Forecaster tips house price rise of 40 per cent in five years

[wylie]

For me the question is - if they don't have any savings for deposit and costs, why would anybody be looking at buying their first home at $450K?

It comes back to buying within their means, and if that means buying in the sticks, then do so. Gosh, they don't have to live in the sticks. Buy it and rent it out while renting where they want.

 

[DavidMc]

Then we have a massive economic problem as we can not pay for the housing we have - as I keep saying, SOMEBODY has to pay for the house regardless of who is living in it.

Maybe the same people who pay for the houses in Switzerland will pay for ours?

http://www.somersoft.com/forums/showthread.php?t=39477

 

[yieldmatters]

Maybe the same people who pay for the houses in Switzerland will pay for ours?

http://www.somersoft.com/forums/showthread.php?t=39477

Ah - missed that thread. Must have been busy back then.

What are the yields in Switzerland? I expect they must be close to if not equal to the interest rate over there - which would mean the renter is paying for the houses.

 

[rambada]

Ummm.........

Isn't 40% in 5 yrs 7% pa compounded? And with inflation at 3-4%, 7% pa is very realistic without any 'event' or stimulus. Therefore 40% over 5 years is really not that ludicrous at all.

 

[DavidMc]

So I don't hijack the thread, I've posted the yields, mortgage rates and some thoughts in the original thread.

http://www.somersoft.com/forums/showthread.php?p=395189#post395189

Worth a look!

 

[quoll]

Well done YM

I'm happy that YM keeps posting, it's good to have discussion and other points of view.

I thought we would have a period of no price increase for housing but I've been wrong for the last 2 years. With large enough quantities of imigrants coming into Oz that do have the cash to purchase houses at the current prices. It seems like the prices will continue to increase.

I just hope inflation increases and then my real worth of my debt will be reduced.

Cheers
Graeme

 

[yieldmatters]

I'm happy that YM keeps posting, it's good to have discussion and other points of view.

I thought we would have a period of no price increase for housing but I've been wrong for the last 2 years. With large enough quantities of imigrants coming into Oz that do have the cash to purchase houses at the current prices. It seems like the prices will continue to increase.

I just hope inflation increases and then my real worth of my debt will be reduced.

Cheers
Graeme

Thanks. I've been wrong the last 3 years so ahead of you there.