Search results

If the above link asks you to subscribe then try this link http://www.theaustralian.com.au/business/opinion/the-real-house-price-boom-hasnt-even-begun/story-e6frg9if-1227294832562

Your earlier post stated $200 and not $150.01 but that's ok I'm not here to argue, I just cannot see where the growth will come from, that's all. Maybe Stevens will start his own QE and then CBA could be $300 in 6 months ;)

I couldn't agree more :) However. my post was regarding CBA shares which is off topic but I had to reply to because some people have unrealistic expectations.

Joe I agree the possibility of a lower share price is high. When people today are carrying so much debt it doesn't take much to push them over the edge and our bank's reliance on property is high. They can dance now counting their profits but there is no free lunch, one day they will have...

Ok good luck with that well deserved growth :)

No Cliff, Why buy when it's almost certain that I'll be holding losers and waiting for the next boom to come in 15 or so years... I was looking at coastal properties near Sydney but prices have already moved and rents are low so it doesn't make sense to buy anything now. I'm paying down debt...

Wow, you are brave and can you tell me where the growth will come from to justify the doubling of their share price? Will their growing exposure to overvalued property have any impact? Will the expected crash/correction in overvalued US/multinational shares have any impact do you think?

Good, let's hope it all happens because unemployed people can't pay the mortgage :)

Ok money could come from the share market, however when economic growth is low so are company profits and when profits fall so does the share price. I'd be careful in shifting my money from overvalued shares to overvalued property. Diversification comes to mind.

Actually no it isn't but the point I was making is that and we have to be careful with our purchases because the big influx of investors might not happen and there is job insecurity. As investors we should consider all possibilities and not only listen to what developers are telling us.

How? By cost cutting? IMO now is the time to borrow when money is so cheap so they should be increasing spending and not reducing it. When are they going to borrow? When interest rates are high? If they need more money they should increase taxes. Employed people can pay taxes...

And you do? A reality check is always good. What makes you think that migration will continue in large numbers? Unemployment is going up and as far as I know the boats have stopped coming. Many Engineering and maintenance businesses are light on work right across the east coast. Mining...

If unemployment keeps on going up they'll probably have to reduce the numbers of skilled migrants

The trigger could be before then and it won't be a case of increasing rents. There are currently construction cranes all over Sydney so as those new builds become rentals and PPOR's, there will be pressure on rents and property prices. Couple the oversupply of rentals with lower demand for...

I doubt it, this time we don't have mining boosting the economy. Even NSW is weak and if we didn't have housing construction many of us would be unemployed. I'd hate to think what's going to happen when all the construction finishes in 8 or 12 or so months time and no new developments start...

Good point Ausprop, and there is also the drop in economic activity in other sectors of the economy too. I doubt that unemployed people will be able to get loans plus there is a lot of job insecurity felt all over atm so people won't be looking to add to existing debt. Brisbane is cheaper than...

These are my thoughts as well. I started the process to sell 1 property now and will sell 1 more early next year. My plan is to reduce debt and increase rental yields (I will also build 1 granny flat). Interest rate rises could take a while so a big and sudden crash is unlikely but a correction...

many cranes in 1 area could mean oversupply

depends on the area, it isn't an issue for Sydney for now as the market has been undersupplied for many years but there could be some impact on rents

I can see construction cranes on the horizon again which is nice :) Other than that, Its been a year since I bought in Sydney and I think prices on average are around the same levels. I'm about to have 2 rental vacancies and there is tenant interest so they should rent quickly but my rents...