real estate to hot up on stock market depressd, page-22

keldun

"obviously youre more an RE bear than me MrSteve which I wasnt sure was possible. I think stagnation will eventually be the go,"

I know this happens in other places and else where, but dont forget, when house prices go stagnant, wages have always increased to by as much.

This can only happen with major inflation, ie housing is up 100 - 150%, so fo wags to match, ie a average houshold on 42K to be on $100K the cost of everything else from good and services need to go up 150%

this is serious inflation and your talking about inside 10 years, so 15% P.A inflation

the RBA hits the panic button and increases interest rates when the inflation rate heads towards 3%

as such coz of the way our RBA works they will up the interest rates to slow spending and stop inflation, and the first thing this brings back is house prices. thats why they always comment on house prices and if its changed since a interest rate rise.

we are only around 8% now, we will see the teen's again and i am gusing inside 2 - 3 years.

its got no choice but to tumble back down to real values. nothing trades above its true value, not by 100% like housing is now for ever. it may do it for a while but it always snaps back.

like the guy posted before, he paid $350K and could sell for $850K inside 5 years.. this is not because its more expensive, its because people are paying more giving it a higher profit margin. all house's have room to come back down

Land costs say $80K for a suburban block in melbourne, the real cost of building a small house on it is maybe $80K and it is sold for $300K