Property Prices

BEST INFORMATION OF PROPERTY IN NSW

copyrights reserved

Recent financial turmoil illustrated what will happen when confidence drop. In other words money will have ZERO value and other commodities too will lead towards no value. Therefore please remember your home will appreciate if people are confident of the future but will decline as soon as it reverse. This is more than supply & demand theory.

Supply & Demand are the key factors to price fluctuations. It is not different in housing market. Many other factors contribute/influence Supply & Demand. Some factors are induced while others appear as a result of deficiencies/efficiencies in planning. Impact from some natural factors are hard to predict for planning

If supply of houses are more, house price should drop as more available for those few buyers. It is the reverse if demand is more. When demand is high more buyers than sellers in the market, who could pay best price will be a winner.

Current market in Australia should be a high DEMAND market as there is a severe shortage of rental properties. This is due to no substantial CONSTRUCTION activities in the past 3 years. This problem was created by short sighted authorities who discourage investors to overcome their other deficiencies. It is said to be on right track now and housing market will pick up sooner or later. If current predictions are correct, who could hold to their assets will be winners soon. You may find exception to rules.

On the other side, inflation is making difficult for some house owners to retain properties. Cost of living is going up daily. Some house owners believe that selling their house is a relief. This belief is making more houses available to the market, taking the true market value out of them. This will result many of such house owners to make big losses. As a result more people will fall from house ownership and contribute further to Rental Crisis. It is sad to note that most vulnerable people are the victim of this new inflation crisis. 

Rent is expected to rise daily as there is a shortage in supply. It is said that RENT is going to be as much as of a MORTGAGE  within a very short time, probably around 3 years. If you sell your house today and make a big loss, then once again if you have to pay an amount equal to mortgage as your rent in future, where will you stand, do you think your current decision is correct? No one can guarantee the future but looking for other alternatives may save you DOLLARS. Any assistance with alternative home loans or personal loans bad credit mortgage debt consolidation please visit www.sydneymortgageloans.com  we are always available to help you.

It is good to know your recorded credit history. Obtain a free report from www.mycreditfile.com.au  . Also understand your suburb so that you get a clear picture of where you are www.rpdata.com.au 

Banks are adding interest to normal rate hikes. They want to protect their share holder value at the cost of poor people. Is this right? They have taken responsibility of Reserve Bank to their hand, this can hurt important role paid by Reserve Bank & lead to big problems.

Also it is high time to think wisely. People talk about HOUSE  PRICES  TOO  HIGH and not affordable. Will there be a way to overcome this?

In real terms, HOUSE prices consist of  

LAND PRICE  + COST OF CONSTRUCTION less DEPRECIATION

Land Price =  Cost of sub division + Council levies + Developer profit + Statutory fees

Construction Cost = Material + Labor + Council Levies + Statutory fees + Builder profit

If there is a way to bring down any of these cost, then there is a way to reduce house prices. Only thing we see today is that prices of material & labour going up daily.

A drop in particular type of housing price could occur if people do not want to buy that type of houses for some reason or the other. Reverse is also possible for those houses in demand. That is why a unique house is always appear to be very expensive.

People would like to live in their own created world. This makes two items not comparable. Some pay premiums to achieve what they want while other’s use creativity. This premium price is not real and can change with changes in people’s attitude.

World is changing daily. Once city was only place had work. Then new cities were created. Now internet super highway created more work from home. As once thought this may make city congestion to reduce and as a result demand for city property to decline which never eventuate, people those who have money play a big game, capitalizing on weaker points of others.

If all of us want to live in one suburb, house prices of  that suburb will rise. Then people need to analyse the reason for that demand. If we can duplicate and make a similar suburb then people will have a choice, demand will fall which will impact prices. Natural settings of a suburb such as closer to OCEAN is something we can not duplicate.

Each person is different and live a different life style. Not even communism could change that 100%. So we need to accept who we are and look for ways we could live. Rome wasn’t created over night so as our lives. We need to start from where we are today and look forward to get where we want to be. Government & other organizations could assist   us and give direction to do so. 

House ownership for every Australian is a good motive and correct way to look at.  How can we achieve this, surely we need to look at things very low at first. I mean at the minimum requirement levels. As per banks  computation, cost of living for a family of 3 is around $20,000 and 85% of earnings as disposable income is a steady life style. Minimum full time salary is around 25K today. This means if 2 are working, a house loan around $150,000 is not that difficult one to repay. It may change with current cost of living rises. If people look where properties available at this price, probably they will find a housing solution. In my opinion government should give grants/incentives for such people only, not for those who look at 500K properties. Any new comer beginning at this lower level will create a demand at this level first and then when established can push the market up word.  This is my opinion only to resolve this problem and you need Expert Advise.  

Double dipping by banks could make economy to slow down, it may lead to recession if no corrective action is taken now.

Thank you for reading my view and will always welcome you views.

Custom Search