Here we go: Perth http://watoday.domain.com.au/home-i...-by-a-quarter-20110309-1bnj0.html?from=age_ft Sydney and Melbourne at http://tasmanianrealestatetrouble.blogspot.com/ and Money Morning http://www.moneymorning.com.au/20110308/why-property-investing-is-for-mugs.html#more-4790 Coupled with news that Oz dwellers are delaying 'major purchases' - being houses, cars, etc until they see how things go. I'm interested in points of view on what's happening here, timelines, theories and calls to action.
Just another sign of the times. As soon as things gather speed again prices and demand will head up again. The recovery in the US is also going to push things along. Everybody wants to come and live in Australia.
who really knows ? the media is no reliable source of anything best to look for sold signs & talk to conveyencers , solicitors people who actually finalise the deals is my advice
I think we all tend to grossly underestimate the underlying strength of the US economy. Quote Wiki: The United States has a capitalist mixed economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the U.S. GDP of $14.870 trillion constitutes 24% of the gross world product at market exchange rates and almost 21% of the gross world product at purchasing power parity. It has the largest national GDP in the world, though it is about 5% less than the GDP of the European Union in 2008. The country ranks ninth in the world in nominal GDP per capita and sixth in GDP per capita. The United States is the largest importer of goods and third largest exporter, though exports per capita are relatively low. In 2008, the total U.S. trade deficit was $696 billion.Canada, China, Mexico, Japan, and Germany are its top trading partners. In 2007, vehicles constituted both the leading import and leading export commodity. Japan is the largest foreign holder of U.S. public debt, having surpassed China in early 2010. The United States ranks second in the Global Competitiveness Report. Even the external debt issue isn't such a big deal when you get things into perspective. $13.98 trillion (30 June 2010) country comparison to the world: 1 $13.75 trillion (31 December 2008) note: approximately 4/5ths of US external debt is denominated in US dollars; foreign lenders have been willing to hold US dollar denominated debt instruments because they view the dollar as the world's reserve currency.
I forget, how is the housing market in the underestimated US economy going these days? I guess the Oz economy is a lot stronger than the US's, which is why we aren't going to have a housing crash?!?!? I'll just assume you were joking...
The housing market in the US has not crashed. Certain parts of the market have crashed. There is no such thing as the US market - it is the same as Australia - it is made up of many different markets. Saying the US has crashed is like saying that just because house prices in Perth are down 10% that the whole housing market in Australia is down 10%. If you look at the stats on New York (for example) - it has shown consistant annual growth of 6.41% since 1990. In the last 2 years it has lost a whole average of 1.61% pa. In the last 12 months it has lost 3.49%. In the last quarter it is up .39% (annualized to 1.56%). Do any of these numbers indicate a crash? If you can understand that large countries are not homogenous housing markets you will be able to profit a lot more/easier! malachii PS New York data taken from http://www.neighborhoodscout.com/ny/rates/ . Perth data made up!!
Possibly a better example would be if I said all 1 oz coins are worth spot. We all know this is garbage because some are worth a lot more than spot and vary less than spot. If spot dropped $2 you wouldn't expect a 2000 dragon to drop $2 and yet this is what we say about the housing market. Just because one area drops it doesn't mean everything drops and we've had a crash!!!! malachii
You're right on the money malachii, glad someone else here can see the truth of the RE market. I was starting to think I might be off course
Everyone publishing numbers have vested interests People are lying. It's all pretend and extend. Pump it along for just a little bit longer. Encourage new blood for the ponzie. There is no way to know how things are until the vested interest is gone, which usually doesn't happen till they become bankrupt. Then a new version of the truth will come out.
So let me get this right - if i put up an article or data that supports the US R/E crash then it's all "here here" and "the US is stuffed". If I put up an article or data that doesn't support this notion - the data is corrupt and obviously done by vested interests? Maybe we should look at the vested interest of people who want the prices to go down! You cant wish the price of real estate down, you cant just hope for a crash. You have to look at what is going on around and make your own decisions. To continue on with the NY example - in the last decade or so it has been the home to arguable one of the worst terrorist attacks in the western world. It was home to the GFC. NY is synonamous with Wall Street and yet the worst data that I can find shows a drop in real estate of about 3.5% in the last 2 decades. This despite all the problems mentioned and many more that we can come up with. Is this manipulated - depending on your views I think the best you could say would be maybe. Does it matter - NO. Are you buying real estate as an investment, some where to live or just cos it sounds good over the bbq. Get your head out of the sand. If you want to run and hide you will find enough people calling for the end of the world to support your argument. But if you want to actually live in the real world - get out there and do the research. Dont believe the real estate agents (they have been known to lie on the odd occaision) or the media (ditto) or the scaremongers either way. Find out for yourself. It's not hard! Talk to people who are doing it. People with real experience and scars to prove it. Dont believe someone because they can find an article that says the sky is falling but have no real world experience. Some places (here in Aus and elsewhere) are primed for a crash. Some are primed for growth. Do the research and make some informed decisions. malachii
