What the RBA really thinks about house price values

[Deltaberry]

Um, maybe because it's not purely looking at Brisbane and maybe because it's logarithmic?

Isn't it because it's inflation adjusted? We also had 20000000% interest rates

 

[evisional]

Why it is not the green line which I has drawn?

 

[hobo-jo]

Assuming they use comparable, if not the same data, wouldn't Keen's chart be the one that is in nominal terms?

If they are using the same data set then it's likely that the AMP chart is nominal and Keen's is real.

If Keen's chart was nominal it would suggest that prices have only tripled over the past 60 years... I'd suggest they've seen a lot more growth than that!

 

[Dan_p]

Wondering how people are faring in the neg geared space with property values not doing much for five years now - need at least 10% growth to access equity - love to hear from others on staying focused and positive during such a long flat time period - we are holding with a long term investment perspective but how are others viewing the situation?? Rates keep going up; body corps gone up a lot so holding costs increasing whilst values remain relatively stagnant for five years now in a climate of very frugal lending practices

We too are long term. Two of our properties performed well in western sydney 2009-2011 but went down a bit this year. We used the equity from those two to build ppor which means we wont be doing any buying for a little while.

I couldn't care less if the go up, down or sideways over the next couple of years. We will buy again when we are ready, regardless of what phase the market is in.

 

[Dan_p]

It means the vertical axis of the graph goes up exponentially (1, 2, 4, 8, 16, 32) instead of going up in a straight line (1, 2, 3, 4, 5, 6).

you have got to love the exponential funtion. This is the most attractive part of property that I love. Seccondly is all of the spreadsheets with graphs and pie charts you get to make.

 

[Andrew_A]

Hi Prop

You know those interest rate decreases we got in the last few months? Well I just checked my NAB account and my package fee has increased expotentially to compensate the poor old bank. Anyone else notice that?

Rents may have been generally increasing in Sydney over the last five years, but they haven't in Brisbane.

Rchad, we are in the same situation as you - we bought a couple of years ago expecting it to be at the bottom of the downturn. O well, we can afford to keep going, but would much prefer to spend that same amount of cash each year on an overseas trip instead. We are currently purchasing something in a mining town to make hubby and I feel better.

Angel what makes you think rents haven't increased? Are you considering one location over a 5 year time frame?

Rental market has been showing some real strength this year in Brisbane, especially <10k from the CBD, also nationally the trend of rents growing at CPI+ is a very interesting trend which is a positive for total returns.