Costello may help first homebuyers
- Thread starter MarkB
- Start date
People continually refer to the "bust" that is coming. Can people refer to some specific periods and the circumstances / results that are examples of such busts in the past?
How much did property values fall?
How long did the bust last?
What happen to rents, inflation, interest rates etc at these times?
This is not meant to say I don't believe them. Just that my interest in property is relatively new and I'm only a young buck! All of 29 years old. Although the male pattern baldness is coming to get me!
MF
How much did property values fall?
How long did the bust last?
What happen to rents, inflation, interest rates etc at these times?
This is not meant to say I don't believe them. Just that my interest in property is relatively new and I'm only a young buck! All of 29 years old. Although the male pattern baldness is coming to get me!
MF
Read Jan's latest book ...More Wealth etc ... You'll find most of the background info. you seek in it.
In general, the "average" property market does not "go bust." It tends to level out as affordabiltity starts to max. out. (Affordabilty is a function of interest rates, property prices and wages) . The top end (call it prestige) million dollar plus sector goes up the most during the cycle , and then comes down the most. But if you follow Jan's method and stick to "around median" priced IPs the past history (like late 80's/early 90's when interest rates hit 17% etc) shows values tend to flatten. Also selling a property takes longer over this period . Of course, there will always be some who bought too late/paid too much etc who will be at the mercy of the market if they HAVE to sell.
Don't become a forced seller.
Not buying from the Sunday Age feature is possibly a good way to avoid being in that "herd".
LL
In general, the "average" property market does not "go bust." It tends to level out as affordabiltity starts to max. out. (Affordabilty is a function of interest rates, property prices and wages) . The top end (call it prestige) million dollar plus sector goes up the most during the cycle , and then comes down the most. But if you follow Jan's method and stick to "around median" priced IPs the past history (like late 80's/early 90's when interest rates hit 17% etc) shows values tend to flatten. Also selling a property takes longer over this period . Of course, there will always be some who bought too late/paid too much etc who will be at the mercy of the market if they HAVE to sell.
Don't become a forced seller.
Not buying from the Sunday Age feature is possibly a good way to avoid being in that "herd".
LL
An amusing article. It starts by talking about the proportion of peoples wage goes into their home loan (expected to be 30+% in the near future) and then proposes that dropping state taxes is the answer.
I'm all for dropping the taxes on property, but this just means that there's a lower cost of entry into the property market. I fail to understand how this will lower the amount of the average monthly repayment.
It's also amusing that Costello mentions that the GST is one of the contributing factors to the high cost of ownership, but Costello is directly responsible for introducing this tax.
The whole thing sounds like a whole lot of political point scoring retoric to me - similar to Labors negative gearing comments a few weeks ago. I'm starting to think that both sides are full of crap.
It's Monday morning, I just can't help being cynical. I'll be a happier person my Friday. I promise.
I'm all for dropping the taxes on property, but this just means that there's a lower cost of entry into the property market. I fail to understand how this will lower the amount of the average monthly repayment.
It's also amusing that Costello mentions that the GST is one of the contributing factors to the high cost of ownership, but Costello is directly responsible for introducing this tax.
The whole thing sounds like a whole lot of political point scoring retoric to me - similar to Labors negative gearing comments a few weeks ago. I'm starting to think that both sides are full of crap.
It's Monday morning, I just can't help being cynical. I'll be a happier person my Friday. I promise.
Finally, some sense creeping in....
http://finance.news.com.au/common/story_page/0,4057,6862987%5E462,00.html
http://finance.news.com.au/common/story_page/0,4057,6862987%5E462,00.html
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