Hi all,
A good story from a friend (in Brisbane), they went to see a house that was $550.000 6 months ago, they offered $500.000 and the seller said no. So my friend said to them OK, talk to you in 2 months, went there 2 monhs later and the seller reduce the price to $530.000 (it was costing him a fortune to have the house seating there, pretty similar to most seller that are still dreaming about boom times, I understand it is difficult to forget). So my friend offered again $500.000 and the seller said $520.000, my friend said see you in 3 months. He came back again, 1 month ago and the property was still there selling for $530.000, so this time he offered $490.000 and the seller reduce to $500.000 and he got it.
Pretty similar to many stories these days, investors and developers are just stuck with some properties and they can’t sell them and it is going to get worse. For 6 months my friend was with $200.000 deposit in other investments and got 10% return, $20.000 extra for the house. Marvelous.
From my point of view, anyone family making $110.000 in total can’t afford to buy any property over $380.000 anywhere without a huge financial stress. Just wait for the next round of interest rates increases, it going to get even better.
Happy bargaining, do not buy if you can’t get 10% or 20% off now.
Any thoughts?
Clones
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The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.Clones
We are going through the same thing at the moment on a property in Sydney.
Its been on the market for 7 months… empty! The seller was asking 640k… he is now down to 580k. We offered 520k, he said ‘no 560k’, so we said we would speak to him in a couple of months.
I think during all this its important to not get emotional about the house (even though we love it and it has so much potential). At the end of the day we are prepared to walk unless we get it for the price we believe its worth.
Here is hoping! Either way its a fun game!!
EcattMy thought is that if your firend was making 10% per half year on $200,000 cash, he or she would have been better off to leverage that investment and invest in more of the same. At only 50% leverage that would be $80k per year (less 13k interest) – enough to sit pretty on, really. Why buy a house with an asset like that??
Any thoughts?Just reading page 84 in this Saturday’s edition of the Real Estate section of the West Australian, I noted in Kelly Girdlestone’s article some quotes from the REIWA president ;
1. “All listings from spring were sold out in Nov and Dec”.
2. “There is low supply, strong demand and prices are going up. Buyers are paying the full asking price and sometimes in excess of this”.
3. ‘Right now is a great time to be selling, especially with the buyer floodgates opening after the holiday period.”
4. “This time last year there were 13,000 properties on the market as opposed to 9,200 on the market at the moment.”
5. “A place listed at the weekend in Swan View and 30 families looked at it. It sold for $ 10,000 over the asking price.”
6. “Rents are up,up up. Existing tenants understand the situation and are accepting increases in rent.”
7. “At the weekend, a 3 bedroom duplex in Willetton was advertised for rent at $ 190 p.w. Many people looked through and it rented for $ 205 p.w.”
All I can presume is that different markets perform differently at differing times. I’ve been saying that for a while now….these are only tiny little snippets…..each individual property behaves differently.
But then….we in the West had our turn in the shade 3 or 4 years ago when the Sydney market had it’s turn in the sun.
Hope you all have a good day.
In NW Sydney same experience. Saw a place at 850k agent said they had turned it down 3 mths before when it was 899k, think it went for 825k, saw another same day 940k, agent asked us what we thought, told him it was 100k over priced, 6 weeks later went for 850k,
looked at a realy nice one, would have got it too except we have pets, was on a 1,200k and had been re priced by another agent at 1,030k, got the feeling they would have grabbed 980k,
An agent told us of another at 1,200k, knew the street, and said would not pay that ,in that street, would not go over 1M, he paused and quietly said probably would not have to.
Still looking and it gets better every day.
From another forum:
“Well it looks like the results are starting to come in on the great house price debate. The housing industry is doing its best by describing falling house prices as “affordability improves”. Technically correct in that lower house prices are more affordable, but really, just admit it, house prices are FALLING.
In Sydney they’re falling at about the 1% per month house price crash “cruise speed” seen before in the UK and other countries. In the ACT they seem to be falling somewhat faster.
When you add in inflation and annualise the figures, Sydney houses are losing about 15% a year in “real” terms. If you invest with leverage then potentially it’s a lot worse than that.
The safe areas? Nowhere except Hobart and regional WA. It’s hard to believe they will be permanently immune from what seems to be a national trend.”
And that is why I said, if you want to keep investing in the property market please do so, it benefits the one that are not.
Clones
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The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.I think the West has definately got more legs Dazzling, lots of money around the place, lots of well paying jobs up in the mines!!!
Go the WEST…….sq[biggrin]
At Gosford just north of Sydney similar things happening. but there are still some great investments to be had in the area. I know of brand new townhouses for as low as 338k returning $280/wk which seem to get a 10% capitol gain.[specool]
Originally posted by quiggles:My thought is that if your firend was making 10% per half year on $200,000 cash, he or she would have been better off to leverage that investment and invest in more of the same. At only 50% leverage that would be $80k per year (less 13k interest) – enough to sit pretty on, really. Why buy a house with an asset like that??
Hi , could you spell that out for me by any chance please . From what l can understand your saying l could make 80 grand p/y from my 200 .
What is leveraging / 50 %/ the 13k interest and all the rest of it ?
Supposing l sold my block next door for 200 , first thing we thought we’d do is buy more property or payout out mortgage but if we could get 80p/y from that money to hell with all that .Or have l got it wrong ?
Cheers.
MkcIm with you MKC… I didnt understand what quiggles was saying either
[1. “All listings from spring were sold out in Nov and Dec”.
2. “There is low supply, strong demand and prices are going up. Buyers are paying the full asking price and sometimes in excess of this”.
3. ‘Right now is a great time to be selling, especially with the buyer floodgates opening after the holiday period.”
4. “This time last year there were 13,000 properties on the market as opposed to 9,200 on the market at the moment.”
5. “A place listed at the weekend in Swan View and 30 families looked at it. It sold for $ 10,000 over the asking price.”
6. “Rents are up,up up. Existing tenants understand the situation and are accepting increases in rent.”
7. “At the weekend, a 3 bedroom duplex in Willetton was advertised for rent at $ 190 p.w. Many people looked through and it rented for $ 205 p.w.”]
That is just the real estate industry trying to talk it up. Even at these prices Sydney is still ridiculously expensive, and it cant be sustained.
I feel really sorry for the young people who are trying to buy their first homes. I am only 30, but luckily was taught by my parents to buy as soon as I could.
Those same parents lost a fair amount of money in the 80s and 90s when things went bad so are quite cautious now when investing.
If interest rates go up, things will really get interesting!That is just the real estate industry trying to talk it up.Not so sure about that ecatt….all except number 3 are statements of historical fact. It’s what has actually transpired, not what they hope is going to happen. It’s difficult to ‘talk up’ history. It either happened or it didn’t.
The fact there is ~ 4,000 less properties on the market and a larger pool of eager buyers isn’t something the REA’s are dreaming up…it’s happening.
Originally posted by Dazzling:That is just the real estate industry trying to talk it up.Not so sure about that ecatt….all except number 3 are statements of historical fact. It’s what has actually transpired, not what they hope is going to happen. It’s difficult to ‘talk up’ history. It either happened or it didn’t.
The fact there is ~ 4,000 less properties on the market and a larger pool of eager buyers isn’t something the REA’s are dreaming up…it’s happening.
~4000 less properties, that is exactly what was told about the Brisbane market just about 1 year ago, funny the same words.
1. “All listings from spring were sold out in Nov and Dec”.
A quick search at realestate.com.au shows that there are some properties still there since October, historical fact or fantasy??2. “There is low supply, strong demand and prices are going up. Buyers are paying the full asking price and sometimes in excess of this”.
Probably, the imporant question is for how long in WA?, for the rest of AU it does not happen anymore3. ‘Right now is a great time to be selling, especially with the buyer floodgates opening after the holiday period.”
Agree 100%, selling no buying4. “This time last year there were 13,000 properties on the market as opposed to 9,200 on the market at the moment.”
Possible because the smart people already sold and they do not have anything else to sell5. “A place listed at the weekend in Swan View and 30 families looked at it. It sold for $ 10,000 over the asking price.”
One option is that they listed well below current price, this that isn’t mean they make money, words game6. “Rents are up,up up. Existing tenants understand the situation and are accepting increases in rent.”
Ohh well, no comment7. “At the weekend, a 3 bedroom duplex in Willetton was advertised for rent at $ 190 p.w. Many people looked through and it rented for $ 205 p.w.”
Luxury duplex with spa, I will pay 210 p/w
They are some kind of “historical facts” that make people think that they are in a world of fantasy and the reality is quite opposite. Funny realestate industry, they love to talk the market up.
Clones
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The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.If you have a problem with the quotes from the newspaper clones, my only suggestion is to write to the REIWA president and ask him to clarify his statements because you don’t believe him. He may respond or he may not. Either way, I personally have no comment. I gather you wouldn’t listen to the logic or written facts being lodged at the Govt depts, so it doesn’t really matter either way.
You did ask for peoples opinions in your original post.
Happy investing clones.
Well once again it looks as though none of us have any idea what we are doing!
Dazzling what on earth were you doing making up all that stuff! Didn’t you realise you would get found out? By the way how are all those fantastic commercial deals coming along? You know – the ones making you lots of cash!
Negativity sucks!
Sparky
Hi all,
This thread demonstrates quite clealry while generalised statements as per the thread title are somewhat misleading and/or inaccurate.
The property market is not a single entity and while some parts may have slowed or dropped there are others that are still powering along.
For example I was speaking to an agent who works in a coastal part of WA yesterday. He said indiciated he had a single property on his ‘for sale’ list which is normally 25 or so in length.
Another example – agent who is doing a market valuation for me on our house (part of the valuation for finance process I use) is screaming for listings. She cannot list them quickly enough.
I would not be surprised if some agents go to the wall in WA due to a lack of listings and therefore a dearth of income opportunities.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958The shortage in coastal WA is so dire that they are now acting as buyer’s agents. Yep, buyers pay their fee to entice vendors to sell. Couldn’t one do the door knocking themselves….? The RE agents are reaping it in. The principals must be laughing all the way to the bank. Not a bad way to make a quid considering the amount of value add they provide to society. Lets not get me started on how much our teachers, nurses and social workers get paid..
gees turn the knife a little asdf! If you delve behind the glossy exteriors of a lot of agencies you will find a stressed out licencee with a busines teetering on the edge. I know there are some high flyers making the big bucks, but it’s a far cry from your average REA. in a tight market like now (in WA) where turnover is being strangled you will see more and more REAs closing their doors.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Originally posted by ecatt:Im with you MKC… I didnt understand what quiggles was saying either
Looks like we’re out of luck Ecatt , why do people disappear when you want to follow something up .
CheersHey Suzieq
I think you could be on to something, those well paid mining jobs in WA helping to keep our market hot
Cooks, cleaners earning $100,000 pa (NW)- front page last week.I dont think it could get much better in WA that is – Resi/CIP/IIP all booming at the same time.
M
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