firstone Posted 31July, 2015 Report Share Posted 31July, 2015 ATM insurance companies and finance are buying into this rise in values.I hope for the sake of those buying in to the Porsche market at high prices with borrowed money that it doesn't drop significantly leaving people under insured. Although I doubt any one will lose everything they have over debt in a car.A global financial system is unpredictable as many varied influences drive it.I'm disappointed that I didn't research porsche before this rise.Still, I drive s brilliant example of their engineering for a little over 20k. ? Happy days come and go. Smile while they last. Link to comment Share on other sites More sharing options...
Dusty Posted 31July, 2015 Report Share Posted 31July, 2015 Agree that Porsche prices (classic car prices in general) are linked to our house prices especially because of the 'free equity' it gives people access to and also the inflated wealth effect housing fosters. There is a fundamental floor in today's East Coast property boom which is simply this, the current rise is absolutely dominated by investors. Well over 50% of all housing loans are to investors when the long term average is around 20%, the advent of SMSF lending for investment properties is a big driver of this increase and what's perhaps most worrying is that most of the loans are non-recourse because they are required to be. First home buyers and upgraders are being priced out of the market which creates a huge void in the 'ecosystem' and common sense says it's largely unsustainable for too long. To have a crash, you need a trigger. The best triggers for housing crashes are oversupply and/or unemployment.Developers are building a sh*t ton of units to satiate investor demand. Look at the stats or just look at the cranes in your capital city's skyline, it's nearly all for resi apartments - are we heading for oversupply? Hard to say, I don't think so because planning is so restrictive and there was a long absence of new construction between 2008-11 but if there was another trigger that caused a jump in unemployment like, I don't know, Europe or China's property and share market collapsing and their huge debt issues coming into the light; then we could have the trigger that's been lacking in this country for 40 years. Link to comment Share on other sites More sharing options...
Coastr Posted 31July, 2015 Report Share Posted 31July, 2015 You've got to be nuts to 'invest' in high rise residential if you ask me. Simple maths- it's only the land that is worth something.house on land:1/1 share of the landhigh rise apartment: 1/100 share of the landits like investing in the pistons of the Porsche instead of the car itself.back to the topic, anything that can't go on forever won't. Link to comment Share on other sites More sharing options...
hugh Posted 31July, 2015 Report Share Posted 31July, 2015 Unfortunately Coastr apartments are some peoples only option to secure a property, the days of buying/owning house and land in the major capital cities is fast becoming unattainable. Melbournes population is currently just over 4 million and is set to double (yes double!) to approx. 8 million by 2050. The population growth is staggering and has a huge host of issues that comes with it - housing being one of the major considerations and we cant just keep expanding outwards unfortunately. Apologies if I'm getting off topic, I just find the discussion very interesting! Link to comment Share on other sites More sharing options...
ByronBayChris Posted 1August, 2015 Report Share Posted 1August, 2015 I'm nuts. I own an apartment in Byron Bay CBD. It was bought as our home and not as an investment (luckily). however the price remains unchanged since 2002. That's 13 years gents (and ladies) where the property we sold in Melbourne would be double. Oh well, it's a sunny day here and I've been to the beach, and soon I'm going for a Porsche drive through the hills. Money isn't everything. Link to comment Share on other sites More sharing options...
Dreamr Posted 1August, 2015 Report Share Posted 1August, 2015 Don't want to throw fuel on the fire Chris, but it's entirely possible it would be more than double .....Money can't buy happiness but what it can buy makes us happy .... Link to comment Share on other sites More sharing options...
ByronBayChris Posted 1August, 2015 Report Share Posted 1August, 2015 Don't want to throw fuel on the fire Chris, but it's entirely possible it would be more than double .....Money can't buy happiness but what it can buy makes us happy .... unlike Link to comment Share on other sites More sharing options...
Dreamr Posted 1August, 2015 Report Share Posted 1August, 2015 unlikeCouldn't help laughing out loud at that one .... Link to comment Share on other sites More sharing options...
Coastr Posted 1August, 2015 Report Share Posted 1August, 2015 I said invest. If you want to live in an apartment more power to you. There's a difference.as for Melbourne doubling in size....FFs Australia start some new cities. Link to comment Share on other sites More sharing options...
Shady Speedway Posted 1August, 2015 Report Share Posted 1August, 2015 If money can't buy happiness, how do you explain motorbikes and beer? Link to comment Share on other sites More sharing options...
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