Fast LaneMember@fast-laneJoin Date: 2004Post Count: 527
Hey Dom, I got in first last time and I’m doing it again. I’m still of the same opinion, the market I believe is going to take a turn that will considerably favour the investors who know what they’re doing.
Property will retreat back into the shadows until it winds up again ready for another boom, say about 2011!? [wink]TorachanMember@torachanJoin Date: 2004Post Count: 68
Pear Shaped. US is experiencing it’s death throws. They owe far far to much and have sold off their manufacturing ability so that everyone can wash each others car.
Australia is in dire strife from …. well to much “investment” in property. Not going to argue the case now but suffice it to say a widescreen plasma isn’t edible.
Two words to send a shiver down economists spine “PEAK OIL” What do you think W is doing in Iraq?
Today tonight et al will have many more “hard luck” stories regarding debt, housing etc
Howard will resign
Financial strife will increase along with Divorce and suicide and child abuse
The millstone that is a mortgage will get awfully heavy.
Meanwhile I’ll kick back and enjoy being debt free. Might even be a bit of a “vulture” and pick up a house to live in from an “investor”surreyhughes19905Member@surreyhughes19905Join Date: 2003Post Count: 204
No worries Torachan! [biggrin] You can pick up one of my houses in five years time when the massive burden of debt begins to tear my life apart and all I’ll have to console myself is my millions of dollars and loving wife and business partner. [cigar]
Times are always harder now than they were in the past. We are all living in our golden years and tomorrow will bring higher prices. This is an inevitability. What counts is that you understand this and plan for it.
House prices will generally keep abreast of inflation and hot spots will shift about like weather patterns where high pressure systems blow into low with storm fronts in between. As new cheaper land is opened up on the fringes, older established land once on the fringe will become more central and more desireable. Residential zoning will change and the now older properties will be seen as large ones, just waiting for subdivision or a block of apartments.
In the short term interest rates will rise before they fall again. Will this mean house prices rise? Well it’s a complex system; Higher house prices = fewer new buyers = more renters = fewer houses avaialable to rent = rent rise = houses are more valuable = new land and houses on the fringe are built + inner city apartments = stagnant or dropping rent and so on.
Regardless what macro economic changes occur in the next 5 years the key is and has always been to look at the detail. I don’t buy a house “in” Australia, I buy a house in a particular street in a particular suburb in a particular community and provide it for a particular market. I think it more valuable to look at that level when investing. Broad property booms (like has without a doubt occured) help no doubt, but none-the-less and investor makes money and that is why there are rich people and poor people in the world (and why poor people can become rich and vice versa).
Anyway I’m just rambling [cap]AUSPROPParticipant@auspropJoin Date: 2003Post Count: 953MiniMogulParticipant@minimogulJoin Date: 2002Post Count: 1,414
surreyhughes, I salute you for your most excellent sense and catchy turn of phrase