houses to fall 25%, page-11

So...

What is an "over valuation" anyway???

what are you comparing it to?

Changing times, changing populations, shifts in wealth from economy to economy...and stripping of wealth from others. Some cultures have bigger houses, smaller families, dual incomes, etc...and others have extended families living under the one roof, smaller houses, etc...

The measuring stick is both subjective...and often based on innane comparisons.

Above all else, the property market is not static...and is a reflection of the state of any economy.

Take the list you quote, then list in order of the most desirable places to live, with the lowest unemployment rates, higest quality of life, etc...and you will find a pretty good match.

We can buy a house now...any many suburbs in Melbourne (and regional Victoria)...and virtually break even on the deal...that is, positively geared!

if they bget cheaper still, how long do people think it will take for everyone to work this out?

We can also buy a property in a mining area, with something like 10 years pre-lease agreements, with 10 year options, and enjoy posiitve gearing that is frankly unheard of. Whilst one would not expect to get much capital growth in the mining towns...the net excess per month can be diverted to city based rental properties.

Just did the sums last week on a place I have been looking at...buy it now, lock in an indexed 10 year lease...and it funds 3 more houses in the suburbs with no net outlay from me!

What is wrong with that?

I can do this...and go fishing for 10 years if I feel like it...meanwhile, the "bears" will be slogging it out daily on HC, as if that will somehow create a sell-off in property?

The macro economics simply will not facilitate a sell-off in property given projections for jobs, future GDP, and indirect benefit to all from the mining boom...no matter what comparisons people try to make.

By the way...of people think the mining boom will suddenly end...think again...cycles aside, the current "boom" is here for a long long time.

But really...if Australian property is so expensive...then why doesn't everyone move to where it isn't?

I'll tell you why; 1. Because we all have to live somewhere and; 2. Australia is a much better place to live.

How much of apremium would one be preapred to pay to live in a better place...probably about the same as the so-called "over valued" rates people keep quoting.

Funny about that!

Oh...and by the way...unlike shares and other asset classes, people cannot collectively just sell-up and park their houses in the bank...they have to live somewhere.

Further, if they did the equivalent, then rents would go through the roof.

Within the realm of modest corrections and long term capital growth...the property "system" is more or less fool proof...which may the reason some on here can't see how it works?

lol

Cheers!