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Perth Construction Boom; Land prices in Perth Boom 25% in one year.
Topic Started: 22 Oct 2014, 01:17 AM (4,463 Views)
doubleview
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Mike
22 Oct 2014, 12:52 PM
Why are you so concerned with Rents, as I said in the opening OP it is not investors driving the price growth.

It is owner occupiers, upgraders.

What supply is about to hit the market, please show me where the increase in investment lending or other data to show investment is driving the demand as I cannot find it.

Of course rents will fall from record highs, as I said rentals became so expensive it is now cheaper to buy then rent. A lesson you have not learned yet.

Wow with such knowledge you will be master of the universe surely, you sure other factors might not play a role.

The question is how you could be this dumb for this long and not learn from you're mistakes.
Of course their are other factors including artificial demand via immigration but this is the main player!
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skamy
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doubleview
22 Oct 2014, 12:56 PM
If anyone listened(I doubt anyone does anyway) to just 1% of what I have said about Perth they would be in front.

Basically this is consensus now:

http://australianpropertyforum.com/topic/9871024/11/#post8395332

At the time ore was $150 plus a tonne, but apparantely bears are dumb and know jack shit!
You base all your conclusion on an extremely flawed premise.

Iron ore at $150 a ton was never baked into the Perth economy, what a silly think to think. Do you think people are stupid?

Same with the construction boom - it had no effect on Perth house prices as people knew it was not forever.

If Perth house prices moved with iron ore they would have doubled over the last few years. You are expecting prices to fall from a growth that never happened.
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Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Perthite
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"Same with the construction boom - it had no effect on Perth house prices as people knew it was not forever."

Skamy that is without a doubt the must ridiculous statement yet....

It drove population growth and as it ended population growth dived. It happened love... deal with it anyway you have to.

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skamy
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Perthite
22 Oct 2014, 01:39 PM
"Same with the construction boom - it had no effect on Perth house prices as people knew it was not forever."

Skamy that is without a doubt the must ridiculous statement yet....

It drove population growth and as it ended population growth dived. It happened love... deal with it anyway you have to.

Look at the graph Perthite it did not increase house prices.


Of course the popluation increased and then decreased do you seriously believe people did not know this? Where is your evidence that everyone ran out and bought big homes and pushed up prices based on the mining construction boom.

Oh it does not exist does it?

So why are you wasting your time sitting around expecting prices to fall?
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Perthite
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skamy
22 Oct 2014, 02:03 PM
Look at the graph Perthite it did not increase house prices.


Of course the popluation increased and then decreased do you seriously believe people did not know this? Where is your evidence that everyone ran out and bought big homes and pushed up prices based on the mining construction boom.

Oh it does not exist does it?

So why are you wasting your time sitting around expecting prices to fall?
So population growth did nothing to underpin prices...

wtf?

Delusion is an 8 letter word.

That silence is no other bull on this planet backing up your point of view.... crickets...
Edited by Perthite, 22 Oct 2014, 02:08 PM.
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skamy
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Perthite
22 Oct 2014, 02:06 PM
So population growth did nothing to underpin prices...

wtf?

Delusion is an 8 letter word.

That silence is no other bull on this planet backing up your point of view.... crickets...
No the population growth did not underpin prices, very few houses were bought and sold during that time and even fewer were built.

They did not even build for the massive permanent growth that happened over that time. People were too scared, rather like yourself.

The fear is abating and people are buying and building again.

Mike tries to tell you this often, mining is small compared to the total Perth economy, even a small pick up in the overall economy will offset the lost jobs or lost big wages from the ending of the mining construction boom.

Don't you ever ever get sick of waiting for your promised land crash, when will you realise you were sold a lemon?

Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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doubleview
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skamy
22 Oct 2014, 01:10 PM
You base all your conclusion on an extremely flawed premise.

Iron ore at $150 a ton was never baked into the Perth economy, what a silly think to think. Do you think people are stupid?

Same with the construction boom - it had no effect on Perth house prices as people knew it was not forever.

If Perth house prices moved with iron ore they would have doubled over the last few years. You are expecting prices to fall from a growth that never happened.
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Posted Image
Fuck you make me laugh.....did you actually read the link?

Link was posted when the cash rate was 3% and clearly says that prop is already pricing in rate cuts...which again was on the money (since dropped to 2.5%).

This is not rocket science and I encourage anyone to read any post I have ever made espec Perth....also watch the trolls/shills hating on what is posted from the bears.

Additionally boom town were the head lines all through 2012/13 with all this bad press around you must be psiising your pants!!


Now head back in sand and back to harrassing people calling what they see &living in the real world apparent doomsdayers.

(I think its time to pull the predictions thread out 2014)......can this be found?
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Perthite
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Sales rose from June 2011 to March 2013.... Consistently.

http://reiwa.com.au/The-WA-Market/Perth-Metro/

What no-one else? :lol
Edited by Perthite, 22 Oct 2014, 02:21 PM.
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USianinPerth
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22 Oct 2014, 06:50 AM
Perth's heading down the tubes, Mike. Jobs going, wages going too, rents dropping, vacancy rates off the richter, record overbuilding all at record low rates. The truth is, the circus has been and gone Mike, shops closing down,people going home, less people coming in.
A bit more than a week ago my wife and I strolled from Northbridge up to King's Park. Along the way through the CBD I noticed at least 25,000 Square Meters of available office space to let. Whole floors, nearly whole buildings, all empty. This, while major construction of office towers is ongoing. And that's just along one section of the CBD.

Which doesn't address residential oversupply, another issue entirely - but clearly obvious given all the construction on hand.

Reduced rents are a _leading indicator_ of where valuations will go. If you can't earn enough money to pay financing and maintenance, you're running with negative cash flow. Negative gearing will help only so far. At a certain point, what's unsustainable leads inevitably to foreclosure. If the property isn't a viable business to begin with, and you depend on increasing valuations for capital gains rather than sustainable income flow, then you deserve what you get.
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skamy
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Perthite
22 Oct 2014, 02:19 PM
Sales rose from June 2011 to March 2013.... Consistently.

http://reiwa.com.au/The-WA-Market/Perth-Metro/

What no-one else? :lol
Look at the graph Perthite the changes were minsicule and show no response to the hikes in iron ore.
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Reduced rents are a _leading indicator_ of where valuations will go.



This is not true it is very common for yields to drop when prices rise and vice versa. Rents rise when people fear buying, and house prices drop when people fear buying. When people rush out to buy in great numbers, rentals drop as people buy instead of renting.
Edited by skamy, 22 Oct 2014, 03:17 PM.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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