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  1. W

    Confidence in Australian Housing Market

    I'm looking for evidence to support this assertion ''because house prices doubled in a period of around 12-18mths after the end of the 1987 stock market crash.'' I can see one quarter where there was 11% CG. Pretty big I agree, but this does not equate to doubling in 6 quarters even if that...
  2. W

    Confidence in Australian Housing Market

    again, links anyone?
  3. W

    Confidence in Australian Housing Market

    Puhleaase! Any evidence to back up that fantasy?
  4. W

    Confidence in Australian Housing Market

    I don't consider the late 80's was a bubble. Why would anyone? (Hint: compare the 80's real annual price gains with those from the last 10 years.)
  5. W

    Confidence in Australian Housing Market

    uh, you might want to look particularly at property bubbles popping. Most actually do take years to unwind. This makes sense when you think about it. The speed of decline also depends on how much govts are willing to stop it from crashing too quickly. There are plenty of things they can do...
  6. W

    Confidence in Australian Housing Market

    This reminds me of something that happened to me in 2008. One of my younger colleagues who was a relative newbie to investing said I was mad not to be heavily geared into the sharemarket as I could multiply my gains using leverage. ''Didn't I know that the market returns about 10% a year...
  7. W

    Confidence in Australian Housing Market

    sure, its all good if you can get something close to cash flow neutral. What I'm talking about is these places that may be earning 5% gross yields, which realistically gives you 3% net - if its mostly debt funded, you need another 8% per annum growth just to keep up with inflation. That is...
  8. W

    Confidence in Australian Housing Market

    Property will always a good investment if it increases by 2x inflation rate. For this to happen indefinitely is impossible. There is a small number of people here who believe it can. That is their prerogative and there is not much point trying to dissuade someone from an entrenched...
  9. W

    Confidence in Australian Housing Market

    Not too sure what your point is?? I said a young person won't be able to have much of a life by buying NOW. You bought 7 years ago which was obviously a good time to buy and allowed you to do other things, just as I have been able to have plenty of overseas holidays by buying at the right time...
  10. W

    Confidence in Australian Housing Market

    Absolutely. I did it all. Travelled heaps, went out with friends, bought nice toys. I maintained a good balance between enjoying life and ensuring I had financial security. You can have a good time and still save 20% of your income with only small inconsequential sacrifices. A 20-35 year...
  11. W

    Confidence in Australian Housing Market

    This is not even close to replicating what I was lucky to be able to do. Your son will still have the same mortgage in 10 years. Even adjusted for inflation, this will still be a large sum of money, and looks like he is paying more than half his salary to do it. I would not recommend this...
  12. W

    Confidence in Australian Housing Market

    I can actually see Beebops point to an extent. a bit over 15 year ago, I found it was quite easy to buy a house. I bought my first PPOR in inner city Brisbane for 95K. I had an income of 30K and approx 20K deposit. By living frugally I had the house paid off in 6 years. Its now valued...
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