More REIV propogander?

Looks like the REIV and other real estate organizations are still trying to uptalk the real estate market

headlines like Melbourne set to claim property crown | The Australian

and Melbourne property catching up to Sydney | NEWS.com.au

claiming 25% raise in prices are just not true. according to RPData, prices in Melbourne are up 7%, not 25% Australian House Prices Real Estate Valuation & Property Information - RP Data

Why doesn't the ACCC crack down on these false claims? If a financial institution made such false claims, they would be shut down, yet 'realestate agents' put on the hat of been a 'financial adviser' can make any claims they want without any repercussions.

What are peoples thoughts on the matter?

 

Malvern Armadale Toorak properties are up by a minimum of 25% over the past twelve months.
$1.2 million properties will fetch closer to $1.7 million and $3 million properties are selling for over $4 million.
There is no exaggeration in these figures.
Regards

Denis

 

pointing to specific suburbs doesn't mean whole melbourne is up 25%.. I can tell you where I live in the outer eastern suburbs, prices arn't up 25%.. so again, they are twisting stastics to try to push up house prices..

 

Fair call.

The article l read referred to those suburbs and l didn't have a problem with it.

I accept that for whatever reason inner suburbs are flying it is not sustainable and it probably is not been replicated throughout Melbourne.

Regards

Denis

 

CRC,

I don't pay much attention to such claims.

I does feel good to know that our assets have gone up in value
but at the same time we all know that in the long run such increases
are Unsustainable.

IMHO When we experience large price increases year after year
we are simply bringing forward capital gains from the future
so in subsequent years we are likely to see periods with low or zero capital gain.

Finally, I don't think that being the most expensive city in the country is a good thing.
I hope I am wrong but if our economy slows down and/or unemployment goes up we could be in for a big surprise.

Cheers

 

CRC_Error,

Actually RP Data reported Melbourne making 18.39% in the year leading up to October, check the article on the website off your link! It also has a picture with only 7%; but obviously something has gone astray somewhere. Given that Melbournians seem to like their Spring-time auctions in November, the data isn't orders of magnitude apart (if the 18.39% was correct).

RP Data also used hedonic indicies, I think the REIV is based on medians. Although hedonic should be a better indication, with the market the size of Melbourne, you would think the variation wouldn't be that drastic.

The other trick is what do you call 'Melbourne'? Greater Melbourne, Melbourne city council area, etc. So when one person says 'Melbourne' it could be everything without open paddocks between, for other's it's municipal council. A bit like ASX200 <> All Ords.

Glad to see you're taking more of an interest in property anyway, shares not looking as promising at the moment?

Dave

 

actually shares are looking really good at the moment, the all ords have gained 10% in the last two days.. I hardly think any property investment will make you 10% in 2 days.. we will see shares continue to rally next week before they stabalize.

In saying that, direct property does have its place in a investment portfilio for certain people.

 

Or lose 10% in 2 days

 

you only lose if you sell..

You can lose more with property.. if it doesn't go up at least 8% PA, then your losing ten's of thousands per year covering interest.. and other costs.

 

Not me.
It would have been silly of me to buy if the returns were not good.
I also tend to buy and improve so that gives me higher returns.
I also use depreciation and -ve gearing so my costs are minimal (if any).

I like shares as well, in fact I would have bought a few days ago if I felt that it was the right time.
The situation in the US is worrying me though and I don't believe that the problems have gone away so I am staying out of it for now.

Cheers

 

yes improving property will offer better returns..along with deprication.

I think having a combination of both is a ideal situation.

 

I can hardly disagree ... I was also buying shares at that time

But in the longer run, property going up about 20% in a year when you only put in 20% deposit, that's hard to beat also.

Back on topic. I think the real lesson is that you have to be wary of the information sources whether you're into property or shares or both. .. and then there's lies, damn lies, and misused statistics

Dave

 

The figures for Melbourne houses 2007 are:
Residex 23.5%
REIV 24%
APM 25%
ABS: being released on 4 Feb
Valuer General: no result yet

 

crc_error, it was 7% for the December quarter.

 

so those are quater results!

25% growth is insane!!

 

Insane to you maybe, I'm not complaining myself

 

how many properties do you have in melbourne?

 

ABS figures are out today, Melbourne is reported as having risen 18.1% for 2007.