eugene43

Why is it when these two do not get an answer to there own question they answer it them selfs THEY MUST BE MARRYED or soon will be.

eugene43

do you store them in a bottle or waffed them up to your nose with your hand.

swigski

2nd option! Which do you prefer?

Amazulu

I like the smell of my own farts - especially the chewy ones.

bcworld

I'd just like to make my first post in the bubble thread, here it is:

Stitchy

I second this great idea.
Indeed, my first post on the forum.

But I'll also add that I think there's a bubble because my gut tells me there is.. everyone talks about property, 3 of my friends have bought in 2009 (none in previous years).. you can smell the bubbly madness.

In my opinion the market simply cannot get hotter.. it's off the charts.
I also think it's at a stage where it can't go sideways, it needs growth to sustain itself.

But these are just my gut instincts.
I'll take the each data as it comes

( quick intro: I'm 30ish M duel Oz/UK Citizen living in Brisbane. I frequent property/finance forums under same ID but probably won't be active here. Still, I felt like adding because I've just read/scanned through all 700+ posts on this thread! )

Lyx

Wow all 700 now...... your head will explode at exactly the same moment as the bubble bursts.

Steve2009

If anyone tries to tell you tell you that there can be a soft landing from a property bubble then back away slowly while nodding your head. The growth is self-sustaining because past capital gains give confidence of future capital gains. Without capital gains property in a bubble is a non-performing asset, the only reason bubbles survive a dip is that confidence lags a dip and people hold the belief for a period that the market will tick over once again and capital appreciation will return. Once that confidence is gone it's down to Chinatown.

asprilla

I reckon its a bit simpler than that...
1) population is growing.
2) inflation.
3) finite supply of land on planet earth.

You don't have to be einstein to appreciate why property values go up over time...

pomtastic

So you reckon as property continues to out strip earnings and inflation, people in the future will be paying, say, 90%, 100%, 120% of their earnings on a mortgage?

Ha ha ha, you are no Einstein.

asprilla

Pretty much the theme of this thread... people reading what they want to read, not what's really there.


Tell me, what else do I "reckon" ?

pomtastic

I reckon you should read Economics 101.

Steve2009

I've heard it all before. Every country that has a property bubble thinks that they are 'different'. Immigration is not guaranteed, neither is inflation and Australia is not short of land, zoned or otherwise.

You don't have to be Einstein to realise that prices can go both ways. Once capital appreciation is gone your investment, whether it is in your own housing utility or that of others, is a dud.

I see no shanty towns or families living in cars in Australia so I can only deduce that there is no vast shortage of properties. Housing is readily available and well priced, you don't need to buy it. There is a vast disconnect between rental pricing and purchase pricing, this implies that the purchase price is disconnected from the housing utility provided by the property.

MartinLuther

I think asprilla meant that those factors drive growth. Some of you seem to have interpreted this as factors that drive a bubble. Not the same thing.

Has anyone actually said "it's different"?

pomtastic

I love this post from an Australian Property Investor's Forum and would like to share.

"I've just had an unnerving conversation with a friend very much into property who bought a beautiful home in Santa Cruz of California in 2006 for $750,000. They are now seriously underwater, with a similiar house on the market in their street for, firstly $300K and now $200K - no takers.

She asked what the property market was like in Oz and I rambled on about the same stuff that we all said when I was living in Ca - oh, it's great, loads of immigration, lack of supply...market looking fantastic...limited land releases...can only go up.. blah blah blah.

There was a dead silence and she said "Do you know how idiotic you sound?".

http://www.somersoft.com/forums/show...8&postcount=22