"practice alone constitutes the criterion of truth" (Karl Marx)

http://www.news.com.au/money/property/upgraders-push-hous
e-prices-higher/story-e6frfmd0-1225824213617

http://www.smh.com.au/national/affluent-suburbs-lead-new-rise-in-house-prices-20100127-myzj.html


So now stuff has finally hit the fan - 2009 brought property prices to a new record.

I guess, as I predicted September last year now noone will listen to retards who proclaimed another crash because FHB desert the market.

Brace yourself - stampede of panic buying starts today.

For those who can not use a calculator:

Sydney "typical" price now is $100K higher than last year. This is after tax $100K, so it is almost $200K in gross income. If you are a property owner less than on $200K gross - your house earned more than yourself last year.

If you were silly enough not to buy (or committed mortal sin of selling) your loss double that figure, as you have to pay an interest on that increase.

This is to explain why I feel entitled not to show any respect to those who are going to engage into futile and fruitless discussions with myself.
 
I still wonder about the sustainability of it's State Government and it's largely services based industry - it's a very fickle market.

Lack of public transport to the working class suburbs makes it somewhere that doesn;t fit my criteria for investing. Considering that NSW had an outpouring of people last year, makes me wonder as well.

Sorry, but I'm from Perth and my money's on VIC, QLD and WA.
 
I do not know how many times i have to repeat the axiom:

The only moving force of Australian economy that is worth taking into account is HOUSING. GDP is directly pegged to it.

Whether NSW economy is service based has the same level of significance to economy as presence of water on Mars.

As to your personal geografic preferences - VIC is Ok. It is livable (they think).

WA and QLD are just mining regions at the mercy of developments in Chindia - they can not produce any sustainable growth by definition. You can invest 1 or 2% of your capital there, providing you have no other specualtive investments.

Strange you left out SA of your list - it is the state with the most grossly underpriced waterfront properties in the whole country. Please no mentioning of QLD and WA - I mean "waterfront", not "mudfront".


I still wonder about the sustainability of it's State Government and it's largely services based industry - it's a very fickle market.

Lack of public transport to the working class suburbs makes it somewhere that doesn;t fit my criteria for investing. Considering that NSW had an outpouring of people last year, makes me wonder as well.

Sorry, but I'm from Perth and my money's on VIC, QLD and WA.
 
WA and QLD are just mining regions at the mercy of developments in Chindia - they can not produce any sustainable growth by definition. You can invest 1 or 2% of your capital there, providing you have no other specualtive investments.

Strange you left out SA of your list - it is the state with the most grossly underpriced waterfront properties in the whole country. Please no mentioning of QLD and WA - I mean "waterfront", not "mudfront".

A slump in the resources industry would be bad news for the entire country. Not just WA and QLD.

As for muddy coastal regions - they don't exist anywhere near Perth.
 
A rival property monitor, RP Data, said the figures were inflated, reflecting a change in the types of properties sold rather than the actual price growth

Love this bit from above linked article.

Can everyone just hold on a few more days for the ABS figures to get released. It seems everyone is jumping the gun and even the private property stats people cannot agree.

Cheers
 
Slump in the resources industry will be real blessing for the whole country except shareholders of resource companies (i.e. mostly foreigners)and $200K a year truck drivers, or $120K a year dish washers in WA pubs.

Selling Australia's non-renewable resouces at today's rate equates to stealing from future generations.

Selling resources to undeveloped countries with backward technologies makes ecomentalists' tars about greenhouse emissions a farce. We ban incandescent globes while sending thousands of tons of fossil fuels to places where they will be burnt in the most unefficient manner.

Resource industry going out of control is the single cause that we have highest in the world interest rates which kill the rest of the economy - housing construction, agriculture, education, tourism to name a few.

I would not even mention that it is complete disgrace that our country has become a resource appendix of the third world.

As to mudfront in Perth - thanks, I will visit the optometrist, as I have troubles seeing any decent waterfront there.

A slump in the resources industry would be bad news for the entire country. Not just WA and QLD.

As for muddy coastal regions - they don't exist anywhere near Perth.
 
I translate this for you into plain English:


"BARGAINS DISAPPEARED".

Love this bit from above linked article.

Can everyone just hold on a few more days for the ABS figures to get released. It seems everyone is jumping the gun and even the private property stats people cannot agree.

Cheers
 
mudfront...? what?

scarborough



hillarys



my beach (burns beach)



mindarie beach



cottesloe



maybe you should stop looking on google earth and actually come to WA and then comment.
 
I suppose Brisbanites will start posting pictures of Redcliffe, Sunshine and gold Coast. Few exceptions are confirmation of the rule, not the evidence against it.

I have been there, have seen it, not planning to come back any time soon. Simply does not feel right. Bought couple of houses - but as an excentric collector, not investor. Do not understand why anyone shall waste borrowing capacity when there are real money to be made elsewhere?
 
To Do,

Which way do you think the RE market will go?

Blue Card,

Looks pretty good to me. Lovely beaches, sunshine, a hope skip and a jump to Asia.

Cheers
 
Just search for my previous posts.

In brief:

- it is granted that RBA at present debt to income ratio has become a toothless tiger in terms of the rate hikes. Rates shall never exceed 5% in this country in foreseeable future. Moreover, economy is overdue for another cycle of panic rate cuts like we seen at the end of 2008. Will happen when US sucker's rally on the sharemarket comes to abrupt stop.

- Last boom failed to produce any property excess. Housing construction in dire straights.

- there are crowds of expats still coming back fleeing crisis. Property shortage has truly become the housing crisis

- Interest rate hikes put Australia on the map for foreign investors. They account up to 30% of all purchases in some suburbs.

- Sydney and Melbourne well and truly ran out of available urban land

- and so on and so on, and so on.

There are about two dozens of reasons why this boom is going to be the mother of all property booms - the longest and the most intense.

Eventually we might see the signs of life even in WA and QLD. Providing China will not cave in (which it shall).


To Do,

Which way do you think the RE market will go?

Blue Card,

Looks pretty good to me. Lovely beaches, sunshine, a hope skip and a jump to Asia.

Cheers
 
maybe ToDo walked along the Swan River instead of the Beach - hard to get mixed up though i would have thought.

they are the main beaches between where i live and cottesloe - about 85% of beach goers use one or more of these beaches - there's smaller ones too like Mullaloo, Swanbourne (nudist beach), then the army barracks takes up a ton of waterfront, then you're into City Beach / Scarborough - city beach has more sand than water!

maybe you drove along west coast drive - looked down from the CLIFFS and saw rocks - you know, the diving spots along local perth beaches?



or just go here and see for yourself.
 
Eventually we might see the signs of life even in WA and QLD. Providing China will not cave in (which it shall).

oh now you're just stirring....i'm not takign that bait.

you can go join The Australian Newspaper's Economic Forecaster's League with that attitude.

that's like saying Yemen's the best place to invest because it's close to Saudi Arabia.

sorry buddy but Australia is heading towards the "Saudi of the South" and WA and QLD are the funders.

If you're so confident about Sydney, let's try WA's secession and see how well Sydney fares then.
 
Those seaweeds- exactly what I mean.

But it is beside the point. You hang around for a while - have you seen me ever spruiking the suburbs where I have got the properties? Even if I name one, be sure it is in reality few suburbs away. Some even tried to get me caught on this.

Do you know why? Because I do not need to. I know (and this is confirmed by many years of practice) that I will get top capital growth without any propaganda.

maybe ToDo walked along the Swan River instead of the Beach - hard to get mixed up though i would have thought.

they are the main beaches between where i live and cottesloe - about 85% of beach goers use one or more of these beaches - there's smaller ones too like Mullaloo, Swanbourne (nudist beach), then the army barracks takes up a ton of waterfront, then you're into City Beach / Scarborough - city beach has more sand than water!

maybe you drove along west coast drive - looked down from the CLIFFS and saw rocks - you know, the diving spots along local perth beaches?



or just go here and see for yourself.
 
Just search for my previous posts.

In brief:

- it is granted that RBA at present debt to income ratio has become a toothless tiger in terms of the rate hikes. Rates shall never exceed 5% in this country in foreseeable future. Moreover, economy is overdue for another cycle of panic rate cuts like we seen at the end of 2008. Will happen when US sucker's rally on the sharemarket comes to abrupt stop.

- Last boom failed to produce any property excess. Housing construction in dire straights.

- there are crowds of expats still coming back fleeing crisis. Property shortage has truly become the housing crisis

- Interest rate hikes put Australia on the map for foreign investors. They account up to 30% of all purchases in some suburbs.

- Sydney and Melbourne well and truly ran out of available urban land

- and so on and so on, and so on.

There are about two dozens of reasons why this boom is going to be the mother of all property booms - the longest and the most intense.

Eventually we might see the signs of life even in WA and QLD. Providing China will not cave in (which it shall).

I have tried to go through you prevous posts but cannot get a picture of what you believe will happen.

You say property will boom this year. But vacancy rates are increasing and rents are stalling..

IR's are increasing and I do agree that it is hard to see them getting over 5%. However this would see a 40% increase in mortgage repayments for those that bought last year. Given the high debt to income ratio, dont think to many mortgagees will be able to handle this.

You also see the share market crashing. Hard to believe that this wont effect property prices.

You also mention 30% of buyers are foreign in some suburbs, but what is the % Australia wide. I would think much much lower than 30%.

Can you explain where all this money/debt is going to come from to feed this boom. Certainly cannot see rents increasing in line with an increase in vacany rates.

There is plenty of land in Melbourne to be developed, just local councils are the problem.

You then believe China will crash, if this be the case, by by Australian economy and down comes RE prices. Need to service this debt somehow and all we have is dirt to sell.

You seem to have strong bias that the only way for property is up. I do wonder if there was another ToDo in Japan and America who felt the same way before the bubble burst.

Cheers
 
Those seaweeds- exactly what I mean.

But it is beside the point. You hang around for a while - have you seen me ever spruiking the suburbs where I have got the properties? Even if I name one, be sure it is in reality few suburbs away. Some even tried to get me caught on this.

Do you know why? Because I do not need to. I know (and this is confirmed by many years of practice) that I will get top capital growth without any propaganda.

they're subsurface rocks that form part of a reef, you numpty. we used to snorkel there a lot at high tide.

last time i remember - you DID get caught....
 
used to be the Indiana Teahouse before it was sold out to the same group that own all the Cott Cafe's.

I was sitting in that restaraunt having dinner when the king tide hit Cott and the water washed away the beach - the water was surging UNDERNEATH the building as we were effectively sitting out OVER the water - whacked out!
 
- Sydney and Melbourne well and truly ran out of available urban land

Your dreaming, thousands of acres of developments are still on hold cause the price aint right.
Just as many are in the latter stages of release such as Oran Park.
But keep the dream alive...

Prices will rise due to inflation.
Printing 200B out of nothing and fizzling it away will only amount to devaluation of the currency. Sure some have an interest in calling it "price rise" though.
 
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