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More Jobs. Strong Economy. Infrastructure Spending. The recipe for Sydney’s real estate surge.; It would have happened if the RBA hadn’t been cutting interest rates
Topic Started: 21 Aug 2015, 06:07 PM (3,966 Views)
Steve99
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Bardon
23 Aug 2015, 09:54 AM
If you asked a current land owner in Castle Hill what they thought was the main reason that their land price has shot up so dramatically in recent times I would put London on a brick that the response wouldn't be the state trade deficit.
It would be astute and savvy buying that did it, an eye for future prices and prosperity.. not the luck of the times.
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Bardon
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Steve99
23 Aug 2015, 10:29 AM
It would be astute and savvy buying that did it, an eye for future prices and prosperity.. not the luck of the times.
I will give you double or quits that that wouldn't be the answer either.
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Car tart
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Greed, jealousy and utter stupidity is the mindset of the bears on this thread.

I think that the OP has a point that many in Castle Hill will agree to, as it reflects what we can see around us. It also solves the problem of why aren't the other capitals booming?

And remember that higher house prices allow paying more for the next home. IE paying it forward.

I bought my PPOR for $620k 37 months ago and paid it off over 3 years, Its now for sale for $1,050,000 and with this $1mill deposit, I can afford a city apartment more suited to my current needs as I am in a relationship and looking for something a little nicer so I can entertain our combined friends.

Funny how the "dumb" ones think it takes intelligence to "Not buy" when over 99% of property buyers have made money in the past, over the long term.

Remember the old adage, Invest your money where the government invests theirs. That's Sydney West ATM.
You cant drive a house, BUT you can always sleep in a car!
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Bardon
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Car tart
23 Aug 2015, 12:14 PM
Remember the old adage, Invest your money where the government invests theirs. That's Sydney West ATM.
Yes but whilst you do this don't forget to keep one eye on the state deficit levels, just in case.
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Loki
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Bardon
23 Aug 2015, 09:54 AM
If you asked a current land owner in Castle Hill what they thought was the main reason that their land price has shot up so dramatically in recent times I would put London on a brick that the response wouldn't be the state trade deficit.
Way to miss the point. Infrastructure spending is a second order effect. The first order effect is spending money you didn't earn. Asset values always rise when people are spending other people's money. In the same way that young women's wardrobes expand when they are buying stuff on daddy's credit card.

Regardless, it is only the price of land that has shot up recently in Castle Hill. The value of the land will not increase until 2019, assuming it opens then. More likely is that NRT goes bankrupt and the project is delayed for years.



“Talk sense to a fool and he calls you foolish.” - Euripides
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Bardon
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Loki
23 Aug 2015, 12:38 PM
Way to miss the point. Infrastructure spending is a second order effect. The first order effect is spending money you didn't earn. Asset values always rise when people are spending other people's money. In the same way that young women's wardrobes expand when they are buying stuff on daddy's credit card.

Regardless, it is only the price of land that has shot up recently in Castle Hill. The value of the land will not increase until 2019, assuming it opens then. More likely is that NRT goes bankrupt and the project is delayed for years.
Nope that''s not the likely answer either.
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createdby
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Petrodollars and commodity revenues are recycled into bonds and the financial system.

When oil and commodity prices tank, the financial system has less liquidity.

That's why banks had to raise capital from shareholders. That's why they raised deposit requirements for investors.

As you can see, commodity carnage is the driver for real estate lending. Also for stock market. And bond market.

You can create fake money like the Fed did, but that's just kicking the can down the road.

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Loki
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Car tart
23 Aug 2015, 12:14 PM
Funny how the "dumb" ones think it takes intelligence to "Not buy" when over 99% of property buyers have made money in the past, over the long term.
Making money and intelligence are not correlated.

Sometimes it is just sheer dumb luck. Like rice farmers in Tokyo. Not exactly geniuses, but owners of land in the city that was probably the fastest transformation from agricultural to technology age in history.

The idea that making money and intelligence is correlated is probably the most common reason for people losing all the money they have made.


“Talk sense to a fool and he calls you foolish.” - Euripides
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Car tart
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Loki
23 Aug 2015, 12:48 PM
Making money and intelligence are not correlated.
They are not always correlated.

But look at those jobs requiring higher intelligence and note the correlations in wealth from lawyers, doctors, businessman and even the clever tradies, compared to those that have lesser ability.

Of course for every example there are a hand full of anomalies. But in a general context it takes more intelligence to buy an appropriate property (especially in today's scary Sydney market) than to say a blanket I'm not buying anything.
You cant drive a house, BUT you can always sleep in a car!
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Realist
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Car tart
23 Aug 2015, 12:14 PM
Greed, jealousy and utter stupidity is the mindset of the bears on this thread.

I think that the OP has a point that many in Castle Hill will agree to, as it reflects what we can see around us. It also solves the problem of why aren't the other capitals booming?

And remember that higher house prices allow paying more for the next home. IE paying it forward.

I bought my PPOR for $620k 37 months ago and paid it off over 3 years, Its now for sale for $1,050,000 and with this $1mill deposit, I can afford a city apartment more suited to my current needs as I am in a relationship and looking for something a little nicer so I can entertain our combined friends.

Funny how the "dumb" ones think it takes intelligence to "Not buy" when over 99% of property buyers have made money in the past, over the long term.

Remember the old adage, Invest your money where the government invests theirs. That's Sydney West ATM.
Yeah but whilst your ppor has gone up 430k, the inner city apartment you are upgrading to has probably gone up 860k.

It's all relative
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