Hi,

There is some flooring on graysonline. I don't know if the prices are competitive or anything. There is also a renovators auction in Cheltenham listed, might be worth a look. Maybe you can pass the off white painted look as shabby chic or something

D

Here is the tidbit from Comsec

Point of View: House prices up, retail
spending and building approvals down

Are below normal interest rates creating a housing bubble?
Clearly that is likely to be a question that will be discussed by
Reserve Bank policymakers at the interest rate meeting next
week. And the latest round of data has added further colour to
the debate. Despite four rate hikes, house prices are continuing
to defy the global property slowdown, rising by a further 1.4% in
February, with the annual growth rate at a 25-month high. On the
other side of the coin the withdrawal of stimulus has resulted in a
slide in retail spending and building approvals.
The latest round of retail sales data clearly highlights the difficult
landscape faced by retailers. Consumer confidence may be
buoyant, but it is not translating into robust spending. The
anecdotal evidence suggests that retailers are continuing to
discount in an attempt to entice consumers and CommSec
expects this trend to continue over the next few months.
Department stores and large retailers which have been more
successful in the past compared to smaller retailers (given their
ability to trim prices) have this time round highlighted the weak
trading environment. Trend growth for the large retailers posted a
meagre 0.1% in the latest month – marking the weakest reading
in almost 16 years.
Dwelling approvals have slumped for the second consecutive
month, with the majority of the weakness centred on private
sector apartments and homes. It is understandable that a period
of consolidation is to be expected after what has been a
phenomenal run over the last year and given the expiry of the
first home buyer boost.
Looking forward the housing sector is likely to cool over the next
few months, however the sharp surge in construction loans over
the past year will continue to have multiplier effects through the
economy – a result that has shown up in the retail sales data with
furniture and home improvement retailers recording the best
annual gains in more than three years.
The latest figures on home prices indicate that a move to a more
neutral interest rate setting will be on the agenda over the next
few months. However, given the weakness in consumer
spending and building approvals, the Reserve Bank should not
rush the rate rise – especially given that the inflation environment
remains very weak. On balance, CommSec believes that a
pause in the rate hiking profile is the most likely outcome at the
April meeting.
Savanth Sebastian, Economist, CommSec

And also this

The Reserve Bank Governor has warned homebuyers to expect
rate hikes in coming months – but that doesn’t necessarily mean
that it will happen this month. While the short-term goal is to lift
rates another 50 basis points, each month board members will
cut and dice the latest economic data. Of course for ordinary
borrowers the actual timing of the moves means little, rather the
fact that rates will most likely be at least half a percent higher by
the end of the year. We expect no change in rates this month,
but don’t hold the view with great certainty

Please excuse the formatting. Go CBA they could be in the Olympics with a record time like that.

D

Thanks guys from me as well. I did always wonder about the IKEA option………. It might be worth seeing if any of the Bunnings in Vic have a comparable (read cheap) service. I would go with the wood stove thing too. I've seen one unrenovated and the cavity with stove took up most of the wall and was a supporting wall, looked like a real pain. Most of the time you see places where they have stuck the two parts of the stove side by side in the cavity. At least this one is in the corner not in the middle of the room or something.

Re the laundry maybe turn the linen cupboard into a European laundry. Basically big cupboard houses washer and dryer and you shut the doors. Or put it in the bathroom (if there is space). If you have anyone sharing they will not want to see someone elses undies washing away while they are making dinner! Also anyone with kids will not rent without a "real" laundry.

D

Hi,

Sorry I'm not going to comment on the finance part, I'll leave that for Richard and Terry.

Where is the site? depending on where it is having separate dwellings may have higher resale. The other thing is depending on where you are you may be able to get 3 dwellings on it. I know this adds a whole other dimension to it such as having to borrow more for building and that sort of thing but it might be worth checking it out. The only problem I have with only doing two is that they will be basically worth the same as the loans you have on them when all is said and done. Either that or townhouses are selling for awesome prices like 600k and up in which case I'll be there too! Just some thoughts. Have you approached a planner to see what you can fit?

Let us know how you go.

D

I think the govt relies on investors to provide rentals. Think about how many properties each investor on this site owns. None of mine are empty. That would be 9 people out of mine that the govt would have buy houses for. I don't see the govt buying heaps more housing stock for people to rent. Do you? They rely on investors to prop up the property market from the bottom up.

Govt's have a vested interest in keeping the property market exactly as is. If there is too much pressure either way govt's will pay out until it stabilizes. They guaranteed all the deposits in the banks. They gave the first home buyers more money. There are many many charities which have been given big dollars to provide emergency accommodation. But it is not long term rentals. There is less homeless people living on the streets because of the way the housing system works in Australia. That is why we are the lucky country. There is a balance and no matter what the reserve bank does, the govt will work to their own agenda, keeping the country running and the housing system running the same, keeping wealth in the stones or wood that people live in. (Even though KRudd annoys me lol!)

Wonder why they opened the market to overseas buyers? Hey fellas, sure park your money here. Not only will we tax you for the priviledge, we will tax you while you own it, tax you when you sell oh and it is great because your money is here it makes our country more prosperous. Also keeps the construction industry going too.

D

Matt,

Do you think that the increase in "aged care facilities" such as they are building around here, (Think pictures of grey haired, wine sipping, Mercedes driving, gents and ladies) will fill part of the gap and become a new trend? I don't see older people flooding out of this particular area hence the shortage in available stock for rent and for sale.

I was talking about people who want to live in the middle of town who don't really need to be there. If you have small kids and you are squished into an inner city apartment because you want to live in the city……why? I'm talking about older people who still live in crumbling mansions because they want to live in a particular area……….this is a catch 22. They still live there so you cannot develop the land to allow 3 smaller easy care units on the block, which if designed the right way they could happily live in for much longer!

I used to drive 1 hr each way to work and back, then when my car died (through poverty) I caught 2.5 hrs worth of public transport because my parents could afford to buy, and I could afford to rent there. Many people think more than 20 mins is too far.

I get tired of the affordability thing because when people talk about affordable everyone has a picture of the perfect house in the perfect spot. It is never "oh, well I can afford a house, needs a bit of work".

Everyone seems to turn their noses up at structurally sound houses that might need a bit of a scrub and a new kitchen. I think the Australian dream has changed to mean, I want to own a fantastic house, with a pool, 2 nice cars, have my kids in the top private schools and wear expensive clothes, oh and have great holidays all the time. Houses are affordable if you put money into your mortgage and don't spend every single dollar on lifestyle as well.

I watched some people I know look for 2 years to find "the house" they ended up with a house and paid 200k more for it as the market had moved in the mean time.

Think about it. And some first home buyers are picky picky picky. My brother and his girlfriend included!

D

Yeah well look at petrol. I remember when it was 62 cents. That was only 12 yrs ago.

I am facing unaffordability myself. Cry for me here people. At the end of my current lease (Camberwell) I will be priced out of the market. Rents have risen by $300 a week for average house. (Just under $1000 a week) All the houses I want to buy are over 1.5 million. Oh despair, oh tragedy, whatever will I do. Housing is sooooooooooooo unaffordable.

Uhhh yeah. Do I work in the city? Nope. Does other half work in the city? Nope. Why do I live here? Well its a nice area etc. No my family isn't even close. Sooooooooooooooooo……..I have no real reason to live here other than it is a nice area to live.

When you think about it, how many other people are whinging and whining about affordability purely because they want to live in the middle of town, or the blue chip suburb with limited houses and nice trees.

I say get over it. I am tired of the chant. People could buy houses if they wanted to. People could live where they wanted to. They just don't want to do any work on a house or only have one garage or not be in the same street as the Jones'.

And as for those investors and developers hording all the housing stock and land they are just the devil aren't they! Whatever.
Suck it up.

I would have done anything to buy my first house. Even live in Timbuktu. And I'm pretty sure I just shut my mouth and got on with it instead of crying about it.

So poor me, can I have a hand out?

Disclaimer – Please take all comments with a healthy dose of sarcasm.
D

That's good.

Please just be careful that what you post is correct. If you have limited knowledge, it is better to say nothing than to give misinformation.

D

He has seen the light!!!

Don't worry Ryan. many people have their hearts in the right place, they just don't understand that the comments they make can be seen in a negative light too. If you stick to genuine posts (maybe a few LESS posts) then people will see that you are genuine in your intentions.

The idea is to help when you can and not post when you can't, unless you are very fired up! I think everyone is guilty of a lot of posts when they first get here because most of the time they can't talk property to anyone at home. You are also not the first to get ganged up on, so don't feel too bad.

D

Interesting article Wealth. If there is a bubble doesn't really look like anyone is worried…………….

That is apart from all the NEGATIVE comments that followed the article. Such as immigration is the devil, the overseas buyers are the devil, landlords are the devil, property investing is a sin……………geez it just went on and on! Thank goodness there is a forum such as this for the investors and developers. Oh wait developers are the devil too!

A lot of the comments that followed thought that the bubble was going to pop any minute and then 'the market' was going to crash. Good for them! Hope is alive somewhere lol!

Keep em coming Wealth!

D