The story is from a GOLD spruiking website...what do you expect...
Now gold there's one massive bubble!
Rents drop in real terms
- Thread starter listoffallacies
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Now gold there's one massive bubble!
lol what? The story in the OP is from Adelaide Now (News Limited) using RPData for their data source.The story is from a GOLD spruiking website...what do you expect...
P.S. My blog is not a Gold spruiking website
Hobo- I totally get that you think Oz housing is hugely overpriced and that annoys you because you would like to buy a reasonably priced PPOR, not that I necessarily agree with you but fair enough.
But you spend so much time and energy slagging property it really baffles me. Can't you just enjoy some confidence in your conviction i.e. that you have invested your money wisely and we are all paying over the odds for an overvalued and under productive asset, rather than spending time concocting anti-property schemes and trolling property websites trying to solicit responses to inflammatory posts? I can't see the merit in those of us that are more positive about the prospects of property doing the inverse on a bullion forum?
It's like you are a Carlton fan that devotes his time slagging off Collingwood rather than actually getting behind his own team or a guy that buys a Ferrari that would rather join a Lamborghini forum and tell them that they are all idiots rather than go out for a drive!
There are serious pitfalls and opportunity costs associated with an undying devotion to bullion, it is a largely defensive asset that benefits from economic uncertainty, in your own way do you feel a need to (attempt to) artificially influence the market by scare mongering in order to justify or perpetuate your own investment position? If so, I reckon that's pretty sad. Just sit tight and be content with your own decisions, it should be enough.
In the end, I believe property investors, share investors and bullion investors (and those that diversify in all or a combination of them) will all be significantly better off than 'normal people' or 'non investors/spenders', history will tell us who wins the most but winning at all is a good enough outcome for most of us.
harharharharhar - what on earth does investing in bullion have to do with house prices?
i invest heavily - currently - in both.
i invest heavily - currently - in both.
Concocting anti-property schemes and trolling? lol
I enjoy the discussion, having my position challenged on a forum predominantly populated by those with a different view means that I have data, examples and ideas thrown at me that I might otherwise miss if I stuck to forums where users had a similar view to my own. Helps me think critically about my own position/views/data.
That and I think the discussions on this forum around investing are top notch. Lots of great minds here, have not seen equivalent on any other Australian forum.
If you don't enjoy such discussions then you could always just avoid the "Property Market Economics" subforum, I don't spread the "gloom" any further in general, either that or you could put me on ignore
I enjoy the discussion, having my position challenged on a forum predominantly populated by those with a different view means that I have data, examples and ideas thrown at me that I might otherwise miss if I stuck to forums where users had a similar view to my own. Helps me think critically about my own position/views/data.
That and I think the discussions on this forum around investing are top notch. Lots of great minds here, have not seen equivalent on any other Australian forum.
If you don't enjoy such discussions then you could always just avoid the "Property Market Economics" subforum, I don't spread the "gloom" any further in general, either that or you could put me on ignore
If as indicated by the evidence, the general rental market is trending down, then any any ups are presumably outweighed by some worse downs.
Although this may be hard to believe, particularly in Sydney, it is important that it registers.
Rentals in my area have been trending down for some time, as have resale values. The EA's are now in general quite open about this, and need to be to get stuff shifted. One of their catch phrases seems to be, "you won't get the type of prices you got three years ago", which was apparently the top of the market.
I have watched a lot of rentals languish on the market, that I know turned down offers. To me this is idiocy, I know how long it would take me to recoup a few of void months at $50 a week. On a rental 0f $2000 a month it would take nearly a year to recoup each months void, and get back to square.
Though most properties seem to move reasonably well, some properties around me have been on the market for at least three months. Rentals are being quietly reduced in many instances. My wife tends to monitor these things more than me.
Concocting anti-property schemes and trolling? lol
I enjoy the discussion, having my position challenged on a forum predominantly populated by those with a different view means that I have data, examples and ideas thrown at me that I might otherwise miss if I stuck to forums where users had a similar view to my own. Helps me think critically about my own position/views/data.
That and I think the discussions on this forum around investing are top notch. Lots of great minds here, have not seen equivalent on any other Australian forum.
If you don't enjoy such discussions then you could always just avoid the "Property Market Economics" subforum, I don't spread the "gloom" any further in general, either that or you could put me on ignore
Fair enough, I didn't say I that I don't enjoy the discussion, I am just trying to determine your motivation. Your attempt to harness the sentiments of FHB's via your 'Get Up' petition based on an apparent injustice of inflated house prices just seemed a little disingenuous given that you are apparently doing quite well in your chosen asset class/classes. Nevertheless, I hope it all works out for you, as I said I reckon we'll all win in the end. Some will win more than others.
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Yep it's called diversification and risk management- I am sure you invest in shares as well.
To suggest that there is no correlation between the performance of a risk averse, highly liquid investment class (i.e. bullion) and a usually geared, illiquid investment with significant transaction costs involved (i.e. investment property) is interesting, completely incorrect but interesting nonetheless.
I believe gold will decrease 40% in the next year as 15%pa capitilised growth over 10 years is not fair as it should be at a more affordable level.
Exactly, it always amaze me why no one demands for a "fair" price on gold, shares, currency etc... and its somehow unfair for FHBs that can't buy the place they wanted in the location they wanted
Concocting anti-property schemes and trolling? lol
I enjoy the discussion, having my position challenged on a forum predominantly populated by those with a different view means that I have data, examples and ideas thrown at me that I might otherwise miss if I stuck to forums where users had a similar view to my own. Helps me think critically about my own position/views/data.
That and I think the discussions on this forum around investing are top notch. Lots of great minds here, have not seen equivalent on any other Australian forum.
If you don't enjoy such discussions then you could always just avoid the "Property Market Economics" subforum, I don't spread the "gloom" any further in general, either that or you could put me on ignore
At the risk of raising the ire of other members here, I personally hope you stick around. I quite like have you here to balance out the views and challenge the statements made by others, including myself.
Hobo, just curious...do you share Aaron's view that there is no relationship between a property crash and gold prices? I am still perplexed that he finds it so amusing...
I don't think that gold has the same utility as housing, aka shelter.
If one could buy gold at a more reasonable price what would most of us do with it anyway? Lock it away and get it out to look at occassionaly. Fondle it. Lock it up again.
Unlike a house that you or someone actually needs to live in and if is unattainable at a fair price causes people hardship.
Another thing that people actually require and may demand fair priceing on is sustenance. There has been quite a lot of social unrest around the world recently sparked by food shortages and associated high prices. Epitomised what has happened in North Africa.
I wouldn't say they have a direct relationship, however there are certainly scenarios where house prices falling could be a symptom of the same environment that sees Gold prices (locally) rise.
For example if we were to see a situation where the US Fed were to turn off the liquidity tap (e.g. halt/reduce QE to reign in deficit spending), this could cause a heavy deflation shock to asset prices, commodities could fall heavily, our AUD would fall against the USD, which could result in another period like 2008 where our banks have funding problems. At the moment house prices are falling gradually (in many areas) along with a slow fall in credit demand, a liquidity/funding issue could lead to a sharp drop in mortgage funding and you have your crashing house prices while Gold in AUD rises on the back of the fall in it's value against USD.
That is just one possible scenario (I am far from an economist, so take the above with a grain of salt). Another is that we see inflation/money printing continue and we see stagflation (which if I recall is what I recently saw Aaron saying he expects). During the 1970s we had both Gold and house prices rising in Australia, except housing rose less than inflation so was falling in real terms while Gold rose more strongly and saw real gains.
Hopefully that goes someway to answering your question.
i agree i am going on a gold buying strike strike until gold price and average wage ratio is back to 1923 levels, it is unfair that i can't get a nice gold chain with a big gold medallion to swing under it without being a slave debt for 30 years and have to move out of south yarra.
these greedy gold hoarders have bought it all and have far more than they can ever personally use!!
So is the food you eat ,the power you burn, the cars you buy, the consumer goods you buy.....are you complaining about these items on any forums Beepop....?
They are necessities also and they are driven by markets that succumb to supply & demand just like anything else you care to whinge about.
Get on with it, stop finding the negs and have a go FFS....!!!
So is the food you eat ,the power you burn, the cars you buy, the consumer goods you buy.....are you complaining about these items on any forums Beepop....?
They are necessities also and they are driven by markets that succumb to supply & demand just like anything else you care to whinge about.
Get on with it, stop finding the negs and have a go FFS....!!!
I don't think you really know what you are talking about. Sorry.
I'm gonna have a field day with this thread when I'm off the iPad......
