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Property investors are suckers!
Topic Started: 1 Oct 2015, 05:00 PM (5,147 Views)
The Whole Truth
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Frank Castle
2 Oct 2015, 08:51 AM


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I suppose that's luxury for rocky but it looks like an absolute dogbox. Hardly a tree in sight and a yard the size of a shoebox.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Sydneyite
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deluded
2 Oct 2015, 12:07 PM
Three people have brought up rising interest rates and you've totally ignored that point. Care to engage with it?
You can model / presume whatever you like re interest rates. They might rise through the course of your loan, they might fall. They would have to change pretty radically though to have a significant impact on the rent/buy decision price point.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Strindberg
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deluded
1 Oct 2015, 09:53 PM
His last sentence implies that he will not be renting for 70 years.
If he buys now his lifetime accommodation costs will be the cost of a house plus a bit for rates and maintenance.

If buys later his lifetime accommodation costs will be the cost of a house plus the cost of renting between now and when he buys. Delaying buying doesn't avoid the cost of a house and if, as you seem to believe, interest rates will rise in the future then delay will increase his future costs of buying.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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Trollie
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Strindberg
2 Oct 2015, 02:54 PM
If he buys now his lifetime accommodation costs will be the cost of a house plus a bit for rates and maintenance.

If buys later his lifetime accommodation costs will be the cost of a house plus the cost of renting between now and when he buys. Delaying buying doesn't avoid the cost of a house and if, as you seem to believe, interest rates will rise in the future then delay will increase his future costs of buying.
Ah but you see the big 40% crash is 12 - 6 months away....
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Veritas
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Frank Castle
2 Oct 2015, 08:51 AM
Well thats one cherry picked example - Heres another (1 minute search) so do your numbers on this

Lets take this example
3 bedroom in Koongal about 4klms from Rocky CBD. Asking price $244,000
http://www.realestate.com.au/property-house-qld-koongal-120738485

Rent = $290/week

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I can probably do similar numbers in Brisbane Suburbs if you like. $450k buy renting for $450+/week
Why on earth would I want to live in a culture less hit hole like Rockhampton?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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Frank Castle
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Business As Usual

Veritas
3 Oct 2015, 09:22 PM
Why on earth would I want to live in a culture less hit hole like Rockhampton?
Why on earth would you want to live in a city where all you can do is bitch about houses you cant afford?

Accept your inner bogan - move to a city that you actually can afford to live in and stop pretending.
Edited by Frank Castle, 4 Oct 2015, 12:21 AM.
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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Foxy
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Zero is coming...

Trollie
3 Oct 2015, 02:58 PM
Ah but you see the big 40% crash is 12 - 6 months away....
Real terms please.

Peter
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Veritas
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Strindberg
2 Oct 2015, 02:54 PM
If he buys now his lifetime accommodation costs will be the cost of a house plus a bit for rates and maintenance.

If buys later his lifetime accommodation costs will be the cost of a house plus the cost of renting between now and when he buys. Delaying buying doesn't avoid the cost of a house and if, as you seem to believe, interest rates will rise in the future then delay will increase his future costs of buying.
How many properties will you be buying this year Strindberg?

You're a fucking spruiker.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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Rastus2
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Strindberg
2 Oct 2015, 02:54 PM
if, as you seem to believe, interest rates will rise in the future then delay will increase his future costs of buying.
Rubbish..

You are assuming he delays too long and rates rise high enough to counter any drop in property price.

If the poster right now is paying less for rent than interest + holding costs of a property, real risk for the poster if that the price to purchase at some point in the future (including all interest) is higher than the price to purchase now.

It is not automatic that him buying in week, a month, a year, or whatever automatically makes him pay more even if rates do rise at some point in the future... you just twist the possibilities to produce a situation where it does.

Yet again you make up stuff as fact when it is a mabey while jumping on any other poster to mock and nit-pick if they do not caveat any flaws in their thinking. Typical stringbean stuff
Edited by Rastus2, 4 Oct 2015, 08:30 AM.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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Trollie
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Rastus2
4 Oct 2015, 08:01 AM
If the poster right now is paying less for rent than interest + holding costs of a property
Let me guess, year 1 interest costs

:wak: you will never learn.
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