Comments on: Gen X/ Y – Rent don’t buy! http://www.prosper.org.au/2009/03/05/gen-x-y-rent-dont-buy/ Access → Opportunity → Prosperity Mon, 08 Mar 2010 16:15:38 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: K2 http://www.prosper.org.au/2009/03/05/gen-x-y-rent-dont-buy/comment-page-1/#comment-1070 K2 Mon, 23 Mar 2009 01:43:42 +0000 http://www.prosper.org.au/?p=866#comment-1070 HI Steven, over 70% of all mortgage costs are land related. Thus if speculators have the monopoly power to withhold the supply of land to the market, they will force prices up and hold the market to ransom. This is possible because we have such low holding charges on land. Go for a drive around a new property development to see how only tranches of land and property are sold at once. This keeps property prices higher. Read these pieces I had published: http://www.earthsharing.org.au/2009/02/19/mirvac-land-is-for-hocking-not-housing/ our I Want to Live Here reports - http://www.earthsharing.org.au/2008/12/08/2008-i-want-to-live-here-report-release/ Also, check the Secret Life of Real Estate to understand why the land market is the lead determinant of the business cycle. http://www.prosper.org.au/2009/01/20/the-secret-life-of-real-estate/ keep reading between the lines! HI Steven,

over 70% of all mortgage costs are land related. Thus if speculators have the monopoly power to withhold the supply of land to the market, they will force prices up and hold the market to ransom. This is possible because we have such low holding charges on land.

Go for a drive around a new property development to see how only tranches of land and property are sold at once.

This keeps property prices higher.

Read these pieces I had published:
http://www.earthsharing.org.au/2009/02/19/mirvac-land-is-for-hocking-not-housing/

our I Want to Live Here reports – http://www.earthsharing.org.au/2008/12/08/2008-i-want-to-live-here-report-release/

Also, check the Secret Life of Real Estate to understand why the land market is the lead determinant of the business cycle. http://www.prosper.org.au/2009/01/20/the-secret-life-of-real-estate/

keep reading between the lines!

]]> By: Steven Shaw http://www.prosper.org.au/2009/03/05/gen-x-y-rent-dont-buy/comment-page-1/#comment-1069 Steven Shaw Sun, 22 Mar 2009 14:14:53 +0000 http://www.prosper.org.au/?p=866#comment-1069 I can't agree more about those Channel 9 reports of areas where it is "cheaper" to buy than rent. I checked it out of QLD and it was either houses mining areas or apartments in outer areas of Brisbane or Sunshine Coast apartments. Rents are bound to fall dramatically in mining areas. It's possible that the apartments were new and fetch a premium rent. That doesn't last beyond say 3 years. In addition, units and townhouses will feel the downward pressure in pricing sooner than houses. Townhouses have been selling at almost house prices! However, it hasn't been just a land-based boom, has it? Share values are down 50% or so. Cost of labour is at an all time high - though dropping no doubt. What do you mean by the "monopoly power of land" or "land monopoly power". Regards. I can’t agree more about those Channel 9 reports of areas where it is “cheaper” to buy than rent. I checked it out of QLD and it was either houses mining areas or apartments in outer areas of Brisbane or Sunshine Coast apartments. Rents are bound to fall dramatically in mining areas. It’s possible that the apartments were new and fetch a premium rent. That doesn’t last beyond say 3 years. In addition, units and townhouses will feel the downward pressure in pricing sooner than houses. Townhouses have been selling at almost house prices!

However, it hasn’t been just a land-based boom, has it?

Share values are down 50% or so. Cost of labour is at an all time high – though dropping no doubt.

What do you mean by the “monopoly power of land” or “land monopoly power”.

Regards.

]]>