property buyers see property as an investment, page-11

I agree with supply and demand as a reason why house prices go up.

this can be seen in stocks, you can get a boom before a big bust.. this is due to traders jumping in who are caught up in hype and not fundermentals.. or because of something they saw on TV so they all jump in.

the thing is, they jump in because its a good thing, not because they valued the stock and checked to see if they are getting a good price..


i think this has happened with housing. the last decade or so a good thing has been investment property. so lots of people start investing in it. this creates the big demand that normal supply drys out on pushing the price up.

but like with sticks, have prop investors been buying in because its a good thing, and not because they have actually checked the value and confirmed they are buying in at a good price?

realisticly now house on the market is worth its asking price.. the cost of building a house is far less than what a building company will charge you. its massive profit margin. same with a tradsmen.

is somone who connect plastic pipe together really worth $100's an hour?

is somone who connects copper wire together worth $100's an hour?

real profesionals like computer programers, brain surgions etc dont get this high pay rate..

so have we all been paying too much for property and everything to do with it?

if the demand from property came from a higher than normal investing of property last decade then ever before historicly. when property stops making people money they will drop this investment idea and prices will fall back to normal..

i have to agree with the dooms dayers.. everything they say adds up.

unless you can tell my why a block of land is now worth $300K when it was only worth $90K a decade ago.. or why somone who welds copper pipe together is worth $100's an hour..

seriously, how much does it cost to install a pwoer point? the wire is probably $1 a meter, then $20 for the power point.. but it will probably cost you $300 to get the job done if your luck, and take the guy 30 mins..