It is the time when renting is going to hurt you.

[notpom]

http://www.smh.com.au/business/property/home-prices-surge-in-hobart-adelaide-20150501-1mxkjb.html

 

Now it is official - Adelaide woke up finally.

Strictly speaking - it woke up long time ago, but the fun thing with all property booms - first buyers snap up all bargains, median price "goes down" and media howls about "property downturn".

 

When median is up - it basically means "you missed all the real bargains".

 

While you would not expect such a savage jumps in prices like in Sydney, 1.6% growth per month - it is quiet respectable. Sydney have run out of land long time ago, Adelaide still has plenty - there are only few kinds of land are in short supply.

 

Choice is yours - you either pay someone else's mortgage (aka rent) or your own. But we are entering the time when houses of most people will be earning more than occupants themselves at their day jobs.

If you do not want to bend over and grab money from under your feet - feel free to hang the label "troll" on me and dream that one day beer truck will roll over on your street.

 

Oh, BTW. RBA MUST HAVE cut interest rates in April, but they decided to demonstrate how irresponsible they are (I repeat - I would not trust ANY member of RBA board to clean my toilet).

 

Now, if Sydney Morning Herald (the most anti-rate cut and anti- property boom newspaper in the country) says they will cut..... then THEY MUST.

http://www.smh.com.au/business/the-economy/reserve-bank-to-cut-interest-rates-in-may-in-face-of-weak-economy-20150430-1mwyeu.html

But if they would not do what they MUST do -I would not be surprised. Normally, interest rates in this country should have been at 0% three years ago for economy to have even a slightest chance.

Edited May 1, 2015 by notpom

[KennyKen]

Big talk!

[Guest Guest14361]

:SLEEP:

[Tamara (Homes Down Under)]

I thought it likely that interest rates would have been cut at the last meeting...but that's why i'm not an economist!

 

The only dark cloud hanging around interest rate cuts is the state of the budget deficit and the warnings that the country's credit rating may be under threat. If Australia loses it's rating (downgraded) then it will be more expensive for institutions and government to borrow money...and interest rates would rise.

 

Having said all that...I think that rates will fall and I wish that I could get my sons to buy property...instead of wasting what they are paying on rent...and someone else's mortgage!

[notpom]

I thought it likely that interest rates would have been cut at the last meeting...but that's why i'm not an economist!

 

The only dark cloud hanging around interest rate cuts is the state of the budget deficit and the warnings that the country's credit rating may be under threat. If Australia loses it's rating (downgraded) then it will be more expensive for institutions and government to borrow money...and interest rates would rise.

 

Having said all that...I think that rates will fall and I wish that I could get my sons to buy property...instead of wasting what they are paying on rent...and someone else's mortgage!

 

Tamara, you are not the economist because you seem to feel the economy better than the trained one. They would not let you in as a threat to their own jobs.

 

As to convincing your kids to do the right thing I take a liberty to suggest a shortcut. Secretly join a pistol club and exercise very hard in the discipline called "Rapid Fire". That would make you much more convincing in the eyes of your kids.

[notpom]

Big talk!

 

One more addition. Saturday auction clearance rates.

 

FYI - it is a relative guide only, but it is a sort of convention that clearance rates below 50% indicate depressed market, from 50 to 60 - normal market and above 60% - is an indicator of a property boom.

 

Las Saturday Sydney has set another all time record - clearing at 90%.

Adelaide shown clearance rate of 72%. Well above the "boom" benchmark.

Given that markets traditionally get slowed during autumn and winter...........................................

[chrisda]

Renting is hurting us already. Should have bought 18 months ago.I may take the plunge soon but we may buy an investment home soon. We dont earn great money but its still doable.