A bob each way

[Pete_d]

Another Day another set of conflicting stories.


House prices are a bubble waiting to burst
ARE house prices going to crash in Australia as has occurred in the US? Based on West Sydney University economics professor Steve Keen's regular Debtwatch newsletter, the answer is probably yes.

http://www.theage.com.au/opinion/ho...e-waiting-to-burst-20080730-3ncu.html?page=-1

Building approvals plummet
RENTS are expected to jump another 10% this year after building approvals fell to their lowest since the end of 2006.

http://business.theage.com.au/business/building-approvals-plummet-20080730-3nf1.html

 

[Player]

I wonder where Kenneth Davidson puts his money. Everything seems like speculation to him.......the greater fool theory.

I'm still raising my rents (and not to the degree that I could as I have long standing tenants whom I wish to continue leasing). It's now catch up time. Up until 12-18 months ago, rents for residential property were largely stagnant for a number of years. The balance will be restored and as there is a supply issue for accomodation, perhaps we should invest in Rays Tent City to cater for the demand.

I wonder if the sales of granny flats has been enhanced by the current climate. Might be worth sticking a couple in IP's with unused back yards.

 

[Player]

Oh, I just saw this posted .....that answers my last point

http://www.somersoft.com/forums/showthread.php?t=44132

 

[boomtown]

I wouldnt hire Kenneth as an accountant - he doesn't seem to realise that the Net Present Value of future income streams attached to an asset form part of its present valuation.

 

[tubs]

Kenneth Davidson (a well known RE doom and gloomer) has written an article based on the writings of Steven Keen (well known ACADEMIC doom and gloomer) suggesting RE is going to crash (I seem to remember him writing this before as well) quoting no facts or figures.

I guess its just as well this piece was filed under OPINION.

 

[brickbuybrick]

Phew!

Its articles like this that really make you think.

If my ip's are made out of building materials like bricks and timber, paint etc. will they burst if prices go down? Can i insure against bursting? To be safe should all
detergents and bubble making agents be removed or stored in a strong box or equivalent? Im worried about the future and wether the smart money is in bubbles right now.

My apologies but that was fun for me