fact not fantasy
1987 stock market crash, and by a lack of supply caused by the temporary removal of negative gearing, and the subsequent burst of activity when it was reinstated in September 1987.
again, links anyone?
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fact not fantasy
1987 stock market crash, and by a lack of supply caused by the temporary removal of negative gearing, and the subsequent burst of activity when it was reinstated in September 1987.
fact not fantasy
1987 stock market crash, and by a lack of supply caused by the temporary removal of negative gearing, and the subsequent burst of activity when it was reinstated in September 1987.
Australia experienced a sharp run-up in housing prices in the late 1980s following a seven-year period of relatively flat growth. In line with inflation, house prices grew at around 8 per cent per annum in nominal terms in the seven years prior to 1987, before increasing sharply by 56 per cent over the following two years to June 1989.
again, links anyone?
I've already shared it.
They have property that they bought when prices were affordable, for example, when they were and APS3 they bought their current home.
If you're up for it, http://wwwdocs.fce.unsw.edu.au/fce/Research/ResearchMicrosites/CAER/WorkingPaperSeries/WPS0610.pdf on page 25 onwards of a 34 page document, clearly shows Sydney capital growth during the period from just prior to 1987 and for the next 18 months as having 11% to 8% CG per quarter.
There is every chance that we're so exposed to debt that the government is doing everything they can do prop up the housing market. The RBA is approaching with caution, to deflate this thing, without letting it get any worse. This won't just be a housing market fall, this will be the entire economy falling over. It might even be too late.
The returns touted on here are rather scary, quotes from that aussie home loans guy indicate that housing should rise 5% per year to give you a good long term gain. The higher the fluctatuins, the higher the downward swings.
I take it, that Lizzies comment was a gross exageration so I'll ignore so we can get back to the main topic.
Puhleaase!
Any evidence to back up that fantasy?
I've already shared it.
They have property that they bought when prices were affordable, for example, when they were and APS3 they bought their current home.
A single property in a decent area will almost always outperform the market average.
Don't give our secrets away to the Trolls please!
Oh...alright; they won't do anything with the info anyway, and we need to help out the real folk who are new and will have a crack.
@Beebop, you wanted my survey of suburb affordability to be more comprehensive. Below are ALL postcodes in the ACT listed along with "% of Mortgage Repayments to Total Household Income Before Tax", the figures are forecast to 2011 from census data (from Here).
It seems to me that people in all of these suburbs except one are living within their means according to the acceptable standard of affordability which I believe is upto 30% of income spent on housing. Or am I missing something? Just how should i be looking at affordability in the ACT in order for it look expensive?
•2600 21%
•2601 16%
•2602 21%
•2603 19%
•2604 20%
•2605 18%
•2606 19%
•2607 19%
•2609 33%
•2611 20%
•2612 19%
•2614 19%
•2615 21%
•2617 18%
•2900 16%
•2902 17%
•2903 18%
•2904 16%
•2905 18%
•2906 19%
•2912 19%
•2913 19%
•2914 19%
And who is better of a mere 8 years later?
Property Bubble: Panel Discussion, Business Show SBS, 2002
Property was so unaffordable then that the reserve bank warned they would raise rates and people would lose their shirts, sound familiar?
Whoa-hoho, what about this doozey...
The Economist: House of cards, May 29th 2003
What's the conclussion, were they wrong or just 5 years too early in the case of the U.S. and 7 years and waiting in the case of Australia? In the space of seven years quite a few people here have made their fortune and banked it. I'm surprised that article is still online actually, perhaps they left it as a warning to those of us enclined to believing...
Actually, I think you will. But just not yet. You'll need to spend the next 5-8 years getting stuck in and building equity in some other way so you can catch the market when it starts to boom again. We all get a chance or two to do this, it's just important to know where we are in the cycle.
Of course, the current boom was bigger than others, but that doesn't mean property is doomed for all time. In fact, over the next 5-8 years will be a great time to start looking around and learning how to get real value from real estate assets when it's not simply up, up and more up.
As someone else pointed, out the more experienced property investors eher know this, and are already planning and executing their short to medium term strategies.
a major problem is that the current first home buyers are wanting to buy the quality of house that their parents bought as their 3rd or 4th upgrade house - not their 1st.
That is simply not true.
You may be too young to remember? but the Hawke-Keating government tried that with the consequence that investors left the market, rents went through the roof and hurt their voter base. It was shortly thereafter re-instated and back-dated.Negative gearing should be removed
On the contracry, PIs provide accommodation to renters at vastly subsidised rates. The goverment has proven that it cannot build enough housing and get enough return from it to efficiently to take care of the demand. Hence, neg. gearing and the NAHA.Property investors have done ENORMOUS damage to this country which could take decades to repair.
...a major problem is that the current first home buyers are wanting to buy the quality of house that their parents bought as their 3rd or 4th upgrade house - not their 1st.