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House prices on the rise? No way!

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Australian Broker | 10 Jan 2013, 08:00 AM Agree 0
A number of economists have predicted steady house value increases for 2013 - but they've got a ways to go to convince the masses
  • BradQ | 10 Jan 2013, 09:29 AM Agree 0
    "To claim housing affordability has dramatically improved is kind of like saying today is stinking hot, so winter will never happen again".... kind of like saying houses cost too much, so they will never increase in value again... in an economy based on growth and inflation, prices will always increase. Why would we listen to Jessica Irvine anyway, she isnt even IN the property market and doesnt own a home....
  • GB | 10 Jan 2013, 09:52 AM Agree 0
    to Brad, in an economy based on growth and inflation, eh? well there is no growth and there is no inflation?

    You dont have to be IN the property market to write sensible articles. The fact she isnt IN the property market confirms she is actually quite smart as all the smart money has either been getting out or staying out.
  • BradQ | 10 Jan 2013, 10:39 AM Agree 0
    Yep...based on inflation. The RBA has inflation targets. Everyone panics if the word recession is uttered. Profits are expected to grow every year. Salaries are expected to increase every year. The economy is based on growth and inflation. All the smart people I know are getting into property now, not getting out.
  • Qindows | 10 Jan 2013, 11:59 AM Agree 0
    Sorry Brad, have to aggree with both GB & the author here. To say that inflation is an issue (bec there is none) is certainly wrong & to mention that we will see real wage growth over the coming period is just being silly.
  • mortgage road warrior | 10 Jan 2013, 12:43 PM Agree 0
    Hey Brad , guess when the property market peaked in my part of the world , ( W.A ) , 2006 . Yep , almost 7 years ago . But every year we hear "property guru's" telling us house prices will increase blah , blah . When will people of your mindset finally get it that the vast majority of Australian property is out of the economic reach of the vast majority of the Australian population. Take a minute to ponder economics Brad it may help .
  • Tony South Coast | 10 Jan 2013, 02:57 PM Agree 0
    There are a lot of "Doom-sayers" out there - who don't believe there has been any growth or inflation for some time. For the record, the CPI has risen from 137.6 to 180.4 in the last 10 years (an increase of 42.8) and from 157.5 only 5 years ago (an increase of 22.9).

    With interest rates in the low to mid 5% range and falling and gross rental returns in excess of 6.0% and rising in many areas of Australia, then property is definitely an atractive option, both for investors and owner/occupiers.

    That, my friends, is economics.

    And most of my "smart" friends and clients are also getting into (not out of) the market.
  • Rugosa | 11 Jan 2013, 04:33 PM Agree 0
    Returns in excess of 6.0%?

    Not after all the costs associated with holding a property - rates, intrest, repairs, agents fees, stamp duty...

    Not to mention all the time and energy it takes and the risk associated with bad tennents.

    And what if the value is decreasing?

    Property is not an attractive option.
  • Damon | 03 Mar 2013, 01:15 AM Agree 0
    What is wrong with the people here? Smart people are not getting into property at the moment. They are getting out. Are these the smart people that purchased their SUV on credit, in the meantime justifying massive debt levels because of temporary interest rate reductions? Dont sound too SMART to me.
    In fact they sound like the dopes that contributed heavily to this bubble in the first place. Delusionally optimistic. They can't see what is coming? Don't bother. Focus on the new features of the impending new iPhone and your shallow existence based around keeping up with the Joneses. Sheep.
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