and hyperinflation in Poland 1990, Russia 1992 and few others. General rule is, as inflation rate increases – more value…[Read more]
@ bardonIt seems to me that those at financial control mechanism of the country prefer inflation to stagnation and god forbid deflation. One can say that as every person act to his personal benefit regardless to his position in society, people in control of our economy are manufacturing 'mild' inflation as a means to support there's own financial…[Read more]
Freckle,Agree with you on sentiment. This is how I see current state of affairs in RE as well as many other industries with few exclusions.What fascinates me is now fairly large number of people on this boards still find profitable deals in RE with reasonable risk levels. I seem to be observing major decoupling from opinions here and my research…[Read more]
Fascinating replies!On our last company BBQ, I have spoken with workers (over 50ppl). Two where selling, few where regretting that they purchased in the last 3-5 years. None are buying.So it would appear that only some specialty investors are out there doing some purchasing.Interesting times.
Interesting stats, as long as you know how data is calculated.Say, if we have more high end properties sales recently, it will indicate that house prices grow for this period:)Very different story on the streets, people loosing jobs, even QUT in Brisbane just shed a lot of people who are long therm (over 10 years there). We dismissed over 15% from…[Read more]
source: http://www.allenrealestate.com.auNot what you call a massive collapse by any means but, adjusted for inflation 15% loss from the top ever reached
@ fWord
Agreed, still it can send ‘grey masses’ in to the panic. While you an me can take 6% loss associated with calculated risk as OK, majority of people hammered by media will not.
It’ is indeed a small loss, even if you add 3% CPI to it. It is the effect it can have and the trend. Say, yearly 9% (real term) loss for 5 year can be entertaining…[Read more]
Thanks xdrew, nice feedback.
I was wondering what he is up to, as his ‘angle of approach’ seem very focused on getting fixed mindset of the reader. That is usually indication of personal interest in the matter discussed.
Wirsz advises Fortune 500 CEOs and fund managers on investing in real estate:
Bloodbath to hit Australian real estate, global property analyst Jordan Wirsz says
AUSTRALIA’S love affair with property is about to be tested amid predictions prices will plummet by as much as 60 per cent, with capital cities hardest hit.
That’s the Armageddon-esque w…[Read more]
microchip78 wrote:
What trend we will see in near future in Melbourne? Is property market looking very positive for mid range property priced between 400,00.00 – 600,000.00? If you are thinking to invest, which type of property you consider – unit, apartment, villa, house with land, townhouse ?? Any suggestions ??
+1 on that one. Especially important now when yields starting to rise across Brisbane and it's time to start hunting.Was it you I have spoken on the phone a month or two back? We discussed finding CF+ properties?I got another one since then, two more on the list but could not get the price down low enough
Andrew_A wrote:
A log scale chart of Brisbane house price growth since 1979. Helps sometimes to take a step back and look at the larger picture.larger image
Very nice data put together, thanks for sharing.Ever done CPI adjusted numbers? Would be interesting to see 'real' growth. It's hard to estimate the chart going back that far…