http://www.news.com.au/money/property/disasters-knock-property-market/story-e6frfmd0-1226013426709

   * House values fall across nation
   * Disasters keep consumers sidelined
   * Housing affordability slumps

HOMEBUYERS are deserting the property market in the wake of recent natural disasters with latest figures showing the biggest monthly slide on record.

The weather crises in Queensland, New South Wales and Victoria in December and January have kept home buyers sidelined, with property values slipping across the nation.

The RP Data-Rismark Home Value Index for capital city dwellings dropped 1.6 per cent (seasonally adjusted) in January, while regional residences lost 1.2 per cent of their value.

It's the biggest monthly slide in Australian property sales ever, according to RP Data.

Canberra was hardest hit  with prices slipping 3.8 per cent, followed by Perth at 2.6 per cent and Brisbane 2.3 per cent.

RP Data's information will be used by the Reserve Bank of Australia when it meets tomorrow to discuss the possibility of raising the nation's official cash rate.


The index previously reported a 0.4 per cent capital gain for the month of December, which has been revised slightly to 0.3 per cent with the addition of further sales data.

RP Data research analyst Cameron Kusher said market conditions are typically flat in January because of the holiday period but the natural disasters had made it even worse.

"It’s the biggest fall in values that we’ve ever seen on a monthly basis so while we’re not pressing the alarm bells yet we will wait and see what the February results actually tell us," Mr Kusher said.

"We expect it will be revised up slightly,  we don’t expect the February result to be nearly as bad as January as clearance rates are improving and there are other indicators suggesting a better outlook."

While the natural disasters occurred in three states, its impact on the property market had spread across the nation, Mr Kusher said.

"The disasters kept people out of the market,  particularly in Brisbane," Mr Kusher said.

"But it also impacted on potential buyers in other states because they holiday in Queensland or they have family and friends there."

More broadly, over the 12 months to the end of January, the index reported that home values in Perth had fallen 3.8 per cent, the biggest drop nationwide, followed by Brisbane (-3.7 per cent) and Canberra (-0.6 per cent).

At the other end of the spectrum Darwin has regained the title of the best performing city, recording a capital gain of 4.7 per cent over the year to end January.

This was followed by Melbourne (3.6 per cent), Sydney (2.5 per cent), Hobart (2.2 per cent), and Adelaide (2.0 per cent).

Meanwhile, housing affordability slumped 10 per cent during 2010 as a result of four interest rate rises, compounding an already dwindling supply of new homes, a housing lobby group says.

The Housing Industry Association (HIA)/Commonwealth Bank housing affordability index released today fell by a further 1.8 per cent in the December quarter.

Housing affordability dropped 5.5 per cent in Sydney in the December quarter, followed by a 3.4 per cent decline in Canberra and a 3.4 per cent fall in Adelaide.

Affordability improved modestly in Brisbane and Perth, rising 0.5 per cent and 0.1 per cent respectively.
Outside the capital cities, in the non-metropolitan regions of NSW affordability rose 2.8 per cent, followed by a 1.3 per cent increase in Victoria.

But affordability deteriorated in Tasmania (down 3.8 per cent) and Western Australia (down 2 per cent).

HIA chief economist Harley Dale said housing affordability took a big hit during 2010, with interest rate increases in March, April, May and November behind the decline.

Economists are unanimous in excepting no change in rates tomorrow but Dr Dale said governments needed to "up the ante'' on delivering policy reform to tackle a range of supply-side constraints, including the lack of affordable land and the dire shortage of available credit for commercially viable residential projects.

A down trend in residential construction over nearly a decade is obviously tied to a downward trajectory in housing affordability, he said.

I am expecting level house prices in Melbourne as people in QLD who will get insurance
money may decide to move to Melbourne & not rebuild on swamp land.

look like the money has gone out and not much left .. that's why they hurry with so many taxes .. in such cases .. you won't see a bright picture in the future ahead ... a diving in home price is also possible ..

bridonta wrote on Mar 1^st, 2011 at 12:11am:

look like the money has gone out and not much left .. that's why they hurry with so many taxes .. in such cases .. you won't see a bright picture in the future ahead ... a diving in home price is also possible ..

As predicted by Steve Keen and Kris Sayce of Money Morning ;)

But just last week we had the Real Estate Institute of Victoria trying to pump up the housing market with its rubbery record median house price figures along with the usual two page spread in the Sunday Herald Sun, not to mention all of the media outlets parroting along with the gospel !! It's amazing how things can change in just 1 week !! Hopefully the punters didn't get sucked in by all of the real estate hype ;)

now it's good time to sell ..

Finally, Here Comes the Price Crash…

We’ve told you many times house prices are gonna go south.  If you hadn’t taken notice by now, you never will.  But that’s OK.  We can’t help everyone.

We’ve warned home-owners and home-buyers for the last two years that the Australian housing market was at the tipping point.

We were ridiculed for saying so.

We told you to only buy a house if: you don’t see a home as an investment.  You’re prepared to see zero or negative price growth.  And you’re pretty sure you can keep up repayments when interest rates go up, or when the economy crashes and unemployment soars.

If you fit into any of those categories then sure, go ahead and buy a house.  Just don’t expect to make any money from it.

Remember that you won’t have the same luxury that house buyers had during the 1980s, 1990s and early 2000s.  They rode the coattails of the credit expansion boom, where interest costs were more than offset by rapid price growth.

The next ten years will be different: interest costs will outpace price growth.

And soon enough, property speculators and owner-occupiers will realise this.  And that will cause the biggest hit to house prices.  They’ll realise they shouldn’t take out the biggest mortgage possible, because price growth won’t offset the interest costs.

Landlords will realise it too.  For years they’ve taken a loss on the income because they knew house prices would go up.  They could afford to be negatively geared because in the long run it would pay off.

Not anymore.

read the full story at:

http://www.moneymorning.com.au/20110301/finally-here-comes-the-price-crash%E2%80%A6.html#more-4761

pansi you playing the doom and gloom game that rusty loves..

he will be beside himself with glee over this new if it turns out to be true.. he hates homeowners,

I remember the last doom and gloom news regarding housing its didnt happen though did it?..

the house prices were inflated by your govents stimulus and you guys know it...gees who in their right mind would knock back $21000 FHB.

now I understand it they are stopping the lot..even the $7000. did you hear that??.. if thats the cse then it will be a turn down in the building of new homes and make what already there worth more surely?

What a load of rubbish!

House prices go (mainly) up and (a little) down all the time.

Now is a great time to buy (supposedly).

In fact I'm off to an auction this Saturday! It will be interesting to see how much $1.5 mil gets you in the current market. I'm hoping to buy a certain property for around $1.3 mil (given the current so called price dip). The house in question SHOULD sell for around 1.5 mil under normal conditions. Let's see what happens. My prediction? I'm still going to have to pay around $1.4 - 1.5 mil (because right now there is a lot of media hype designed to lure potential buyers into an auction environment to stimulate on the spot fast paced competition).

NB For those who don't already know .. my posts regarding real estate only ever refer to the Sydney property market. That is the only real estate market I deal in.

Lisa Jones wrote on Mar 1^st, 2011 at 1:13pm:

What a load of rubbish! House prices go (mainly) up and (a little) down all the time. Now is a great time to buy. In fact I'm off to an auction this Saturday! It will be interesting to see how much $1.5 mil gets you in the current market. I'm hoping to buy a certain property for around $1.3 mil (given the current so called price dip). My prediction? I'm still going to have to pay around $1.4 - 1.5 mil (because there is a lot of media hype designed to lure potential buyers into an auction environment to stimulate on the spot auction competition) NB For those who don't already know .. my posts regarding real estate only ever refer to the Sydney property market. That is the only real estate market I deal in.

Please Lisa,
Don't get into huge debt right now.
Consider buying down market a little instead.

Bobby .. read again what I stated:

Now is a great time to buy (supposedly).

In fact I'm off to an auction this Saturday! It will be interesting to see how much $1.5 mil gets you in the current market. I'm hoping to buy a certain property for around $1.3 mil (given the current so called price dip). The house in question SHOULD sell for around $1.5 mil under normal conditions. Let's see what happens. My prediction? I'm still going to have to pay around $1.4 - $1.5 mil (because right now there is a lot of media hype designed to lure potential buyers into an auction environment to stimulate on the spot fast paced competition).

I'm being cynical (then again .. it will be interesting to see what happens this coming Saturday).

I suspect the said property will be sold on the spot within a fast paced competition environment .. for its true worth (ie $1.5 mil).

But you know me Bobby .. I love a good bargain just in case it comes along lol :)

I'll let you know what happens. It will be interesting to see as I said above.

cods wrote on Mar 1^st, 2011 at 1:09pm:

pansi you playing the doom and gloom game that rusty loves.. he will be beside himself with glee over this new if it turns out to be true.. he hates homeowners, I remember the last doom and gloom news regarding housing its didnt happen though did it?.. the house prices were inflated by your govents stimulus and you guys know it...gees who in their right mind would knock back $21000 FHB. now I understand it they are stopping the lot..even the $7000. did you hear that??.. if thats the cse then it will be a turn down in the building of new homes and make what already there worth more surely?

you are a complete ignoramus as usual.

tell me who likes to pay more than they should for anything ?? why should property be any different than any other commodity !!

Lisa Jones wrote on Mar 1^st, 2011 at 1:32pm:

Bobby .. read again what I stated: Now is a great time to buy (supposedly). In fact I'm off to an auction this Saturday! It will be interesting to see how much $1.5 mil gets you in the current market. I'm hoping to buy a certain property for around $1.3 mil (given the current so called price dip). The house in question SHOULD sell for around $1.5 mil under normal conditions. Let's see what happens. My prediction? I'm still going to have to pay around $1.4 - $1.5 mil (because right now there is a lot of media hype designed to lure potential buyers into an auction environment to stimulate on the spot fast paced competition). I'm being cynical (then again .. it will be interesting to see what happens this coming Saturday). I suspect the said property will be sold on the spot within a fast paced competition environment .. for its true worth (ie $1.5 mil). But you know me Bobby .. I love a good bargain just in case it comes along lol :) I'll let you know what happens. It will be interesting to see as I said above.

according to codsballs if as a consumer you pay to much then you should be really happy about being ripped off but if you get a bargain then you should feel bad about it :) LOL

tell me who likes to pay more than they should for anything ?? why should property be any different than any other commodity !!

- Last Nail

Well said. I thought it was all common sense though lol :P

Lisa Jones wrote on Mar 1^st, 2011 at 1:32pm:

Bobby .. read again what I stated: Now is a great time to buy (supposedly). In fact I'm off to an auction this Saturday! It will be interesting to see how much $1.5 mil gets you in the current market. I'm hoping to buy a certain property for around $1.3 mil (given the current so called price dip). The house in question SHOULD sell for around $1.5 mil under normal conditions. Let's see what happens. My prediction? I'm still going to have to pay around $1.4 - $1.5 mil (because right now there is a lot of media hype designed to lure potential buyers into an auction environment to stimulate on the spot fast paced competition). I'm being cynical (then again .. it will be interesting to see what happens this coming Saturday). I suspect the said property will be sold on the spot within a fast paced competition environment .. for its true worth (ie $1.5 mil). But you know me Bobby .. I love a good bargain just in case it comes along lol :) I'll let you know what happens. It will be interesting to see as I said above.

i forgot to mention that most likely you'll be out bid by a china man that dudd has let into the country :(

Lisa Jones wrote on Mar 1^st, 2011 at 1:55pm:

tell me who likes to pay more than they should for anything ?? why should property be any different than any other commodity !! - Last Nail Well said. I thought it was all common sense though lol :P

to most people who have a brain it is common sense but to some others on this board it really must be a struggle for them ;) LOL

i forgot to mention that most likely you'll be out bid by a china man that dudd has let into the country

- Last Nail

Umm ok ..

>> looks around for the hidden camera in her home office <<

So Last Nail .. you've been listening in on all my phone conversations this afternoon lol :)

Nail.

Quote:

i forgot to mention that most likely you'll be out bid by a china man that dudd has let into the country

It breaks your heart to to think a Chinaman payed $400,000 for the same property
8 years ago that you now pay $1.5 million for.

Labor lured then betrayed first home owners

A disturbing new survey by Mortgage Choice has found that 10 per cent of first home buyers, who purchased their homes in the past two years, have either sold their homes or are considering selling because of financial hardship, caused by interest rate hikes.‬

‪The survey also found that another 6 per cent would sell if interest rates climbed a further one per cent, while another 14 per cent would sell if they rose another 1.5 per cent.‬

‪Many of these first home buyers were lured into the market through generous first home buyer grants at a time of historically low interest rates.‬

‪The Rudd-Gillard Government was more than happy to artificially stimulate the lower end of the housing market so as to give the impression that they had done a wonderful job staving off the effects of the GFC.‬

‪Of course they didn’t alert all the first home buyers they suckered about the inevitable interest rate rises that would follow their totally over-the-top $87 billion stimulus spend.‬

read the full article at:

http://www.thepunch.com.au/articles/labor-has-betrayed-first-home-owners/

Bobby. wrote on Mar 1^st, 2011 at 2:02pm:

Nail. Quote: i forgot to mention that most likely you'll be out bid by a china man that dudd has let into the country It breaks your heart to to think a Chinaman payed $400,000 for the same property 8 years ago that you now pay $1.5 million for.

It's heart rendering to know that there is no level playing field within the Oz domestic real estate market anymore BECAUSE Asian prospective buyers are allowed to secure funds at a third/half the interest rates we Aussies can. In short they are allowed to borrow more which assists them in buying up more/better Oz real estate.

Bottom line? No matter what anyone says .. the competition out there is still fierce (and that is what drives the price of houses up folks). As a result Aussies need to work harder and smarter in order to work around this problem/issue.

Effectively this means Aussies need to chase many more auctions and be prepared to let awesome opportunities go .. and that can be very frustrating at times.

Fingers crossed for this Saturday .. I hope I'm not bidding against an Asian with heaps of $$$ thanks to their advantage over me and other Aussies in securing $$$ at much cheaper interest rates.

I'll let you know how it goes. As I said above .. it will be interesting to see what happens Last Nail and Bobby.

NB Please do not misconstrue my comments as being anti Asian in any way.

I am merely saying it isn't fair that we Aussies aren't allowed to secure the advantageous interest rates which others can. That is my issue/point.

It is unfair Lisa - especially when we are not allowed to buy houses
in many other countries in the world & can't get their low interest rates.
Many people from overseas buy up our property & don't even live there.
They are called "house banks"  - a place to store money as an asset
instead of an actual bank.
This pushes Aussie families out of good property & drives up prices.
It is illegal to do that in many other countries.

Do they have to declare themselves as foreign nationals at the auction?  If not I'd have to ask; How do you know they are not Australians of Asian decent?  I'm not saying for a moment there aren't foreign investors purchasing Australian property but I doubt it's anywhere near the plague proportions discussed above.

As for the price crash, what a bloody joke, alarmist crap at best; let me know when it's anywhere near the 30-40% predicted and even then I won't care since I'm not interested in selling my home and have relatively low levels of private debt.

As for the price crash, what a bloody joke, alarmist crap at best.

- Qikvtec

I agree.

The following words of Mark Twain apply:

"A lie can travel half way around the world while the truth is putting on its shoes."

And as I stated previously ..

Now is a great time to buy (supposedly).

In fact I'm off to an auction this Saturday! It will be interesting to see how much $1.5 mil gets you in the current market. I'm hoping to buy a certain property for around $1.3 mil (given the current so called price dip). The house in question SHOULD sell for around $1.5 mil under normal conditions. Let's see what happens. My prediction? I'm still going to have to pay around $1.4 - $1.5 mil (because right now there is a lot of media hype designed to lure potential buyers into an auction environment to stimulate on the spot fast paced competition).


So  .. I'm going to test the real estate market this Saturday.

I don't believe I'm going to see anything amazing .. I'll report back on what happens.

Do they have to declare themselves as foreign nationals at the auction?  If not I'd have to ask; How do you know they are not Australians of Asian decent?  I'm not saying for a moment there aren't foreign investors purchasing Australian property but I doubt it's anywhere near the plague proportions discussed above.

- qikvtec

I'm not exactly sure to be honest. Perhaps they have dual citizenship? Who knows? The fact remains and all that matters is this: they can access extraordinary cheap interest rates compliments of overseas Chinese govt backed banks .. whereas we cannot.

Ask any real estate agent ..  it's a phenomenon which is openly and readily discussed. It's not something which can be ignored anymore. And it isn't.

I'll let you know what happens this Saturday. To be brutally honest .. given the type of house on offer and the actual number of the house itself.. I expect to find myself bidding against cashed up Asians who are going to send the price of the house up to $1.5 mil and beyond.

Worst ever property dive eh? Total rubbish!

Lisa.

Quote:

I expect to find myself bidding against cashed up Asians who are going to send the price of the house up to $1.5 mil and beyond.

Lisa - please don't get into too much debt.
There is always another house.

There's a lot of downside risk to the property market given the interest rate environment and consumer confidence.   If you have the kahunas and the disposable you could make some serious coin.

qikvtec wrote on Mar 1^st, 2011 at 11:22pm:

There's a lot of downside risk to the property market given the interest rate environment and consumer confidence.   If you have the kahunas and the disposable you could make some serious coin.

Or, like many in the US, the UK & elsewhere in Europe, you may simply lose your kahunas?

Lisa Jones wrote on Mar 1^st, 2011 at 10:39pm:

Do they have to declare themselves as foreign nationals at the auction?  If not I'd have to ask; How do you know they are not Australians of Asian decent?  I'm not saying for a moment there aren't foreign investors purchasing Australian property but I doubt it's anywhere near the plague proportions discussed above. - qikvtec I'm not exactly sure to be honest. Perhaps they have dual citizenship? Who knows? The fact remains and all that matters is this: they can access extraordinary cheap interest rates compliments of overseas Chinese govt backed banks .. whereas we cannot. Ask any real estate agent ..  it's a phenomenon which is openly and readily discussed. It's not something which can be ignored anymore. And it isn't. I'll let you know what happens this Saturday. To be brutally honest .. given the type of house on offer and the actual number of the house itself.. I expect to find myself bidding against cashed up Asians who are going to send the price of the house up to $1.5 mil and beyond. Worst ever property dive eh? Total rubbish!

I wouldn't bank on that?

It's all a matter of Demographics, Energy or lack of it, Debt and a long stream of Politicians & TPTB, who thought tomorrow would never come.

And, of course, it did!  

Lisa Jones wrote on Mar 1^st, 2011 at 2:35pm:

Bobby. wrote on Mar 1st, 2011 at 2:02pm: Nail. Quote: i forgot to mention that most likely you'll be out bid by a china man that dudd has let into the country It breaks your heart to to think a Chinaman payed $400,000 for the same property 8 years ago that you now pay $1.5 million for. It's heart rendering to know that there is no level playing field within the Oz domestic real estate market anymore BECAUSE Asian prospective buyers are allowed to secure funds at a third/half the interest rates we Aussies can. In short they are allowed to borrow more which assists them in buying up more/better Oz real estate. Bottom line? No matter what anyone says .. the competition out there is still fierce (and that is what drives the price of houses up folks). As a result Aussies need to work harder and smarter in order to work around this problem/issue. Effectively this means Aussies need to chase many more auctions and be prepared to let awesome opportunities go .. and that can be very frustrating at times. Fingers crossed for this Saturday .. I hope I'm not bidding against an Asian with heaps of $$$ thanks to their advantage over me and other Aussies in securing $$$ at much cheaper interest rates. I'll let you know how it goes. As I said above .. it will be interesting to see what happens Last Nail and Bobby. NB Please do not misconstrue my comments as being anti Asian in any way. I am merely saying it isn't fair that we Aussies aren't allowed to secure the advantageous interest rates which others can. That is my issue/point.

They were talking about this on the radio the other day. A woman rings up and says that her and her husband have a good job in the police force and earn about 80K each. The bank is willing to lend them 400K to buy a house so they go off to auction after auction expecting to pay near the reserve price and along comes a china man out of the blue and out bids them by a 100K :(

It must be a really good feeling that you have lived here all of your life and payed rip off taxes only to be made to feel like a second rate citizen by having to compete against a foreigner who has contributed bugger all taxes here and gets a much cheaper loan from a chinese bank :(

You can thank kevin dudd for letting them in by the truck load. We really didn't need any more chinese property speculators or shop keepers in this country peddling more made in china junk :(

Just think lisa, given that property prices double every ten years, your $1.5m place will sell for $3m in 2021 lol

Are fat Greek women allowed to buy houses here?

They were talking about this on the radio the other day. A woman rings up and says that her and her husband have a good job in the police force and earn about 80K each. The bank is willing to lend them 400K to buy a house so they go off to auction after auction expecting to pay near the reserve price and along comes a china man out of the blue and out bids them by a 100K Sad

It must be a really good feeling that you have lived here all of your life and payed rip off taxes only to be made to feel like a second rate citizen by having to compete against a foreigner who has contributed bugger all taxes here and gets a much cheaper loan from a chinese bank Sad

You can thank kevin dudd for letting them in by the truck load. We really didn't need any more chinese property speculators or shop keepers in this country peddling more made in china junk

- Last Nail

The media example you've highlighted is typical and nothing new.

(Umm 400K for a house ??? That's impossible in the Sydney property market. An old knock down job on half decent land is going to easily cost you 800K today if you're talking Sydney market)

Anyway .. the problem is .. the phenomenon you've described is rampant and well recognised esp at the middle to higher end of the domestic real estate market (where most cashed up Aussies aged 30 and over are located).

Last Nail .. I was thinking about this topic early this morning .. you know it kinda reminds me of what's happening in our tertiary education industry (places are going to foreign students at an alarming rate .. at the expense of domestic students).

Hmm I wonder what Andrei has to say about all this?

No doubt he's going to start talking about how necessary these govt backed measures are in order to make Oz attractive to foreign investors .. sighs.

qikvtec wrote on Mar 1^st, 2011 at 11:22pm:

There's a lot of downside risk to the property market given the interest rate environment and consumer confidence.   If you have the kahunas and the disposable you could make some serious coin.

I agree .. but you also need to know what you're buying too.

There's so much junk being dumped on the real estate market atm .. little wonder inexperienced people find themselves in submarine mortgage situations.

Even when an opportunity to buy something decent does come along .. so much so that you organise a building report and finance etc .. you find yourself not only competing against other Aussies (which is fair enough)  .. but also against other foreigners who have been allowed in (and who can access more funds at 1/3- 1/2 of the interest rates you can).

I don't know how any of this can be a good thing.

IMO .. the effects of all this are as follows: it (definitely) pushes house prices up (that's just a fact now); it basically excludes locals/makes it extremely difficult for them to compete; even those locals who sell and obtain a greater price .. and who think they've done well out of all this .. well even they lose out ultimately .. because they'll need to jump back into the market to buy something else only to find themselves excluded/experience difficulty in competing.

Lisa Jones wrote on Mar 2^nd, 2011 at 8:54am:

They were talking about this on the radio the other day. A woman rings up and says that her and her husband have a good job in the police force and earn about 80K each. The bank is willing to lend them 400K to buy a house so they go off to auction after auction expecting to pay near the reserve price and along comes a china man out of the blue and out bids them by a 100K Sad It must be a really good feeling that you have lived here all of your life and payed rip off taxes only to be made to feel like a second rate citizen by having to compete against a foreigner who has contributed bugger all taxes here and gets a much cheaper loan from a chinese bank Sad You can thank kevin dudd for letting them in by the truck load. We really didn't need any more chinese property speculators or shop keepers in this country peddling more made in china junk - Last Nail The media example you've highlighted is typical and nothing new. (Umm 400K for a house ??? That's impossible in the Sydney property market. An old knock down job on half decent land is going to easily cost you 800K today if you're talking Sydney market) Anyway .. the problem is .. the phenomenon you've described is rampant and well recognised esp at the middle to higher end of the domestic real estate market (where most cashed up Aussies aged 30 and over are located). Last Nail .. I was thinking about this topic early this morning .. you know it kinda reminds me of what's happening in our tertiary education industry (places are going to foreign students at an alarming rate .. at the expense of domestic students). Hmm I wonder what Andrei has to say about all this? No doubt he's going to start talking about how necessary these govt backed measures are in order to make Oz attractive to foreign investors .. sighs.

yes this is true about education as well. We are selling out local students in favour of full fee paying foreign students.

I know a person who lives here who got knocked back on a first round offer on a post grad course at Uni because they didn't complete their high school in Australia whilst at the same time the course is full of foreign chinese students who can't speak english to save their life !! Their computers have a chinese version of Windows and they have to continually use an english to chinese dictionary :(

WTF is going on here ??

Sir lastnail wrote on Mar 2^nd, 2011 at 12:12pm:

Lisa Jones wrote on Mar 2nd, 2011 at 8:54am: They were talking about this on the radio the other day. A woman rings up and says that her and her husband have a good job in the police force and earn about 80K each. The bank is willing to lend them 400K to buy a house so they go off to auction after auction expecting to pay near the reserve price and along comes a china man out of the blue and out bids them by a 100K Sad It must be a really good feeling that you have lived here all of your life and payed rip off taxes only to be made to feel like a second rate citizen by having to compete against a foreigner who has contributed bugger all taxes here and gets a much cheaper loan from a chinese bank Sad You can thank kevin dudd for letting them in by the truck load. We really didn't need any more chinese property speculators or shop keepers in this country peddling more made in china junk - Last Nail The media example you've highlighted is typical and nothing new. (Umm 400K for a house ??? That's impossible in the Sydney property market. An old knock down job on half decent land is going to easily cost you 800K today if you're talking Sydney market) Anyway .. the problem is .. the phenomenon you've described is rampant and well recognised esp at the middle to higher end of the domestic real estate market (where most cashed up Aussies aged 30 and over are located). Last Nail .. I was thinking about this topic early this morning .. you know it kinda reminds me of what's happening in our tertiary education industry (places are going to foreign students at an alarming rate .. at the expense of domestic students). Hmm I wonder what Andrei has to say about all this? No doubt he's going to start talking about how necessary these govt backed measures are in order to make Oz attractive to foreign investors .. sighs. yes this is true about education as well. We are selling out local students in favour of full fee paying foreign students. I know a person who lives here who got knocked back on a first round offer on a post grad course at Uni because they didn't complete their high school in Australia whilst at the same time the course is full of foreign chinese students who can't speak english to save their life !! Their computers have a chinese version of Windows and they have to continually use an english to chinese dictionary :( WTF is going on here ??

If we weren't talking about foreigners entering tertiary education (often through high-fee Visa brokers) - and we were instead talking about 'boat people' who pay other 'people-smugglers' - it would be called "queue-jumping"...

The same hypocrisy arises for the right whingers when it comes to those with pseudo-Private Health Insurance who get top priority in Public Hospital queues over people with similar ailments - they don't call it "queue-jumping"...

Getting back to education, right whingers saw no problem with the oward  Govt using conslidated revenue to fund pseudo-Private Schools - nor do they see a problem with the policy change to allow the offspring of poor little dumb rich kids to buy a tertiary education to jump queue over those less privileged students who would earn a place on merit...

Apparently, they apply a range of different standards to benefiting from "user pays" systems...

'Worst ever' property dive  happens when the left are in power.

this is only to be expected.

Sir lastnail wrote on Mar 2^nd, 2011 at 12:12pm:

Lisa Jones wrote on Mar 2nd, 2011 at 8:54am: They were talking about this on the radio the other day. A woman rings up and says that her and her husband have a good job in the police force and earn about 80K each. The bank is willing to lend them 400K to buy a house so they go off to auction after auction expecting to pay near the reserve price and along comes a china man out of the blue and out bids them by a 100K Sad It must be a really good feeling that you have lived here all of your life and payed rip off taxes only to be made to feel like a second rate citizen by having to compete against a foreigner who has contributed bugger all taxes here and gets a much cheaper loan from a chinese bank Sad You can thank kevin dudd for letting them in by the truck load. We really didn't need any more chinese property speculators or shop keepers in this country peddling more made in china junk - Last Nail The media example you've highlighted is typical and nothing new. (Umm 400K for a house ??? That's impossible in the Sydney property market. An old knock down job on half decent land is going to easily cost you 800K today if you're talking Sydney market) Anyway .. the problem is .. the phenomenon you've described is rampant and well recognised esp at the middle to higher end of the domestic real estate market (where most cashed up Aussies aged 30 and over are located). Last Nail .. I was thinking about this topic early this morning .. you know it kinda reminds me of what's happening in our tertiary education industry (places are going to foreign students at an alarming rate .. at the expense of domestic students). Hmm I wonder what Andrei has to say about all this? No doubt he's going to start talking about how necessary these govt backed measures are in order to make Oz attractive to foreign investors .. sighs. yes this is true about education as well. We are selling out local students in favour of full fee paying foreign students. I know a person who lives here who got knocked back on a first round offer on a post grad course at Uni because they didn't complete their high school in Australia whilst at the same time the course is full of foreign chinese students who can't speak english to save their life !! Their computers have a chinese version of Windows and they have to continually use an english to chinese dictionary :( WTF is going on here ??

Well Last Nail .. this is how I see it ... our Fed govt has seen fit to sell education AND land opportunities IN FAVOUR of overseas applicants. In short .. Aussies are being deliberately excluded.

It doesn't seem fair does it? And I think you're right .. it isn't.

Lisa Jones wrote on Mar 2^nd, 2011 at 12:30pm:

Sir lastnail wrote on Mar 2nd, 2011 at 12:12pm: Lisa Jones wrote on Mar 2nd, 2011 at 8:54am: They were talking about this on the radio the other day. A woman rings up and says that her and her husband have a good job in the police force and earn about 80K each. The bank is willing to lend them 400K to buy a house so they go off to auction after auction expecting to pay near the reserve price and along comes a china man out of the blue and out bids them by a 100K Sad It must be a really good feeling that you have lived here all of your life and payed rip off taxes only to be made to feel like a second rate citizen by having to compete against a foreigner who has contributed bugger all taxes here and gets a much cheaper loan from a chinese bank Sad You can thank kevin dudd for letting them in by the truck load. We really didn't need any more chinese property speculators or shop keepers in this country peddling more made in china junk - Last Nail The media example you've highlighted is typical and nothing new. (Umm 400K for a house ??? That's impossible in the Sydney property market. An old knock down job on half decent land is going to easily cost you 800K today if you're talking Sydney market) Anyway .. the problem is .. the phenomenon you've described is rampant and well recognised esp at the middle to higher end of the domestic real estate market (where most cashed up Aussies aged 30 and over are located). Last Nail .. I was thinking about this topic early this morning .. you know it kinda reminds me of what's happening in our tertiary education industry (places are going to foreign students at an alarming rate .. at the expense of domestic students). Hmm I wonder what Andrei has to say about all this? No doubt he's going to start talking about how necessary these govt backed measures are in order to make Oz attractive to foreign investors .. sighs. yes this is true about education as well. We are selling out local students in favour of full fee paying foreign students. I know a person who lives here who got knocked back on a first round offer on a post grad course at Uni because they didn't complete their high school in Australia whilst at the same time the course is full of foreign chinese students who can't speak english to save their life !! Their computers have a chinese version of Windows and they have to continually use an english to chinese dictionary :( WTF is going on here ?? Well Last Nail .. this is how I see it ... our Fed govt has seen fit to sell education AND land opportunities IN FAVOUR of overseas applicants. In short .. Aussies are being deliberately excluded. It doesn't seem fair does it? And I think you're right .. it isn't.

Yes we educate the foreigners to eventually put us out of business in exchange for a quick grab for cash :(

also add to the list the agriculture land being sold off to foreign corporations :(

just shows you that governments from either side will not think twice about selling out the locals in exchange for a fist full of dollars :(

that's what dudd must have meant when he was talking about the "Australian fair go". Us locals paying all of the tax whilst foreigners walk in and scoop the cream off the cake :(

Lisa Jones wrote on Mar 2^nd, 2011 at 12:30pm:

Sir lastnail wrote on Mar 2nd, 2011 at 12:12pm: Lisa Jones wrote on Mar 2nd, 2011 at 8:54am: They were talking about this on the radio the other day. A woman rings up and says that her and her husband have a good job in the police force and earn about 80K each. The bank is willing to lend them 400K to buy a house so they go off to auction after auction expecting to pay near the reserve price and along comes a china man out of the blue and out bids them by a 100K Sad It must be a really good feeling that you have lived here all of your life and payed rip off taxes only to be made to feel like a second rate citizen by having to compete against a foreigner who has contributed bugger all taxes here and gets a much cheaper loan from a chinese bank Sad You can thank kevin dudd for letting them in by the truck load. We really didn't need any more chinese property speculators or shop keepers in this country peddling more made in china junk - Last Nail The media example you've highlighted is typical and nothing new. (Umm 400K for a house ??? That's impossible in the Sydney property market. An old knock down job on half decent land is going to easily cost you 800K today if you're talking Sydney market) Anyway .. the problem is .. the phenomenon you've described is rampant and well recognised esp at the middle to higher end of the domestic real estate market (where most cashed up Aussies aged 30 and over are located). Last Nail .. I was thinking about this topic early this morning .. you know it kinda reminds me of what's happening in our tertiary education industry (places are going to foreign students at an alarming rate .. at the expense of domestic students). Hmm I wonder what Andrei has to say about all this? No doubt he's going to start talking about how necessary these govt backed measures are in order to make Oz attractive to foreign investors .. sighs. yes this is true about education as well. We are selling out local students in favour of full fee paying foreign students. I know a person who lives here who got knocked back on a first round offer on a post grad course at Uni because they didn't complete their high school in Australia whilst at the same time the course is full of foreign chinese students who can't speak english to save their life !! Their computers have a chinese version of Windows and they have to continually use an english to chinese dictionary :( WTF is going on here ?? Well Last Nail .. this is how I see it ... our Fed govt has seen fit to sell education AND land opportunities IN FAVOUR of overseas applicants. In short .. Aussies are being deliberately excluded. It doesn't seem fair does it? And I think you're right .. it isn't.

Yes we educate the foreigners to eventually put us out of business in exchange for a quick grab for cash :(

also add to the list the agriculture land being sold off to foreign corporations :(

just shows you that governments from either side will not think twice about selling out the locals in exchange for a fist full of dollars :(

that's what dudd must have meant when he was talking about the "Australian fair go". Us locals paying all of the tax whilst foreigners walk in and scoop the cream off the cake :(

yes it's a mad mad world .. all in the hands of filthy greedy people and shareholders .. same thing happened in south east Asia where most of the food in the world come from .. poor people were forced to sell off their lands at cheap prices .. and those greedy developers just grab all and build this and that .. trying to sell back with big margins .. then what happen next .. farmers lost most of their lands .. farming lands get smaller .. everyday ... then when the food crisis come ... it's the revolution like in the ME .. all about rise in food and energy

Lisa.

Quote:

but also against other foreigners who have been allowed in (and who can access more funds at 1/3- 1/2 of the interest rates you can).

Hi Lisa,
Is it possible for you to borrow money from overseas for a mortgage here?
If not why not?
You could get a lower rate of interest!

You people do realise that to buy property in Australia you need to at least have temporary residency, have the purchase pre-approved by the Government and that you're forced to sell the propertiy when you leave Australia?

The laws were relaxed two or three years ago, but they were tightened up again early last year.

Life_goes_on wrote on Mar 2^nd, 2011 at 6:52pm:

You people do realise that to buy property in Australia you need to at least have temporary residency, have the purchase pre-approved by the Government and that you're forced to sell the propertiy when you leave Australia? The laws were relaxed two or three years ago, but they were tightened up again early last year.

No - I didn't know that.
Do you have a link?

Quote:

Clampdown on foreigners buying property April 24, 2010 .AAP The federal government will again require temporary residents to sell their houses when they leave the country following mounting complaints about foreigners driving up prices. Travel details and ownership data will be matched to catch cheats, and the public will have a new hotline - 1800 031 227 - to dob in foreigners they suspect of breaches. Those leaving Australia must sell their properties and the government will claw back any capital gains made by foreign investors who breach the arrangements. Real estate agents will face new penalties under civil law that are being developed. Assistant Treasurer Nick Sherry issued a statement on Friday night saying he would reinstate restrictions on foreign property investment scrapped in 2008 and impose new measures and tougher penalties to further tighten the system and improve compliance. "The Rudd government is acting to make sure that investment in Australian real estate by temporary residents and foreign non-residents is within the law, meets community expectations and doesn't place pressure on housing availability for Australians," Senator Sherry said. "The new provisions announced today will mean that anyone trying to flout Australia's strict foreign investment rules will face tough new penalties that will be fully enforced." Treasury is reportedly investigating 50 cases of suspicious residential property purchases by foreigners in Melbourne, contributing to rising property prices. Under reinstated regulations, temporary residents and foreign students will be screened by the Foreign Investment Review Board to determine if they will be allowed to purchase a property. Foreign residents without temporary visas cannot buy existing houses, and may buy property only if it adds to the housing stock. If buying land, they must build within two years or sell it to stop "land banking".

http://news.smh.com.au/breaking-news-national/clampdown-on-foreigners-buying-property-20100424-tjky.html

Life_goes_on wrote on Mar 2^nd, 2011 at 6:52pm:

You people do realise that to buy property in Australia you need to at least have temporary residency, have the purchase pre-approved by the Government and that you're forced to sell the propertiy when you leave Australia? The laws were relaxed two or three years ago, but they were tightened up again early last year.

It stands to reason, just because a person "looks Egyptian", doesn't mean they just wandered out of their pyramid and parked their camel outside the auction rooms.

We respectfully require a passport inspection next time a suspicious looking alien bids lol

Ex Dame Pansi wrote on Mar 2^nd, 2011 at 7:39pm:

Life_goes_on wrote on Mar 2nd, 2011 at 6:52pm: You people do realise that to buy property in Australia you need to at least have temporary residency, have the purchase pre-approved by the Government and that you're forced to sell the propertiy when you leave Australia? The laws were relaxed two or three years ago, but they were tightened up again early last year. It stands to reason, just because a person "looks Egyptian", doesn't mean they just wandered out of their pyramid and parked their camel outside the auction rooms. We respectfully require a passport inspection next time a suspicious looking alien bids lol

Exactly what I was getting at in my previous post.  What does an Aussie look like?

Life_goes_on wrote on Mar 2^nd, 2011 at 7:16pm:

Quote: Clampdown on foreigners buying property April 24, 2010 .AAP The federal government will again require temporary residents to sell their houses when they leave the country following mounting complaints about foreigners driving up prices. Travel details and ownership data will be matched to catch cheats, and the public will have a new hotline - 1800 031 227 - to dob in foreigners they suspect of breaches. Those leaving Australia must sell their properties and the government will claw back any capital gains made by foreign investors who breach the arrangements. Real estate agents will face new penalties under civil law that are being developed. Assistant Treasurer Nick Sherry issued a statement on Friday night saying he would reinstate restrictions on foreign property investment scrapped in 2008 and impose new measures and tougher penalties to further tighten the system and improve compliance. "The Rudd government is acting to make sure that investment in Australian real estate by temporary residents and foreign non-residents is within the law, meets community expectations and doesn't place pressure on housing availability for Australians," Senator Sherry said. "The new provisions announced today will mean that anyone trying to flout Australia's strict foreign investment rules will face tough new penalties that will be fully enforced." Treasury is reportedly investigating 50 cases of suspicious residential property purchases by foreigners in Melbourne, contributing to rising property prices. Under reinstated regulations, temporary residents and foreign students will be screened by the Foreign Investment Review Board to determine if they will be allowed to purchase a property. Foreign residents without temporary visas cannot buy existing houses, and may buy property only if it adds to the housing stock. If buying land, they must build within two years or sell it to stop "land banking". http://news.smh.com.au/breaking-news-national/clampdown-on-foreigners-buying-property-20100424-tjky.html

Excellent article!  Many thanks for posting it! It lends support to some of the issues I myself raised in this topic.

Notice how your article is dated April 2010? Now let me fill you in on what's been happening since then. Have a read of this ..

http://www.dailytelegraph.com.au/news/nsw-act/foreigners-grab-prime-real-estate-in-sydney/story-e6freuzi-1225954634282

Here is the article ..

Foreigners grab prime real estate in Sydney - 17 Nov 2010

SYDNEY'S famous Harbour vista is driving an unprecedented international land grab as overseas buyers snap up premium homes and office buildings across the city.

A surge of money from Asia, along with traditional European investors, is driving demand in the CBD, North Shore and Eastern Suburbs, cementing Sydney as the fourth most popular city for international investment on Earth.

Major real estate firms are cashing in on the trend, promoting Australian properties in Asian hubs like Hong Kong and Singapore, luring cashed up investors with promises of safe, secure growth opportunities.

The most recent figures from the Federal Government's Foreign Investment Review Board, collected during the worst of the global financial crisis in 2008-09, reveal foreigners picked up $23.4 billion in Australian real estate assets including 3639 new and existing homes, and 988 parcels of land.

"We see a lot of interest from Singapore, Hong Kong, Tokyo and the UK," Real Estate Buyers Association of Australia president Byron Rose said.

"They know the market is depressed - they are making huge capital gains and are reinvesting into the market."

Major real estate firms are also lining up to take advantage of the trend, with one of the world's largest, CB Richard Ellis, last month staging a property expo in Hong Kong promoting a range of residential, commercial and retail opportunities in Australia.

On display were the WorkCover NSW head office in Gosford, apartment buildings in Brighton-Le-Sands, Chippendale and Bondi Junction, commercial offices in Dee Why and the CBD, as well as retail stores.

CBRE senior managing director of international investments Rick Butler blamed Australian banks for the situation. "The banks are saying they are lending but in my view they aren't," Mr Butler said. "When we offer a major office building we are finding the top two offers are usually from a foreign buyer.

"The foreigners are there because they see Australia as safe, secure and actually having growth, which puts us in a much better position than old Europe and the US."

International property investment expert Professor Graeme Newell, of the University of Western Sydney, said the investment surge was also being driven by Asian pension funds.

Quote:

"The Rudd government is acting to make sure that investment in Australian real estate by temporary residents and foreign non-residents is within the law, meets community expectations and doesn't place pressure on housing availability for Australians," Senator Sherry said.

So Rudd did do something good!
Wow!   :o

Quote:

The most recent figures from the Federal Government's Foreign Investment Review Board, collected during the worst of the global financial crisis in 2008-09, reveal foreigners picked up $23.4 billion in Australian real estate assets including 3639 new and existing homes, and 988 parcels of land.

2008-2009 = The years when the foreign investment laws were relaxed. The article I posted is from April 2010 when the laws were restored to their pre-2008 levels.
It would be interesting to see the post April 2010 foreign investment figures - but I suspect they might not make for the kind of headlines favoured by the Tele.

Bobby. wrote on Mar 2^nd, 2011 at 8:31pm:

Quote: "The Rudd government is acting to make sure that investment in Australian real estate by temporary residents and foreign non-residents is within the law, meets community expectations and doesn't place pressure on housing availability for Australians," Senator Sherry said. So Rudd did do something good! Wow!   :o

No, dudd caused the problem in the first place with changes in the FIRB rules and now labor is trying to fix up another one of his major f.ckups [smiley=angry.gif] What made it worse was the so called "housing minister" at the time, none other than that stupid dumb rag, Tanya Plibersek pretended like there was no problems at all :(

Is nothing sacred in this country anymore !!

"the australian fair go" !! pigs arse :(

Lisa Jones wrote on Mar 2^nd, 2011 at 8:21pm:

Here is the article .. Foreigners grab prime real estate in Sydney - 17 Nov 2010 SYDNEY'S famous Harbour vista is driving an unprecedented international land grab as overseas buyers snap up premium homes and office buildings across the city. A surge of money from Asia, along with traditional European investors, is driving demand in the CBD, North Shore and Eastern Suburbs, cementing Sydney as the fourth most popular city for international investment on Earth. Major real estate firms are cashing in on the trend, promoting Australian properties in Asian hubs like Hong Kong and Singapore, luring cashed up investors with promises of safe, secure growth opportunities. The most recent figures from the Federal Government's Foreign Investment Review Board, collected during the worst of the global financial crisis in 2008-09, reveal foreigners picked up $23.4 billion in Australian real estate assets including 3639 new and existing homes, and 988 parcels of land. "We see a lot of interest from Singapore, Hong Kong, Tokyo and the UK," Real Estate Buyers Association of Australia president Byron Rose said. "They know the market is depressed - they are making huge capital gains and are reinvesting into the market." Major real estate firms are also lining up to take advantage of the trend, with one of the world's largest, CB Richard Ellis, last month staging a property expo in Hong Kong promoting a range of residential, commercial and retail opportunities in Australia. On display were the WorkCover NSW head office in Gosford, apartment buildings in Brighton-Le-Sands, Chippendale and Bondi Junction, commercial offices in Dee Why and the CBD, as well as retail stores. CBRE senior managing director of international investments Rick Butler blamed Australian banks for the situation. "The banks are saying they are lending but in my view they aren't," Mr Butler said. "When we offer a major office building we are finding the top two offers are usually from a foreign buyer. "The foreigners are there because they see Australia as safe, secure and actually having growth, which puts us in a much better position than old Europe and the US." International property investment expert Professor Graeme Newell, of the University of Western Sydney, said the investment surge was also being driven by Asian pension funds.

on the other hand the same real estate parasites are bitching about how first homes buyers have been priced out of the market :(

how does it feel to be a second rate citizen in your own country having payed rip off taxes all of your life ?? :(

yeah they are all greedy pigs .. as Glen Steven had said the mining boom will over soon .. then the whole economy will be like this include the housing industries


bridonta wrote on Mar 1^st, 2011 at 6:42am:

[quote author=tirelesscampaigner link=1298901652/0#1 date=1298907281]Goodbye, My Ireland Broadcast: 22/02/2011 Reporter: Emma Alberici http://www.abc.net.au/reslib/201102/r723055_5762287.flv  :)

Lisa Jones wrote on Mar 2^nd, 2011 at 8:16pm:

Excellent article!  Many thanks for posting it! It lends support to some of the issues I myself raised in this topic. Notice how your article is dated April 2010? Now let me fill you in on what's been happening since then. Have a read of this .. http://www.dailytelegraph.com.au/news/nsw-act/foreigners-grab-prime-real-estate-in-sydney/story-e6freuzi-1225954634282

Hey Lisa have you pondered this problem ?? A China man comes to live in Australia with his family as permanent residents etc. He gets a loan from a chinese bank owned by the chinese Government. The dude has trouble paying back the loan and the chinese government sends a letter to the poor dude one day stating, "Hey dude you have defaulted on the loan and we are now going to foreclose on you and we will keep the title in our possession". Now who owns the aussie bit of real estate ?? Makes you wonder ;)

Sir lastnail wrote on Mar 2^nd, 2011 at 11:05pm:

Lisa Jones wrote on Mar 2nd, 2011 at 8:16pm: Excellent article!  Many thanks for posting it! It lends support to some of the issues I myself raised in this topic. Notice how your article is dated April 2010? Now let me fill you in on what's been happening since then. Have a read of this .. http://www.dailytelegraph.com.au/news/nsw-act/foreigners-grab-prime-real-estate-in-sydney/story-e6freuzi-1225954634282 Hey Lisa have you pondered this problem ?? A China man comes to live in Australia with his family as permanent residents etc. He gets a loan from a chinese bank owned by the chinese Government. The dude has trouble paying back the loan and the chinese government sends a letter to the poor dude one day stating, "Hey dude you have defaulted on the loan and we are now going to foreclose on you and we will keep the title in our possession". Now who owns the aussie bit of real estate ?? Makes you wonder ;)

Most are dirty money from corrupted officers or business people .. first they sent their children here for education with all those free money they started buying assets .. once their visa were granted they took all the money from government, business partners or loan sharks and settling here .. however some of their business partners or loan sharks also sent their people looking for them .. some of them were found and there were brutal killing upon entire family as you have hear on the news ..

bridonta wrote on Mar 2^nd, 2011 at 11:26pm:

Sir lastnail wrote on Mar 2nd, 2011 at 11:05pm: Lisa Jones wrote on Mar 2nd, 2011 at 8:16pm: Excellent article!  Many thanks for posting it! It lends support to some of the issues I myself raised in this topic. Notice how your article is dated April 2010? Now let me fill you in on what's been happening since then. Have a read of this .. http://www.dailytelegraph.com.au/news/nsw-act/foreigners-grab-prime-real-estate-in-sydney/story-e6freuzi-1225954634282 Hey Lisa have you pondered this problem ?? A China man comes to live in Australia with his family as permanent residents etc. He gets a loan from a chinese bank owned by the chinese Government. The dude has trouble paying back the loan and the chinese government sends a letter to the poor dude one day stating, "Hey dude you have defaulted on the loan and we are now going to foreclose on you and we will keep the title in our possession". Now who owns the aussie bit of real estate ?? Makes you wonder ;) Most are dirty money from corrupted officers or business people .. first they sent their children here for education with all those free money they started buying assets .. once their visa were granted they took all the money from government, business partners or loan sharks and settling here .. however some of their business partners or loan sharks also sent their people looking for them .. some of them were found and there were brutal killing upon entire family as you have hear on the news ..

Interesting ;)

Where my mother lives nearly every second house is occupied by a chinese family. I often wondered how they made so much money to afford to buy in the area ;)

bridonta wrote on Mar 2^nd, 2011 at 10:52pm:

yeah they are all greedy pigs .. as Glen Steven had said the mining boom will over soon .. then the whole economy will be like this include the housing industries bridonta wrote on Mar 1st, 2011 at 6:42am: [quote author=tirelesscampaigner link=1298901652/0#1 date=1298907281]Goodbye, My Ireland Broadcast: 22/02/2011 Reporter: Emma Alberici http://www.abc.net.au/reslib/201102/r723055_5762287.flv  :)

jee's there are a lot of parallels with australia. A gangbuster and enviable economy along with a property boom, abundant credit and jobs on every street corner followed by a major bust !!!

The australian economy is NOTHING like Ireland and even a moron like you strugges to make the comparison.

The'worst ever' property dive is no more than a prediction - the same type of prediction this same moron has been making for 4 years during which time prices have risen 40%!!!

the current economic slowdown coupled with massive post-disaster costs will probably cause property prices to stop rising or drop by 5-10%. but no more.

And shop-assistant and toe-nail will both be saying these exact same things in a years time and stil not have a house.

weekenders false reality continues to crumble

as we de centralize the wealth

and get rid of these central banks

printing fiat currency out of thin air

have you noticed your reality changing?

yes

and so it is

namaste

-:)

IMO, one thing that NEEDS to be done if house
prices are ever to fall to realistic levels....


Ban Auctions.

Auctions are motivated purely by greed.

And, inevitably, drive prices up.

No more handouts....the money's finished. Whatever will hold up Australia's number one industry now?

America will realise in July that printing money is addictive....it's hard to stop once you start. How much lower will the American dollar go this year?

It's about time longweekend turned the pages of the history book instead of living in fantasy land.

Ex Dame Pansi wrote on Mar 3^rd, 2011 at 8:09am:

No more handouts....the money's finished. Whatever will hold up Australia's number one industry now? America will realise in July that printing money is addictive....it's hard to stop once you start. How much lower will the American dollar go this year? It's about time longweekend turned the pages of the history book instead of living in fantasy land.

and yet, every prediction you have made on house prices has been wrong. and in that same period of time, house prices have risen 40%. you are just plain wrong.

longweekend58 wrote on Mar 3^rd, 2011 at 8:15am:

Ex Dame Pansi wrote on Mar 3rd, 2011 at 8:09am: No more handouts....the money's finished. Whatever will hold up Australia's number one industry now? America will realise in July that printing money is addictive....it's hard to stop once you start. How much lower will the American dollar go this year? It's about time longweekend turned the pages of the history book instead of living in fantasy land. and yet, every prediction you have made on house prices has been wrong. and in that same period of time, house prices have risen 40%. you are just plain wrong.

True.

Oh and have a read of ANY of her posts in this topic.

Very rarely do I see a person so obsessed with being both annoying and ignorant.

It's all good though ... the rest of us just posted around her.

Here's an easy question for the spruikers.

Is Australia out of the global financial crisis?

Sir lastnail wrote on Mar 2^nd, 2011 at 10:43pm:

Bobby. wrote on Mar 2nd, 2011 at 8:31pm: Quote: "The Rudd government is acting to make sure that investment in Australian real estate by temporary residents and foreign non-residents is within the law, meets community expectations and doesn't place pressure on housing availability for Australians," Senator Sherry said. So Rudd did do something good! Wow!   :o No, dudd caused the problem in the first place with changes in the FIRB rules and now labor is trying to fix up another one of his major f.ckups [smiley=angry.gif] What made it worse was the so called "housing minister" at the time, none other than that stupid dumb rag, Tanya Plibersek pretended like there was no problems at all :( Is nothing sacred in this country anymore !! "the australian fair go" !! pigs arse :(

Good to see someone else is awake to these bungling buffoons.

longweekend58 wrote on Mar 3^rd, 2011 at 8:15am:

Ex Dame Pansi wrote on Mar 3rd, 2011 at 8:09am: No more handouts....the money's finished. Whatever will hold up Australia's number one industry now? America will realise in July that printing money is addictive....it's hard to stop once you start. How much lower will the American dollar go this year? It's about time longweekend turned the pages of the history book instead of living in fantasy land. and yet, every prediction you have made on house prices has been wrong. and in that same period of time, house prices have risen 40%. you are just plain wrong.

Why were property prices artificially inflated by the government and the real estate institute?

Has there ever been a real estate/property bust in Australia in the past? and if there has been, what percentage did prices go down by?

Sir lastnail wrote on Mar 2^nd, 2011 at 10:46pm:

Lisa Jones wrote on Mar 2nd, 2011 at 8:21pm: Here is the article .. Foreigners grab prime real estate in Sydney - 17 Nov 2010 SYDNEY'S famous Harbour vista is driving an unprecedented international land grab as overseas buyers snap up premium homes and office buildings across the city. A surge of money from Asia, along with traditional European investors, is driving demand in the CBD, North Shore and Eastern Suburbs, cementing Sydney as the fourth most popular city for international investment on Earth. Major real estate firms are cashing in on the trend, promoting Australian properties in Asian hubs like Hong Kong and Singapore, luring cashed up investors with promises of safe, secure growth opportunities. The most recent figures from the Federal Government's Foreign Investment Review Board, collected during the worst of the global financial crisis in 2008-09, reveal foreigners picked up $23.4 billion in Australian real estate assets including 3639 new and existing homes, and 988 parcels of land. "We see a lot of interest from Singapore, Hong Kong, Tokyo and the UK," Real Estate Buyers Association of Australia president Byron Rose said. "They know the market is depressed - they are making huge capital gains and are reinvesting into the market." Major real estate firms are also lining up to take advantage of the trend, with one of the world's largest, CB Richard Ellis, last month staging a property expo in Hong Kong promoting a range of residential, commercial and retail opportunities in Australia. On display were the WorkCover NSW head office in Gosford, apartment buildings in Brighton-Le-Sands, Chippendale and Bondi Junction, commercial offices in Dee Why and the CBD, as well as retail stores. CBRE senior managing director of international investments Rick Butler blamed Australian banks for the situation. "The banks are saying they are lending but in my view they aren't," Mr Butler said. "When we offer a major office building we are finding the top two offers are usually from a foreign buyer. "The foreigners are there because they see Australia as safe, secure and actually having growth, which puts us in a much better position than old Europe and the US." International property investment expert Professor Graeme Newell, of the University of Western Sydney, said the investment surge was also being driven by Asian pension funds. on the other hand the same real estate parasites are bitching about how first homes buyers have been priced out of the market :( how does it feel to be a second rate citizen in your own country having payed rip off taxes all of your life ?? :(

I'm glad I found that news article Last Nail. It's only a few months old too and it captures many of the issues I've been TRYING to make others aware of. Up til now, as you know, I've been posting from a real life personal prospective purchaser perspective.

Good for others to see wtf has been happening in real estate here in Sydney.

Read back and see what I've been saying .. it's been hell for Aussies in the domestic real estate market over the last few years. We've been expected to compete against people who have access to interest rates at 1/3 - 1/2 the rates we can access.

Bottom line? They have been able to secure more funds ----> they CAN and HAVE been buying up prime real estate.

What's left for us Aussies? The real estate these people don't want.

It's hard enough (for someone who looks at real estate every day) .. trying to find a decent property at a decent price these days (most of what I see on the market is overpriced or just plain trash ) .. but when you do see something decent .. you turn up in good faith with your building report only to find yourself competing against foreigners who are prepared to pay heaps more than what the property is really worth .. because they don't care .. they've obtained finance at 1/3 to 1/2 the interest rates you have.

See the highlighted bit in my last paragraph?? THAT is what has been driving prices UP!

http://www.ozpolitic.com/forum/YaBB.pl?num=1298664498

Now .. have a read of this topic and tell me why I shouldn't be pissed off at THESE bungling buffoons who are going to WORSEN the situation for us Aussies with their latest half baked MADNESS!

Here is an extract of the OP in that topic ...

A NEW tax on owner-occupied homes to arrest soaring house prices is among extraordinary measures proposed by five of the country's most admired chief executives to address the dark side of the resources boom.  

The chief executives said impacts from the boom, including higher cost of living, a shortage of staff and other industries withering, are Australia's greatest challenges.

Among the five executives named today at the top of the annual BusinessDay survey of most-admired chief executives is CSL chief Brian McNamee.

Lisa Jones wrote on Mar 3^rd, 2011 at 9:11am:

http://www.ozpolitic.com/forum/YaBB.pl?num=1298664498 Now .. have a read of this topic and tell me why I shouldn't be pissed off at THESE bungling buffoons who are going to WORSEN the situation for us Aussies with their latest half baked MADNESS!

Bungling Buffoons?????????
They are CEO's of the top five companies in Australia on any other given day you worship & quote these guys thoughts as direct quotes of God.
Yet this time it does not suit your vested interest so their "Bungling Buffoons"

No No No! My 2 replies in that topic were as follows:

---

Re: Put A New Tax On Homes- Say The CEOs

Reply #10 - Feb 26th, 2011, 2:46pm

He said there was a need to impose a capital gains tax on owner-occupied homes to cap house prices.

''Capital gains tax free on housing is poor policy because fundamentally it over-encourages people to invest in their home

- extract from the OP

Absolute cr@p of the highest order!

How does such half backed madness ever find its way into published print??

---

Re: Put A New Tax On Homes- Say The CEOs

Reply #12 - Feb 26th, 2011, 4:43pm

A NEW tax on owner-occupied homes to arrest soaring house prices is among extraordinary measures proposed by five of the country's most admired chief executives to address the dark side of the resources boom.

- from the OP

In short .. 5 mates/drinking buddies admired chief executives got together for some WOFTAM piss up corporate executive business seminar/luncheon, during which one of them spewed logically arrived at this idea .. and now we're privileged to read the resultant drunk fuelled rant conclusion.

---

If they were saying :
They are against the Carbon Tax
Company tax should be cut
Unions & collective bargaining should be outlawed
or any other ideas the business council endorses you'd be quoting them
as it seems all "Liberal Conservative" supporters do.

It doesn't matter what you've posted on this thread about this subject because as my 1st post stated you have a vested interest so therefore this time they are bumbling buffoons with no real knowledge of economics.(In your opinion anyway)

Topic has been discussed here as well
http://www.ozpolitic.com/forum/YaBB.pl?num=1298707876

Also as we have a 2 speed economy we have a 2 speed real estate market.
Capital Cities are still steadily rising where as thee wider market has fallen.
As someone who sold at the top & has been closely watching my local market for 20 odd months I can tell you all suburbs around my area have fallen between 7 & 12% & depending on the reserve look to continue that trend for the next 6 to 12 months.
Homes that where going for 650K when I sold are now asking 570 to 600K
& getting the lower end of that bracket.

Dsmithy70 wrote on Mar 3^rd, 2011 at 9:47am:

If they were saying : They are against the Carbon Tax Company tax should be cut Unions & collective bargaining should be outlawed or any other ideas the business council endorses you'd be quoting them as it seems all "Liberal Conservative" supporters do. It doesn't matter what you've posted on this thread about this subject because as my 1st post stated you have a vested interest so therefore this time they are bumbling buffoons with no real knowledge of economics.(In your opinion anyway) Topic has been discussed here as well http://www.ozpolitic.com/forum/YaBB.pl?num=1298707876

It DOES MATTER what I've posted in this topic .. because it is THIS that we're presently in .. and THIS topic is about real estate (in Oz) and what's happened to it.

Of course I have a vested interest .. because I am an Aussie and like most/all Aussies .. we're concerned about happens to our homes .. ie the homes we own and the homes we are looking to own.

As regards carbon tax etc .. that has nothing at all to do with this topic.

<<Why were property prices artificially inflated by the government and the real estate institute?

Has there ever been a real estate/property bust in Australia in the past? and if there has been, what percentage did prices go down by? >>
...................................................................................

None of the 'growth fairy' brigade have an answer?

Smithy....we do have a two speed economy. For the last 30 years we have been speeding forward, and for the next 30 we'll be speeding backward.

longweekend58 wrote on Mar 3^rd, 2011 at 8:15am:

Ex Dame Pansi wrote on Mar 3rd, 2011 at 8:09am: No more handouts....the money's finished. Whatever will hold up Australia's number one industry now? America will realise in July that printing money is addictive....it's hard to stop once you start. How much lower will the American dollar go this year? It's about time longweekend turned the pages of the history book instead of living in fantasy land. and yet, every prediction you have made on house prices has been wrong. and in that same period of time, house prices have risen 40%. you are just plain wrong.

what time period for the prediction eh ??

did you watch the foreign correspondent video regarding Ireland ??

same gangbuster enviable economy, same property boom going for 10 years, jobs on every street corner and then what happoened ??

houses worth only half of what they paid for them and people in negative equity having to sell or move off shore to get a job !!

So what happened ?? Bear in mind that there was lots of high tech companies set up in Ireland providing real jobs for people not bullshit service sector jobs selling chinese made crap at Hardly Normal !!

Dsmithy70 wrote on Mar 3^rd, 2011 at 9:54am:

Also as we have a 2 speed economy we have a 2 speed real estate market. Capital Cities are still steadily rising where as thee wider market has fallen. As someone who sold at the top & has been closely watching my local market for 20 odd months I can tell you all suburbs around my area have fallen between 7 & 12% & depending on the reserve look to continue that trend for the next 6 to 12 months. Homes that where going for 650K when I sold are now asking 570 to 600K & getting the lower end of that bracket.

If your experiences are re Sydney ie the biggest domestic real estate market in Oz .. you're talking rubbish. Houses here are increasing .. and this creature called "worst ever property dive" is mythological.

As I've stated earlier in this topic .. I am about to test the market myself this Saturday .. in fact I'm off to attend 3 back to back auctions.

I know what the properties in question are worth .. and I can already tell you they will sell well above their reserve price.

I'll report back on what actually happens. I can only HOPE I am wrong .. given I'm hoping to buy one of the properties.

NB I have recurringly stated that ALL my posts relate to the SYDNEY real estate market.

Lisa Jones wrote on Mar 3^rd, 2011 at 10:00am:

Dsmithy70 wrote on Mar 3rd, 2011 at 9:47am: If they were saying : They are against the Carbon Tax Company tax should be cut Unions & collective bargaining should be outlawed or any other ideas the business council endorses you'd be quoting them as it seems all "Liberal Conservative" supporters do. It doesn't matter what you've posted on this thread about this subject because as my 1st post stated you have a vested interest so therefore this time they are bumbling buffoons with no real knowledge of economics.(In your opinion anyway) Topic has been discussed here as well http://www.ozpolitic.com/forum/YaBB.pl?num=1298707876 It DOES MATTER what I've posted in this topic .. because it is THIS that we're presently in .. and THIS topic is about real estate (in Oz) and what's happened to it. Of course I have a vested interest .. because I am an Aussie and like most/all Aussies .. we're concerned about happens to our homes .. ie the homes we own and the homes we are looking to own. As regards carbon tax etc .. that has nothing at all to do with this topic.

the trouble with aussies is that we thought that we were the only experts in property investment and then comes along the chinks with bigger and fatter wallets. Guess what happened ?? A bigger bubble was created and the aussies were priced out of the market but that still is not going to crash proof the property sector. It will just inflate and delay the bursting of the bubble. But why should Australia be any different than anywhere else ?? The answer is that it isn't. Only a fool like badweekened would believe otherwise !!

Lisa Jones wrote on Mar 3^rd, 2011 at 10:14am:

Dsmithy70 wrote on Mar 3rd, 2011 at 9:54am: Also as we have a 2 speed economy we have a 2 speed real estate market. Capital Cities are still steadily rising where as thee wider market has fallen. As someone who sold at the top & has been closely watching my local market for 20 odd months I can tell you all suburbs around my area have fallen between 7 & 12% & depending on the reserve look to continue that trend for the next 6 to 12 months. Homes that where going for 650K when I sold are now asking 570 to 600K & getting the lower end of that bracket. If you are talking Sydney ie the biggest domestic real estate market in Oz .. you're talking rubbish. Houses here are increasing .. and this creature called "worst ever property dive" is mythological. As I've stated earlier in this topic .. I am about to test the market myself this Saturday .. in fact I'm off to attend 3 back to back auctions. I know what the properties in question are worth .. and I can already tell you they will sell well above their reserve price. I'll report back on what actually happens. I can only HOPE I am wrong .. given I'm hoping to buy one of the properties.

I bet you that people like you were saying exactly the same thing in Ireland, the US, California, Hong Kong, Japan, UK etc before their property bubbles burst, but you will have a whole lot of rationalizations as to why it happened elsewhere but won't happen here ;) This always happened in a bubble before it bursts ;)

longweekend58 wrote on Mar 3^rd, 2011 at 7:34am:

The australian economy is NOTHING like Ireland and even a moron like you strugges to make the comparison. The'worst ever' property dive is no more than a prediction - the same type of prediction this same moron has been making for 4 years during which time prices have risen 40%!!! the current economic slowdown coupled with massive post-disaster costs will probably cause property prices to stop rising or drop by 5-10%. but no more. And shop-assistant and toe-nail will both be saying these exact same things in a years time and stil not have a house.

that's right property crashes everywhere else in the world but only "plateaus" in Australia and never goes down :D LOL

Lisa Jones wrote on Mar 3^rd, 2011 at 10:14am:

Dsmithy70 wrote on Mar 3rd, 2011 at 9:54am: Also as we have a 2 speed economy we have a 2 speed real estate market. Capital Cities are still steadily rising where as thee wider market has fallen. As someone who sold at the top & has been closely watching my local market for 20 odd months I can tell you all suburbs around my area have fallen between 7 & 12% & depending on the reserve look to continue that trend for the next 6 to 12 months. Homes that where going for 650K when I sold are now asking 570 to 600K & getting the lower end of that bracket. If your experiences are re Sydney ie the biggest domestic real estate market in Oz .. you're talking rubbish. Houses here are increasing .. and this creature called "worst ever property dive" is mythological. As I've stated earlier in this topic .. I am about to test the market myself this Saturday .. in fact I'm off to attend 3 back to back auctions. I know what the properties in question are worth .. and I can already tell you they will sell well above their reserve price. I'll report back on what actually happens. I can only HOPE I am wrong .. given I'm hoping to buy one of the properties. NB I have recurringly stated that ALL my posts relate to the SYDNEY real estate market.

Don't try and compete with a chink because you will come off second best. You are just partcipating in a bubble they have created here and that is exactly what the Government wants. The more homes sold the more tax it grabs for itself :(

Sir lastnail wrote on Mar 3^rd, 2011 at 10:29am:

longweekend58 wrote on Mar 3rd, 2011 at 7:34am: The australian economy is NOTHING like Ireland and even a moron like you strugges to make the comparison. The'worst ever' property dive is no more than a prediction - the same type of prediction this same moron has been making for 4 years during which time prices have risen 40%!!! the current economic slowdown coupled with massive post-disaster costs will probably cause property prices to stop rising or drop by 5-10%. but no more. And shop-assistant and toe-nail will both be saying these exact same things in a years time and stil not have a house. that's right property crashes everywhere else in the world but only "plateaus" in Australia and never goes down :D LOL

Ah yes! how the mighty will fall....and how the patient will prosper.

I've never really wanted to buy a house at the peak of the boom.....for some strange reason.

And shop-assistant and toe-nail will both be saying these exact same things in a years time and still not have a house.

- Long Weekend

Which shop assistant?? Toe Nail?? Huh??

Lisa Jones wrote on Mar 3^rd, 2011 at 10:52am:

And shop-assistant and toe-nail will both be saying these exact same things in a years time and still not have a house. - Long Weekend Which shop assistant?? Toe Nail?? Huh??

who knows. he's got a name for everybody he doesn't like !! :) LOL

Lisa Jones wrote on Mar 3^rd, 2011 at 10:14am:

Dsmithy70 wrote on Mar 3rd, 2011 at 9:54am: Also as we have a 2 speed economy we have a 2 speed real estate market. Capital Cities are still steadily rising where as thee wider market has fallen. As someone who sold at the top & has been closely watching my local market for 20 odd months I can tell you all suburbs around my area have fallen between 7 & 12% & depending on the reserve look to continue that trend for the next 6 to 12 months. Homes that where going for 650K when I sold are now asking 570 to 600K & getting the lower end of that bracket. If your experiences are re Sydney ie the biggest domestic real estate market in Oz .. you're talking rubbish. Houses here are increasing .. and this creature called "worst ever property dive" is mythological. As I've stated earlier in this topic .. I am about to test the market myself this Saturday .. in fact I'm off to attend 3 back to back auctions. I know what the properties in question are worth .. and I can already tell you they will sell well above their reserve price. I'll report back on what actually happens. I can only HOPE I am wrong .. given I'm hoping to buy one of the properties. NB I have recurringly stated that ALL my posts relate to the SYDNEY real estate market.

No as highlighted I was not talking about the Sydney Market.
BTW if you came 2 hours up the freeway your 1.5 would buy you a hell of a lot more with lake or Ocean views thrown in.

Lisa Jones wrote on Mar 3^rd, 2011 at 10:52am:

And shop-assistant and toe-nail will both be saying these exact same things in a years time and still not have a house. - Long Weekend Which shop assistant?? Toe Nail?? Huh??

Me...yes shock! horror! I work, we can't all live in longweekends and lisa's fantasy world because someone has to pay taxes for their idle lifestyles.

Discretionary spending falters at expense of housing bubble
February 13th, 2011

Two years ago we ran an comprehensive story on what we believed would be the effects from propping up the housing market with the First Home Owners Boost. Titled Time to pick and choose: Housing or Jobs we suggested that propping up and keeping house prices artificially high would eventually see discretionary spending fall, once the capacity to borrow for any shortfall dried up. Simply put, something has to budge in the household budget, if house prices were to continue to outstrip wages. At the time we wrote :

   The housing market remains the key to the problem. The longer house prices remain artificially high in comparison to household incomes, the more households will need to spend on this expense, and hence the less money that can be spent on other goods and services underpinning domestic jobs.

Two years later and the effects is starting to take effect. Blair Speedy from The Australian newspaper reported yesterday :

   IF the army is looking for somewhere to put a new shooting range it might want to consider one of Australia’s many shopping malls.

   Judging by the number of lunchtime shoppers this week in Melbourne Central, one of Australia’s busiest shopping centres, they could be pretty certain they wouldn’t hit anybody.

Growth in annual retail turnover for December is now at the weakest level since 1982 and its believed the market has deteriorated further. According to Russell Zimmerman, the Executive Director of the Australian Retailers Association “The first week of sales after Christmas went quite well, but beyond then, things slowed right down.” He told the Australian, that some retailers reported falls of up to 15 percent last month (January).

Department Store Myer CEO Bernie Brookes, reported a “significant and rapid deterioration” in sales in January. Mr Brookes, a retail veteran of more than 30 years said “I’ve never seen the consumer so fragile,”

Chief Executive of the Australian National Retail Association, Ms Margy Osmond said “Clearly their [customers] attitude is now that it has to be a bargain, and it had better be the best bargain around, before they’ll spend on anything discretionary.”

http://www.whocrashedtheeconomy.com/

Five years supply of Gold Coast Apartments on the market
February 8th, 2011

According to a Courier Mail article, there is less than 800 apartments for sale in high rise buildings stretching across the Gold Coast. With sales rates at their lowest since the 1990’s, some 47 sales per quarter, it is estimated current stock on the market will take at least five years to absorb. This doesn’t include new stock coming onto the market from three major projects nearing completion including Soul, Hilton and H20.

Property researcher Bill Morris said “While the rate of sale can change there is something like five or six years worth of stock.”

Despite the current oversupply of apartments vs demand, Andrew Bell from Ray White Surfers Paradise Group’s warned that there is no new developments planned for coming years saying “New stock entering the market is non-existent, There will simply be no choice for buyers on the Gold Coast over the minimum of the next five years.”

The lack of pent up demand on the Gold Coast, along with the chronic oversupply of apartments is thought to put a future ceiling on prices.

http://www.whocrashedtheeconomy.com/

.................................................................

Sounds like someone got wind of a housing bust.

Real Estate Agents back to their old tricks
February 5th, 2011

On this very day, the 5th of February, two years ago we reported on two Real Estate agents posing in the media as buyers saying it is never a better time to enter the market. Both had just brought their first home, and despite prices falling from the GFC, were apparently looking at buying a 2nd property as an investment. The article resulted in legal action, as one of the agents sought to silence us.

Once again the market is softening, and once again Real Estate agents are posing for the media, this time as an excited First Home Buyer, saying naturally that for first home buyers - it is never a better time to buy.

.....................................................................

Real Estate Agents....who would have thought it lol

What a difference a burst property bubble makes?
January 29th, 2011

The Irish Examiner reported yesterday that house prices in Ireland are now the most affordable in 25 years.

   WHAT a difference a bust property bubble makes?

   While much of the decade was all about exorbitant house prices, latest figures show prices are now at their most affordable in more than 25 years.

It reports that the average first home buying working couple is now spending 12.6% of their disposable income on the mortgage in December 2010. In the second quarter of 1988 this figure was 13.8%.

..................................................................................

I just had a bow-peep at some , nice and cheap.....if you want to live in Ireland, too wet, too cold and too tragic for me.

U.S. housing market enters “Depression Territory” : CNBC
January 13th, 2011

According to the Zillow Home Value Index, the current housing crisis in the U.S. has surpassed that of the 25.9% decline observed during the Great Depression. The Index recorded a fall of 25.9% between 1928 and 1933. Since the peak of the U.S. bubble in June 2006, prices have now fallen 26%, with falls expected to continue for some time.

The November fall is the 53rd consecutive month of falling home prices. Prices have now been falling for 4 and a half years.

...........................................................................

That won't happen here, we're different lol

Ex Dame Pansi wrote on Mar 3^rd, 2011 at 11:17am:

Discretionary spending falters at expense of housing bubble February 13th, 2011 Two years ago we ran an comprehensive story on what we believed would be the effects from propping up the housing market with the First Home Owners Boost. Titled Time to pick and choose: Housing or Jobs we suggested that propping up and keeping house prices artificially high would eventually see discretionary spending fall, once the capacity to borrow for any shortfall dried up. Simply put, something has to budge in the household budget, if house prices were to continue to outstrip wages. At the time we wrote :    The housing market remains the key to the problem. The longer house prices remain artificially high in comparison to household incomes, the more households will need to spend on this expense, and hence the less money that can be spent on other goods and services underpinning domestic jobs. Two years later and the effects is starting to take effect. Blair Speedy from The Australian newspaper reported yesterday :    IF the army is looking for somewhere to put a new shooting range it might want to consider one of Australia’s many shopping malls.    Judging by the number of lunchtime shoppers this week in Melbourne Central, one of Australia’s busiest shopping centres, they could be pretty certain they wouldn’t hit anybody. Growth in annual retail turnover for December is now at the weakest level since 1982 and its believed the market has deteriorated further. According to Russell Zimmerman, the Executive Director of the Australian Retailers Association “The first week of sales after Christmas went quite well, but beyond then, things slowed right down.” He told the Australian, that some retailers reported falls of up to 15 percent last month (January). Department Store Myer CEO Bernie Brookes, reported a “significant and rapid deterioration” in sales in January. Mr Brookes, a retail veteran of more than 30 years said “I’ve never seen the consumer so fragile,” Chief Executive of the Australian National Retail Association, Ms Margy Osmond said “Clearly their [customers] attitude is now that it has to be a bargain, and it had better be the best bargain around, before they’ll spend on anything discretionary.” http://www.whocrashedtheeconomy.com/

It had to happen - and it is a terrible shame that the use of interest rate rises to combat so-called 'inflation' is a very blunt and regressive tool...

hmmm, might be some buying opportunities around the corner.

Verge wrote on Mar 3^rd, 2011 at 11:54am:

hmmm, might be some buying opportunities around the corner.

The Sydney domestic property market is rising. That's a fact.

We need to focus on where we are at present .. in order to work out wtf we're gonna do next (ie in the future).

Anyways .. as I've posted earlier .. I'm off this Saturday to bid in THREE back to back auctions.

I am predicting the following will occur:

1) ALL THREE homes will sell well above their reserve price.

2) I will be bidding against other fellow Aussies AND cashed up Asians with heaps more money thanks to the cheaper interest rates which THEY can access and we Aussies can't.

3) ALL THREE homes will be sold .. to the Asians as per 2).

I've seen it all before .. and for some time now.

I am hoping to come back on here and post that I was wrong. Why? Because if I am wrong .. it will mean I was a successful bidder and I've bought one of the homes.

I swear to come back to this topic on Saturday night and tell the truth, the whole truth and nothing but the truth so help me Mod lol :)

Discretionary spending falters at expense of housing bubble

February 13th, 2011

Two years ago we ran an comprehensive story on what we believed would be the effects from propping up the housing market with the First Home Owners Boost. Titled Time to pick and choose: Housing or Jobs we suggested that propping up and keeping house prices artificially high would eventually see discretionary spending fall, once the capacity to borrow for any shortfall dried up. Simply put, something has to budge in the household budget, if house prices were to continue to outstrip wages. At the time we wrote :

The housing market remains the key to the problem. The longer house prices remain artificially high in comparison to household incomes, the more households will need to spend on this expense, and hence the less money that can be spent on other goods and services underpinning domestic jobs.

- From Equitist's post above

The 1st home owners boost artificially pushed up prices. That's a well known and accepted fact within real estate circles.

The bottom line? It did nothing to help anyone wanting to buy real estate.

See the highlighted bit? Whoever wrote that .. IS TELLING THE DAMN TRUTH! That is exactly what is happening!

Like Ireland who could have predicted .. ?? when it comes it will be uncontrovalbe .. the higher it rise the painful it will fall .. that's the name of the game .. as people have never learn lessons from the past ..

No as highlighted I was not talking about the Sydney Market.

BTW if you came 2 hours up the freeway your 1.5 would buy you a hell of a lot more with lake or Ocean views thrown in.

- dsmithy

Where roughly? Newcastle?

Lisa Jones wrote on Mar 3^rd, 2011 at 12:24pm:

Verge wrote on Mar 3rd, 2011 at 11:54am: hmmm, might be some buying opportunities around the corner. The Sydney domestic property market is rising. That's a fact. We need to focus on where we are at present .. in order to work out wtf we're gonna do next (ie in the future). Anyways .. as I've posted earlier .. I'm off this Saturday to bid in THREE back to back auctions. I am predicting the following will occur: 1) ALL THREE homes will sell well above their reserve price. 2) I will be bidding against other fellow Aussies AND cashed up Asians with heaps more money thanks to the cheaper interest rates which THEY can access and we Aussies can't. 3) ALL THREE homes will be sold .. to the Asians as per 2). I've seen it all before .. and for some time now. I am hoping to come back on here and post that I was wrong. Why? Because if I am wrong .. it will mean I was a successful bidder and I've bought one of the homes. I swear to come back to this topic on Saturday night and tell the truth, the whole truth and nothing but the truth so help me Mod lol :)

I've got a better idea. Why don't we all down tools and go on strike. Let the chinks with their cheap loan money run the economy and they can buy as many houses as they want. They can run as many two dollar shops as they like and they can import as much sh.t from china as they like. Let them pay taxes for a change and the rest of us aussies can go on an indefinite holiday and live off the dole !!

That's what the government is asking for IMHO !! Why would you bust your gut paying taxes when the Government is so keen to sell you out to a bunch of foreigners who have contributed nothing to the country except decimate its manufacturing base :( These Governments are really really sick :(

Verge wrote on Mar 3^rd, 2011 at 11:54am:

hmmm, might be some buying opportunities around the corner.

and there will be some chink outbidding you on the bargains as well :(

Lisa Jones wrote on Mar 3^rd, 2011 at 12:45pm:

No as highlighted I was not talking about the Sydney Market. BTW if you came 2 hours up the freeway your 1.5 would buy you a hell of a lot more with lake or Ocean views thrown in. - dsmithy Where roughly? Newcastle?

It does say Newy under the dancing Adolf
In the Top 10 lonely Planets cities
The old Industrial tag has been dead for years
Then again I should shut up don't want too many Sydney siders spoiling the place.

I've got a better idea. Why don't we all down tools and go on strike. Let the chinks with their cheap loan money run the economy and they can buy as many houses as they want. They can run as many two dollar shops as they like and they can import as much sh.t from china as they like. Let them pay taxes for a change and the rest of us aussies can go on an indefinite holiday and live off the dole !!

That's what the government is asking for IMHO !! Why would you bust your gut paying taxes when the Government is so keen to sell you out to a bunch of foreigners who have contributed nothing to the country except decimate its manufacturing base. These Governments are really really sick.

- Last Nail

Last Nail .. you're basically having a tantrum now lol .. and that's perfectly understandable. (NB I have those all the time before I head off to an auction).

You and I go back a long way as MB friends .. and you know my family and I are obsessed with passionate about real estate. True?

This is what I think we ought to do .. we need to ride the annoying and frustrating wave of govt policy idiocy insofar as domestic real estate in Oz is concerned.

In short .. I am saying we as Aussie citizens .. need to function around it in the hope that some govt in office will finally be voted in and do something revolutionary ie .. something sane.

I don't believe giving up is the way if we're going to move forward (thanks Julia lol) :)

Lisa Jones wrote on Mar 3^rd, 2011 at 12:24pm:

Verge wrote on Mar 3rd, 2011 at 11:54am: hmmm, might be some buying opportunities around the corner. The Sydney domestic property market is rising. That's a fact. We need to focus on where we are at present .. in order to work out wtf we're gonna do next (ie in the future). Anyways .. as I've posted earlier .. I'm off this Saturday to bid in THREE back to back auctions. I am predicting the following will occur: 1) ALL THREE homes will sell well above their reserve price. 2) I will be bidding against other fellow Aussies AND cashed up Asians with heaps more money thanks to the cheaper interest rates which THEY can access and we Aussies can't. 3) ALL THREE homes will be sold .. to the Asians as per 2). I've seen it all before .. and for some time now. I am hoping to come back on here and post that I was wrong. Why? Because if I am wrong .. it will mean I was a successful bidder and I've bought one of the homes. I swear to come back to this topic on Saturday night and tell the truth, the whole truth and nothing but the truth so help me Mod lol :)

Sydney, even out as far as Oran Park, Clear Hills that area is still doing big things, and everywhere inbetween.

Sydney is just nuts, talk about extreme urban sprawl.

Dsmithy70 wrote on Mar 3^rd, 2011 at 12:50pm:

Lisa Jones wrote on Mar 3rd, 2011 at 12:45pm: No as highlighted I was not talking about the Sydney Market. BTW if you came 2 hours up the freeway your 1.5 would buy you a hell of a lot more with lake or Ocean views thrown in. - dsmithy Where roughly? Newcastle? It does say Newy under the dancing Adolf In the Top 10 lonely Planets cities The old Industrial tag has been dead for years Then again I should shut up don't want too many Sydney siders spoiling the place.

Ohhhh .. I never really look there. I took a cursory glance once and thought that small word was newbie! And any pic of Adolf annoys me no end for some reason so I tend to look away whenever I see it.

So you're from that part of the world!

I was in Newcastle fairly recently .. not a bad place actually. My sister's in-laws originate from the Nobby's Beach region .. and are/were well known (and liked) for various reasons.

Hmm I dunno .. most of Newcastle reminded me of Wollongong/Port Kembla .. although some parts are becoming quite gentrified now .. and those areas I quite liked.

Awesome shopping malls I must say! I quite liked Garden City etc.

Gosh .. we bumped into Jennifer Hawkins along the "Darling Harbour" of Newcastle's waterfront one afternoon .. near the Crowne Plaza there. My sister's in-laws waved and said hello to her .. apparently they know her parents .. so it was kinda village like and cute how everyone knew each other.

There's a lot happening there for sure .. lots of serious building developments .. hmm might look into it.

Sir lastnail wrote on Mar 3^rd, 2011 at 12:47pm:

Verge wrote on Mar 3rd, 2011 at 11:54am: hmmm, might be some buying opportunities around the corner. and there will be some chink outbidding you on the bargains as well :(

If its more than Im prepared to pay on why I think its worth, they can have it.

http://www.domain.com.au/Property/For-Sale/House/NSW/Caves-Beach/?adid=2008835412

http://www.domain.com.au/Property/For-Sale/House/NSW/Stockton/?adid=2008777494

http://www.domain.com.au/Property/For-Sale/House/NSW/The-Junction/?adid=2008519354

There's a couple just to let your compare what you are getting for your money.
As I said if you came in with a serious offer of around 10% less than the asking it would be considered.

Lisa Jones wrote on Mar 3^rd, 2011 at 12:55pm:

I've got a better idea. Why don't we all down tools and go on strike. Let the chinks with their cheap loan money run the economy and they can buy as many houses as they want. They can run as many two dollar shops as they like and they can import as much sh.t from china as they like. Let them pay taxes for a change and the rest of us aussies can go on an indefinite holiday and live off the dole !! That's what the government is asking for IMHO !! Why would you bust your gut paying taxes when the Government is so keen to sell you out to a bunch of foreigners who have contributed nothing to the country except decimate its manufacturing base. These Governments are really really sick. - Last Nail Last Nail .. you're basically having a tantrum now lol .. and that's perfectly understandable. (NB I have those all the time before I head off to an auction). You and I go back a long way as MB friends .. and you know my family and I are obsessed with passionate about real estate. True? This is what I think we ought to do .. we need to ride the annoying and frustrating wave of govt policy idiocy insofar as domestic real estate in Oz is concerned. In short .. I am saying we as Aussie citizens .. need to function around it in the hope that some govt in office will finally be voted in and do something revolutionary ie .. something sane. I don't believe giving up is the way if we're going to move forward (thanks Julia lol) :)

Well I suppose if you are a property investor who has lived here all of your life then you probably now know how it feels to be like a first home buyer when you are out bid at an auction :(

Verge wrote on Mar 3^rd, 2011 at 1:22pm:

Sir lastnail wrote on Mar 3rd, 2011 at 12:47pm: Verge wrote on Mar 3rd, 2011 at 11:54am: hmmm, might be some buying opportunities around the corner. and there will be some chink outbidding you on the bargains as well :( If its more than Im prepared to pay on why I think its worth, they can have it.

then if lots of bidders are willing to pay more than you then its apparent worth is more than you are willing to pay for it and you miss out ;) Something is only worth what the bigger fool is willing to pay for it ;)

Last Nail .. you hit the nail right on the head with that post!

Sir lastnail wrote on Mar 3^rd, 2011 at 3:12pm:

Lisa Jones wrote on Mar 3rd, 2011 at 12:55pm: I've got a better idea. Why don't we all down tools and go on strike. Let the chinks with their cheap loan money run the economy and they can buy as many houses as they want. They can run as many two dollar shops as they like and they can import as much sh.t from china as they like. Let them pay taxes for a change and the rest of us aussies can go on an indefinite holiday and live off the dole !! That's what the government is asking for IMHO !! Why would you bust your gut paying taxes when the Government is so keen to sell you out to a bunch of foreigners who have contributed nothing to the country except decimate its manufacturing base. These Governments are really really sick. - Last Nail Last Nail .. you're basically having a tantrum now lol .. and that's perfectly understandable. (NB I have those all the time before I head off to an auction). You and I go back a long way as MB friends .. and you know my family and I are obsessed with passionate about real estate. True? This is what I think we ought to do .. we need to ride the annoying and frustrating wave of govt policy idiocy insofar as domestic real estate in Oz is concerned. In short .. I am saying we as Aussie citizens .. need to function around it in the hope that some govt in office will finally be voted in and do something revolutionary ie .. something sane. I don't believe giving up is the way if we're going to move forward (thanks Julia lol) :) Well I suppose if you are a property investor who has lived here all of your life then you probably now know how it feels to be like a first home buyer when you are out bid at an auction :(

Auctions are a lottery & most have dummy bidders not matter what the Real estates say.
What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship.
You want to know about things before they hit the web & windows.
You want to know if the sellers one of the 3 D's
Divorce, Death, Desperate(broke)
That's where the real bargains are found

Dsmithy70 wrote on Mar 3^rd, 2011 at 3:35pm:

Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found

that sounds like the actions of a dog sniffing at another dogs arse :) LOL

Sir lastnail wrote on Mar 3^rd, 2011 at 3:49pm:

Dsmithy70 wrote on Mar 3rd, 2011 at 3:35pm: Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found that sounds like the actions of a dog sniffing at another dogs arse :) LOL

Maybe so but why be nice & pay someone 500K when if you know their circumstances you could get it for 400K.
Life's a bitch especially where money is involved.

Dsmithy70 wrote on Mar 3^rd, 2011 at 3:52pm:

Sir lastnail wrote on Mar 3rd, 2011 at 3:49pm: Dsmithy70 wrote on Mar 3rd, 2011 at 3:35pm: Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found that sounds like the actions of a dog sniffing at another dogs arse :) LOL Maybe so but why be nice & pay someone 500K when if you know their circumstances you could get it for 400K. Life's a bitch especially where money is involved.

I mean why do we need to buy and sell property through useless lying real estate agents ??

why not just sell or auction property on ebay and pay minimal commissions ??

Auctions are a lottery & most have dummy bidders not matter what the Real estates say.
What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship.
You want to know about things before they hit the web & windows.
You want to know if the sellers one of the 3 D's
Divorce, Death, Desperate(broke)
That's where the real bargains are found

- dsmithy

He's right lol!

It kinda helps if some of your best mates and relatives are in real estate too :)

Sir lastnail wrote on Mar 3^rd, 2011 at 4:27pm:

Dsmithy70 wrote on Mar 3rd, 2011 at 3:52pm: Sir lastnail wrote on Mar 3rd, 2011 at 3:49pm: Dsmithy70 wrote on Mar 3rd, 2011 at 3:35pm: Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found that sounds like the actions of a dog sniffing at another dogs arse :) LOL Maybe so but why be nice & pay someone 500K when if you know their circumstances you could get it for 400K. Life's a bitch especially where money is involved. I mean why do we need to buy and sell property through useless lying real estate agents ?? why not just sell or auction property on ebay and pay minimal commissions ??

We don't need to at all. There are other ways on the internet, ebay is just one of them. It's always helpful to cut out the middle man in whatever business transaction you undertake. Besides you don't have to have contact with the slime, so it's win win.

It will be interesting to see when the house price goes down, how can people pay for that 700 billion net international debts.

Mining boom is nearly at the end, maybe 1 or 2 year more, but the peak time is coming. After that, what will happen?


Sir lastnail wrote on Feb 28^th, 2011 at 11:13pm:

http://www.news.com.au/money/property/disasters-knock-property-market/story-e6frfmd0-1226013426709    * House values fall across nation    * Disasters keep consumers sidelined    * Housing affordability slumps HOMEBUYERS are deserting the property market in the wake of recent natural disasters with latest figures showing the biggest monthly slide on record. The weather crises in Queensland, New South Wales and Victoria in December and January have kept home buyers sidelined, with property values slipping across the nation. The RP Data-Rismark Home Value Index for capital city dwellings dropped 1.6 per cent (seasonally adjusted) in January, while regional residences lost 1.2 per cent of their value. It's the biggest monthly slide in Australian property sales ever, according to RP Data. Canberra was hardest hit  with prices slipping 3.8 per cent, followed by Perth at 2.6 per cent and Brisbane 2.3 per cent. RP Data's information will be used by the Reserve Bank of Australia when it meets tomorrow to discuss the possibility of raising the nation's official cash rate. The index previously reported a 0.4 per cent capital gain for the month of December, which has been revised slightly to 0.3 per cent with the addition of further sales data. RP Data research analyst Cameron Kusher said market conditions are typically flat in January because of the holiday period but the natural disasters had made it even worse. "It’s the biggest fall in values that we’ve ever seen on a monthly basis so while we’re not pressing the alarm bells yet we will wait and see what the February results actually tell us," Mr Kusher said. "We expect it will be revised up slightly,  we don’t expect the February result to be nearly as bad as January as clearance rates are improving and there are other indicators suggesting a better outlook." While the natural disasters occurred in three states, its impact on the property market had spread across the nation, Mr Kusher said. "The disasters kept people out of the market,  particularly in Brisbane," Mr Kusher said. "But it also impacted on potential buyers in other states because they holiday in Queensland or they have family and friends there." More broadly, over the 12 months to the end of January, the index reported that home values in Perth had fallen 3.8 per cent, the biggest drop nationwide, followed by Brisbane (-3.7 per cent) and Canberra (-0.6 per cent). At the other end of the spectrum Darwin has regained the title of the best performing city, recording a capital gain of 4.7 per cent over the year to end January. This was followed by Melbourne (3.6 per cent), Sydney (2.5 per cent), Hobart (2.2 per cent), and Adelaide (2.0 per cent). Meanwhile, housing affordability slumped 10 per cent during 2010 as a result of four interest rate rises, compounding an already dwindling supply of new homes, a housing lobby group says. The Housing Industry Association (HIA)/Commonwealth Bank housing affordability index released today fell by a further 1.8 per cent in the December quarter. Housing affordability dropped 5.5 per cent in Sydney in the December quarter, followed by a 3.4 per cent decline in Canberra and a 3.4 per cent fall in Adelaide. Affordability improved modestly in Brisbane and Perth, rising 0.5 per cent and 0.1 per cent respectively. Outside the capital cities, in the non-metropolitan regions of NSW affordability rose 2.8 per cent, followed by a 1.3 per cent increase in Victoria. But affordability deteriorated in Tasmania (down 3.8 per cent) and Western Australia (down 2 per cent). HIA chief economist Harley Dale said housing affordability took a big hit during 2010, with interest rate increases in March, April, May and November behind the decline. Economists are unanimous in excepting no change in rates tomorrow but Dr Dale said governments needed to "up the ante'' on delivering policy reform to tackle a range of supply-side constraints, including the lack of affordable land and the dire shortage of available credit for commercially viable residential projects. A down trend in residential construction over nearly a decade is obviously tied to a downward trajectory in housing affordability, he said.

Dsmithy70 wrote on Mar 3^rd, 2011 at 3:35pm:

Sir lastnail wrote on Mar 3rd, 2011 at 3:12pm: Lisa Jones wrote on Mar 3rd, 2011 at 12:55pm: I've got a better idea. Why don't we all down tools and go on strike. Let the chinks with their cheap loan money run the economy and they can buy as many houses as they want. They can run as many two dollar shops as they like and they can import as much sh.t from china as they like. Let them pay taxes for a change and the rest of us aussies can go on an indefinite holiday and live off the dole !! That's what the government is asking for IMHO !! Why would you bust your gut paying taxes when the Government is so keen to sell you out to a bunch of foreigners who have contributed nothing to the country except decimate its manufacturing base. These Governments are really really sick. - Last Nail Last Nail .. you're basically having a tantrum now lol .. and that's perfectly understandable. (NB I have those all the time before I head off to an auction). You and I go back a long way as MB friends .. and you know my family and I are obsessed with passionate about real estate. True? This is what I think we ought to do .. we need to ride the annoying and frustrating wave of govt policy idiocy insofar as domestic real estate in Oz is concerned. In short .. I am saying we as Aussie citizens .. need to function around it in the hope that some govt in office will finally be voted in and do something revolutionary ie .. something sane. I don't believe giving up is the way if we're going to move forward (thanks Julia lol) :) Well I suppose if you are a property investor who has lived here all of your life then you probably now know how it feels to be like a first home buyer when you are out bid at an auction :( Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found

Sage advice, I've a mate that deals exclusively in DDD real estate. although the last D is distressed in his book.

beer wrote on Mar 3^rd, 2011 at 9:48pm:

It will be interesting to see when the house price goes down, how can people pay for that 700 billion net international debts. Mining boom is nearly at the end, maybe 1 or 2 year more, but the peak time is coming. After that, what will happen? Sir lastnail wrote on Feb 28th, 2011 at 11:13pm: http://www.news.com.au/money/property/disasters-knock-property-market/story-e6frfmd0-1226013426709    * House values fall across nation    * Disasters keep consumers sidelined    * Housing affordability slumps HOMEBUYERS are deserting the property market in the wake of recent natural disasters with latest figures showing the biggest monthly slide on record. The weather crises in Queensland, New South Wales and Victoria in December and January have kept home buyers sidelined, with property values slipping across the nation. The RP Data-Rismark Home Value Index for capital city dwellings dropped 1.6 per cent (seasonally adjusted) in January, while regional residences lost 1.2 per cent of their value. It's the biggest monthly slide in Australian property sales ever, according to RP Data. Canberra was hardest hit  with prices slipping 3.8 per cent, followed by Perth at 2.6 per cent and Brisbane 2.3 per cent. RP Data's information will be used by the Reserve Bank of Australia when it meets tomorrow to discuss the possibility of raising the nation's official cash rate. The index previously reported a 0.4 per cent capital gain for the month of December, which has been revised slightly to 0.3 per cent with the addition of further sales data. RP Data research analyst Cameron Kusher said market conditions are typically flat in January because of the holiday period but the natural disasters had made it even worse. "It’s the biggest fall in values that we’ve ever seen on a monthly basis so while we’re not pressing the alarm bells yet we will wait and see what the February results actually tell us," Mr Kusher said. "We expect it will be revised up slightly,  we don’t expect the February result to be nearly as bad as January as clearance rates are improving and there are other indicators suggesting a better outlook." While the natural disasters occurred in three states, its impact on the property market had spread across the nation, Mr Kusher said. "The disasters kept people out of the market,  particularly in Brisbane," Mr Kusher said. "But it also impacted on potential buyers in other states because they holiday in Queensland or they have family and friends there." More broadly, over the 12 months to the end of January, the index reported that home values in Perth had fallen 3.8 per cent, the biggest drop nationwide, followed by Brisbane (-3.7 per cent) and Canberra (-0.6 per cent). At the other end of the spectrum Darwin has regained the title of the best performing city, recording a capital gain of 4.7 per cent over the year to end January. This was followed by Melbourne (3.6 per cent), Sydney (2.5 per cent), Hobart (2.2 per cent), and Adelaide (2.0 per cent). Meanwhile, housing affordability slumped 10 per cent during 2010 as a result of four interest rate rises, compounding an already dwindling supply of new homes, a housing lobby group says. The Housing Industry Association (HIA)/Commonwealth Bank housing affordability index released today fell by a further 1.8 per cent in the December quarter. Housing affordability dropped 5.5 per cent in Sydney in the December quarter, followed by a 3.4 per cent decline in Canberra and a 3.4 per cent fall in Adelaide. Affordability improved modestly in Brisbane and Perth, rising 0.5 per cent and 0.1 per cent respectively. Outside the capital cities, in the non-metropolitan regions of NSW affordability rose 2.8 per cent, followed by a 1.3 per cent increase in Victoria. But affordability deteriorated in Tasmania (down 3.8 per cent) and Western Australia (down 2 per cent). HIA chief economist Harley Dale said housing affordability took a big hit during 2010, with interest rate increases in March, April, May and November behind the decline. Economists are unanimous in excepting no change in rates tomorrow but Dr Dale said governments needed to "up the ante'' on delivering policy reform to tackle a range of supply-side constraints, including the lack of affordable land and the dire shortage of available credit for commercially viable residential projects. A down trend in residential construction over nearly a decade is obviously tied to a downward trajectory in housing affordability, he said.

Unless your predicting the collaspe of the Chinese economy I think your being a bit mellodramatic.
Can't remember exactly which mining company it was but I heard on the way to work this week one of them just discovered a Million+ tonnes of iron ore.
There's still another 50 years at least of digging up the country.
The market may force prices down by some other factor and I think its a good chance however not the 40% Keen goes on about but certainly 20% of pre GFC prices overall.
As I said the biggest city outside of a capital is already down 7 to 12% depending on the suburb so we're basically already 1/2 way.

the mining will be over soon .. even they wish China kept on growing for many years .. but it will not demolish all the buildings , infrastructures and buying our iron ores to rebuild .. and those people there aren't fool ..

Dsmithy70 wrote on Mar 3^rd, 2011 at 10:03pm:

beer wrote on Mar 3rd, 2011 at 9:48pm: It will be interesting to see when the house price goes down, how can people pay for that 700 billion net international debts. Mining boom is nearly at the end, maybe 1 or 2 year more, but the peak time is coming. After that, what will happen? Unless your predicting the collaspe of the Chinese economy I think your being a bit mellodramatic. Can't remember exactly which mining company it was but I heard on the way to work this week one of them just discovered a Million+ tonnes of iron ore. There's still another 50 years at least of digging up the country. The market may force prices down by some other factor and I think its a good chance however not the 40% Keen goes on about but certainly 20% of pre GFC prices overall. As I said the biggest city outside of a capital is already down 7 to 12% depending on the suburb so we're basically already 1/2 way.

It sounds like it has all of the Hallmarks of the tulip mania ;)

Quote:

Australian house prices remain the most overvalued in the world, according to the latest quarterly ranking of global house prices by The Economist magazine. Based on a historical gauge of home prices to rents between 1975-2010, the magazine estimates that Australian residences are 56 per cent over-valued, exceeding the 54 per cent over-priced rate in Hong Kong and 48 per cent in France. “There may be good reasons for Australian prices to have risen so far, but people made similar, and ultimately incorrect, arguments for the run-up in prices in the West,” The Economist said in a statement accompanying the survey's release. Advertisement: Story continues below The report may stoke debate on whether Australia's property market is a bubble waiting to pop. The Economist's survey of 20 countries follows recent house price data released earlier this week which shows capital city value fell nationally by 1.6 per cent in January, a result of higher interest rates and floods in Queensland and Victoria deterring buyers. Australia's city home values fell 1.6 per cent, seasonally adjusted, to $465,000 after rising 0.2 per cent in December, according to RP Data-Rismark figures. Outside of the major cities, they fell by 1.2 per cent in the month. Countering the concerns over a bubble, however, is the on-going weakness in housing construction. Figures out yesterday showed new building approvals slumped in January by the most in more than eight years, although much of the drop may reflect disruption caused by widespread flooding in the month. Setting the pace The Economist also noted that while Australia's economy had outperformed most in the developed world in recent years, the recent surge in house prices may be hard to justify. “In the years before the financial crisis, Australia's economy set a hard, fast pace for the rest of the Anglo-Saxon world,” the article in The Economist said. “Its house prices rose faster than Britain's or America's (although Ireland's outstripped them all) and its current-account deficit gaped wider for longer. But its economy proved strong-livered." "(Australian) house prices fell from March 2008 to March 2009 (as measured by the weighted average of the eight state capitals), then resumed their rise," the magazine said. "In the year to the first quarter of 2010, they jumped by 18.8 per cent!” The Economist suggests the best way to limit the damage from a property bust is for regulators to exercise direct control over the amount of debt available to property owners and developers.

http://www.smh.com.au/business/aussie-home-prices-worlds-mostoverpriced-survey-20110304-1bhhy.html

Ex Dame Pansi wrote on Mar 3^rd, 2011 at 4:50pm:

Sir lastnail wrote on Mar 3rd, 2011 at 4:27pm: Dsmithy70 wrote on Mar 3rd, 2011 at 3:52pm: Sir lastnail wrote on Mar 3rd, 2011 at 3:49pm: Dsmithy70 wrote on Mar 3rd, 2011 at 3:35pm: Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found that sounds like the actions of a dog sniffing at another dogs arse :) LOL Maybe so but why be nice & pay someone 500K when if you know their circumstances you could get it for 400K. Life's a bitch especially where money is involved. I mean why do we need to buy and sell property through useless lying real estate agents ?? why not just sell or auction property on ebay and pay minimal commissions ?? We don't need to at all. There are other ways on the internet, ebay is just one of them. It's always helpful to cut out the middle man in whatever business transaction you undertake. Besides you don't have to have contact with the slime, so it's win win.

Id love to see an idiot like you buy a house on ebay. Selling a house isnt like selling in a checkout. If you actually bought one, you'd know that.

<<Id love to see an idiot like you buy a house on ebay. Selling a house isnt like selling in a checkout. If you actually bought one, you'd know that. >>
..........................................................

What are you singing about choirboy?

Any idiot that knows anything would know there are websites set up to buy and sell real estate....it's not difficult, if you can fill out a simple form or two. What does the agent do anyway, apart from ripping both parties off. You still have to organise your own legals. You don't need a freaking university degree to sell houses durr!!!!

Has old Stevo the used car salesman got a doctorate now? You've been asleep for a looooong weekend lol

Perth property still suffering

Yet more evidence has emerged about the sluggish nature of Perth's property market compared to the rest of the nation.

It's been bad, but just how bad? Yet more evidence has emerged about the depressed nature of Perth's property market.

A record run of falling prices, the state's real estate industry head saying the situation was "unprecedented", and a former government minister warning the McMansion was in danger of becoming unsaleable all emerged yesterday.

The comments added to the aura of gloom surrounding the industry, encapsulated in December when a prominent agent told WAtoday.com.au that the Perth market was going through its worst spell in 10 years.
Advertisement: Story continues below

Real Estate Institute of WA president Alan Bourke told an Australian Property Institute forum yesterday that falls in median prices had wiped out any gains from the past three years and turnover had taken a hit - even as listings soared by more than 50 per cent in a year.

"We've had five quarters of decline in activity, and that's pretty much unprecedented," Mr Bourke said.

"This time we aren't going to get any interest rate subsidies (referring to the federal governments stimulus package and falling rates after the global financial crisis hit) so it will be interesting to see what prices do over the next 12 months."

However, as the rental vacancy rate started to tighten - it had already gone from 4.5 per cent to 3.5 per cent and he expected it to be 2.5 per cent by March - there could be a bright side for investors.

"If that's the case we could see rentals rise. There is competition for tenants again and we haven't seen that for about 18 months or so... that may be the catalyst for improvement in the market."

Higher rentals could also see tenants seriously consider buying their own homes, Mr Bourke said.

Stats expose a dire market

His comments come as more official evidence emerged yesterday about the sluggish nature of Perth's property market compared to the rest of the nation.

The Australian Bureau of Statistics monthly house price index for the three months to December, showed a fall of 3.2 per cent. The index was also 2 per cent lower than the same quarter in 2009.

Perth was the only state capital to record a fall in either category.

The quarterly fall was the largest such drop since the ABS began compiling the index in 2002.

It was also the third consecutive quarterly fall, after the September figure was revised from a 0.4 per cent rise to a 1.8 per cent drop.

Most of the drop was attributed to the fall in value of properties priced below $1 million.

The ABS statistics are represented by an index, not a price figure. The index now stands at 198, the lowest figure since September 2009.

On Monday, property analysts RP Data and Rismark International said the median price for a dwelling in the city fell 0.9 per cent for November and 2.3 per cent for the year, to $465,000.

While house prices fell, the majority of the overall fall was due to a decrease in value of units.

End of the McMansion

Former state planning minister Alannah MacTiernan told the API forum that the four-bedroom, two-bathroom McMansion risked becoming unsaleable, thanks to demographic changes.

"You talk to young couples in outer suburbs, not on a big income, and you ask why they want a four-by-two when it's only the two of them," she said.

"They say they have been told it is about resale value and that you can't sell a three-by-one. The market in the future is going to consist of smaller and smaller households and we may find that the four-by-two... turns out to be a lemon."

Demographic projections showed families with children, at present about one-third of households, would fall to one-quarter by 2029, while singles and couples would make up 60 per cent of the market.

"The four-by-two, in the volumes that we are building them, does not match household formation," Ms MacTiernan said.

While the WA appetite was for larger home sizes, they should be designed in such a way that they could easily be split into two or three in line with a return to "intergenerational living".

A property developer told the forum there were signs house prices had plateaued in recent years.

Cedar Woods managing director Paul Sadlier said the market had to be shown that smaller could be better.

"We need to make 'mini-mansions' more fashionable and we need to make the case for infill development and showcase the better examples that are around."

http://news.domain.com.au/domain/home-investor-centre/perth-property-still-suffering-20110202-1ad54.html

Australia still has the most overpriced housing on the planet so it still has a long way to go.
Housing in Australia needs to fall around 1/3rd.

when Rudd did end the Howard era .. how much the house worth back then ?? and now .. ?? look like the Lab really do a good job then along with the Green ..

Both Howard and Rudd are resonsible for the housing bubble..both of them dropped the ball on that one.
Interest rates should have gone much higher much sooner to dampen demand.
All low interest rates do is create lots of debt and always end up in a bust.

when things are going well .. there will be FHOG .. and import more people to make the market more attractive .. but when things are out of hands .. then people start moving out like in Ireland .. or being sent home like the Mexican in the US ...

adelcrow wrote on Mar 4^th, 2011 at 5:45pm:

Both Howard and Rudd are resonsible for the housing bubble..both of them dropped the ball on that one. Interest rates should have gone much higher much sooner to dampen demand. All low interest rates do is create lots of debt and always end up in a bust.

their gangbuster economy is based on a pile of unprocessed minerals and an overinflated service sector :( They have lost the plot when it comes to value adding and manufacturing :(

Ex Dame Pansi wrote on Mar 1^st, 2011 at 12:41pm:

Finally, Here Comes the Price Crash… We’ve told you many times house prices are gonna go south.  If you hadn’t taken notice by now, you never will.  But that’s OK.  We can’t help everyone. We’ve warned home-owners and home-buyers for the last two years that the Australian housing market was at the tipping point. We were ridiculed for saying so. We told you to only buy a house if: you don’t see a home as an investment.  You’re prepared to see zero or negative price growth.  And you’re pretty sure you can keep up repayments when interest rates go up, or when the economy crashes and unemployment soars. If you fit into any of those categories then sure, go ahead and buy a house.  Just don’t expect to make any money from it. Remember that you won’t have the same luxury that house buyers had during the 1980s, 1990s and early 2000s.  They rode the coattails of the credit expansion boom, where interest costs were more than offset by rapid price growth. The next ten years will be different: interest costs will outpace price growth. And soon enough, property speculators and owner-occupiers will realise this.  And that will cause the biggest hit to house prices.  They’ll realise they shouldn’t take out the biggest mortgage possible, because price growth won’t offset the interest costs. Landlords will realise it too.  For years they’ve taken a loss on the income because they knew house prices would go up.  They could afford to be negatively geared because in the long run it would pay off. Not anymore. read the full story at: http://www.moneymorning.com.au/20110301/finally-here-comes-the-price-crash%E2%80%A6.html#more-4761

Thanks a lot for the info. I want to sell my property but I am not so sure anymore...

<<Thanks a lot for the info. I want to sell my property but I am not so sure anymore... >>
.................................................................................

It depends why you want to sell really. If you are selling and re buying straight away, it doesn't make much difference. If you sell and wait a year or two, you will save a lot, depends on your circumstances.

Now is a good time to sell, buy not to buy, that's why there are so many houses on the market, everyone wants to offload their investment properties  before the crash.

Lisa Jones wrote on Mar 3^rd, 2011 at 4:28pm:

Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found - dsmithy He's right lol! It kinda helps if some of your best mates and relatives are in real estate too :)

Even with all that .. auctions are nerve-wracking events for me. And I'm off to attend 3 back to back auctions here in Sydney.

Am I excited? Nope! Why? Because I already know I'm up against cashed up Asians in all 3 of them. Ah well .. I'm still going to brave the cold and wet weather conditions .. and give it a go.

My expectations? I expect all 3 properties to sell well above their reserve price .. and I expect all 3 properties to sell to the Asian bidders there (who are no doubt cashed up thanks to interest rates at 1/3 - 1/2 the interest rates we Aussies can access). I don't believe I am being negative here .. just realistic given what I've seen over the past yr.

Even so .. I've done my homework (and triple checked it even) .. I know what the homes in question SHOULD be selling for .. and I am prepared to walk away if they sell above that price range.

I'll report back later tonight on how it all eventuates. It will be interesting.

Worst ever property dive eh? We'll see.

in order to build a high rise building .. it must be geological fit with a very strong, stable and well built foundation ..

a rocket when goes up .. make sure it will come down, otherwise it will be trashed in the outer space ..

the housing bubbles will not be in different circumstances ..

Dsmithy70 wrote on Mar 3^rd, 2011 at 2:57pm:

http://www.domain.com.au/Property/For-Sale/House/NSW/Caves-Beach/?adid=2008835412 http://www.domain.com.au/Property/For-Sale/House/NSW/Stockton/?adid=2008777494 http://www.domain.com.au/Property/For-Sale/House/NSW/The-Junction/?adid=2008519354 There's a couple just to let your compare what you are getting for your money. As I said if you came in with a serious offer of around 10% less than the asking it would be considered.

Very nice!

Incidentally, I was speaking to my sister's in-laws last night (who are from Newcastle as I stated earlier) at a family function. They reminded me of the place they showed me last time I was in Newcastle on business. It was the King Edward Park region .. called The Hill. THAT region .. blew my mind away.

Sage advice, I've a mate that deals exclusively in DDD real estate. although the last D is distressed in his book.

There is one great equaliser as John Maynard Keynes famously stated: In the end we are all dead", and that applies even to the financial vultures

Lisa Jones wrote on Mar 5^th, 2011 at 10:14am:

Lisa Jones wrote on Mar 3rd, 2011 at 4:28pm: Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found - dsmithy He's right lol! It kinda helps if some of your best mates and relatives are in real estate too :) Even with all that .. auctions are nerve-wracking events for me. And I'm off to attend 3 back to back auctions here in Sydney. Am I excited? Nope! Why? Because I already know I'm up against cashed up Asians in all 3 of them. Ah well .. I'm still going to brave the cold and wet weather conditions .. and give it a go. My expectations? I expect all 3 properties to sell well above their reserve price .. and I expect all 3 properties to sell to the Asian bidders there (who are no doubt cashed up thanks to interest rates at 1/3 - 1/2 the interest rates we Aussies can access). I don't believe I am being negative here .. just realistic given what I've seen over the past yr. Even so .. I've done my homework (and triple checked it even) .. I know what the homes in question SHOULD be selling for .. and I am prepared to walk away if they sell above that price range. I'll report back later tonight on how it all eventuates. It will be interesting. Worst ever property dive eh? We'll see.

As money is getting tight for the locals it looks like those cashed up asians are keeping the bubble inflated ;) It's still a bubble though ;)

longweekend58 wrote on Mar 4^th, 2011 at 4:37pm:

Id love to see an idiot like you buy a house on ebay. Selling a house isnt like selling in a checkout. If you actually bought one, you'd know that.

It's just a legal transaction so any lawyer could do it and there are some that do it for a fixed fee which is a hell of a lot cheaper than agent scumbags !!

http://www.lawyersrealestate.com.au/realestate/selling/default.asp


Quote:

How we sell real estate At Lawyers Real Estate we have identified a number of estate agent procedures as irrelevant, outdated and over-priced. In their place, we have developed a quality endorsed best practice system of highly effective and transparent services which span the entire transaction from initial listing to settlement. Our "no-nonsense" approach to real estate sales differs from that of other estate agents in five critical areas:        Fixed-fee service        Internet advertising        Vendor inspections        Valuation        Negotiation and sale closure

Lisa Jones wrote on Mar 5^th, 2011 at 10:26am:

Dsmithy70 wrote on Mar 3rd, 2011 at 2:57pm: http://www.domain.com.au/Property/For-Sale/House/NSW/Caves-Beach/?adid=2008835412 http://www.domain.com.au/Property/For-Sale/House/NSW/Stockton/?adid=2008777494 http://www.domain.com.au/Property/For-Sale/House/NSW/The-Junction/?adid=2008519354 There's a couple just to let your compare what you are getting for your money. As I said if you came in with a serious offer of around 10% less than the asking it would be considered. Very nice! Incidentally, I was speaking to my sister's in-laws last night (who are from Newcastle as I stated earlier) at a family function. They reminded me of the place they showed me last time I was in Newcastle on business. It was the King Edward Park region .. called The Hill. THAT region .. blew my mind away.

LOL The Hill, you'll need alot more than your 1.5
http://www.realestate.com.au/property-house-nsw-the+hill-107200302
http://www.realestate.com.au/property-house-nsw-the+hill-107039191
http://www.realestate.com.au/property-house-nsw-the+hill-106889689

Sir lastnail wrote on Mar 5^th, 2011 at 11:35am:

Lisa Jones wrote on Mar 5th, 2011 at 10:14am: Lisa Jones wrote on Mar 3rd, 2011 at 4:28pm: Auctions are a lottery & most have dummy bidders not matter what the Real estates say. What you really need to do is get to know 1 real estate in the area your looking for & cultivate a relationship. You want to know about things before they hit the web & windows. You want to know if the sellers one of the 3 D's Divorce, Death, Desperate(broke) That's where the real bargains are found - dsmithy He's right lol! It kinda helps if some of your best mates and relatives are in real estate too :) Even with all that .. auctions are nerve-wracking events for me. And I'm off to attend 3 back to back auctions here in Sydney. Am I excited? Nope! Why? Because I already know I'm up against cashed up Asians in all 3 of them. Ah well .. I'm still going to brave the cold and wet weather conditions .. and give it a go. My expectations? I expect all 3 properties to sell well above their reserve price .. and I expect all 3 properties to sell to the Asian bidders there (who are no doubt cashed up thanks to interest rates at 1/3 - 1/2 the interest rates we Aussies can access). I don't believe I am being negative here .. just realistic given what I've seen over the past yr. Even so .. I've done my homework (and triple checked it even) .. I know what the homes in question SHOULD be selling for .. and I am prepared to walk away if they sell above that price range. I'll report back later tonight on how it all eventuates. It will be interesting. Worst ever property dive eh? We'll see. As money is getting tight for the locals it looks like those cashed up asians are keeping the bubble inflated ;) It's still a bubble though ;)

Yep and you're spot on Last Nail. We're still in a bubble .. FOR SURE!

I just got home 15 mins ago having attended 3 back to back auctions today. And ALL 3 auctions were full on. You couldn't get INTO the properties .. even as a registered bidder .. and there were many cashed up Asians with overseas $$$ at interest rates half our domestic rates bidding hard. Bottom line???

All 3 homes sold well above their reserve price!

The worst ever property dive eh? What a total load of croc!

If anything (ie given hands on real life experience and having checked out a few web sites) .. the trends show median house prices are RISING!

NB I am referring to the Sydney real estate domestic market <-- I keep saying this I know .. just in case anyone isn't aware.

We just sold our house in North Sydney for a lot more than we paid for it 2 yrs ago..no complaints here  :)

North Sydney did you say? Around Sept 2010 was a dreadful time to sell.

Since then .. it's been BLOODY AWESOME!

Oh and you say you bought property there 2 yrs back? Well .. if you bought in March OR September 2009 and sold just recently .. you would have made an absolute killing!

LOL The Hill, you'll need alot more than your 1.5

http://www.realestate.com.au/property-house-nsw-the+hill-107200302
http://www.realestate.com.au/property-house-nsw-the+hill-107039191
http://www.realestate.com.au/property-house-nsw-the+hill-106889689

- dsmithy

Yeah .. heaven huh?

I know this may sound pathetic .. but I dream about houses/places like this most nights.

It's one thing to see lovely pics like that on the net .. you still need to get out there and see/feel the place if you're want to truly appreciate its intrinsic beauty. The Hill is definitely a place that needs to be seen and experienced IMO :)

Lisa Jones wrote on Mar 5^th, 2011 at 3:34pm:

North Sydney did you say? Around Sept 2010 was a dreadful time to sell. Since then .. it's been BLOODY AWESOME! Oh and you say you bought property there 2 yrs back? Well .. if you bought in March OR September 2009 and sold just recently .. you would have made an absolute killing!

So Lisa - you didn't buy!
This is the first time that Nail has ever been wrong.  ;D

Hey Bobby .. you've lost me now.

Last Nail was wrong? In what way was he wrong?

Lisa Jones wrote on Mar 5^th, 2011 at 3:56pm:

Hey Bobby .. you've lost me now. Last Nail was wrong? In what way was he wrong?

He said that property was crashing in price.

Bobby. wrote on Mar 5^th, 2011 at 4:02pm:

Lisa Jones wrote on Mar 5th, 2011 at 3:56pm: Hey Bobby .. you've lost me now. Last Nail was wrong? In what way was he wrong? He said that property was crashing in price.

Bobby, to be fair .. Last Nail merely posted and quoted a news article. And he bravely placed that article before us all for comment.

I merely put forward my responses based on years of research and personal up to date experience (within the context of the Sydney domestic property market).

Oh and I don't think I've mentioned it yet ..  I bought a house today lol :)

Lisa Jones wrote on Mar 5^th, 2011 at 4:10pm:

Bobby. wrote on Mar 5th, 2011 at 4:02pm: Lisa Jones wrote on Mar 5th, 2011 at 3:56pm: Hey Bobby .. you've lost me now. Last Nail was wrong? In what way was he wrong? He said that property was crashing in price. Bobby, to be fair .. Last Nail merely posted and quoted a news article. And he bravely placed that article before us all for comment. I merely put forward my responses based on years of research and personal up to date experience (within the context of the Sydney domestic property market). Oh and I don't think I've mentioned it yet ..  I bought a house today lol :)

What! - a house - in the over $1 million bracket?
You didn't?

Bobby, you've got to also remember that the news article in the OP isn't Sydney specific.

My knowledge/experience/specialty in real estate has only ever been Sydney market based. That's the only area that interests me to be brutally honest. It's a large city .. and thus .. a large market. And you can make money IF you know wtf you're doing.

Ask me anything you want about real estate in Sydney .. I'm there.

Any other place? Well .. I probably won't be as useful to you.

And yes .. I bought a house today. The house was sold in 1 of the 3 auctions I attended. In fact it was my fav home on the list of those 3. I'm kinda happy/sort of .. I reckon I paid 100K more than it was worth. Then again I drive a hard bargain and I expect a lot for my dollar .. so who knows. I'm still kinda numb atm.

It's VERY nice though :)

Lisa Jones wrote on Mar 5^th, 2011 at 4:25pm:

Bobby, you've got to also remember that the news article in the OP isn't Sydney specific. My knowledge/experience/specialty in real estate has only ever been Sydney market based. That's the only area that interests me to be brutally honest. It's a large city .. and thus .. a large market. And you can make money IF you know wtf you're doing. Ask me anything you want about real estate in Sydney .. I'm there. Any other place? Well .. I probably won't be as useful to you. And yes .. I bought a house today. The house was sold in 1 of the 3 auctions I attended. In fact it was my fav home on the list of those 3. I'm kinda happy/sort of .. I reckon I paid 100K more than it was worth. It's VERY nice though :)

That's great Lisa - can I move in?
You could have 2 husbands    ;D

You really sure about that Bobby? Remember .. once we get married .. YOU get the privilege of PAYING OFF THE MORTGAGE TOGETHER WITH ME!!!! YAY!!!

Lisa Jones wrote on Mar 5^th, 2011 at 4:36pm:

You really sure about that Bobby? Remember .. once we get married .. YOU get the privilege of PAYING OFF THE MORTGAGE TOGETHER WITH ME!!!! YAY!!!

No sorry - I was expecting free accomodation & free love -  ;D

Ohhhh lmao .. my mother always did say:

NOTHING in life is free.
And that little piece of cheese YOU THINK is free .. is always found at the end of a mouse trap.

Food for thought :P

Lisa Jones wrote on Mar 5^th, 2011 at 4:43pm:

Ohhhh lmao .. my mother always did say: NOTHING in life is free. And that little piece of cheese YOU THINK is free .. is always found at the end of a mouse trap. Food for thought :P

Very true Lisa -
I wish you & your new husband a very happy life together in your new home.  :)

now its the 'bobby drooling over lisa' show...

you are pathetic booby.

longweekend58 wrote on Mar 5^th, 2011 at 5:33pm:

now its the 'bobby drooling over lisa' show... you are pathetic booby.

Buzz off Longweekend.

Bobby. wrote on Mar 5^th, 2011 at 5:39pm:

longweekend58 wrote on Mar 5th, 2011 at 5:33pm: now its the 'bobby drooling over lisa' show... you are pathetic booby. Buzz off Longweekend.

poor diddums...

cant get a girl in real life so you trawl after internet women who 'may' be real, perhaps?

longweekend58 wrote on Mar 5^th, 2011 at 5:41pm:

Bobby. wrote on Mar 5th, 2011 at 5:39pm: longweekend58 wrote on Mar 5th, 2011 at 5:33pm: now its the 'bobby drooling over lisa' show... you are pathetic booby. Buzz off Longweekend. poor diddums... cant get a girl in real life so you trawl after internet women who 'may' be real, perhaps?

What's wrong with saying:

Quote:

I wish you & your new husband a very happy life together in your new home.

Do you wish Lisa  bad fortune? - you're a prick then.

Lisa Jones wrote on Mar 5^th, 2011 at 3:21pm:

Yep and you're spot on Last Nail. We're still in a bubble .. FOR SURE! I just got home 15 mins ago having attended 3 back to back auctions today. And ALL 3 auctions were full on. You couldn't get INTO the properties .. even as a registered bidder .. and there were many cashed up Asians with overseas $$$ at interest rates half our domestic rates bidding hard. Bottom line??? All 3 homes sold well above their reserve price! The worst ever property dive eh? What a total load of croc! If anything (ie given hands on real life experience and having checked out a few web sites) .. the trends show median house prices are RISING! NB I am referring to the Sydney real estate domestic market <-- I keep saying this I know .. just in case anyone isn't aware.

Like I said that you would most likely be outbid by chinese dudes with access to a more generous banking system than ours ;)

It's the chinese money that is keeping the bubble inflated which is exactly what the Government wants ;) When the FHOG was stopped the chinese money took over ;) Dudd hedged his bets on the FHOG and chinese money and got what he wanted at the expense of people who have lived here all of their lives :(

This sort of bullshit wouldn't happen in china simply because the chinese government doesn't want foreigner speculators to create property bubbles. The chinese are a lot smarter than us in a lot of ways !!

But I cannot see any housing bubble continue to be inflated indefinitely. It just never happens anywhere and Australia is no exception :(

longweekend58 wrote on Mar 5^th, 2011 at 5:41pm:

Bobby. wrote on Mar 5th, 2011 at 5:39pm: longweekend58 wrote on Mar 5th, 2011 at 5:33pm: now its the 'bobby drooling over lisa' show... you are pathetic booby. Buzz off Longweekend. poor diddums... cant get a girl in real life so you trawl after internet women who 'may' be real, perhaps?

at least he's not porking a blow up doll that he drags out of the cupboard each night like you do :) LOL

I see the "Diarrhetic Duo" have struck again, splattering the boards with their glee at other peoples` loss and pain, running all over the place with their envy and inadequicies.

mavisdavis wrote on Mar 5^th, 2011 at 6:11pm:

I see the "Diarrhetic Duo" have struck again, splattering the boards with their glee at other peoples` loss and pain, running all over the place with their envy and inadequicies.

so don't you want to see joe battler get a good deal when they buy something ??  why is that you libbos are only happy when someone is being ripped off and why is that you libbos are always championing the cause of Greed Incorporated ??

Dsmithy70 wrote on Mar 5^th, 2011 at 3:04pm:

LOL The Hill, you'll need alot more than your 1.5

I'd forgotten about The Hill.
Thirty years ago, The Hill was far from upmarket and was pretty much just an area full of decrepit boarding houses and bedsits. Wolf Street and around the Cathederal were the exceptions and even back then they were desirable addresses.

Newcastle's only punk pub was just down the road in Bolton St.

mavisdavis wrote on Mar 5^th, 2011 at 6:11pm:

I see the "Diarrhetic Duo" have struck again, splattering the boards with their glee at other peoples` loss and pain, running all over the place with their envy and inadequicies.

Buzz of Mavis.
Nail & me have a lot to offer the readers here -  unlike you.

Bobby. wrote on Mar 5^th, 2011 at 6:21pm:

mavisdavis wrote on Mar 5th, 2011 at 6:11pm: I see the "Diarrhetic Duo" have struck again, splattering the boards with their glee at other peoples` loss and pain, running all over the place with their envy and inadequicies. Buzz of Mavis. Nail & me have a lot to offer the readers here -  unlike you.

the libbos have never got anything to offer joe battler except for a suit and tie con man ready to rip them off :(

Life_goes_on wrote on Mar 5^th, 2011 at 6:18pm:

Dsmithy70 wrote on Mar 5th, 2011 at 3:04pm: LOL The Hill, you'll need alot more than your 1.5 I'd forgotten about The Hill. Thirty years ago, The Hill was far from upmarket and was pretty much just an area full of decrepit boarding houses and bedsits. Wolf Street and around the Cathederal were the exceptions and even back then they were desirable addresses. Newcastle's only punk pub was just down the road in Bolton St.

Tatts,The Great Northern, the East Room, Air Force Club, The Basement,The Family and of course Thursday's at The Cambridge for the FunBusters
Yep Newcastle had a great music scene
Good times Great memories although kinda hazy :D

Dsmithy70 wrote on Mar 5^th, 2011 at 9:58pm:

Life_goes_on wrote on Mar 5th, 2011 at 6:18pm: Dsmithy70 wrote on Mar 5th, 2011 at 3:04pm: LOL The Hill, you'll need alot more than your 1.5 I'd forgotten about The Hill. Thirty years ago, The Hill was far from upmarket and was pretty much just an area full of decrepit boarding houses and bedsits. Wolf Street and around the Cathederal were the exceptions and even back then they were desirable addresses. Newcastle's only punk pub was just down the road in Bolton St. Tatts,The Great Northern, the East Room, Air Force Club, The Basement,The Family and of course Thursday's at The Cambridge for the FunBusters Yep Newcastle had a great music scene Good times Great memories although kinda hazy :D

The Grand was the punk (and skins and mods) pub. Then there was $1 night on Thursday's at The Ambassador or Saturdays at Northies. Or if you were keen, a ride down to Belmont 16 footers. Pre booze bus days - so getting home was purely an adventure and not a case of running the gauntlet.

Quote:

Oh and I don't think I've mentioned it yet ..  I bought a house today  ;D

Good for you Lisa, you found a sucker  ;D

I wonder what the outlandish mortgage is?

And I wonder what your financial risk is compared to his? Very minimal I'll bet.

Yes I knoww...sarcasm is the lowest form of wit, but the highest form of honesty.

Amadd wrote on Mar 6^th, 2011 at 12:56am:

Quote: Oh and I don't think I've mentioned it yet ..  I bought a house today  ;D Good for you Lisa, you found a sucker  ;D I wonder what the outlandish mortgage is? And I wonder what your financial risk is compared to his? Very minimal I'll bet. Yes I knoww...sarcasm is the lowest form of wit, but the highest form of honesty.

Huh? You've totally lost me Amadd.

I found a sucker? WTF does that mean?

WTF is an "outlandish" mortgage in your books?

Financial risk?? What financial risk?

Highest form of honesty? Where?

That's just my way of saying "congratulations," don't you know?  ;D

Amadd wrote on Mar 6^th, 2011 at 12:46pm:

That's just my way of saying "congratulations," don't you know?  ;D

I could have sworn you were having a go at her ;)

Sir lastnail wrote on Mar 5^th, 2011 at 5:55pm:

Lisa Jones wrote on Mar 5th, 2011 at 3:21pm: Yep and you're spot on Last Nail. We're still in a bubble .. FOR SURE! I just got home 15 mins ago having attended 3 back to back auctions today. And ALL 3 auctions were full on. You couldn't get INTO the properties .. even as a registered bidder .. and there were many cashed up Asians with overseas $$$ at interest rates half our domestic rates bidding hard. Bottom line??? All 3 homes sold well above their reserve price! The worst ever property dive eh? What a total load of croc! If anything (ie given hands on real life experience and having checked out a few web sites) .. the trends show median house prices are RISING! NB I am referring to the Sydney real estate domestic market <-- I keep saying this I know .. just in case anyone isn't aware. Like I said that you would most likely be outbid by chinese dudes with access to a more generous banking system than ours ;) It's the chinese money that is keeping the bubble inflated which is exactly what the Government wants ;) When the FHOG was stopped the chinese money took over ;) Dudd hedged his bets on the FHOG and chinese money and got what he wanted at the expense of people who have lived here all of their lives :( This sort of bullshit wouldn't happen in china simply because the chinese government doesn't want foreigner speculators to create property bubbles. The chinese are a lot smarter than us in a lot of ways !! But I cannot see any housing bubble continue to be inflated indefinitely. It just never happens anywhere and Australia is no exception :(

I agree.

An "adjustment" of some sort is definitely round the corner. I personally don't think that it's going to be a big one though.

And here's the thing .. if you've done your homework right ( ie not over-extended yourself by borrowing to the limit; bought POSITION<- NB not many people truly understand what this means unfortunately ) .. you should be able to ride the wave without too many problems.

Lisa Jones wrote on Mar 6^th, 2011 at 12:58pm:

Sir lastnail wrote on Mar 5th, 2011 at 5:55pm: Lisa Jones wrote on Mar 5th, 2011 at 3:21pm: Yep and you're spot on Last Nail. We're still in a bubble .. FOR SURE! I just got home 15 mins ago having attended 3 back to back auctions today. And ALL 3 auctions were full on. You couldn't get INTO the properties .. even as a registered bidder .. and there were many cashed up Asians with overseas $$$ at interest rates half our domestic rates bidding hard. Bottom line??? All 3 homes sold well above their reserve price! The worst ever property dive eh? What a total load of croc! If anything (ie given hands on real life experience and having checked out a few web sites) .. the trends show median house prices are RISING! NB I am referring to the Sydney real estate domestic market <-- I keep saying this I know .. just in case anyone isn't aware. Like I said that you would most likely be outbid by chinese dudes with access to a more generous banking system than ours ;) It's the chinese money that is keeping the bubble inflated which is exactly what the Government wants ;) When the FHOG was stopped the chinese money took over ;) Dudd hedged his bets on the FHOG and chinese money and got what he wanted at the expense of people who have lived here all of their lives :( This sort of bullshit wouldn't happen in china simply because the chinese government doesn't want foreigner speculators to create property bubbles. The chinese are a lot smarter than us in a lot of ways !! But I cannot see any housing bubble continue to be inflated indefinitely. It just never happens anywhere and Australia is no exception :( I agree. An "adjustment" of some sort is definitely round the corner. I personally don't think that it's going to be a big one though. And here's the thing .. if you've done your homework right ( ie not over-extended yourself by borrowing to the limit; bought POSITION<- NB not many people truly understand what this means unfortunately ) .. you should be able to ride the wave without too many problems.

You may have spoken to soon Lisa. I just saw this in todays Sunday Herald Sun


Quote:

Wattle Grove McKinnon (Victoria) - 3 bedroom & 2 bathroom Townhouse Price quoted Pre-auction $660,000 Result - Passed in at $668,000 Negotiation failed and reserve was set at $720,000. It was a surprise result because the townhouse is located in the McKinnon school zone which is very sort after.

And might I add, sort after by the Chinese community ;)

bubble bubble toil and trouble :(

my parents just sold their apartment in QLD for 28% more than they paid to a fella who lives in Shanghai!

;)

$$$$$$$$$$$$$$$$

HAHAHAHA

Andrei.Hicks wrote on Mar 6^th, 2011 at 4:39pm:

my parents just sold their apartment in QLD for 28% more than they paid to a fella who lives in Shanghai! ;) $$$$$$$$$$$$$$$$ HAHAHAHA

what did they pay for it ?? $50,000 ??

that's how much it would be worth now if it was built on a flood plain ;)

Sir lastnail wrote on Mar 6^th, 2011 at 4:47pm:

Andrei.Hicks wrote on Mar 6th, 2011 at 4:39pm: my parents just sold their apartment in QLD for 28% more than they paid to a fella who lives in Shanghai! ;) $$$$$$$$$$$$$$$$ HAHAHAHA what did they pay for it ?? $50,000 ?? that's how much it would be worth now if it was built on a flood plane ;)

Is that a jet fuelled plane mate?
Boeing or Airbus?

And it was all above board and not in Brisbane.
Bought by a Chinese dude through his brother who lives in Oz. He's renting it out to students.

I told you there is money in investment property mate and you didn't listen to me!

Andrei.Hicks wrote on Mar 6^th, 2011 at 5:01pm:

Sir lastnail wrote on Mar 6th, 2011 at 4:47pm: Andrei.Hicks wrote on Mar 6th, 2011 at 4:39pm: my parents just sold their apartment in QLD for 28% more than they paid to a fella who lives in Shanghai! ;) $$$$$$$$$$$$$$$$ HAHAHAHA what did they pay for it ?? $50,000 ?? that's how much it would be worth now if it was built on a flood plane ;) Is that a jet fuelled plane mate? Boeing or Airbus? And it was all above board and not in Brisbane. Bought by a Chinese dude through his brother who lives in Oz. He's renting it out to students. I told you there is money in investment property mate and you didn't listen to me!

Approx. 5% in buying costs, approx. 5% in selling costs, holding and maintenance costs...hmmnnn...what do you estimate to be their nett capital gain?

BTW, how long did they hold it for?

Andrei.Hicks wrote on Mar 6^th, 2011 at 5:01pm:

Sir lastnail wrote on Mar 6th, 2011 at 4:47pm: Andrei.Hicks wrote on Mar 6th, 2011 at 4:39pm: my parents just sold their apartment in QLD for 28% more than they paid to a fella who lives in Shanghai! ;) $$$$$$$$$$$$$$$$ HAHAHAHA what did they pay for it ?? $50,000 ?? that's how much it would be worth now if it was built on a flood plane ;) Is that a jet fuelled plane mate? Boeing or Airbus? And it was all above board and not in Brisbane. Bought by a Chinese dude through his brother who lives in Oz. He's renting it out to students. I told you there is money in investment property mate and you didn't listen to me!

and there is more money to made if you are Holden. The Government will give you lots of money for nothing just to keep your business going ;)

Equitist wrote on Mar 6^th, 2011 at 5:13pm:

Andrei.Hicks wrote on Mar 6th, 2011 at 5:01pm: Sir lastnail wrote on Mar 6th, 2011 at 4:47pm: Andrei.Hicks wrote on Mar 6th, 2011 at 4:39pm: my parents just sold their apartment in QLD for 28% more than they paid to a fella who lives in Shanghai! ;) $$$$$$$$$$$$$$$$ HAHAHAHA what did they pay for it ?? $50,000 ?? that's how much it would be worth now if it was built on a flood plane ;) Is that a jet fuelled plane mate? Boeing or Airbus? And it was all above board and not in Brisbane. Bought by a Chinese dude through his brother who lives in Oz. He's renting it out to students. I told you there is money in investment property mate and you didn't listen to me! Approx. 5% in buying costs, approx. 5% in selling costs, holding and maintenance costs...hmmnnn...what do you estimate to be their nett capital gain? BTW, how long did they hold it for?

you can't believe a word of what hicks says. he is so full of it his eyes are turning brown !!

Sir lastnail wrote on Mar 6^th, 2011 at 5:24pm:

Equitist wrote on Mar 6th, 2011 at 5:13pm: Andrei.Hicks wrote on Mar 6th, 2011 at 5:01pm: Sir lastnail wrote on Mar 6th, 2011 at 4:47pm: Andrei.Hicks wrote on Mar 6th, 2011 at 4:39pm: my parents just sold their apartment in QLD for 28% more than they paid to a fella who lives in Shanghai! ;) $$$$$$$$$$$$$$$$ HAHAHAHA what did they pay for it ?? $50,000 ?? that's how much it would be worth now if it was built on a flood plane ;) Is that a jet fuelled plane mate? Boeing or Airbus? And it was all above board and not in Brisbane. Bought by a Chinese dude through his brother who lives in Oz. He's renting it out to students. I told you there is money in investment property mate and you didn't listen to me! Approx. 5% in buying costs, approx. 5% in selling costs, holding and maintenance costs...hmmnnn...what do you estimate to be their nett capital gain? BTW, how long did they hold it for? you can't believe a word of what hicks says. he is so full of it his eyes are turning brown !!

Mate it isnt me. It's my mum and dad's place.
I haven't made a red cent out of all this.

As regards Holden - yep I'd rather they got the grant. Aussie jobs mate. More important than anything.

Sir lastnail wrote on Mar 6^th, 2011 at 4:31pm:

Lisa Jones wrote on Mar 6th, 2011 at 12:58pm: Sir lastnail wrote on Mar 5th, 2011 at 5:55pm: Lisa Jones wrote on Mar 5th, 2011 at 3:21pm: Yep and you're spot on Last Nail. We're still in a bubble .. FOR SURE! I just got home 15 mins ago having attended 3 back to back auctions today. And ALL 3 auctions were full on. You couldn't get INTO the properties .. even as a registered bidder .. and there were many cashed up Asians with overseas $$$ at interest rates half our domestic rates bidding hard. Bottom line??? All 3 homes sold well above their reserve price! The worst ever property dive eh? What a total load of croc! If anything (ie given hands on real life experience and having checked out a few web sites) .. the trends show median house prices are RISING! NB I am referring to the Sydney real estate domestic market <-- I keep saying this I know .. just in case anyone isn't aware. Like I said that you would most likely be outbid by chinese dudes with access to a more generous banking system than ours ;) It's the chinese money that is keeping the bubble inflated which is exactly what the Government wants ;) When the FHOG was stopped the chinese money took over ;) Dudd hedged his bets on the FHOG and chinese money and got what he wanted at the expense of people who have lived here all of their lives :( This sort of bullshit wouldn't happen in china simply because the chinese government doesn't want foreigner speculators to create property bubbles. The chinese are a lot smarter than us in a lot of ways !! But I cannot see any housing bubble continue to be inflated indefinitely. It just never happens anywhere and Australia is no exception :( I agree. An "adjustment" of some sort is definitely round the corner. I personally don't think that it's going to be a big one though. And here's the thing .. if you've done your homework right ( ie not over-extended yourself by borrowing to the limit; bought POSITION<- NB not many people truly understand what this means unfortunately ) .. you should be able to ride the wave without too many problems. You may have spoken to soon Lisa. I just saw this in todays Sunday Herald Sun Quote: Wattle Grove McKinnon (Victoria) - 3 bedroom & 2 bathroom Townhouse Price quoted Pre-auction $660,000 Result - Passed in at $668,000 Negotiation failed and reserve was set at $720,000. It was a surprise result because the townhouse is located in the McKinnon school zone which is very sort after. And might I add, sort after by the Chinese community ;) bubble bubble toil and trouble :(

Last Nail .. you obviously don't know the Chinese community. Read back .. I've indicated by way of newspaper articles and personal experience exactly what types of properties they are after.

And believe you me .. they get what they want. They have the $$$$ at half the interest rates we Aussies can access. Make no mistake about that.

It's an absolute miracle I was able to come away as the successful bidder in ONE of the 3 back to back auctions I attended yesterday. As I stated earlier .. the competition is VERY fierce out there ... you can't get onto the property as a registered bidder on a/c of the people crawling around and good quality houses in awesome positions are selling above and beyond their reserve price.

Needless to say .. I've been conducting a 12 hr post-mortem over the whole thing ever since. I believe I did ok. I am of the opinion that I probably paid about 50K - 100K above the true worth of the house .. but given I was up against 2 Asian cashed up couples .. I did ok.

The fact is ... the house in question is absolutely lovely and in an awesome POSITION! And there was nothing else on the market that really grabbed me. The house stood out for me in a very big way. It's going to make money for me in the long term THANKS to its awesome position (mainly).

Again I probably should remind everyone .. whenever I talk real estate  .. it is the Sydney domestic real estate market that I am referring to as THAT is my area of expertise.

I am in favor of overseas investors being allowed to buy Australian property.

This is capital coming INTO the country.

Works for me.

Andrei.Hicks wrote on Mar 6^th, 2011 at 5:29pm:

I am in favor of overseas investors being allowed to buy Australian property. This is capital coming INTO the country. Works for me.

Ok Andrei .. kindly tell us all how that works for you as an Australian citizen.

You have the floor.

Mate it isnt me. It's my mum and dad's place.
I haven't made a red cent out of all this.

- Andrei

Mum and dad's place?? Only little kids talk about their mum and dad, Andrei.

Tell us about YOUR place!

And remember what you just said .. competing against cashed up Asians who can access interest rates at half the rates that you and I can ... seems to somehow work for you.

By all means do tell us how this works for YOU! I know I am all ears.

OK .. the floor is ALL yours.

Lisa Jones wrote on Mar 6^th, 2011 at 5:27pm:

Last Nail .. you obviously don't know the Chinese community. Read back .. I've indicated by way of newspaper articles and personal experience exactly what types of properties they are after. And believe you me .. they get what they want. They have the $$$$ at half the interest rates we Aussies can access. Make no mistake about that. It's an absolute miracle I was able to come away as the successful bidder in ONE of the 3 back to back auctions I attended yesterday. As I stated earlier .. the competition is VERY fierce out there ... you can't get onto the property as a registered bidder on a/c of the people crawling around and good quality houses in awesome positions are selling above and beyond their reserve price. Needless to say .. I've been conducting a 12 hr post-mortem over the whole thing ever since. I believe I did ok. I am of the opinion that I probably paid about 50K - 100K above the true worth of the house .. but given I was up against 2 Asian cashed up couples .. I did ok. The fact is ... the house in question is absolutely lovely and in an awesome POSITION! And there was nothing else on the market that really grabbed me. The house stood out for me in a very big way. It's going to make money for me in the long term THANKS to its awesome position (mainly). Again I probably should remind everyone .. whenever I talk real estate  .. it is the Sydney domestic real estate market that I am referring to as THAT is my area of expertise.

But you are missing the point though. Property doesn't keep going up in price indefinitely just because chinese can get cheaper loans than us. Those chinese people that buy those places know that they still have to pay back the loan so their banking system is not a money tree with an endless source of money. You seem to think that property bubbles can burst everywhere else in the world except for australia because somehow australia has magical powers to stop bubbles from bursting. I'd like to know what these magical powers are ;)

Lisa Jones wrote on Mar 6^th, 2011 at 5:43pm:

Mate it isnt me. It's my mum and dad's place. I haven't made a red cent out of all this. - Andrei Mum and dad's place?? Only little kids talk about their mum and dad, Andrei. Tell us about YOUR place! And remember what you just said .. competing against cashed up Asians who can access interest rates at half the rates that you and I can ... seems to somehow work for you. By all means do tell us how this works for YOU! I know I am all ears. OK .. the floor is ALL yours.

he still lives with his mum and dad. that's how it works ;) LOL

My parents live in England mate. Have done for the last decade.

Now how's the electric car going? Got one yet?

PS - Chevron spent $650m on R&D into cleaner technology last year. Check out their filed 10K statement for Dec 31.

Doing nothing huh?

Andrei.Hicks wrote on Mar 6^th, 2011 at 5:25pm:

Mate it isnt me. It's my mum and dad's place. I haven't made a red cent out of all this. As regards Holden - yep I'd rather they got the grant. Aussie jobs mate. More important than anything.

changed your tune again have you. you didn't think twice about sending jobs over seas to third world sweat shops :(

and what of the local australian company who couldn't get a red cent to manufacture an EV but Holden gets 200 mill to import yet another fossil fool car from Korea. That's not creating jobs, that is just buying jobs :( It's extortion :(

Andrei.Hicks wrote on Mar 6^th, 2011 at 6:13pm:

My parents live in England mate. Have done for the last decade. Now how's the electric car going? Got one yet? PS - Chevron spent $650m on R&D into cleaner technology last year. Check out their filed 10K statement for Dec 31. Doing nothing huh?

where do i get one idiot ??

I tried to buy one from Holden but all it could sell me was a piece of sh.t imported from Korea that cost $1.60 per liter to fill up at the fool bowser and still required filthy oil changes :( Green car - my arse :(

Our Action Plan on Climate Change
In 2001, Chevron began implementing its Action Plan on Climate Change to manage and reduce GHG emissions. The plan calls for reducing emissions and increasing energy efficiency; investing in research, development and improved technology; pursuing business opportunities in promising, innovative energy technologies; and supporting flexible and economically sound policies and mechanisms that protect the environment.

In 2009, our total emissions were 57.4 million metric tons, better than our goal of 60.5 million metric tons.1 Our GHG emissions intensity in 2009 was approximately 33 metric tons of CO2 equivalent per 1,000 barrels of net oil-equivalent production from our Upstream operations, down from 37 metric tons in 2008. Our Downstream intensity was approximately 36 metric tons of CO2 equivalent per 1,000 barrels of crude oil that was input into our refineries, the same as in 2008


http://www.chevron.com/globalissues/climatechange/


Didn't you say NOTHING was being done Lastnail??

But you are missing the point though. Property doesn't keep going up in price indefinitely just because chinese can get cheaper loans than us. Those chinese people that buy those places know that they still have to pay back the loan so their banking system is not a money tree with an endless source of money.

- Last Nail

NO NO NO!!!

Read back .. I explained all this before and I also proved it with recent newspaper articles.

Ok .. let me explain this a tad easier.

Fact 1: Asians have access to interest rates less than half compared to ours. WE cannot access the interest rates they can. In short .. we are unable to compete with them in the same property market .. as they have the upper hand.

Fact 2: They can and do borrow more as a result.

Fact 3: They have access to our domestic real estate market

Fact 4: They are therefore accessing prime real estate opportunities ie they are buying quality land in top positions.

Fact 5: Why? Because they're not stupid. They know THIS is how you can make money once you sell it later on back to Aussies for a profit.

In short .. they are accessing and thus making awesome capital gains that we cannot.

NB. They're interested and able to buy PRIME positioned properties because these properties make the big $$$$. In so doing .. the property is "bubbling" because they CAN bid above the reserve price at auctions and they do. This is what is raising the prices of decent/quality properties.

Andrei.Hicks wrote on Mar 6^th, 2011 at 6:17pm:

Our Action Plan on Climate Change In 2001, Chevron began implementing its Action Plan on Climate Change to manage and reduce GHG emissions. The plan calls for reducing emissions and increasing energy efficiency; investing in research, development and improved technology; pursuing business opportunities in promising, innovative energy technologies; and supporting flexible and economically sound policies and mechanisms that protect the environment. In 2009, our total emissions were 57.4 million metric tons, better than our goal of 60.5 million metric tons.1 Our GHG emissions intensity in 2009 was approximately 33 metric tons of CO2 equivalent per 1,000 barrels of net oil-equivalent production from our Upstream operations, down from 37 metric tons in 2008. Our Downstream intensity was approximately 36 metric tons of CO2 equivalent per 1,000 barrels of crude oil that was input into our refineries, the same as in 2008 http://www.chevron.com/globalissues/climatechange/ Didn't you say NOTHING was being done Lastnail??

Just fiddling around the edges without really changing anything.

Tell me why chevron won't sell or license out it's Ovonics NiMH batteries to EV manufacturers ??

Now that would be doing something wouldn't it. Less people driving around in polluting fossil fool cars making a mess of the environment  ;)

Lisa Jones wrote on Mar 6^th, 2011 at 6:22pm:

But you are missing the point though. Property doesn't keep going up in price indefinitely just because chinese can get cheaper loans than us. Those chinese people that buy those places know that they still have to pay back the loan so their banking system is not a money tree with an endless source of money. - Last Nail NO NO NO!!! Read back .. I explained all this before and I also proved it with recent newspaper articles. Ok .. let me explain this a tad easier. Fact 1: Asians have access to interest rates less than half compared to ours. WE cannot access the interest rates they can. In short .. we are unable to compete with them in the same property market .. as they have the upper hand. Fact 2: They can and do borrow more as a result. Fact 3: They have access to our domestic real estate market Fact 4: They are therefore accessing prime real estate opportunities ie they are buying quality land in top positions. Fact 5: Why? Because they're not stupid. They know THIS is how you can make money once you sell it later on back to Aussies for a profit. In short .. they are accessing and thus making awesome capital gains that we cannot. NB. They're only interested in (and ABLE to buy) PRIME positioned properties because these properties make the big $$$$. In so doing .. the property market is "bubbling" because they CAN bid above the reserve price at auctions and they do. This is what is raising the prices of decent/quality properties.

But all this appears to be ok for Andrei. In fact .. it even WORKS for him as an Australian citizen.

I'd like to know how?

Lisa Jones wrote on Mar 6^th, 2011 at 6:22pm:

But you are missing the point though. Property doesn't keep going up in price indefinitely just because chinese can get cheaper loans than us. Those chinese people that buy those places know that they still have to pay back the loan so their banking system is not a money tree with an endless source of money. - Last Nail NO NO NO!!! Read back .. I explained all this before and I also proved it with recent newspaper articles. Ok .. let me explain this a tad easier. Fact 1: Asians have access to interest rates less than half compared to ours. WE cannot access the interest rates they can. In short .. we are unable to compete with them in the same property market .. as they have the upper hand. Fact 2: They can and do borrow more as a result. Fact 3: They have access to our domestic real estate market Fact 4: They are therefore accessing prime real estate opportunities ie they are buying quality land in top positions. Fact 5: Why? Because they're not stupid. They know THIS is how you can make money once you sell it later on back to Aussies for a profit. In short .. they are accessing and thus making awesome capital gains that we cannot. NB. They're interested and able to buy PRIME positioned properties because these properties make the big $$$$. In so doing .. the property is "bubbling" because they CAN bid above the reserve price at auctions and they do. This is what is raising the prices of decent/quality properties.

yes but what stops the bubble from bursting when there is a credit squeeze, rising interest rates, rising fuel prices, world instability  etc ?? sooner or later something has to give no matter how many chinese buy up property here !!

yes but what stops the bubble from bursting when there is a credit squeeze and rising interest rates ??

- Last Nail

Nothing. As I stated earlier .. there will be an "adjustment". I don't believe it's going to be anything more than that.

Read back .. I posted about that this afternoon.

Lisa Jones wrote on Mar 6^th, 2011 at 12:58pm:

Sir lastnail wrote on Mar 5th, 2011 at 5:55pm: Lisa Jones wrote on Mar 5th, 2011 at 3:21pm: Yep and you're spot on Last Nail. We're still in a bubble .. FOR SURE! I just got home 15 mins ago having attended 3 back to back auctions today. And ALL 3 auctions were full on. You couldn't get INTO the properties .. even as a registered bidder .. and there were many cashed up Asians with overseas $$$ at interest rates half our domestic rates bidding hard. Bottom line??? All 3 homes sold well above their reserve price! The worst ever property dive eh? What a total load of croc! If anything (ie given hands on real life experience and having checked out a few web sites) .. the trends show median house prices are RISING! NB I am referring to the Sydney real estate domestic market <-- I keep saying this I know .. just in case anyone isn't aware. Like I said that you would most likely be outbid by chinese dudes with access to a more generous banking system than ours ;) It's the chinese money that is keeping the bubble inflated which is exactly what the Government wants ;) When the FHOG was stopped the chinese money took over ;) Dudd hedged his bets on the FHOG and chinese money and got what he wanted at the expense of people who have lived here all of their lives :( This sort of bullshit wouldn't happen in china simply because the chinese government doesn't want foreigner speculators to create property bubbles. The chinese are a lot smarter than us in a lot of ways !! But I cannot see any housing bubble continue to be inflated indefinitely. It just never happens anywhere and Australia is no exception :( I agree. An "adjustment" of some sort is definitely round the corner. I personally don't think that it's going to be a big one though. And here's the thing .. if you've done your homework right ( ie not over-extended yourself by borrowing to the limit; bought POSITION<- NB not many people truly understand what this means unfortunately ) .. you should be able to ride the wave without too many problems.

Here is the post Last Nail.

Lisa Jones wrote on Mar 6^th, 2011 at 6:34pm:

yes but what stops the bubble from bursting when there is a credit squeeze and rising interest rates ?? - Last Nail Nothing. As I stated earlier .. there will be an "adjustment". I don't believe it's going to be anything more than that. Read back .. I posted about that this afternoon.

why in australia will it be just an adjustment and not a crash ??

what makes australia so different than the rest of the world where property has taken a nose dive ??

and the other thing if it is always just an "adjustment" then why the tripling of the first home buyers grant and changes in the FIRB rules ?? why did they have to do these things if property is such a sure bet here ??

why in australia will it be just an adjustment and not a crash ??

- Last Nail

Why? Because the bubble .. whilst there .. isn't THAT big (well not yet in any event).

Having said that .. it's getting pretty stupid now. I mean this is effectively what is now happening more and more (in Sydney): professional couples are marrying in their early 30's and finding themselves co owning ONE house with a 30 yr mortgage of around $1 million.

As if that's not enough .. the house in question isn't anything spectacular either and the position of such a home tends to be in a semi decent area .. nothing spectacular there either.

A recipe for disaster IMO .. esp if/when a little baby comes along and suddenly 1 parent stops working even for a little while.

<<yes but what stops the bubble from bursting when there is a credit squeeze, rising interest rates, rising fuel prices, world instability  etc ?? sooner or later something has to give no matter how many chinese buy up property here !! >>
............................................................................

Nothing will stop it. Wait two years and buy at half of today's price. The spruikers will tell you that we are different to America and Ireland. We're pretty much the same. Their mistakes will be our mistakes. Wait and see.

<<Why? Because the bubble .. whilst there .. isn't THAT big (well not yet in any event). >>
.......................................................................

Houses over 50% more than they should be, that's a bubble alright.

Lisa Jones wrote on Mar 6^th, 2011 at 7:12pm:

why in australia will it be just an adjustment and not a crash ?? - Last Nail Why? Because the bubble .. whilst there .. isn't THAT big (well not yet in any event). Having said that .. it's getting pretty stupid now. I mean this is effectively what is now happening more and more (in Sydney): professional couples are marrying in their early 30's and finding themselves co owning ONE house with a 30 yr mortgage of around $1 million. As if that's not enough .. the house in question isn't anything spectacular either and the position of such a home tends to be in a semi decent area .. nothing spectacular there either. A recipe for disaster IMO .. esp if/when a little baby comes along and suddenly 1 parent stops working even for a little while.

are you saying that these house price to income ratios don't constitute a bubble ??

http://www.moneymorning.com.au/images/mm20110125c.jpg

http://www.moneymorning.com.au/20110125/aussie-house-prices-hit-the-tipping-point.html

Thanks for the link Last Nail.

Please tell me you're not relying on that publication and any of the information it states.

Lisa Jones wrote on Mar 6^th, 2011 at 5:36pm:

Andrei.Hicks wrote on Mar 6th, 2011 at 5:29pm: I am in favor of overseas investors being allowed to buy Australian property. This is capital coming INTO the country. Works for me. Ok Andrei .. kindly tell us all how that works for you as an Australian citizen. You have the floor.

You're competing against cashed up Asians who can access interest rates at half the rates that you and I can ... and it seems to somehow work for you.

By all means do tell us how this works for YOU! I know I am all ears.

Hopefully you will be able to let us know soon.

What are rental prices like in Australia?  Is renting property there the norm?  What other options?  My son and his girlfriend are thinking of going there for a look if they can save enough money.  Both unhappy with what Ireland hasn't got to offer young people just starting out on their lifetimes.  Two good university degrees - no jobs and no future from Ireland.   :'( :-/

Lisa Jones wrote on Mar 6^th, 2011 at 8:45pm:

Thanks for the link Last Nail. Please tell me you're not relying on that publication and any of the information it states.

No I'm not. Those are official statistics and have been repeated elsewhere ;)

Shell to Sea wrote on Mar 6^th, 2011 at 8:56pm:

What are rental prices like in Australia?  Is renting property there the norm?  What other options?  My son and his girlfriend are thinking of going there for a look if they can save enough money.  Both unhappy with what Ireland hasn't got to offer young people just starting out on their lifetimes.  Two good university degrees - no jobs and no future from Ireland.   :'( :-/

Rents can be gut wrenching in Australia.

Shell to Sea wrote on Mar 6^th, 2011 at 8:56pm:

What are rental prices like in Australia?  Is renting property there the norm?  What other options?  My son and his girlfriend are thinking of going there for a look if they can save enough money.  Both unhappy with what Ireland hasn't got to offer young people just starting out on their lifetimes.  Two good university degrees - no jobs and no future from Ireland.   :'( :-/

Yes someone posted a video on this thread about Ireland and how it has crashed :(

http://www.abc.net.au/reslib/201102/r723055_5762287.flv

rents have sky rocketed in Australia because property investors believe that they can buy a place with minimal deposit and then offload most of the financial burden onto the tenant. Unfortunately our taxation system encourages this :( It's called greed and their is no shortage of it in Australia :(

No Last Nail .. the cost in BUYING a house is VERY high (esp in Sydney). Anyone who buys a home is faced with HIGH mortgage repayments as a result. Read my previous post from 7.12 pm last night. Average to above average houses in average to above average suburbs in Sydney start at $1 million.

It matters little if you buy a home to live in or rent out .. YOU still need to repay the damn loan. And loans amounts are HIGH!

It's just crazy to expect a landlord to rent out a home cheaply because they feel sorry for tenants. Mortgage repayment obligations along with rates and repairs etc need to be met. Rising interest rates don't help this situation either. But the real issue (as I see it) is that the cost of a home is bloody high to begin with.

Lisa Jones wrote on Mar 6^th, 2011 at 7:12pm:

why in australia will it be just an adjustment and not a crash ?? - Last Nail Why? Because the bubble .. whilst there .. isn't THAT big (well not yet in any event). Having said that .. it's getting pretty stupid now. I mean this is effectively what is now happening more and more (in Sydney): professional couples are marrying in their early 30's and finding themselves co owning ONE house with a 30 yr mortgage of around $1 million. As if that's not enough .. the house in question isn't anything spectacular either and the position of such a home tends to be in a semi decent area .. nothing spectacular there either. A recipe for disaster IMO .. esp if/when a little baby comes along and suddenly 1 parent stops working even for a little while.

This is the post I am referring to Last Nail.

Andrei must be thinking hard about the question I asked him last night. Good. Hopefully he'll be able to come back with a well considered response.

Lisa Jones wrote on Mar 7^th, 2011 at 10:53am:

No Last Nail .. the cost in BUYING a house is VERY high (esp in Sydney). Anyone who buys a home is faced with HIGH mortgage repayments as a result. Read my previous post from 7.12 pm last night. Average to above average houses in average to above average suburbs in Sydney start at $1 million. It matters little if you buy a home to live in or rent out .. YOU still need to repay the damn loan. And loans amounts are HIGH! It's just crazy to expect a landlord to rent out a home cheaply because they feel sorry for tenants. Mortgage repayment obligations along with rates and repairs etc need to be met. Rising interest rates don't help this situation either. But the real issue (as I see it) is that the cost of a home is bloody high to begin with.

Lisa, yes yes !! Greedy landlords are trying to mitigate their risk by offloading their financial burden onto the tenant as much as they can hence the ripoff rents. Nobody ask greedy landlords to buy homes and rent them out. Why don't they piss off and why doesn't the government abolish negative gearing and instead give tax concessions to first home buyers ?? Tenants don't need to be paying off some greedy landlords dump. They should be paying it off for themselves. It's just that the tax system favours hoarders and speculators. Do first homer buyers really need to be competing with that swill ??

It could only happen in australia of course :(

Well Lisa have a look at this. I know you don't like this dude but he does make a lot of sense ;)

http://www.moneymorning.com.au/20110307/urgent-australian-property-update.html

In particular:-


Quote:

But the reason is simple.  The article from News Ltd confirms everything we’d thought.  That auction and house price numbers are being fudged. And it quotes a property expert rare among property experts – a non-spruiker.  Louis Christopher, director of SQM Research told News Ltd: “We are having a very high percentage of auction campaigns going unreported to the reporting bodies, and we strongly believe those unreported auctions are actually failed campaigns.” And it’s not just Mr. Christopher saying it.  The article also quotes Damian Cooley from “Sydney’s largest independent auction house” Cooley Auctions. He said: “In the vast majority of cases, the results that don’t get reported were either withdrawn or passed in, and the agents don’t want those results reported the next day. “Ours [auction clearance rate] is 100 per cent accurate as we represented 12.2 per cent of the market on that day, so I find it hard to believe there’s a 14 per cent difference across the market.” Mr. Cooley was referring to the Australian Property Monitors’ clearance rate of 65 per cent for the weekend before last.  Cooley Auctions had just a 51 per cent clearance rate. In other words, it doesn’t make sense that there would be such a large discrepancy between the clearance numbers. And it’s not just in Sydney where there’s rampant under-reporting. Last week Domain.com.au ran an article titled, “Results good but not great”  The article rounded off with, “There are 975 auctions scheduled next weekend.” Remember that number.  Because this week the Real Estate Institute of Victoria announced the past weekend’s auction results: “This weekend looks like a carbon copy of last with a total of 565 homes from the 852 auctions selling resulting in a clearance rate of 66 per cent compared to last weekends 65 per cent.” No mention of what happened to the other 123 scheduled auctions.  Our tip is they were cancelled, passed in, or sold below the advertised price. But whatever the outcome, the real estate agents don’t want to reveal the results.  And it’s possible the real clearance rate is closer to 58%.  That’s a big difference. It shows you the extent the spruikers will go to hide what’s really happening to house prices. Even now, CommSec’s economists are claiming Australia’s house prices are going up: “It is important to highlight that while the housing sector is cooling it is not about to collapse in a heap.  Overall CommSec expects house prices to consolidate over the next few months, but for the year as a whole we would expect prices to lift by 5 per cent.” It’s almost embarrassing to see them still carrying on.  Too late dudes, prices are down and heading further south. But still the property gurus want you to think it’s still a good time to buy. Look, I’ll take anecdotal evidence and real stories from people trying to sell their houses, plus what I can see happening in the market, over anything some dodgy house price index tells me. A few months ago I warned you the housing bubble had already started to burst.  It was just that the dodgy indices hadn’t shown it yet. At that time the spruikers were still claiming house prices were rising and that we’d see “normal” growth of between 5-10% this year – CommSec are still flogging that horse. As usual, they and the mainstream press were lagging what was really happening. The fact is, while the spruikers keep trying to talk-up Aussie house prices, prices have already fallen.  All the myths given by spruikers to justify why Aussie house prices can’t fall are proving to be no more truthful than [look away kids] unicorns and fairies. Expect the Aussie housing market to get much, much worse before it improves.

Hi Lisa & Nail,
The high mortgages are ok if you're a lawyer on $350 an hour but for mere mortals
it represents a hell of a lot of money to come up with every month.