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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (113641)	9/28/2015 8:11:36 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217753

We know a real estate broker who collected ownership of 68 homes in West Hollywood during the real estate boom which ended between 1989 and 1993. By 1996 he had lost all of them to foreclosure, including his own home. To end up with nothing, all he had to do is live extremely frugally for 15 years working long hours as a real estate agent while managing his 68 properties. Instead of temporarily owning 68 homes, he could have enjoyed leisurely vacations on this tropical island In 2002 my housekeeper who I paid $50 for a days work, together with her low-income husband, owned four homes in Los Angeles. Not bad with a total income of $25k annually and two girls to raise. They took advantage of the post-9/11 liar loans which charged only 1/4% more in order to obtain a loan without documenting your income or assets. By 2009 they were trying to hold onto their own home after losing the other three.

To: John Vosilla who wrote (113641)	9/28/2015 8:12:11 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217753

Glenn Stevens, Australia Reserve Bank chairman since 2006, has not been as zealous as Ian Macfarlane in stomping on every outbreak of property fever. Macfarlane urged NSW to triple their property tax rates on speculative ownership, which they did and other punitive measures were introduced. Right-win nutter ex-PM Tony Abbott and his Treasury Chief Joe Hockey, Australia's answer to George W. Bush and Hank Paulson, have both been given the sack, having previously dismissing concerns over Australian home prices Although they provided ARB Chair Glenn Stevens with no support in taking government actions against the speculative property bubble, bank are capitalized well enough to withstand a large number of home foreclosures - something most American banks were not in a position to weather. It just won't be a pleasant experience for those who have taken on property with too much gearing. I look forward to a future update on Emily Sharp and Luke Rogers, who will be in a world of hurt. A huge turnout for the auction of 93 Hill Street in Sydney's Leichhardt at the weekend - afr.com The Sydney housing market has been in bubble territory since December 2014, according to new economic modelling, and there is no sign of a slowdown yet.UNSW Business School professor Glenn Otto has examined the house price-to-rent ratio across all capital cities since 1984 to detect any explosive growth in asset prices. "There's also some evidence we've got a bubble currently for Sydney since December 2014, but not for any other capital cities," Professor Otto told The Australian Financial Review, ahead of UNSW's Real Estate Symposium on Tuesday. "Sydney and Perth both had episodes of bubbles and Sydney had a clear episode of bubble from December 2001 to June 2004." CBRE data shows the price for a new Melbourne residential property is more than 6 per cent higher than the price for a Melbourne property in the resale market. Treasurer Joe Hockey has previously dismissed concerns about a housing bubble forming in Sydney, while Reserve Bank of Australia governor Glenn Stevens has described parts of Sydney's property market as "crazy". Professor Otto said prices generally "wander along in a reasonably random fashion, but there are episodes where you have a really high, really rapid explosive growth in house prices". "This definition picks up a house price bubble based on the rate of the growth of house prices in relation to rent." He said by measuring how fast the asset price grows, the modelling detects any "short-term, explosive behaviour" on the part of buyers. "The rapid growth suggests they are expecting return over and above the normal rate of return, which compensates for the uncertainty that the bubble will burst. It also suggests buyers don't do due diligence on what the place might be worth. "Another advantage of the technique is it potentially gives you an early warning signal and you can see the beginning of a bubble, so if you're the central bank and this is something you're concerned about, at least you know you're in the bubble territory." Two-tier property marketThe latest data from CBRE also suggests foreign investment may be creating a "two-tiered" residential market in Melbourne, where the price in the new residential property market is significantly above the price in the resale market due to foreign investment. CBRE data shows the price for a new Melbourne residential property is more than 6 per cent higher than the price for a Melbourne property in the resale market. The two-tier property market phenomenon is expected to get worse as the lower Australian dollar brings more foreign investment into Sydney and Melbourne housing markets. CBRE head of research Stephen McNabb said: "There is more demand in the market from foreign investors than we've seen in other markets." He said the price differential is also reflective of the supply coming onto the Melbourne market in the past five to six years. "It suggests that you're moving towards a peak in the pricing cycle," he said. The price differential was also reflecting foreign buyers' expectation of lower return in the property market, he said. "Across the real estate market we have seen foreign investors having lower return expectations because they're coming from a market of lower interest or lower return, or in the case of China, markets with higher risks," he said. The data shows that approved foreign investment makes up more than 18 per cent of residential property purchase in Victoria, and over 10 per cent in NSW. Valuer Herron Todd White's latest red-flag report last week warned that some apartment buyers in Sydney and Melbourne were paying too much for properties in competition with foreign buyers, leaving owners and lenders exposed if the market suddenly turned.