Originally posted by Marisa:
Hi Foundation, as far as comparing wages – Melbourne versus Perth etc. etc. , I am really not interested.
You can analysis it to death and nothing wrong with that, but it aint gonna change a dam thing over here.
So do you believe that:
a) Wage rises are not the primary driver of property prices over the long term (if…[Read more]

Originally posted by Marisa:
I am not sure whether we need to be too concerned about median price of Melbourne etc., I think its irrelevant in terms of Perth market.
I’m not so sure about this. The average wage in Perth is still well behind Melbourne, despite rising 8.4 percent during 2005 (Melbourne around 6%).

I am only interested in what is…[Read more]

Originally posted by Forklift:
My question is: To “rein in” or “put a halt” to rising inflation, why is it only, or mostly, the mortgagees that are forced to ‘foot the bill’? Surely there must be other ways of stopping the rise of, or bringing back down, the inflation rate without always making what I can only guess is approx. 50% of the…[Read more]

… and NSW prices appear to have passed their low point and are on the up again! See attached graph:
Linked Here
Oh, no they’re not. The rate of price falls is just starting to accelerate!
Cheers, F.[cowboy2]

A few more:
Q: What’s yellow and smells like bananas?
A: Monkey vomit!

Q: What did the zero say to the eight?
A: Nice belt!

Q: How do you catch a rare bird?
A: U-nique up on it…

F.[cowboy2]

^ = “to the power of”

x^2 = x * x = x squared
x^3 = x * x * x = x cubed
x^y is found on the windows calculator, or you can just use the notation I originally posted if you have Excel, MS Works or OpenOffice.

Cheers, F.[cowboy2]

Originally posted by Nigel Kibel:
The problem with many people on this forum is they forget what it is like to be inexperienced.
Hmm, nope, I remember being naive, gullible and losing money to scams… never to the tune of $1000+ per day though!
F.[cowboy2]

… that’s an interesting way to look at the housing finance figures. It’s totally different to my view though – I may have time to explain later. Remember though, interest rates are a blunt tool to control various forms of inflation, none of which include house prices in their basket. I’d look to oil prices etc before I looked at housing…[Read more]

You’re welcome! Save yourself the price of the book – the quote I got was directly from http://www.Wikipedia.org (my bad for not referencing it), which is just one of many great net resources I use almost every day. Saves me having to think, you see!

Cheers, F.[cowboy2]

Compound annual growth rate (CAGR) is one method of assessing the average growth of a value over time. To calculate CAGR, one must solve the equation:

E = B(1 + r)^T

where E denotes ending value, B denotes beginning value, and T denotes the time passed in years. The value of r that solves the equation is the percentage annual growth rate.

Using…[Read more]

Ah yes, the power of compound interest…

Yes, if an asset returns a greater rate of capital growth than the interest rate on borrowings, of course you’re going to be best off to leverage yourself to the gills to get as much of that asset as you can.

Good luck with that then, a capital idea. I’m well put in my place!

F.[cowboy2]

Nats,
I understand your point, but would suggest that:
a) This only applies to the very few house buyers to whom repayments on the cheapest house are stretching their ability to live comfortably (and these people really would be better off in almost all scenarios – particularly at the tail end of a boom – renting and saving the difference between…[Read more]

Originally posted by mcubed:
It is just funny when people say that put ‘extra’ repayments in there.
I mean all I have is my wage so what do they mean by extra repayments? apart from getting money from shares, family, lotto (how lucky is that!) do they mean, after paying the minimum one week they may decided to live offf baked beans for a week and…[Read more]

Sorry Mr Qlds, I was just kidding… should’ve used a [biggrin] or 3! I agree with property WA – don’t pay for software and data feeds (available free)/ systems (free and or bogus) /seminars etc.
The suggestion that actual trading is better than paper trading is based on experience. Paper trading can be useful, but it does not expose you to the…[Read more]

No need for papertrading – just get yourself an online service such as E*Trade, chuck a few grand in and make a few small trades – see how it works, feels and get to know how you react to the contrasting forces of fear/greed/gut/advice etc. I guarantee, it won’t be what you expect. Be sure to use conditional orders to limit your inevitable losses…[Read more]

Originally posted by troynbec:
The owner is looking for $390,000.

We believe <snip> we could sell both properties for $350,000 each.

What have I missed that is so obvious???
If you were looking to purchase, and were faced with 3 choices:

– Purchase a 3 bed house on 850m^2 & renovate for a total of $415,000.

or

– Purchase a 2 bed unit on…[Read more]

Originally posted by Don and Liz:
Another question. If we are out of property in years of flat and negative real growth where is our money. What strategies have the forum member adopted. Let’s not get one tracked. Property is not the only investment vehicle.
Well, in answer to that question, my alternative investment vehicles are doing nicely.…[Read more]

Sorry Dazzling, I’ve only got Melbourne residential data from back when I could access ABS for free. Plus some I was sent claimint to be official REIV stuff.

Don & Liz,
There is something very fishy about those numbers. Here’s why:

Year _ API Mag _ ABS Data_ REIV Data
1970 _ 11,800 __ ~12,000 _ ~17,000
1980 _ 40,800 ___ 39,500 __ 55,000
1990…[Read more]

…and a second point on this matter, for those of you who believe that buying at or near the peak of a bubble is irrelevant in the face of “O’Rourke”‘s 12 percent growth factor, here are some facts.
– The Melbourne housing market hit a previous peak in 1990 with a median price of $182k (source REIV). If this value is compounded at 12%pa, current…[Read more]

I can’t be bothered springing for the mag. Anybody help me out with 2 questions?
1) Who is “O’Rourke”?
2) Is there any mention of R. Schiller’s opposing views as a matter of balance? I’m yet to read a more compelling analysis of actual very-long-term price movements and cycles .

And a couple of questions for those who believe that house prices…[Read more]