I recon everyone's reasoning for price hikes is correct. Easy credit, 14k FHB, boomer investing and capital gains tax removal – they have all played a part.I don't see how the market can go either sideways or up, though. I can't see where the money would come from to either sustain or increase it at this stage.

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 -$48K1995-…[Read more]

It's tripled in the last 10 – overvalued even by doubling standards. House prices should keep up with wages, which almost double every 10 years – actually doubling every 15 – 20 years. The last 10 years have seen some skewed wage statistics with 'household' incomes being pushed by Howard as the new yardstick but in 1998 the average single wage wa…[Read more]

Scott No Mates wrote:
You may not consider that the tree has a value, however they contribute to the value of the land by improving the amenity – also unseen improvements such as soil retention and bank stabilisation.

Not to mention the facts that they provide shade and oxygen…

Harb,it's foolish because it draws on public funds which leaves less for public assistance when the true force of the financial instability hits home. Do some reading about the depression.Mid 5's – you are funny:) The big banks still have not made fully good on the last RBA cut.

devo76 wrote:
Had a visit with the bank thursday. They are throwing money at me. No real change there at all.

Did you catch it? Perhaps you have enough working years left to make your debt worthwhile? Or perhaps you have some asset that aren't depreciating?

harb wrote:
45ish, why ?

Perhaps wealth4life is cruising the forums for a new man:) It…[Read more]

I think we are at the tipping point and falling.Housing cost more than the average Ozzie can afford (even the average family) and a lot of people are leveraged as far as their incomes will take them on 5-7% interest rates. Rental rates are more than some people can pay and there are vacancy crisis because 1) much of the prior rental stock is up…[Read more]

Devo,I see your point and agree that even gloomers take immoral advantage. In a capital democracy it is unavoidable – everyone wants a bargain.I am not trying to argue from an individual basis, only from the basis of what I believe is better for the country overall. I believe the average Australian's over-interest in capital worth has caused the…[Read more]

Devo,I find it sad that you don't consider morals one of the best cases to base an argument on. Still, each to their own.Of course everyone should pay more than the previous owner (unless in a time of correction) but never more than what other financial and moral factors determine – like wage growth and inflation.Irreguardless if arguments are…[Read more]

Bad times can be good times for the future – they are just rough in the present (and will get rougher).Does anyone truly believe that houses actually became worth 3 times as much over the last 10 years? if you do, good luck…Reasonably, the most they could have possibly increased is to have doubled in that time period. That means a 33% shaving…[Read more]

No – I am not Scamp.devo,What about being morally better off than the generation before us? Having an easier life does not always mean a better life. Better, in this case, obviously depends on your POV.If assets values in Australia don't decrease, successive generations will not have better lives. People in the 20's thought that future…[Read more]

Damo,Everyones expectations are too high. You don't want to have your granparent's life on retirement but if you have any better it will cost some part of this country more than theirs does. You can't have that little bit better without someone having that little bit worse – it's all balanced. I don't know the answer but I do know that people want…[Read more]

devo76 wrote:
My biggest problem with touching neg gearing now is that property values are already heading south. Why risk making things worse. Its the average mum and dad investor that will suffer not to mention PPOR owners.

The factors sending our property values south extend beyond just the local market. Sure, the Australian housing…[Read more]

duckster,It's funny how an event that is only 25 years old is so hard to get an accurate beat on. You may be right, the govt of the time may have turned it around before rents had a chance to get out of control. We will never know for certain, i guess.Thing is, how far can rents go? I am sure that there is an upper limit that people can and will…[Read more]

devo,I don't think where IP investment is heading is anyones guess – we are already there. It drives the value of housing up beyond what society can afford and the investments devalue, leaving over leveraged home buyers in the poo.After this bust, people will shy away from it for a while. Besides, they will have no choice. The next gen to consider…[Read more]

devo76,So long as you rate the loving wife, friends and health above your investment plans than I do not begrudge your choices. I just feel that if the majority of people aspire to similar plans there wont be enough tenants and cash in our society to go round.IPs as a retirement fund are on the rise for the ageing middle class in this country and…[Read more]

devo76 – can't vouch for any-one else but I don't ever want an IP. Saying you know you would is being rather arrogant – you can not know what others value in life. I consider a housing a social right and not an investment right and that the long term stabiliy of society is a better investment for me and my family than the short term fiscal lining…[Read more]

duckster wrote:
Just remember that there are not enough rental properties to meet the renter demand now. So if the Labor Government fools around with negative gearing the number of rental properties available to rent will decrease and hence the high rents will get even higher. This is what happened last time the government fooled around with…[Read more]

crashy wrote:
In my area there are 2 properties agents are advertising as 'distressed sellers'. A year ago one of these properties was listed at 380k, now listed at 280k. It seems there is just NO buyer interest out there ( I said buyers, not tyre kickers)limbo limbo………..I might have a go @ 200k

One thing this forum has made me aware of…[Read more]

Depends on how tight the area is and the cost of the blocks, I reckon.