How Low will House Prices Go ?

[tuanhung]

Originally Posted by ryan79

So your rent has decreased recently? Well my interest payments have both because interest rates have dropped and because I put savings into offset account. 6% return tax free = WIN!!!

it doesnt hurt to call up the bank to ask for a cheaper rate or take ur business elsewhere, ashamed you cant do that with bargainin on deposit rates...

anyway whatever rocks ur boat, i havnt seen any decrease in prices for new homes though...

[stuwa]

Originally Posted by LanceDriver

A poor quarter for rents!
http://www.macrobusiness.com.au/2012...ter-for-rents/

So much for Ryan's "rents to the moon". LOLOLOL ...

See, dude still doesn't get it that people don't have the money for rising house prices or rising rents. Game seriously over. POP!!!!!!!!!!!!

Go invest in rental properties willy-nilly, I dares ya! You can't lose on housing, it's as safe as houses. AHAHAHAHAHA!!!!

.

But as you know it completely depends on where you invest. I'm shortly investing 350000 in a build on land that I own outright (effectively as its a subdivision) and I'll receive a whopping 30% gross yield (approx $2000/week). Fact.

whilst I appreciate it's fun to grind that axe of yours be careful you don't miss the next boat, wherever that may be.

[LanceDriver]

^ I am well invested in lifejackets!

[stuwa]

Haha awesome.

A joke of titanic proportions.

[LanceDriver]

Shiller: Housing IS NOT an investment, it's a myth ...
http://pragcap.com/robert-shiller-ho...-an-investment

[LanceDriver]

http://www.macrobusiness.com.au/2012...market-update/

Originally Posted by Nate Von Longneck II

Down, down, prices are down!

[Ultimate Hater]

Ahhh. Those were good times. Great memories.

[LanceDriver]

Indeed

[stuwa]

Originally Posted by LanceDriver

Shiller: Housing IS NOT an investment, it's a myth ...
http://pragcap.com/robert-shiller-ho...-an-investment

in·vest·ment/in'ves(t)m?nt/
Noun:
The action or process of investing money for profit or material result.
A thing that is worth buying because it may be profitable or useful in the future.
Wikipedia Dictionary.com
Answers.com Merriam-Webster

Shiller is clearly wrong about the definition of investment.

[Ultimate Hater]

Originally Posted by stuwa

in·vest·ment/in'ves(t)m?nt/
Noun:
The action or process of investing money for profit or material result.
A thing that is worth buying because it may be profitable or useful in the future.
Wikipedia Dictionary.com
Answers.com Merriam-Webster

Yes, but by that definition, practically anything could be considered an investment. It's not terribly useful definition, in the context of this thread.

I have a simpler version of investment, which has helped me in life.

An investment, to me, is something that puts money in your pocket.

Not something that "might" put money in your pocket "in the future".

ie, your principle place of residence, your car, or a bar of gold, is not an "investment" per se, they are better off treated as "assets".

Works for me.

[LanceDriver]

^ Spot on. I don't deny that a positively geared property is an investment, ie, it's paying more than it is costing regardless of capital gains or losses (the asset part). The point of the article was moreso that the average Joe who has put money into the property market has not made a good investment.

[Danubis]

Originally Posted by LanceDriver

^ Spot on. I don't deny that a positively geared property is an investment, ie, it's paying more than it is costing regardless of capital gains or losses (the asset part). The point of the article was moreso that the average Joe who has put money into the property market has not made a good investment.

may not be the best investment, but its a reasonable investment if it forces them to redirect their disposable income from beer and fishing trips.

What is a really bad investment is children. they're worse than housing and almost never appreciate.

[LanceDriver]

^ they'll appreciate your investments and assets when you die though. best not to hoard too much.

[ryan79]

Originally Posted by Ultimate Hater

Yes, but by that definition, practically anything could be considered an investment. It's not terribly useful definition, in the context of this thread.

I have a simpler version of investment, which has helped me in life.

An investment, to me, is something that puts money in your pocket.

Not something that "might" put money in your pocket "in the future".

ie, your principle place of residence, your car, or a bar of gold, is not an "investment" per se, they are better off treated as "assets".

Works for me.

Owning a house and not having to pay rent is putting money in your pocket - you of all people know that.

[ryan79]

Originally Posted by LanceDriver

http://www.macrobusiness.com.au/2012...market-update/

Perth 1.4%
Sydney 0.4%

Down you say???

[stuwa]

Originally Posted by LanceDriver

^ Spot on. I don't deny that a positively geared property is an investment, ie, it's paying more than it is costing regardless of capital gains or losses (the asset part). The point of the article was moreso that the average Joe who has put money into the property market has not made a good investment.

True. I just don't like opinions that take to topics with a wide brush. There are good and shit investment decisions to be made in any asset class so "the psychology of a property investor" just doesn't mean anything to me.
Investing is about wealth building, requiring a goal and a strategy that includes choosing an asset class(s). I get the point though that a lot of people's motivation seems to stem from the view that acquiring the investment property IS the goal which is just rubbish. Saying that, people that have bought investment properties over the last ten years have probably faired pretty well, even with a dubious strategy in mind.

[KJBrissy]

Originally Posted by ryan79

Owning a house and not having to pay rent is putting money in your pocket - you of all people know that.

And so there are no extra costs to owning a home than renting? It isn't that simple Ryan. Friends of ours are looking at selling at a loss to avoid a big maintenance bill.

[Bullswool]

Originally Posted by ryan79

Owning a house and not having to pay rent is putting money in your pocket - you of all people know that.

But you have to own the house first. The interest payments on mortgages are huge at the moment. Why not put that money towards other, higher return investments?

[ryan79]

Originally Posted by KJBrissy

And so there are no extra costs to owning a home than renting? It isn't that simple Ryan. Friends of ours are looking at selling at a loss to avoid a big maintenance bill.

Once you OWN it, paid off, the costs are tiny compared to rent.

I have never had to do any maintenance on my house. Perhaps a poor investment?

Originally Posted by Bullswool

But you have to own the house first. The interest payments on mortgages are huge at the moment. Why not put that money towards other, higher return investments?

Such as? Higher return generally means higher risk. But if you know of an investment which can return a guarenteed 6% AFTER tax I'd be all ears.

[Bullswool]

I have no idea, just throwing in ideas. I like risk, keeps things spicy