What i would say.

Hey Steve. you have done real well purchasing land to build on while all your mates blow there cash. But instead of buying that one block of seven in your couldersac. Why dont you buy all of them. You can afford it easily., Sit on them for 2 years.Let the boom happen. Then sell of 3. You would then have enough funds to build on the other 4 and pay off all debt leaving you with around $1300 per week after costs. Do it Steve Trust me…….

hindsite is a wonderful thing.

I have a question that i havent recieved an answer for yet. Not worth its own thread but well within the context of this one.

Australian property is often compared to other countries in regards to it being very expensive.
But most of these countries are in dire financial trouble.

My question is what do we believe will happen to the property values in these countries after they recover.

America for example. When/if  they turn the corner. Do we expect there values to stay low. Return to normal growth or would you expect a rapid recovery of values.

I ask this because of what i believe may happen.
In a nutshell
Australia will have flat to moderate growth over the next 7 to 10 years while other countries in debt problems will see stronger recoveries possibly overtaking Australia at some point. But this would only be if they recover from there debt problems well.

No graphs,no data,no insider info. Just a gut feeling and a bit of a realist approach.

What do others think.

You have got me thinking.
There are a couple of streets in my area that are known no go areas. Lately i have seen many pop up for sale. Im sure they are public housing. I better go check out the next auction.

I did notice that they all say, Conditions apply. You may have to allow currrent tenents to stay on until there new housing is built.

I may have to talk to a few of you guys in the near future. The house im building now will max me out for land tax in NSW so i will be looking further away. I travel to Adelaide several times a year so thats where im looking next.

Talk soon hopefully.

Cheers

With the original post removed both DWOLF and myself look mad  

I just had a look at a property at Pennington in Adelaide.( Realestate.com.au)
9 Kms from the CBD.
Close to the redevelopment of the racetrack
Southern edge of pennington which is the better side.
A couple of klms from the beach

Now it is a 3 bed + study house with a 3 bed granny flat on the back.
It actually has about 10 seperat rooms all up and has been used as room by room accomodation.
Needs a bit ( A lot)of work but Nathan on this forum would eat it up i think.
Asking $365,000 but VERY negotiable apparently.

Will someone please buy this as i am tied up elswhere at the moment and im being tempted to chase this one also which i really cant  do for the next few months.

cheers

I am subdividing a corner block in a regional city and the costs for my Town planner should come in under $10,000 total( Plans,council corrispondence etc) but i imagine the price would be heavily effected by location.I should see a 40% to 50% profit so the cost of a planner was well in the budget. I would not like to do this myself. Not yet anyway.

If i didnt buy when W4L suggested a bubble was comming earlier. I would have missed out on the growth of the property that i have now expierienced. Infact it would have to drop 15% to get close to where this bubble was meant to burst. Thank god i did what i wanted.

I am kind of in the same boat. I have a PPOR with a small loan.
IP1 was split into two loans in an effort by mr Banker to reduce my LMI. End result is a $250,000 loan secured against the IP and a smaller $54,000 loan secured against my PPOR. ( I know better now). Unfortunately the smaller loan of $54,000 has effectively locked me out of using that portion of my PPOR equity( Or another IP as i like to think of it).

The only fixes i can see in my situation is.
1# revalue above total of both loans…….. Sadly not an option. Flat market still around here.
2#Pay down $54,000 loan……….. possible but best to pay remainder of PPOR first.
3# Sell IP………… Possible again  as it is underperforming but would sell at a loss atm i believe.Do i want to crystalise the loss.
4# Move into the IP.
5# do nothing

Sounds funny but option 4 is probably my best option for a number of reasons.

#We intend to sell our current PPOR in the next few years due to a possible bypass going in 5o meters away. It will not happen for 15+ years but once it becomes public the damage is done.
#We would love to live in the the IP due to cbd living. Resteraunts 200 meters away. How cool is that.
#Cash from PPOR sale would  reduce the current IP loan to stuff all as well as removing the cross-X plus the transfer off equity to new PPOR should release more funds to buy another IP or two.
# the new PPOR would respond well to a renovation turning it from an average property to a valuable property but a reno is something we could only do while we lived there not a tennant.

So while your situation might be different. These are my options that you might be able to get something from.

Cheers.

I agree. My ppor has 4 beds. Double garage, ensuite 3 living areas. Nice on paper but what makes a house is the space between rooms . New homes don’t have much of this apart from the top end. My 50 year old rental is a three bedder and no garage yet it has the same area. The hallway was advertised as a dining room by the agent. I like this in old homes.