Impartial Posted August 22, 2007 Share Posted August 22, 2007 We all know Australia and New Zealand also have/had massive HPI. Their rates are now blowing up, I think NZ is now over 8% Not heard and HPC news down there - anyone got any info? Quote Link to comment Share on other sites More sharing options...
dirge Posted August 22, 2007 Share Posted August 22, 2007 Mate of mine is in Oz didn't mention anything about prices crashing but did go on about prices being stupid high. Quote Link to comment Share on other sites More sharing options...
steve99 Posted August 22, 2007 Share Posted August 22, 2007 No sign of it yet, seemed to slow down about 2 years ago but has gone into top gear again, my contacts there have no perception of anything other than full speed ahead, BTL has taken off again as rental yields have shot up, friend of mine geting over 20% more with his new tennants than last year. Suspect it will take unemployment or credit tightening to kill it. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted August 22, 2007 Share Posted August 22, 2007 the carry trade, the higher interest rates are making it a good destination for foreigners to put there money/invest. Rules now appear to be rewritten due to globalisation... Quote Link to comment Share on other sites More sharing options...
WiseBear Posted August 22, 2007 Share Posted August 22, 2007 I'm now based in Sydney (3 months). I've spent most of that time researching and looking at houses. This is my take on Sydney Only: Prices peaked in 2003 and have gone sideways since then (the infamous plateau), some areas have gone up while others have declined. Prices are very high, -measured against yield they are the highest in the world! -In terms of affordability, per the economist inteligent unit, they are behind Californian cities and ahead of London but this report is a few years old now. -Per square foot thay are cheaper than London. The market has not moved in 4 years and interest rates have risen during this time. From the people I talk to this is really begining to hurt and many market watchers are forcasting a fall in prices. Estate Agents see prices moving up 10% next year - suprise suprise. I think that house prices would have moved down earlier but have been given a boost by strong commodity prices. As the US recession progresses, commodity prices ease and interest rates really start to bite I think prices will fall. I have cash from my UK house sale but I'm renting at present and happy to do so. Quote Link to comment Share on other sites More sharing options...
Confounded Posted August 22, 2007 Share Posted August 22, 2007 I'm now based in Sydney (3 months).I've spent most of that time researching and looking at houses. This is my take on Sydney Only: Prices peaked in 2003 and have gone sideways since then (the infamous plateau), some areas have gone up while others have declined. Prices are very high, -measured against yield they are the highest in the world! -In terms of affordability, per the economist inteligent unit, they are behind Californian cities and ahead of London but this report is a few years old now. -Per square foot thay are cheaper than London. The market has not moved in 4 years and interest rates have risen during this time. From the people I talk to this is really begining to hurt and many market watchers are forcasting a fall in prices. Estate Agents see prices moving up 10% next year - suprise suprise. I think that house prices would have moved down earlier but have been given a boost by strong commodity prices. As the US recession progresses, commodity prices ease and interest rates really start to bite I think prices will fall. I have cash from my UK house sale but I'm renting at present and happy to do so. I think this is the phenomenon of the current worldwide HPI, HPI needs HPI. Anything is affordable as long as you have equity to draw on or you don't mind such a large portion of income going on housing because you know your house is saving a nest egg for you. You need HP stagnation for a period for the reality to hit home as in Aus, or you need drops as in the US to really hit home. I think the UK will follow the US with a typical reversal immediately highlighting all the horrors that luck in this mess of a bubble we are in. Then the government will bail everyone out as the US are attempting to do and the process will start again but much worse! Quote Link to comment Share on other sites More sharing options...
Montymoore Posted August 22, 2007 Share Posted August 22, 2007 Carry trade is important here as is the influx of rich asians from the booming economies, and the don't forget high commodity prices which has allowed tax cuts on a big scale. Yes tax cuts! last year a high earner in Australia was given a 2% tax cut and a raising of the higher rate from $70k to $125k. This explains the main reason why house prices have not crashed. ie interest rate rises have been offset by tax cuts. Can you imagine that happening here!!!! The Aussies love their houses almost as much if not more than the Brits. Quote Link to comment Share on other sites More sharing options...
leemsip Posted August 22, 2007 Share Posted August 22, 2007 http://www.reinz.co.nz/reportingapp/defaul...amp;RFCODE=R100 NZ is showing a nice little drop in house prices the last few months. Anecdotally friends over there say its getting hard to sell. 3 year fixed rate is above 9.3% now. There is definitely something bad about to happen here. We will see if spring perks up sales Quote Link to comment Share on other sites More sharing options...
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