Hi,

Some one I know paid just under a mil for a house that backed directly onto the tracks. Meanwhile the kids love it! I would call a couple other agents and ask about ease of rent/sale. Maybe knock on the doors and ask the people living there if it really doesn't worry them it doesn't matter. They might not ever be there as they commute to work.

D

I'll be attending a certain conference in May, something about property investment?

D

Hi,

Better get a lawyer! I thought that if the wording for termination on grounds of the building inspection report was along the lines of "building inspection uncovering a structural fault' then you have no hope. If the wording is along the lines of "subject to the building inspection report being satisfactory to the purchaser" type thing then you could get out of it. I would consult some very good legal advice on this as quick as possible. On something like this it is worth every dollar to get good advice.

Good luck hope it works in your favor.

D

If you read the second Wolf of Wall street book, Jordan Belfort was in at the bottom of this use your home equity to buy junk craze.

Do you think that in that case then rents will stay the same for years at a time? Will people live in trailers and tents? I think many Australians would do without something else rather than the roof over their head. You have to keep your kids out of the rain and the cold. But your kids don't need that new WII console. This is why retail sales dropped off after boxing day. People went and bought houses instead.

I think there are fundamental differences between Australia and America. Good health care, a housing system set up to house the poor, mentally ill, and in need. Various housing charities which hold emergency accommodation (houses) for people to walk in off the street and sleep with a roof over their heads rather than in their car or a box.

Many Americans would simply walk away from their houses (refugees of Hurricane Katrina) if the worst happened as the government allows many of the basic neccessities to be paid for by the individual. You really would starve if you tried to keep your house. Whereas in Australia we have a very well set up support system with money that (via taxpayers) the government will give you. Rent assistance, bond money there are things that prop up the bottom end of the property market allowing the majority of people to be able to buy a house or rent privately at an affordable price.

We may be in a bubble now but I don't think that the housing market as a whole is unsustainable the way it works.

Just some thoughts……………

D

Hi,

I think parts of  the market have deflated already. I've been watching pretty much from Croydon outwards for awhile now and that market has definitely had a price drop. About a week after the FHBG stopped the prices went down. Lucky we got rejected on an offer actually because the price rises there were not sustainable. Silly us!

The problem I see is that land blocks and shack and land which seem to be all the rage (what is EVERYONE a developer?) are still going for ridiculous prices no matter where you look. Put this with contsruction costs being pretty high, the time it takes to get approvals through (holding costs) then hassles getting finance, I think these issues will still put pressure on prices. There is also pressure in some areas that is coming from overseas buyers. Camberwell has had a huge price jump and anything remotely close to a mil is considered cheap. There is a scarcity in that area which will still drive price.

The next part to watch will be all of the Western suburbs of Melbourne. Where are a lot of immigrants going to live or buy? Where it is either cheap or where there is community and services they need such as Mosques, and specific clubs. You can still get 'cheap' houses withing very easy commuting distance to the city which even though people immigrating to Australia may not work there they still will need the feel of the city.

A friend of mine came back from Peru and brought her new husband with her. She decided to settle about half an hour drive out of Melbourne as she thought it would be "country" or kind of "rural".

 I think a lot of the inner city suburb population comes from people needing to be close to lights and populated areas as a comfort thing.  Think about what the population is like in other countries. I am sure that Australia seems very underpopulated when you first get here. And I am quite sure that when most of the shops shut at 6pm and the lights go out by 9 that it would seem very quiet.

It will be interesting to watch the prices as people funnel into Sunshine and the surrounding suburbs. The people who have been well and truley priced out of cmberwell and Brighton and Williamstown will be taking a drive thuogh Yarraville and Seddon to see where they can afford a cafe strip and a character cottage. The Western suburbs have had a big jump a couple of years ago and can probably go again since you can still get a very nice house for very little money (compared to other suburbs).

I will stop now my little note has turned into a huge rant

D

Thanks Christian,

I'll be interested to see the second two to see how many more steps there are. The urban apartment development will soon be all the rage in Vic I think. Squeeze em in anywhere you can

D

How much are they paying (or may pay) p/w? What are the over heads on this. 10 x $110 p/w? So it would basically cost you 2 1/2 mths rent to cover the insurance……. How much are you looking at seeing in your pocket a year out of this? Just curious.

D

LOL!!!!!!!

Yeah Right! I think my poor poor tenants would have a fit!!! 50 people would fill a coach haha!

Here's the link, enjoy the virtual development. http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=404391324&f=10&p=10&t=ren&ty=&fmt=&header=&cc=&c=6709305&s=vic&tm=1268739528.

Ugly letter boxes are gone, I REPEAT GONE! At least now with some other properties on at higher prices we should be able to get some good applications. BTW the red colour is called HOT LIPS !

Hey YI you can come shopping with me (property shopping of course not for hats!) if your wife doesn't mind you having some guy time after your honeymoon!

D

Hi,

Look don't quote me on this because I am only just up to this stage with mine, but, when you do the strata titling then the conveyancer or property lawyer etc can put this in the title. This space can probably be classed as common area which would be wise if you ever need to sell all. I would call up the appropriate person now and just have a chat about the options so there are no surprises when you get to the end. Ours are pretty straight forward with only driveway as common. Keep us posted so we can all learn too

D