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When will the Bulls eat humble pie on WA?
Topic Started: 24 Mar 2017, 12:18 AM (19,215 Views)
Rufus
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Jimbo
1 Apr 2017, 10:36 PM
How did you work that one out?
You mean you can't get 20% discounts in Perth?
Foxbat promised 40% and you guys bang on about Armageddon in Perth, you mean it's only fallen a small amount?
Take risks - if you win you will become wealthy, if you lose you will become wise
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Jimbo
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Rufus
1 Apr 2017, 10:55 PM
You mean you can't get 20% discounts in Perth?
Foxbat promised 40% and you guys bang on about Armageddon in Perth, you mean it's only fallen a small amount?
If you buy a house for $400k that was once "worth" $500k, you do not now own a $500k property. You have not "made" $100k on purchase.

You simply own a property for which you paid $400k. It may actually now be worth less than $400k as maybe you were the only buyer prepared to pay $400k. Maybe the others were offering $350k or maybe there were no other offers. Further, the fact that you just paid $400k means it is highly unlikely that someone would be prepared to pay 25% more than you did for the same thing. Especially in a declining market.

Your statement "I want to make my money on the purchase. I would be looking for a 20% discount, so I want a $500K property for $400K so I've made $100K on purchase." does not make sense.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Trollie
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Simon_S
1 Apr 2017, 10:19 PM
Of Course Trolley.......Your Rates would never Rise....

Did the RBA Raise Rates...

Oh No Wait.......The US FED DID.

Oh whats that.....the Banks Raised theirs.....Oh Wait........They Raised Yours straight after.......

BWAHAHAHAHHAHAHA





Only 70 years......Why not since the Beginning of time........

Oh wait we had the Great Depression where they Dropped for 16 years........

Couldn't happen again.....Could it......Shhh......Don't mention the GFC
And why did the fed raise rates?
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hidflect
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Jimbo
1 Apr 2017, 11:30 PM
If you buy a house for $400k that was once "worth" $500k, you do not now own a $500k property. You have not "made" $100k on purchase.

You simply own a property for which you paid $400k. It may actually now be worth less than $400k as maybe you were the only buyer prepared to pay $400k. Maybe the others were offering $350k or maybe there were no other offers. Further, the fact that you just paid $400k means it is highly unlikely that someone would be prepared to pay 25% more than you did for the same thing. Especially in a declining market.

Your statement "I want to make my money on the purchase. I would be looking for a 20% discount, so I want a $500K property for $400K so I've made $100K on purchase." does not make sense.
Nice rebuttal. The value of property is only what the last person paid. All house sales in that block will be judged against that.
Also, Rufus inadvertently admits prices are coming down.
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Rufus
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Jimbo
1 Apr 2017, 11:30 PM
Your statement "I want to make my money on the purchase. I would be looking for a 20% discount, so I want a $500K property for $400K so I've made $100K on purchase." does not make sense.
It will when the market rises again.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Jimbo
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Rufus
1 Apr 2017, 11:36 PM
It will when the market rises again.
So would you say that someone who paid (say) $1400 for an ounce of gold when it was once worth $1900, has made $500 on purchase?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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hidflect
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Jimbo
1 Apr 2017, 11:50 PM
So would you say that someone who paid (say) $1400 for an ounce of gold when it was once worth $1900, has made $500 on purchase?
heeheehee.
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eloi75
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Rufus
1 Apr 2017, 09:40 PM
Yeh nah, that's not how I look at it. I want to make my money on the purchase. I would be looking for a 20% discount, so I want a $500K property for $400K so I've made $100K on purchase. if I have to go without any rental for 6 months which would be extreme if I bought in a desirable area, and if I had to take $400 per week instead of $500 per week than that's a shortfall in income of $13K in the first 6 months and possibly $15,600 for the year.

It's not a big loss and tax partly covers it, even at your chosen tax rate of 37 cents I would get about $6K back

Using a 20% deposit would probably give me a modestly negatively geared investment (on paper) that would probably become positively geared after a few years of rental gains.

Our philosophical difference is probably in my belief that prices in the long term will rise whilst you believe the a crash will continue in Perth. It really wouldn't worry me if the median price fell further, I rely on picking the right property and paying the right price. If I don't get it perfectly right it's not a big issue.

For you to win, house price changes would have to go against a trend in housing that has been in place since 1945 - that's over 70 years.
I believe that property prices will rise in perth and everywhere else. But in the short term i believe property prices in perth will decrease. How much i really dont know. For me the biggest fundamental stat will be chinas economy. If china is booming then it means they are buying resources which mean WA will be mining and selling it to them. If that happens then people will be moving back to perth and property prices will start to increase.

Yes i would also like to buy a property at 100k discount to current prices and also like to win the euromillions.
Jimbo
1 Apr 2017, 11:50 PM
So would you say that someone who paid (say) $1400 for an ounce of gold when it was once worth $1900, has made $500 on purchase?
Hahahhaha bulls will always be bulls. Lmao
Edited by eloi75, 2 Apr 2017, 12:31 AM.
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Jimbo
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eloi75
2 Apr 2017, 12:26 AM
For me the biggest fundamental stat will be chinas economy. If china is booming then it means they are buying resources which mean WA will be mining and selling it to them.
The boom in Perth was fueled by Chinese demand for resources and the desire of resource comanies to expand their capacity to meet that demand.

Now WA has plenty of capacity to meet any demand and there is little further requirement or desire to expand that capacity.

It takes a lot of people to build resources infrastructure but it doesn't take that many to extract the stuff from the ground. Especially since resources companies put labour efficiency at the top of their design considerations.

IO could double in price next week and it wouldn't make much difference to Perth,
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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eloi75
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Jimbo
2 Apr 2017, 12:36 AM
The boom in Perth was fueled by Chinese demand for resources and the desire of resource comanies to expand their capacity to meet that demand.

Now WA has plenty of capacity to meet any demand and there is little further requirement or desire to expand that capacity.

It takes a lot of people to build resources infrastructure but it doesn't take that many to extract the stuff from the ground. Especially since resources companies put labour efficiency at the top of their design considerations.

IO could double in price next week and it wouldn't make much difference to Perth,
Thats a good point which i had not considered. Its looking pretty grim for WA as a whole then.

The gold coast is having a similar problem right now. Vacancy rates are at their lowest ever due to the high number of construction project taking plave. Lots of construction workers moving there for the work. So this means property prices are going up but as soon as thw construction stops u will see a huge glut.

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