this is exactly my point.  everything is propaganda to keep the economy from going into recession but unfortunatly the bubble has to pop some time and australia wont be any different to the rest of the world. If it doesnt pop not it will in 1 year but even worse if not in 1 year then 2 years but even worse that 1 year and so on and so on. it has to pop because its unrealistic and based on false numbers.

hey.

yes north queensland or all of queensland for that matter is suffering but sydney and melbourne have started to show some signs of similar scenarios. rental vacancies have started to increase, rental returns have been neautral or %2 at most, auction clearences are at %50 and prices have not increased for the last few months and in some areas of sydney have decreased but developers are still building alot of properties which will come into the market this year or next year so the probelm is only going to get worse for vacancies and prices. in the inner suburbs of sydney houses are averaging 1.4mil + for an old house, 2 bed apartments are at 600k  +  for an old apartment. now you tell me who can afford these payments on 1.4 mil is about $2300 a week and on the apartments $1100 and these are old places. The average income in inner sydney is $90000 before tax so one person cant buy a house or an apartment on their own or will have to rely on rental payments but even then wont be able to eat or buy any clothes because everything goes towards mortgage
 and if tenant leaves and no rental income comes through they are stuffed. SO 2 people have to buy property together but as an investor this does not work so it has to be couples with the intention of living in property. so lets assume both earn $90000 before tax then thats $180000 and after tax around $130000 so if they buy a house together in inner sydney $115000 will go towrds mortgage and they will be left with $15000 for everything else. now if they buy an apartment with $50 body corporate they will be left with around $65000 for everything else but this scenario is more likely for a young couple but what happens when they grow a family. overall the scenario is grim for anyone wanting a property in sydney un less you go out to outer suburbs but then you lose on lifestyle.

hey freeenterprise can you please explain why there is new unsold properties in sydney, perth, brisbane, gold coast. if its like you  say that we have an undersupply of property by %1 then why do we have these unsold brand new apartments and houses. im baffled by this because if there is an undersupply then we would not have one vacant property. Why have rents only increased by %1 the last year when all the real estate people where saying %3 to %7 increase over the year. really come on guys wake up to yourselves. its media propaganda paid for by the real estate people and banks so they can keep making money. out of the 1000's of immigrants that do come into australia i bet that not even half will ever buy property or if they do it will be when they are married and have a partner to help out with payments, Kids are staying longer at home andelderly are downgrading or moving into retirment homes so what do you think happens when we have this scenario.   Just look at cuteyoungchic comments and you will see whats going on in the real world and not the fantasy that the media pump out for you.

hahaha yes your right. earning $42000 a year after tax with no headaches in a time of uncertainty and possibly, thats a high possibility, of your asset depreciating in value and only returning $21000 in rent  after tax, you also pay tax on your rent, is a very silly idea. Obviuoulsy your one of those people who only started looking at poroperties in the last 10 years and have this idea that property always goes up and u never lose. hahahah maybe yu should go to south east quuensland, western australia, or outer sydney and ask the people there what they think about my idea. No im not a financial planner unfortunatly id love to be but i have to be patient and with time i will get there.  <moderator: delete abuse>. China is pulling back on its housing boom, its telling its banks to reign its its lending because they have a huge huge huge housing bubble and they know its going to pop soon so if that happens what do you think is going to happen to our mining jobs. Australia will and can not survive on its own that the problem. we depend on china, america, europe and if they go then we go even depper. but what do i know im just a fool.

well you say its a generalisation but i work in the construction industry in sydney and i can tell you there are a high number of new properties unsold on the market. Killara  is just one place that i know had a significant number of develepments come into the market this year and last year and half are still to be sold. eastern suburbs of sydney have had the same problem with a high number of new dwellings come into the market and they arent able to sell them. south east queensland is flooded with unsold properties and even old properties cant be sold. now you answer me this, if the was such a thing as an undersupply then wouldnt these properties be snapped up off the plan and wouldnt properties on sale be snapped up first days. like this article says. when real estate people say an undersupply due to the high number of immigration they never tell you how they calculate the numbers. they say 200000 people migrated to australia but they dont tell you that those 200000 consist of kids, grandparents, parents, partners. all these people with the exception of the kids will only be buying one property for them selves and not one each, also the kids will only be buying properties after many many years into the future which by then the population of australia might actually be decreasing due to the aging population of australia by where the majority of the baby boomers will be going into retirment homes of passing away. You say we shouldnt beleive what everyone tells us but thats exactly what your doing. read all the numbers for your self and you will see that there is actually an oversupply in australia and it will only get worse with the new immigration policies coming into place.   in regards to rental market, well i live in coogee and there is ussually no available properties for rent because they quickly get snapped up but just driving around now and you will see a high number of advertisments for rental properties available and this isnt just coogee its whole eastern suburbs and inner west. so go out there read the numbers and then come and reply again.