Sydney Leads the Nation…Downwards

I have always supported the vendor/exit duty- it subsidises first home buyers’ via atamp duty exemptions and the FHB grant- go figure- it has to be paid for out of something.

As to valuations… it might be a different story if people get their properties valued now… I was reading an article in the Age on the weekend about mezzanine finance and speculative investment in unlisted property trusts. It was discussing sites that were valued at a particular amount in 2003 and were now valued at 1/3 of that amount post-boom. The marketers of these sites are still using figures of the boom time… and are paying returns of 9% or whatever to the first investors via NEW investments- very risky business.

Of course the sydney market has gone down in some areas (but as many would say on here- there are many markets in sydney). As for immigration to sydney- both internal and external… from my memory, it used to be about 52,000… and is now about 35,000 when one takes into account those leaving sydney for other places, in particular Qld.

If people are in for the long haul… market fluctuations are not really gonna make much difference. I’d be interested to hear though, about people’s newer valuations- anyone buy property in 2003 and getting valuations done now? In sydney?

kay henry

Just to return briefly to the article that triggered this thread re-Sydney leading the real estate market down.

I am VERY sceptical about any article that bases itself on data collected by real estate agents (in this case LJ Hooker).

While it’s obvious the Sydney market is heading slowly south, it is also clear that real estate agents have two very solid reasons to talk the market DOWN.

First, they want to put pressure on the Reserve Bank so that it doesn’t increase interest rates AND second, in the case of NSW, they want to put pressure on the Carr govt to revoke the vendor tax.

I think it’s really amusing to watch the real estate industry tie itself in knots trying to achieve the above, while also trying to convince buyers that they should still be paying premium prices. Y

Yes, they want to argue it both ways – that the market’s falling, so Dear Reserve Bank Board please don’t increase interest rates because people will be forced to sell the family home….AND, the market’s really strong, so Dear Potential Buyers you’re going to have to open your wallets ever wider.

I for one am enjoying the ride right now.

By the way, Dmichie, if you’re having agents calling you and dropping the prices, have you bought your family a new home yet? Or are you waiting for that bell to ring at the bottom of the market?

cheers,
Carlin

KH – I didn’t say the Reserve Bank had fallen for the agents “tricks”, I just said that the data on which the article is based hasn’t come from an independent source.
Yes, it’s bleeding obvious Sydney’s off the boil, and Melb’s not far behind.
Not sure what you’re getting at re-“trusting the Reserve Bank more than politicians”.
cheers,
Carlin

dmichie, your post smell all of resentment against holders of properties.
It seems that you believe achieving a high value in asset’s accumulated by (in your view) “passive” means, is a sin and must be punished. Whoever has not suffered and worked hard to achieve a large capital portfolio is a parasite and must be stripped from his ill- gotten gain. Additional public flogging is encouraged.[baaa]

I know people who think like you and they are generally the one that run behind the trends also known as Johnny came late, complaining about the one that did well as the responsible for the “debacle” in the market, the “overpriced” properties, the “exodus” of population to other states, the “unaffordable” housing due to all this bas###ds speculators who secretly meet at night time in the sewer drains to plot the next market take over. They also usually applaud new taxes directed at property holders and usually leap from joy at any mention of changes in legislation to do with Trust and Companies.

Pretty sad really, and not conductive to anything constructive, particularly for the person doing the resenting. Until you lern to celebrate other people’s victories, your own victories get further and further away.

http://www.chosen4u.com/?ace

“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
Marc

Funny thing about taxing “the rich” is that it means you end up taxing “the poor”. To top it, the real rich just move their money away so you can’t tax it.

For example, as a contractor I started a company out of the Cayman Islands, opened a bank account there and got payed through that co into that account. Normally this wouldn’t help, but I just got an American Express card connected to that account and paid everything through that. Thus my income for Australian taxation was zero, thus zero Australian tax.

(note: I didn’t really do the above, but I did think about it)

Measures designed to tax the rich tend to end up preventing people from escaping poverty because the extra effort required to be rich is not worth the returns. It also means businesses and rich people leave the country to cheaper places to operate. It doesn’t happen overnight, but it does happen.

Poor people can afford housing. Heck, I can afford housing and I started from nothing. “Poor” people should quit whining about being “poor” and find out how the rich got rich, then do it.

Boy these topics get funnier as they evolve.

Reading what the last couple of posts have been it appears that what this site and its subscribers are trying to do are work less and earn more through RE and then to enjoy life.

Seems that there is another view here that you have to work hard to then enjoy the fruits of your labours.

That’s two totally different things and poles apart.

For me I have chosen the former, others have chosen the latter. That’s everybody’s choice.

For people to have such entrenched views to see the other side of the fence requires a paradigm shift. I had mine after working like a dog and getting nowhere fast.

I discovered a new may to makes ends meet without killing myself and at the same time getting oh so close to doing what I want and when I want by the time I’m in my mid 40’s.

My personal view is that people who are doomsayers and complain about the rich getting rucher and the poor getting poorer and that the world is contrived against them will stay like that until one day they have a light bulb moment. Sometimes it just happens and other times it takes a tragedy.

This has probaly now gone OT so my apologies.

All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon Hill

That is at least one thing I agree with.

It would surely sort out the real investors from the speculators even if it would probably drop a lot of lower income earners into state housing and the market would crash.

There’s always bad with the good.

All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon Hill