By: wealthforlife@rocketmail.com
1/06/2009
9:07 am |
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By: sly_guy_nsw
1/06/2009
7:14 am |
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By: kingat33
31/05/2009
11:46 am Yahoo! Profile:
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| & take a walk down to centrelink or tafe or tab or casino or clubs with pokies on a weekday during office hours and u will see it swamping with asians as majority could not find employment and have to resort to these places for dole, gambling or looking for jobs. To tell me that Oz property will be stimulated by these people(migrants) who are having it tough even on their daily essential is a big joke. So wake up to reality. |
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By: kingat33
31/05/2009
10:27 am Yahoo! Profile:
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| Migrant dun just come in and get a job immediately especially when they do not have local experiences thus making them more vulnerable to be unemployed. Being unemployed, they will not have access to home loan and thus, they will not stimulate the property market at all. To the govt stimulus, the extension will be expired by september and year end. Imagine the downward spiral of property prices by then. |
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By: mccp6
31/05/2009
10:12 am Yahoo! Profile:
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| With the government's stmulus and the contunuous influs of immigrants, there is no way house prices are going to fall. So this is the best time to buy. |
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By: kingat33
30/05/2009
11:41 pm Yahoo! Profile:
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| With unemployment rising and people are worried about job security, why take the plunge now to buy even if one have 20% downpayment and buy now at inflated price. Better to wait next year, save more and put 30% downpayment and buy at much lower price. |
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By: ancientsong
30/05/2009
11:30 pm Yahoo! Profile:
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thats right mate, the sensible ones are waiting, all signs point to a fall for reasons I mentoined earlier, but sadly alot of people don't do research b4 jumping in and making the biggest financial commitment of their lives,
but like I said b4, its always the right time to buy if you don't care what happens to prices in the short term, you have a 20% deposit and could still afford the mortgage at an interest rate of 10% on a single income.
if you can't, its worth waiting for prices to correct which they surely will do |
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By: kingat33
30/05/2009
11:05 pm Yahoo! Profile:
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| and ancientsong, not all gen X and Y are fools to buy right now and it's wishful thinking on the govt, media, banks, real estate agents and people with vested interest to con all first home buyer into the property market right as prices are grossly inflated. Just need to wait till next year and I believe a price correction of more than 20%. That would be a whopping savings! |
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By: ancientsong
30/05/2009
6:41 pm Yahoo! Profile:
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it is obvious prices are going south for a few reasons, house prices were dropping at 9% interest rates, rates have dropped to a 50 year low and still prices are dropping.
the top end of the market is already collapsing,
the fhbg is supporting the bottom end so all the people with investment properties are getting out,
they are off loading their properties to generation X and Y who will be left holding the bag.
so this creates a problem, buy sucking in 1st homebuyers who jumped in on impluse, they are leaving no housing demand for the future because these buyers wouldve bought in the future but their demand is being brought foward into the present.
that is what debt is, it is FUTURE CONSUMPTION TAKEN TODAY
another thing to remember is that the baby boomer generation is the largest and wealthiest generation of our time and will be retiring soon..
they are holding the majority of the wealth and will want to liquidate those assets to fund their retirement..
now if they all are trying to sell at around the same time, it will create a supply/ demand imbalance in favour of buyers which will cause prices to fall.
plus who are they gonna sell the house to? Gen Y? the most debt dependent generation in history? most who are being sucked in now which is bringing their future demand into the present day.
also there no no shortage of housing, their is a shortage of INVESTMENT housing. if there was a shortage wouldn't we be seeing a steady rise in the homeless rate, these people are living somewhere.
also alot of reports come out and say "we are only building 160,000 new dwellings but we expect a 240,000 person increase in our population so we have a short fall in housing" but what they forget to say is you don't need 1 person per house built, the average is 2.5 persons per house. |
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By: kingat33
30/05/2009
1:15 pm Yahoo! Profile:
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| Spot on sly, many people with investment properties are selling it right now as they know price gonna drop like flies. It is a fantastic time to sell but not to buy. Wait till the extension of the grant expire in year end coupled with increases in umemployment will u see the prediction of steve keen comes to pass. No doubt about it. Cheers! |
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By: rodneythesaviour
30/05/2009
6:12 am Yahoo! Profile:
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Hello Everyone!
Just thought I would drop in to leave a couple of comments prior to my heading down to the cafe to chat with my mates over breakfast.
I realise that jaymarcel, (sorry jay) may be a little upset by what I am about to pen..... nevertheless, here we go -
Good post sly_guy_nsw!
As a person who has managed to accumulate personal wealth as a result of both monies earned over the years from the rental of properties which I had bought as investments and from the subsequent sale of those properties (...last property sold only recently) for amounts which are in each case far in excess of the prices which I paid for them...
..I CAN CONFIRM THAT NOW IS THE TIME TO SELL AND NOT TO BUY PROPERTY.
Simply put. If they have not already done so, property investors are now busy offloading the properties they have which they purchased years ago.
These investors realise only too well that property values have now reached such a point that the difference between the amount which they originally purchased the property for and the current "book" value is so great that there is no better time to "cash in ones chips" and take the profit to the bank.
What we are seeing now, (as you mentioned in your post below sly_guy_nsw) is the result of these efforts by property investors... Many properties for sale which upon close inspection are seen to be rental properties or ones which until only recently have been utilised as such. |
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By: sly_guy_nsw
30/05/2009
5:52 am |
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By: jaymarcel
28/05/2009
3:56 pm Yahoo! Profile:
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This cut & paste thing is great.
HIA says recovery on the way for housingPatrick CaruanaMay 28, 2009 - 3:44PM A recovery in the housing sector is expected in the second half of 2009, thanks to low interest rates and government stimulus spending, a peak industry group says.The Housing Industry Association's (HIA) quarterly National Outlook forecasts new home starts will fall by 17 per cent to a total of 132,000 for the year to June 30.However, the report, released on Thursday, predicts a rise of 11 per cent in housing starts for the following 12 months.The HIA expected 129,500 dwellings to be completed in fiscal 2009 compared with 141,100 in 2008 and says it will take until 2011 before the 2008 level is reached again. |
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By: rickyrollings
27/05/2009
7:31 pm Yahoo! Profile:
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Get your heads out of the sand and get ready!
It will not be long now. Are YOU really prepared for the pending economic collapse? Because the government has already spent everything and got little if nothing for it.
**AUSTRALIAN ECONOMY CONTINUES TO FALTER**
Despite all the positive blarney and "wishful thinking" which we often see posted on these BLOG`s the facts remains the same...
OUR economy like that of many other countries in the world is in serious trouble.
Check out the latest news from WESTPAC .. (The article - "ECONOMY CONTINUES TO FALTER" is posted right here on Yahoo Finance News). Refer to it if you still have doubts...
And.. Something than none of us should in my oppinion ever forget... Since we are a relatively small country (population wise) any significant negative economic occurrences are far less easily absorbed.
Simply put -
If 1000 people lose their jobs in a country with a large population the roll on negative effect of such is hardly noticed, (other than by those who lost their jobs of course)..
BUT.. If 100 people lose their jobs here .. It is headline news.
Has everyone been reading the news headlines recently...? Because there are lots of job losses occurring in most parts of the nation.
It will take some time before the negative effect of these continuing job losses is felt.. But you better be ready for it when the negative effects of all these citizens losing their jobs become only too obvious to each of us.
Ther eis nothign wrong with a positive approach..
But a REALISTIC and INFORMED positive approach is far more effective.
The economic crisis is REAL.
AUSTRALIA - ECONOMIC DISASTER LOOMS |
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By: jaymarcel
27/05/2009
12:28 pm Yahoo! Profile:
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Top 10 recession-beaters
1st - Australia
2nd - China
3rd - India and Singapore (equal)
5th - Hong Kong
6th - Canada
7th - J@pan and Qatar (equal)
9th - New Zealand
10th - Malaysia, Sweden and Vietnam (equal)
Source: Servcorp International Business Confidence Survey |
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By: jaymarcel
27/05/2009
11:25 am Yahoo! Profile:
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| That's a good read thanks wealthforlife, well found. |
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By: wealthforlife@rocketmail.com
27/05/2009
9:23 am Yahoo! Profile:
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Australia 'doing best' in recession
Tuesday May 26, 2009, 4:58 pm
Australia is an island of calm amid the global economic storm despite pessimistic government and media responses, an international global business confidence survey shows.
One in five international businesspeople cited Australia as the country best surviving the recession in a survey of 7,500 people in more than 24 nations.
Australia placed first in the survey, ahead of China, with India and Singapore in equal third place. New Zealand also fared well, ranked ninth.
The survey conducted in April was aimed at gauging business sentiment and what impact the economic downturn has had on businesses globally.
Australian businesspeople appeared relatively unaffected, according to the poll conducted for Servcorp, a provider of virtual and serviced offices that operates in 61 nations.
"In my experience working with international businesses around the world, especially during the last six months, I've noticed how relatively unaffected (are) Australian businesses and... business persons' attitude by the economic downturn," Servcorp executive director Taine Moufarrige said.
"Over 71 per cent of Australian businesspeople believe we are the lucky country, and it's interesting to see that the rest of the world agrees."
Pessimistic media reports were the number one concern among Australian businesses, the survey found.
More than 25 per cent of Australian businesspeople also said they were worried about the way the government responded to the global financial crisis.
"I think the doom and gloom reports that Australians hear every day are harmful to Australian businesses and hold them back from seeing the opportunities that are present in the current economic climate," Mr Moufarrige said.
"This is a time when Australian busi |
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By: chelles_insanity
26/05/2009
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I totally agree that the first home buyers grant has only helped inflate to overprice the value of houses. Where I live, in Perth, I have been in my rental for five years now, when I first moved in the house across the street sold for $180000, now it is for sale at a reduced price of $400000. No one can tell me that a house and land can increase in value by that much in such a short amount of time, it doesn't happen that way.
Unfortunately, our capitalist society is geared much like U.S.A, in that the rich are meant to feed of the poorer people. If the people who had the investment properties decided not to listen in total to the real estate, get fairer evaluations on their properties and stayed honest then people would not get sucked in. But these same people, quite rightly, buy an investment property to make money.
The catch cry no one here has spoken about it is the renters themselves. To say that people are getting in over there heads by getting mortgages they can't afford because they don't have the deposit must only come from those who have mortgages. At the moment, my rent is sitting at double the amount of mortgages taken out in this area in the last 3 years. Who is to say that I could not afford to buy a property? The sad fact is, that renters are not in a position to save the deposit for the ever ridiculously increasing rent prices, that no one seems able to rightly justify. How can the average family afford an average of $400 per week rent and still save for a deposit?
The first home buyers grant as I see it, was to help ease the increasing pressure on not only the building industry, but on the rental market out there. More and more people are finding themselves homeless through no fault of their own, and there is no system in place to deal with not only the over inflating of house prices, but also of rental prices as well. Who exactly keeps the them honest? |
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By: jaymarcel
26/05/2009
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Any retired couples out there that never borrowed to buy a house in their younger years & are now living on there gov pension having to also pay rent would probably disagree with you.
Owning your own home before retirement is the true dream & the only way to do this is to get a mortgage before your 40. |
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By: steveb_wilson
26/05/2009
5:13 am |
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By: sly_guy_nsw
25/05/2009
9:36 pm Yahoo! Profile:
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So true craigaharwood!
I urge everyone to read your post below.
"At a finance breakfast in Perth last..."
The young and the innocent are indeed being sold down the river... Their dreams played upon in order to stimulate them to action... their futures destroyed...
SICKENING! |
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By: puyi
25/05/2009
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Source: The Australian newspaper
By Nick Tabakoff and Joe Kelly | May 25, 2009
THE average loan size for first-home buyers has risen by $52,000 - or 23 per cent - in the past two years, raising fears that government incentives for young buyers are artificially inflating the market.
A report commissioned by Brandmanagement, a market research firm specialising in the finance sector, says the average size of loans being taken up by young home buyers is jumping by an "unsustainable" amount.
Brandmanagement's principal, Andrew Inwood, said the statistics - which indicate that property prices are rising in line with loan sizes - have raised questions about whether the grant was simply being used by consumers to buy into a bubble.
"What the government incentives appear to have done is transfer the money from the people who are borrowing money to buy their first homes into the pockets of those who are selling at a more attractive price," he said.
Mr Inwood hinted that this mini-boom in the price of properties would not go on forever.
"There'll be a collapse in those prices again," he said.
Australian Consumers Association spokesman Christopher Zinn said the rapid growth in loans to first-home buyers against the backdrop of the government incentives carried certain moral obligations for banks.
Even real estate agents admit that the government incentives are creating an unsustainable bubble at the more affordable end of the property market.
Legendary Sydney luxury property agent Bill Bridges said yesterday some agents on entry-level real estate were "loading the prices up" to capitalise on the first-home buyers scheme.
Mr Bridges is also pessimistic about the ability of many people taking up first-home buyer grants to service loans into the future.
He expressed concerns that if people are stretched beyond their means through incentives, "it will all end up like (the sub-prime mortgage situation in) America". |
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By: jtleeoz
23/05/2009
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pedromoralesau,
I would accept your example as proof of the grant raising house prices except for the fact that your base year is 3 years ago, which doesn't really prove a thing except that house prices do in fact increase over time.
While you put forward a good argument it would have been better if you could have compared your recent sales to valuations from 6 months or even a year ago (ie. before the grant was introduced). Anyone else got some data?
Also, at the end of the day as r1cq1 has rightly pointed out, first home buyers should check to see whether their circumstances are right for buying a property now. If so, then go for it but if not (or the grant is the only money you have to put down on the deposit, then now is probably not the right time to buy a property). Save up some money first. |
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By: craigaharwood
22/05/2009
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At a finance breakfast in Perth last week a Westpac economist ( Bill Evans) stated that the current batch of first home buyers using the grants and high LVR's were going to be "our Sub Prime market" and that the bank was progressivly tightening lending criteria in response.
I don't think it can be any clearer than that.
They know whats going on and these people are being dragged in to stimulate debt and money creation in an effort to fend of deflation.
The banks know it, the government knows it, but its better to run the risk of sacrificing a few younger people who have time to recover from the mess than stand back and let the whole financial system collapse.
Damned it you do - Damned if you don't |
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By: martin.family_qld
22/05/2009
7:29 pm Yahoo! Profile:
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Hi Everyone.
I note that the news is not good with regards to the state of the property market...
JUST AS STEVE_B_WILSON PREDICTED in earlier POSTS ..
HOUSE PRICES ARE NOW FALLING.. Many people are now reportedly having to significantly reduce the asking price in order to secure a sale almost all accross the nation.
And why some might ask do these people reduce the asking price in order to make a quick sale?
Well! Only those who have no clue as to what the answer to THAT QUESTION is woudl even consider purchasing a property at this time.
IF YOU ARE ONE OF THE PEOPLE CONSIDERING TAKING A BITE OF THE CARROT OFFERED BY THE GOVERNMENT...
I urge you to take a good long look at the real state of the economy and your own financials before you do so.
ALL THAT GLITTERS IS NOT GOLD |
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