What do you guys think about this? Abit worrying since I am about to purchase my first home…
http://www.theage.com.au/news/national/house-prices-world-highest/2005/11/30/1133311106610.html#
This same topic has been raised in the General Property section under “Doom and Gloom for OECD report” https://www.propertyinvesting.com/forum/topic/21115.html?SearchTerms=Doom+and+gloom+from+OECD+report+
Mal
Getting out of your comfort zone, can help you become comfortable
Originally posted by kingdavid:What do you guys think about this? Abit worrying since I am about to purchase my first home…
http://www.theage.com.au/news/national/house-prices-world-highest/2005/11/30/1133311106610.html#
Mate you are showingthye classic signs of the ‘sheep’ metality that unfortunately most people have. Wasnt that long ago everyone was saying ‘buy property, better get in quick blah blah blah’ now they are saying ‘quick get out before it crashes’. Makes me realise more and more all these ‘experts’ are full of carp and we are all just puppets in the grand scheme of things.
The am seriously begining to believe the ultra rich are controlling us all-they drum up a media frezy getting everyone to buy. They make their fortunes of all the mindless masses, then when they are ready to pull the reigns in they start sproughting the opposite hype to sell, hence driving down propoerty prices, allowing them to buy back in cheap..and start the process over.
Thoughts??
so eloquently spoken young man,
but you do really envisage an conspiracy theory,
or are you merely narrow-minded to the advice provide by proficient professionals that have, for some considerable time now, being informing the populace of the eminent failure for the property market to maintain momentum, thereby causing anguish to the adolescent investorjust my little bit
harry
I didnt need anyone advice to tell me that the property market was over inflated-blind Freddy could have worked that one out. But I dont think is is the worst in the Western world-that is total hype. Seriously, something is worth whatever someone is willing to pay. Now without any other factors to reduce the price (interest rates/over supply) there is no need for prices to come back much-maybe 5-10% max. But maybe this isnt enough for the ‘money men’ and they have to spruce up the hype?? Just a thought….I know if I was in a position of wealth/power/media influence then thats exactly what I would be doing!!!
Nah, I think you’ll find Mr blogs that the people with that sort of wealth / power that you are describing do not invest in the things that you are looking at.
Reducing the price somehow of the “assets” that you are capable of, and interested in buying doesn’t – in general – interest them one bit.
It’s a simple case of affordability as John Fitzgerald says:
1. Take the median house price and work out the monthly mortgage repayments based on an average 30 year loan.
2. Now take the median household income for the area.
3. Divide 1 by 2 and multiply by 100.If the % arrived at is above 35% then there is going to be a lot of people hurting out there. Which there are, as from memory if you did this in Sydney, or Melbourne you would arrive at a figure well over 40%!!
So 1 of 3 things can happen to improve affordability:
1. Wages must rise dramatically – not likely under the new IR framework.
2. Interest rates will fall – I would be putting my money on them rising.
3. House prices fall.Looking at it logically option 3 seems to be the only prospect (in most markets) for the not to distant future.
Are there areas that will rise still – sure, but the majority of areas will fall back so that affordability improves and more buyers can enter the market again.
Just my 2c worth anyway.
Life is like a box of chocolates – you never know what you’re going to get!
“1. Wages must rise dramatically – not likely under the new IR framework.”
On an individual level maybe not, but on an aggregate basis yes. As employers are less scared to put staff on and productivity rises and taxpayers stop funding so many doleys then it follows there will be more money chasing housing.
Not that I really believe the whole issue will impact the housing market.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Its a conspiracy.. it is.. i swear it. Its got nothing to do with demand, affordability, world banks or all that cr#p…..
Its Elvis. Always was, always will be….And its that much worse now that James Doohan from Star Trek up there with him.
Its bad news man… with the King pullin the strings, if you don’t do whats expected, ol’ Scotty just beams your ass on outa there.
I’ve proof…. would i lie to you?? [cool2]
Cabo Wabo
You must be logged in to reply to this topic. If you don't have an account, you can register here.
