KevinArnold

dwarves fight to the death.

ok i'll get a large net. you dress up like brian henderson and we'll lure her into an alleyway.

hey rigid?

you know any dwarves? i'd love to put one in a cage and put it on a roof rack surrounded by strobe lights and house music.

make it dance on the car whilst we drive around the cbd.

i'll check the yellowpages.

you want some company rigid? i have lots of booze and very low inhibitions. its a powerful combination. you give me some sugar and we'll tear the town apart.

i'm currently trying auto erotic asphyxiation but i can't get the belt tight enough around my old fella.

i'm 3 drinks away from exposing myself to cars driving past.

i think someone has spiked this milk. it tastes like vodka.

Milk was a bad choice.

i don't what went wrong but i've found myself sitting on the couch semi naked apart from a pair of mirrored sunglasses and a half empty bottle of vodka.

i feel like David Carridine.

Its basic supply/demand modi. it's just that there is a belief that everyone should ''own'' their own house so it has more social and emotional connotations and stigmas. until the govt stimulates supply of new construction we will have rising house prices.

As i posted yesterday in a different thread...

''Over 2009, dwelling commencements posted the weakest calendar year result in 13 years - a clear sign that we are still under building, especially given that population is growing at the fastest pace in 40 years.''

The largest lenders to development and construction companies were the international banks...then the govt guarantee on Australia banks caused a flood of money out of int banks into domestic banks causing half of them to pack up Australiasn operations. SG, RBS to some extent and HBOS. Now we have a barely any residential housing developments in the pipeline. The govt has stimulated demand with low rates, first home buyer grants and stimulus money and at the same time removed the all supply stimulation. Until this gets corrected by banks lending to development and constuctions co's we are going to have increasing prices and higher rents.

But modi thats because you aren't viewing housing as investment.

*If *i did have a house modi..

i would negatively gear and pay rent. Compare rental price increases to housing price increases over the last 15 years.

By leveraging and growing your equity you more than make up for the rental expense. Including transcation costs.

Simple equation really.

The caveat is timing the cycle. You don't want to be negatively gearing in a falling asset environment.