It is all about being vindicated, proven right, self assurance and the opportunity to turn around and tell everyone "I told you so.."
I feel sorry for your state of mind HG.
Perth house prices drop 30k
- Thread starter HiredGoon
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It is all about being vindicated, proven right, self assurance and the opportunity to turn around and tell everyone "I told you so.."
I feel sorry for your state of mind HG.
I bought this house not too long ago, it yields 0% and I pay 8.7% loan for it! I can't even negatively gear my loses either! I know, I'm a bit crazy but so are many people too.
HG. . Youre at it again. . how can anyone possibly be so negative! Sound like my ex girlfriend.
Yeah, HG. We're all still waiting for this 40% crash.
Doesn't take a genius to point out that property moves in cycles. There'll be another 6 cycles before I'm dead too, so what.
Now if you could tell us WHEN, that would be cool. Maybe we should make a long bet? That would be good for a laugh and a bit more gentlemanly like than all this forum wars.
I wouldn't; that's why I wouldn't buy where those figures exist.
But, I have a property in W.A that is worth $220k (Bank Val 3 weeks ago), rents for $270 per week and the area is still going up.
Would you like to buy it if it were for sale HG?
Oh, and if the value were to tank by 30% tomorrow, I'm still ahead as I paid $105k for it, and the tenant will still be paying $270.
You are becoming very tiresome now.
Go away.
Because you only seem to work like a broken record... i'll do the same:
It sounds like you are trying to paint a Renoir with a rolling pin.
Australia is a bloody big place, and there is no "all encompasing" universal property market. Stop trying to paint the whole country with the same negativity brush.
And finally, I'd like to leave you with this thought:
Family Guy said:
Hmmm... wonder what would have happened if I had called everybody on GHPC a fool...
Yet rental vacancy rates are at historic lows and house prices are very high and refusing to crash. Looks like a shortage, smells like a shortage...
In some places, yes. The Sydney median house price is still down 12% in real terms from the 2003 peak. House prices do fall. But not everywhere, and not all at the same time. The ABS statistics show that overall, across Australia, the median house price is still rising.
Sounds like you're a prophet now HG? This is really just wishful thinking on your part. There is still plenty of free and easy credit available. More expensive credit, yes, but those who can afford it can still get 100% loans.
The whole stock market is falling, not just financials. What are you invested in at the moment? Oh yes, the stock market...
You haven't proven to be correct. I notice you have not responded to my post above where I showed that the Perth median house price has not actually fallen as you claimed. Hard to argue with the stats, right?
Sounds like your ASX gamblevestment strategy...
Does this remind anyone else of the ASX coverage on theage.com.au and news.com.au everyday when the market opens 0.17% down it is a "Market Tanking!!!!!"?
HG, you signed up in Aug 07 year? Gee - lucky you didnt invest in Frankston or Melton over here because apparently the market in Australia is tanking all over the place!
HG, you signed up in Aug 07 year? Gee - lucky you didnt invest in Frankston or Melton over here because apparently the market in Australia is tanking all over the place!
isn't this just called "dollar cost averaging"?
why not try to pick the bottom on the way down, down, down just like people do with their share portfolios? imagine that! what a revolutionary way of thinking...
I am dollar cost averaging into the share market, and I intend to keep doing so.
However - I buy my shares with cash. Some have lost money. If I had bought on margin, I might have lost more than my original investment and the losses and servicing costs would have eaten into my cash flow restricting my ability to buy more shares when prices went down.
Most houses are negatively geared and most people buy houses using debt, and thus after a house they bought falls in price - would be out of equity and hit their limit of debt servicing ability.
However - I buy my shares with cash. Some have lost money. If I had bought on margin, I might have lost more than my original investment and the losses and servicing costs would have eaten into my cash flow restricting my ability to buy more shares when prices went down.
Most houses are negatively geared and most people buy houses using debt, and thus after a house they bought falls in price - would be out of equity and hit their limit of debt servicing ability.
That is one way of looking at it.
You rent in Adelaide where 18 months ago you could have bought an average house for about $80k less than you can now. Have you managed to save $80k out of your wage during that time?
Of course you haven't - you just got it totally wrong. Is that why you are so bitter? Or is the missus, who you admitted wanted to buy a while back, giving you hassle.
You'll no doubt reply that Adelaide houses are going to crash and you'll pick one up for less than you could have got it for when you first considerd buying - 3 years ago was it? Those falling shares are not helping are they.
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I highly doubt that.
Hi HG,
"Most" houses (approx 70% if you believe stats) are bought as a "home" rather than as a conscious investment, so saying that most houses are negatively geared, aint quite right is it?
Cheers,
Ah, now it's all clear. I didn't know the whole story. Commiserations HG.
Conversation in HG's house:
The missus: I told you we should have bought a house last year, but oh no, you said 'Trust me Honey, house prices are going to crash'. Well, they haven't, have they?
HG: But they will. Soon. Promise. Every single house in Australia. Pick one. Any one. In a couple of months the owners will be begging us to buy for half what it's worth now.
The missus: Says who? Those sad tossers on that house crash internet forum thing? I would rather you surfed porn sites. At least you'd be less gloomy. Just as well you bought those shares. Thank goodness we're making a fortune on them. How are we going with the shares Darl? You there Darl?
Sound effect: Sound of a door shutting and footsteps running fast down the road into the distance.
We were discussing people multiple properties during a downturn. What I mean by "most houses are negatively geared" is implicitly "when they are rented out"
And to all of you sticking the boot in, my wife and I very excited as we are expecting a child soon. We live 2km from the CBD in a 1/4 acre 3 bedroom house. I sat down with my wife and said to her that these are the options:
-you can quit work for 5-7? years and stay home and raise a family
-We continue to rent here, or equivalent places (maybe going up with my wage)
OR
-We buy a far less nice place than where we live
-You work for X more years before having kids
I can easily afford all of the bills on my wage without needing the wife to work. We have lots of money left over and I can use it to buy shares in my wife's name which means we get the 30% franking credits back as she has no income. By the time the kids are in school maybe she won't have to work.
My wife was feeling a bit tired while pregnant and so she just stopped working. I can afford this, while still investing, as I don't pay interest. We have a very happy stress free life together and I feel sick inside when I see my friends and family who desperately want kids buying houses and being in so much debt they're stressed and delaying families they want so much.
And to all of you sticking the boot in, my wife and I very excited as we are expecting a child soon. We live 2km from the CBD in a 1/4 acre 3 bedroom house. I sat down with my wife and said to her that these are the options:
-you can quit work for 5-7? years and stay home and raise a family
-We continue to rent here, or equivalent places (maybe going up with my wage)
OR
-We buy a far less nice place than where we live
-You work for X more years before having kids
I can easily afford all of the bills on my wage without needing the wife to work. We have lots of money left over and I can use it to buy shares in my wife's name which means we get the 30% franking credits back as she has no income. By the time the kids are in school maybe she won't have to work.
My wife was feeling a bit tired while pregnant and so she just stopped working. I can afford this, while still investing, as I don't pay interest. We have a very happy stress free life together and I feel sick inside when I see my friends and family who desperately want kids buying houses and being in so much debt they're stressed and delaying families they want so much.
Congratulations on the impending baby, HG.
My wife also stopped working 8 years ago when we had our first baby.
We turned our PPOR into an IP and used the equity to buy a 7 bedroom place. Sold that for twice what we bought it for, and then bought another PPOR with a big studio building, sheds etc. The old PPOR (now IP) and the current one are worth $2.3m on recent bank vals. They are very inner west (Sydney) and very close to transport. My LVR is well below 50%.
But HG, that's how I chose to do things. You've taken a different path. Neither of us are wrong. We just made different choices. I went down my path largely because I didn't like renting. I'm reasonably confident those two properties of mine will whether the coming storm better than some other properties, but they may not. Them's the breaks.
My other remaining IP is a holiday unit up in Port Macquarie. It hasn't faired well lately - worth now what I paid for it - but my three girls are up there now having a holiday, which is nice for them.
Scott
My wife also stopped working 8 years ago when we had our first baby.
We turned our PPOR into an IP and used the equity to buy a 7 bedroom place. Sold that for twice what we bought it for, and then bought another PPOR with a big studio building, sheds etc. The old PPOR (now IP) and the current one are worth $2.3m on recent bank vals. They are very inner west (Sydney) and very close to transport. My LVR is well below 50%.
But HG, that's how I chose to do things. You've taken a different path. Neither of us are wrong. We just made different choices. I went down my path largely because I didn't like renting. I'm reasonably confident those two properties of mine will whether the coming storm better than some other properties, but they may not. Them's the breaks.
My other remaining IP is a holiday unit up in Port Macquarie. It hasn't faired well lately - worth now what I paid for it - but my three girls are up there now having a holiday, which is nice for them.
Scott
This is from the West Australian
11th July 2008, 7:30 WST
Investors in the Perth property market get the lowest rent returns of any State capital, according to a report that has sparked predictions that the local housing market would remain in the doldrums for the next two years.
The property yields report, released by RP Data on Wednesday, provided more evidence that the rent squeeze that has gripped Perth for the past few months would get worse as a booming population competed for fewer homes.
RP property analyst Cameron Kusher said the city’s low rent yield meant Perth investors were paying a lot for their property but getting a comparatively small return from renting it out.
“Housing prices have grown so strong in Perth so quickly, that rental growth hasn’t kept pace,” he said. “House prices are too expensive to get good yields.”
The report found the average rent yield for a unit in Perth was 4.19 per cent and the average yield for a house was 3.7 per cent. At the other end of the spectrum, rent yields in Darwin hit a national high, the average yield for a unit in the NT capital at 6.09 per cent and the average yield for a house at 5.94 per cent.
This week, the Housing Industry Association estimated WA would be 30,000 houses short of demand within five years.
Despite the fact that the State’s population leapt by 50,000 to 2.13 million last year, the HIA blamed rising interest rates and escalating construction costs for a decline in the number of housing approvals in WA, which had fallen 12 per cent in 12 months, with a further 3 per cent decline predicted in 2008.
Rob Druitt, president of the Real Estate Institute of WA, said Perth’s poor rent yields had also contributed to the downturn.
He said a 25 per cent rent rise predicted to occur in Perth over the next two years would actually be a good thing for renters as well as owners.
Mr Druitt said an increase in rents would provoke a corresponding rise in rental yields, which would encourage more investment back into real estate.
Angie Zigomanis, a property analyst with BIS Shrapnel, the company that predicted rents in Perth to rise by up to 25 per cent, agreed with Mr Druitt and said the increase would benefit renters in the long term.
“Rent increases are the first stage of any upturn. They increase yields and make it more attractive for investors to get into the market sufficiently to meet demand,” he said.
Mr Kusher said investors willing to buy now who were keen to try to maximise their rental yield should be looking at older-style units, built 15 or 20 years ago, situated in inner-city suburbs.
He said some areas in the WA capital were still providing good average rental yields.
The top three suburbs for rental yields in Perth were Redcliffe at 20.2 per cent, Ashfield at 15.2 per cent and Bentley at 15.7 per cent.
JOSEPH CATANZARO
11th July 2008, 7:30 WST
Investors in the Perth property market get the lowest rent returns of any State capital, according to a report that has sparked predictions that the local housing market would remain in the doldrums for the next two years.
The property yields report, released by RP Data on Wednesday, provided more evidence that the rent squeeze that has gripped Perth for the past few months would get worse as a booming population competed for fewer homes.
RP property analyst Cameron Kusher said the city’s low rent yield meant Perth investors were paying a lot for their property but getting a comparatively small return from renting it out.
“Housing prices have grown so strong in Perth so quickly, that rental growth hasn’t kept pace,” he said. “House prices are too expensive to get good yields.”
The report found the average rent yield for a unit in Perth was 4.19 per cent and the average yield for a house was 3.7 per cent. At the other end of the spectrum, rent yields in Darwin hit a national high, the average yield for a unit in the NT capital at 6.09 per cent and the average yield for a house at 5.94 per cent.
This week, the Housing Industry Association estimated WA would be 30,000 houses short of demand within five years.
Despite the fact that the State’s population leapt by 50,000 to 2.13 million last year, the HIA blamed rising interest rates and escalating construction costs for a decline in the number of housing approvals in WA, which had fallen 12 per cent in 12 months, with a further 3 per cent decline predicted in 2008.
Rob Druitt, president of the Real Estate Institute of WA, said Perth’s poor rent yields had also contributed to the downturn.
He said a 25 per cent rent rise predicted to occur in Perth over the next two years would actually be a good thing for renters as well as owners.
Mr Druitt said an increase in rents would provoke a corresponding rise in rental yields, which would encourage more investment back into real estate.
Angie Zigomanis, a property analyst with BIS Shrapnel, the company that predicted rents in Perth to rise by up to 25 per cent, agreed with Mr Druitt and said the increase would benefit renters in the long term.
“Rent increases are the first stage of any upturn. They increase yields and make it more attractive for investors to get into the market sufficiently to meet demand,” he said.
Mr Kusher said investors willing to buy now who were keen to try to maximise their rental yield should be looking at older-style units, built 15 or 20 years ago, situated in inner-city suburbs.
He said some areas in the WA capital were still providing good average rental yields.
The top three suburbs for rental yields in Perth were Redcliffe at 20.2 per cent, Ashfield at 15.2 per cent and Bentley at 15.7 per cent.
JOSEPH CATANZARO
I will add my congratulations as well on the upcoming bub.
Having IPs has allowed me to be a stay at home mum for the past 16 years. If we had not worked our butts off to get into the position we were in, I would possibly have had to go back to work. (Actually, I did go back for two years after baby number one, but that was also my choice.)
I realise being at home is not for everyone, but we only had the freedom to choose because of property investing.
Having IPs has allowed me to be a stay at home mum for the past 16 years. If we had not worked our butts off to get into the position we were in, I would possibly have had to go back to work. (Actually, I did go back for two years after baby number one, but that was also my choice.)
I realise being at home is not for everyone, but we only had the freedom to choose because of property investing.
And HG has the freedom because he's renting. Similar end. Different path.
For every positive press story, there is a negative one. And stats can be made to suit contrary arguments. I think we all know that.
And I think deep down we all know that we're kidding ourselves if we think we can predict the future.
I really don't understand what people get out of coming to a site and posting inflammatory stuff. Sure, it can be entertaining to watch the feathers fly - maybe that's all it is. But ultimately it's pretty lame and pointless. I don't really get it. It would be like me walking out of the office in Sydney next week and shouting to the assembled Catholics: 'There is no God. You're heading the wrong way. Turn back. It's not too late.' Or me going onto that other forum and say: 'Buy some property. It's not too late.' Why bother?
My brother-in-law would be a troll if he had a computer. He likes going to the pub, sidling up to a conversation, and then jumping in with a contrary view. It must be more satisfying to get a reaction that way, though he's probably been smacked a few times.
For every positive press story, there is a negative one. And stats can be made to suit contrary arguments. I think we all know that.
And I think deep down we all know that we're kidding ourselves if we think we can predict the future.
I really don't understand what people get out of coming to a site and posting inflammatory stuff. Sure, it can be entertaining to watch the feathers fly - maybe that's all it is. But ultimately it's pretty lame and pointless. I don't really get it. It would be like me walking out of the office in Sydney next week and shouting to the assembled Catholics: 'There is no God. You're heading the wrong way. Turn back. It's not too late.' Or me going onto that other forum and say: 'Buy some property. It's not too late.' Why bother?
My brother-in-law would be a troll if he had a computer. He likes going to the pub, sidling up to a conversation, and then jumping in with a contrary view. It must be more satisfying to get a reaction that way, though he's probably been smacked a few times.
I haven't worked since I was 6 months pregnant with my first child. Property investing has allowed me to not work for the past 10 yrs.
HG - I used to have a friend just like you. He criticized me for buying a 2 bed unit, 5 k's from the city in Brisbane. When I was 23 I paid off my mortgage. He's 38 now, a share-trader, still renting, owns nothing, still paying off his HECS Debts. It sounds like you don't know what you're talking about also.
HG - I used to have a friend just like you. He criticized me for buying a 2 bed unit, 5 k's from the city in Brisbane. When I was 23 I paid off my mortgage. He's 38 now, a share-trader, still renting, owns nothing, still paying off his HECS Debts.
It sounds like you don't know what you're talking about also.Similar threads
