harb wrote:
   I've been hearing this from bears 3-4 years ago, if property doesn't crash in the next 12 months I'm leaving the country , blah blah, blah. Funny thing is not only that years later they're still here but some have even bought houses since then and are now bullish on property.  The scheme will initially push up prices for the fi…[Read more]

Harb,If the federal governement does put this into effect, I will start applying for an OS transfer. It will destroy the country down the track and the scary thing is, I wouldn't put it entirely passed them.rayd,I don't know much about these securitisation markets at all. Only that they are a tool for creating debt based on cash producing assets.…[Read more]

Honestly, I don't think the world owes me a thing. I just enjoy blogging, see that the country is in the mother of all property bubbles and am positive it will correct. Scares me out of buying and I have got more chance of finding another poster worth scaring here than GHPC, haven't I? Is Australia the only country where the bubble hasn't actually…[Read more]

So your basic reasoning for exponential property value increase is proximity to a city as the city expands. There is some logic in that, so long as everyone has to work in proximity to the city. Catch is, the property will only make you rich if the majority of people working in the city are still relatively poor. As soon as the majority of people…[Read more]

harb wrote:
Here in Perth house prices jumped from around 30K in early 0s to 100k+ by the end of the 80s.m not sure about the rest of the country since I wasn't following that at the time.

So, from 1900 to 1980 (80 years) prices trippled. Then from 1980 till now (30 years), they quadrupled  – with most of that growth in the last 10 years, as…[Read more]

harb wrote:
But why would they remain in line with wage growth ?  Here is something to toy with , what if population growth keept a lid on the wage growth and fuelled the growth in property prices ?

  Not sustainable over the long term. You would end up with one industry being worth more than others, as has already started happening, and e…[Read more]

I am saying that for home prices to be back in line with long term wage growth that they will either have to devalue 30% across the board or stagnate for a decade. I have always said the same thing.Even you must realize that the capital growth in housing over the last 10 years is an abberation Harb? You've been in the PI game long enough to know w…[Read more]

harb wrote:
Regardless of where the median prices are going to end up the reality is that prices in the low end of the market has moved up. Do you really care if the $15M market has crashed 40% in the past year if you find the $500K market unaffordable ? If this segment is  going up at  10%+ p.a  and your savings are only growing at 5% p.a – ta…[Read more]

harb wrote:
I hope you'll  keep smiling after good old ABS catches up with the latest data.and the FHBs stop distorting the prices

This is an interesting point.Bull argument is something like – because the bottom of the market is seeing the most movement the average is lowered.Bear argument is something like – it is only the bottom of the m…[Read more]

harb wrote:
Have you seen the Home Price Crystal Ball video story ? http://video.msn.com/?mkt=en-au&brand=ninemsn&tab=m164If you haven't do so yet …Enjoy.  

I had to log in again after watching that video Harb. Smart property buys in a recession – it's almost as comical as Kochie's Reject the Recession dancers. Thanks for making me s…[Read more]

Don't forget Harb, bear deposits are growing and property prices have kind of stopped recently. Means either bigger houses or less LVR for bears, so they don't really lose unless prices boom again and, if they do, i think Australia will have a mass exodus of people.Hey, you never answered my question about why only the housing industry gets a…[Read more]

harb wrote:
OTOH if you are between 18-28 and believe the D&G bullshit merchants by the time it looks like a good time to buy the Chinese and other oversea nations that have the balls and the money to buy would have bought everything worth buying and then you'd really need God to help you. And its not just the housing, same thing is going on…[Read more]

harb wrote:
But lets say you are right and interest rates go up, if they do its because the inflation is picking up and if inflation is picking up your rent will go up to cover your LLs extra costs. Unless you're renting from your employer and the rent is pegged to your wage you still get shafted by higher rates. Not to mention that with higher…[Read more]

The real bidding stopped @ 5K more than expected but then the REAs somehow managed to negotiate the winning bidders up another 20k with what looked like a false bidder (didn't enter a bid until an REA whispered something into his ear) and the last 10k because the owners wouldn't sell. Not really an auction when one bidder bids against themselves…[Read more]

1Winner wrote:
Your values either serve you or they do not. If you aspire to being on a crusade against all evil landlords or against private property in general, this are the value to have.If you on the other hand are or believe to be on a path to success by enterprise in RE or any other for that matter yet still cling onto those values, they…[Read more]

SHales wrote:
Why, unmester, if you don't want to ever own any real estate other than your own PPOR are you such an active participant on a property investors forum?

Where better to fight snakes than the viper pit:) Nah – it's 'coz every few months I enjoy shooting the breeze with Harb, as he seems to with me. We are both sure that we will be…[Read more]

harb wrote:
Upgrade like to a higher priced property in the mid range? In that case the increase in the grant is causing a ripple effect throughout the property pond and soon it will reach the high end properties.

That is a reasonable point and no doubt exactly what Australia's REI is hoping for when they push to have the grant increased. It…[Read more]

harb wrote:
Is that so, then why didn't you get yourself a PPOR instead of complaining about properties being overpriced ?  You shouldn't really care if you pay too much now, in the long run (10+years) your property should also be worth more. 

Only works when not tailing the biggest boom in Australia's house price history. if prices stagnate w…[Read more]

I am pretty sure that the only reason the bottom is stable (or, as you say, increasing in some instances) is because of the FHBG boost. It has given extra purchasing power to young FHBs. It is a very good time for an owner of an entry level home to sell and upgrade at the moment. We will have to see what happens after June/July on this front.In…[Read more]

harb wrote:

ummester wrote:
I expected governments and banks to deal with this credit crisis sensibly – silly me.

Just how would allowing a property crash to happen be sensible ? Its not good for the banks, its not good for the government and its definitely not good for the majority of the population who already own a house. The only people t…[Read more]