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The "REAL" reason Sydney house prices are rising
Topic Started: 22 Oct 2016, 10:56 AM (1,844 Views)
Foxy
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Zero is coming...

I have been investing for over 40 years.

I have just bought another tourist rental unit in Gnarabup, not because it is a fantastic investment.

But because i can see no other opportunities, logicly i have placed the money.

As people in Sydney, Melbourne and other cities are doing.

But.

Who ultimately benefits???

I argue not the investors at this time.

You see people jumped out of the twin towers in New York because it was the logical thing to do at that time.


https://www.youtube.com/watch?v=8tgQ75GxAZk

https://www.youtube.com/watch?v=mTnrCkN8rfs

May they be with god now.

And i am seeing a point where there is no other option for the people, so they say hey, interest rates are very low, $38,000 per million.

You could say less then renting.

So no option for investors on mass, so lets pay more and more for non yielding assets.

What could go wrong?? Right.

Maybe pay off some debt?

Counter intuitive??

Lets see.

Peter

And a number of long term peers are making very questionable investment moves in my opinion.

I know a very good farming family that has just bought a farm, as wheat prices hit an all time "real" price low.

Hmmm.

The issue with residential property investing is you can never be pressed to make it work.

It has no yield when you buy it and it has no yield when you sell it.
So the price is purely arbitrary.
Edited by Foxy, 22 Oct 2016, 11:05 AM.
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herbie
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foxbat
22 Oct 2016, 10:56 AM
I have been investing for over 40 years.

I have just bought another tourist rental unit in Gnarabup, not because it is a fantastic investment.

But because i can see no other opportunities, logicly i have placed the money.

As people in Sydney, Melbourne and other cities are doing.

But.

Who ultimately benefits???

I argue not the investors at this time.

You see people jumped out of the twin towers in New York because it was the logical thing to do at that time.


https://www.youtube.com/watch?v=8tgQ75GxAZk

https://www.youtube.com/watch?v=mTnrCkN8rfs

May they be with god now.

And i am seeing a point where there is no other option for the people, so they say hey, interest rates are very low, $38,000 per million.

You could say less then renting.

So no option for investors on mass, so lets pay more and more for non yielding assets.

What could go wrong?? Right.

Maybe pay off some debt?

Counter intuitive??

Lets see.

Peter
There is no doubt in my mind that tha RBA was fully aware that by dropping interest rates they would cause housing prices to rise. With a very much hoped for flow on effect being that developers would be incentivised to build more housing. Thereby picking up at least some of the 'slack' in the economy that was arising from mining's decline.

None of this is really about investors as such Musty. Or about savers. Or about home buyers - First time ones or otherwise.

It's about the economy and the RBA's inflation target and jobs.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Foxy
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Zero is coming...

Pushing a rope???
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herbie
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foxbat
22 Oct 2016, 11:18 AM
Pushing a rope???
Doing the best that they believe they can - To fulfil their mandate; Whilst also having a bit of a moan on occasion 'n sayin' it just might be nice if gov helped out by doin' a bit of borrowin' ta build some genuinely needed 'n useful infrastructure.
Edited by herbie, 22 Oct 2016, 12:04 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Foxy
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Zero is coming...

hmmmm,

http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Ex BP Golly
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herbie
22 Oct 2016, 11:51 AM
Doing the best that they believe they can - To fulfil their mandate; Whilst also having a bit of a moan on occasion 'n sayin' it just might be nice if gov helped out by doin' a bit of borrowin' ta build some genuinely needed 'n useful infrastructure.
End game.
What do you do with all those very average folk in the burbs when there are no factories to keep them busy?

Building gaols means you can manage some while employing others of the same abilities, but at the end of the day, it is false economics.

What sort of infrastructure can lead us out of the '1hrs per week volunteering for the salvos equals full time employment' mind set.

Do we just keep marginalised therm, and treat them like shit when they invariably medicate themselves against the reality of their lives?
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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herbie
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Ex BP Golly
23 Oct 2016, 10:55 AM
End game.
What do you do with all those very average folk in the burbs when there are no factories to keep them busy?

Building gaols means you can manage some while employing others of the same abilities, but at the end of the day, it is false economics.

What sort of infrastructure can lead us out of the '1hrs per week volunteering for the salvos equals full time employment' mind set.

Do we just keep marginalised therm, and treat them like shit when they invariably medicate themselves against the reality of their lives?
You're asking me questions I surely don't have answers to Golly. (However, I can't reasonably be expected to anyway - Given I'm not an economist; And am realistic enough to realise that having read a bit of 'stuff' on the internet over the years on economics surely doesn't make me one.)

But regardless, the fact I don't have answers to such questions doesn't mean there aren't any.

Additionally, it doesn't mean I'll like (and certainly not even be asked if I like) any such answers the smarty economists of the world might come up with.

As to "end game", well that would seem to me to be the quite extreme bear position - With even economists who are very far from mainstream (like Keen maybe?) not accepting it as a given and still having a crack at proposing 'solutions'.

Edited by herbie, 23 Oct 2016, 12:10 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Ex BP Golly
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NSW has just come into a quick $15bn I believe.
It will be interesting to see where it is spent.

I'm not holding my breath on seeing it benefit the community in 20, or even 50 years.

An election coming up soon in nsw so I expect to see a reshuffle in the new year and then the pork barreling will begin in Ernest.

Not saying Labor would do anything differently mind you.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Jon Snow
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Ex BP Golly
23 Oct 2016, 10:55 AM
What do you do with all those very average folk in the burbs when there are no factories to keep them busy?
Historically it involved a fashion line made up entirely of Khaki and an overseas adventure. Not sure if that is possible in the 21st century though.
Quote:
 
Building gaols means you can manage some while employing others of the same abilities, but at the end of the day, it is false economics.

What sort of infrastructure can lead us out of the '1hrs per week volunteering for the salvos equals full time employment' mind set.

Do we just keep marginalised therm, and treat them like shit when they invariably medicate themselves against the reality of their lives?

To be honest, people don't need much to live. As long as their bellies are full with food and ale, and they are kept warm, all that is really left is the residual bloodlust left in the DNA by evolution. For that there is sport, and sport needs stadiums and fields, and food vendors and TV sponsors and advertisers. If we redirected our infrastructure efforts to (a) stadiums and (b) mass transit solutions to/from the stadiums, we could create an industry that would absorb the idle and entertain the bored masses.
Speak when you are angry and you will make the best speech you will ever regret.
Ambrose Bierce
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Ex BP Golly
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Jon Snow
23 Oct 2016, 01:32 PM
Historically it involved a fashion line made up entirely of Khaki and an overseas adventure. Not sure if that is possible in the 21st century though.


To be honest, people don't need much to live. As long as their bellies are full with food and ale, and they are kept warm, all that is really left is the residual bloodlust left in the DNA by evolution. For that there is sport, and sport needs stadiums and fields, and food vendors and TV sponsors and advertisers. If we redirected our infrastructure efforts to (a) stadiums and (b) mass transit solutions to/from the stadiums, we could create an industry that would absorb the idle and entertain the bored masses.
When in Rome.

Not much has changed.

Maybe with the Royal Commission into Responses to Child Rape we could get back to killing Christians in the ring.

Much better then giving them 8 months for raping dozens of children.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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