Hi everyone,
the Herald Sun today claims house prices, in Melbourne, are on the way up, after a December quarter rise in median house prices. Just wondering what other forumites feelings are about the current climate, and whether or not you feel this trend will continue over the next year?
Regards, ShelbyShellby, apparently John Edwards (Residex) has been saying that certain areas in Sydney will have a mini boom this year. Suppose it depends which areas.
From posts on this forum, it looks like prices in certain places in WA are fast on the rise.
I suspect moderate rises will happen in regional towns.I see a continuation of falling prices in most major cities and large regionals. Of course some pockets will defy the trend but you’ve got to do a fair bit of research to find those places.
It’s always in the best interests of those in the Real Estate industry to claim prices are rising. Don’t believe everything you read.
howdy
The overall figures are skewed by large jumps in Toorak, South Yarra and other highly priced suburbs. Turn to page 20 and you’ll see how the figures are meaningless… ie Essendon North suffering a 33% drop from Sept 2004 qtr median of $565k to $382k in December 2004 qtr… it just means that it’s more likely more houses in a lower price bracket were sold than in the previous qtr… I wouldn’t put too much faith in the stats… having a look at them over a 12 month or 2 yr period might be a bit more worthwhile…
You’ll note that in the article there’s no mention of the price falls.
Also, the table shows Kooyong as having a 277% rise in 3 months… hmmm, now who really thinks its possible that all houses in Kooyong have risen by 277% which is the impression the article tries to give when claiming across the board rises have occurred?
cheers
rHi and thanks for the replies.
Yes, I definitely agree that you can’t believe everything you read and did check out page 20 and could certainly see some questionable stats. It’s just that when media start featuring some of these more positive stories, don’t you think it starts to build a certain amount of confidence?
Although, I know our financial adviser doesn’t have much faith in real estate at present. He’d much rather us stick with shares. Is hard to argue the point with him sometimes – particularly when you’re ‘newbies’ like ourselves.
Appreciate the feedback you take the time to post!
ShellbyHi Shelby,
If your advisor is getting a trailing or upfront commission on your shares then he will be biased against property.
There are other advisors who use property as their core investment vehicle and who also do well in the long term.
Derek
[email protected]Property Investment Support Available.
I think articles like that have a negligble effect on confidence. serious property investors don’t pay them much heed at all, while PPOR buyers are purchasing for entirely different reasons, and will often buy what they like when they can, not necessarily tracking peaks and troughs in the market.
cheers
rHi Derek,
it’s actually a managed fund, which does incorporate some property, but predominantly shares. And, of course, we pay fees for them to look after the fund.
Shellby+ trailing and/or up front commission from the fund manager?
Derek
[email protected]Property Investment Support Available.
Up front commission, Derek.
Shellby.
Originally posted by Shellby:Hi everyone,
the Herald Sun today claims house prices, in Melbourne, are on the way up, after a December quarter rise in median house prices. Just wondering what other forumites feelings are about the current climate, and whether or not you feel this trend will continue over the next year?
Regards, ShelbyI heard a rumour that wages were going up across the board so that people can afford to buy overpriced shoe boxes.
Air goes in and out. Blood goes round and round. Any variation is a bad thing
I heard a rumour that wages were going up across the board so that people can afford to buy overpriced shoe boxes.Because they might be able to, doesn’t mean they will……There are too many other more significant influences in the current market that clearly over shadow any potential rise in wages/salaries.
My advice?
Keep watching and waiting, it was a dead cat bounce if at all. The fundamentals are shot and there’s a long way down yet to come across the board.
I reckon end of the decade will be a good time to re-enter for long term CG, possibly earlier circa 2007/8. Mind you, if you’re in it for the bucks you can make +ve CF then who cares what the market does with the cost of the place once you’ve secured your “lucrative” stream of income.
IMHO,
Michael.Torachan,
what gives with your comments? Many on this forum are experienced investors with valuable knowledge to share whilst others are here to learn.
Judging by your other recent posts with rather negative comments, I’m wondering which category you fit into?
Would be nice to see some positive feedback!!
Cheers, ShellbyThe REIV are about the most vested interest you could pick. Their data collection and ‘analysis’ methods are highly dubious at best. Does anybody know what the Australian Property Monitors results were for December? Would you care for me to share them?
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