Why Australia's housing sector is different..

[VYBerlinaV8]

So what you're saying is you've got nothing. Figures.

I'm going to go out on a limb here and let you in on a little secret.

You don't buy a market average - you buy an individual property. How your property performs (in both yield and growth) is dependent on a huge range of things, some of which you can directly control and some of which you can't. The figures represent averages, medians, whatever, and can be a guide, but DO NOT govern the performance of an individual property. If the 'market' drops 2%, your property within that market may have actually risen (and of course that works both ways).

Let me give you an example:
2 years ago I bought a property that yielded 6.3% gross. I had it yielding 7.6% gross within a few months. It has also risen in value by around 15%, despite the market it was in rising perhaps 5% in the same time.

What I am trying to say is that for the careful and experienced investor, beating the market is not that hard. And guess what - you don't even need to beat the market consistently to come out well ahead.

What I am trying to say is that property is a far more powerful investment tool than the traditional buy, negative gear, sell method. If you want to engage with people here, you have to be willing to cast aside property investment stereotypes and myths, and dig deeper to find the really interesting stuff.

 

[Deltaberry]

Ah, so the definition of prime, is anything that didn't fall in value.

If it fell in value, it can't have been prime.

So the original statement 'Good, well located properties don't fall in price.'

Just means properties that don't fall in price don't fall in price.

Nice tautology.

BHP fell in value. Must be speccie.... speccie!! Oh so did the A$!! Speccie

Throw all your A$ away.... TO ME!!!

 

[willair]

Ah, so the definition of prime, is anything that didn't fall in value.

If it fell in value, it can't have been prime.

So the original statement 'Good, well located properties don't fall in price.'

Just means properties that don't fall in price don't fall in price.

Nice tautology.

Maybe look at it from a different angle,from my experience it does work that way,several small inner city pockets that were factories,slums,red-light-drug properties 25 years ago now are up-market and depending on the local greens,can be built above 25 floors,so it blows the numbers out of the water...

 

[skater]

Don't waste your breath people. The poster in question posted on one thread only until it got closed, now he's here, in this one. He has no interest in contributing. He does not want to discuss anything. He appears to only want to twist our words.

Total waste of time really. Nothing Different Here at all, only another troll.

 

[Belbo]

Don't waste your breath people. The poster in question posted on one thread only until it got closed, now he's here, in this one. He has no interest in contributing. He does not want to discuss anything. He appears to only want to twist our words.

Total waste of time really. Nothing Different Here at all, only another troll.

Agreed. I wish DH all the best with whatever the hell it is he's campaigning for. It'll doubtlessly be worth every cent of the public pension we'll end up funding for him.

 

[VYBerlinaV8]

Agreed. I wish DH all the best with whatever the hell it is he's campaigning for. It'll doubtlessly be worth every cent of the public pension we'll end up funding for him.

"My name is Tony, and I decided to establish this blog so I can rant and rave about the inadequacies of the Australian property market to people who might care. God knows I drive my friends and family crazy listening to me, so perhaps this new outlet will give them some peace and quiet!"

http://www.differenthere.com/

He has no idea what he's campaigning for.

 

[Different Here]

My friend, you are in the wrong forum, despite the fact that you have already racked up more posts than me in your short visit

Oh really, so where is the right forum then? This is a property forum, no? Or are we only allowed to discuss property here in a manner that suggests a risk free path to eternal riches for all. House prices are falling, in case you hadn't noticed. What has my post count got to do with anything?

 

[Different Here]

"My name is Tony, and I decided to establish this blog so I can rant and rave about the inadequacies of the Australian property market to people who might care. God knows I drive my friends and family crazy listening to me, so perhaps this new outlet will give them some peace and quiet!"

http://www.differenthere.com/

He has no idea what he's campaigning for.

It's not a campaign. It's a regular bloke blogging about his thoughts on the property market.

What are you so scared of? Why this 'fight or flight' aggressive confrontational response to my views?

 

[Different Here]

Agreed. I wish DH all the best with whatever the hell it is he's campaigning for. It'll doubtlessly be worth every cent of the public pension we'll end up funding for him.

I wonder if my taxes are presently supporting your negatively geared 'portfolio'?

 

[sid]

Unfortunately for you, Australia is not that place. If you want to fight capitalism, you are in the wrong country, I'm afraid.

to be fair we don't really practice capitalism in this country.. not that we'd want to.. something things should never be about profits.. imvho

 

[skater]

This is a property forum, no?

NO! This is a Property Investment Forum. It is a forum dedicated to property investors or those wanting to be property investors or those learning about property as an investment class. You have said that you are not an investor and that you have no interest in ever being one, so why come here?

OK, now I'll admit that there are some regular posters who do come close to the line at times. Posters that I've locked horns with from time to time, but they still do have some interests in investments.

As I said to some other person some time ago, the vast majority of us have no interest in cars, planes, sewing, voodoo, aliens, bungy jumping, deep sea fishing, yodeling, canoeing, skiing, farming, pet therapy etc, (the list is endless). Do we therefore go hunting out forums for those topics and rant about our views on subjects that the subscribers of those forums hold dear? NO! It would make no sense whatsoever, and is really not what a rational person would do.

There are dozens of other places you can go and talk, whine, complain about whatever it is that you want to talk about, but this is not the place. So I ask once again "Why are you here?" Do you have so little to do in your day to day life that you only find enjoyment by hunting down investors to "warn" us of our folly? Really, get a life!

 

[MangoMadness]

Skater - simple solution

This message is hidden because Different Here is on your ignore list.

 

[Aaron_C]

For once Skater, we agree.

 

[Different Here]

NO! This is a Property Investment Forum. It is a forum dedicated to property investors or those wanting to be property investors or those learning about property as an investment class. You have said that you are not an investor and that you have no interest in ever being one, so why come here?

NO! This is the Property Market Economics forum. I own a property and I am interested in discussing the property market and economics. That's what this forum is for. I suggest you should post in one of the property investment forums instead, and leave this forum to the people who want to discuss property market economics. You have no interest in property market economics, so why come here?

"Why are you here?" Do you have so little to do in your day to day life

With nearly 7000 posts, that question is more appropriate for you to answer.

 

[turk]

NO! This is the Property Market Economics forum. I own a property and I am interested in discussing the property market and economics. That's what this forum is for. I suggest you should post in one of the property investment forums instead, and leave this forum to the people who want to discuss property market economics. You have no interest in property market economics, so why come here?



With nearly 7000 posts, that question is more appropriate for you to answer.

Hi DH

This may is the "Property Market Economics" section, however it is a subsection of the following


"Finance, Accounting, Tax, Legal
Discussions on all the fun things to deal with in property investing."


which is a subsection of

"Somersoft Property Investment Forums"

Just another zealot with his blinkers on

 

[Different Here]

Hi DH

This may is the "Property Market Economics" section, however it is a subsection of the following

"Finance, Accounting, Tax, Legal
Discussions on all the fun things to deal with in property investing."

which is a subsection of

"Somersoft Property Investment Forums"

Just another zealot with his blinkers on

So in the Property Market Economics section of this forum, the only people encouraged to post are active property investors? Unless I have an investment property, or a desire to buy one, I am not welcome to discuss property market economics in this forum? Have I got it right?

You come across like a blinkered zealot.

 

[The Fence]

DH...

The things you are bringing up here have been done to death in past threads.
All you are doing is annoying everybody by continually dragging up past discussions and adding nothing new.

Now when people politely tell you to do some research and look up the various discussions they are trying to tell you to have a go first then if you can't find an answer then come on and enquire. But so far you have only put up the same old arguments of which much discussion has centred around previously.

Also, you are guilty of making personal remarks that bait investors on here such as:

I wonder if my taxes are presently supporting your negatively geared 'portfolio'?

Yes they probably are...and in turn this supports the Govt. in housing the people. You don't get it that some investors actually make a real loss in the pursuit of a gain down the track.
At the end of it all the Govt. has created one more property for someone to rent.
The investor has (hopefully) come out of it with some equity and a decent investment and the tenant has a roof over their head.

I think this may very well be a mojor reason just why Australia's housing sector is indeed different...because it works!

If it was the same as US & EUR then we would be crashing but we are not...so it is different!

Time for you to have a bit of a search thru all the threads and see for yourslf the questions already asked and discussed at lenght that you have brought up yet again.

 

[VYBerlinaV8]

It's not a campaign. It's a regular bloke blogging about his thoughts on the property market.

What are you so scared of? Why this 'fight or flight' aggressive confrontational response to my views?

You are making the mistake many non-investors make when dealing with investors. We are not 'scared' of anything - we manage risk. If you don't want to have your views challenged, you've come to the wrong place. You have gotten the response you have by making simplistic statements that just don't hold water, and many here have called you on it.

As has now been said many times, this has been done to death already. There is a search function, I'd suggest reading through at least some of this material before posting up gross generalisations that can be proven incorrect for an individual's situation.

Post up some specific questions, or challenge a specific point, and you will find people more than happy to engage with you.

Also, you need to expect some stick when you make public comments like you have on your blog. In the comments of your latest post is a person bagging all and sundry to do with property, but according to your response they are "rational" and we aren't.

 

[VYBerlinaV8]

You come across like a blinkered zealot.

And you come across like yet another whinger who wants to blame investors for the world's ills.

 

[MathBoy]

You don't get it that some investors actually make a real loss in the pursuit of a gain down the track.
At the end of it all the Govt. has created one more property for someone to rent.
The investor has (hopefully) come out of it with some equity and a decent investment and the tenant has a roof over their head.

I think this may very well be a mojor reason just why Australia's housing sector is indeed different...because it works!

If it was the same as US & EUR then we would be crashing but we are not...so it is different!

It's different here because of the FHOB. The market was horrid just before it was introduced and down quite a bit. At that stage we were no different to the US and the UK.

The FHOB is gone and things are turning bad again. It’s slower this time because there is less panic about the global situation and also because there is less activity to set new market prices.

It is this lack of market activity which will ultimately drag it lower then then before though as low volumes almost always precede sharp drops in any market.

As for the other points, negative gearing does not provide extra housing, it simply distorts the price of available stock as you can pay more because your holding costs have been reduced.

At its simplest negative gearing is not an investments strategy, its subsidised speculation.

Personally I think negative gearing should be abolished, but at the very least it should only be applicable to new developments so it will at least achieve its original goal of creating rentals. Its won’t happen though, at least not any time soon.