Commercial that I have been watching has been kind of immune to the boom. In the same area seems to sell for less  psm that residnetial even if renting out 50% higher psm.Never saw significant growth in price,  seems still locked in on return.Residential returns in many areas halved, not so in commercial or industrial at least from what I have seen

We got quotes on our home around 1990 at 250-270k in 1990,12 mths later could not sell for 200k ,12mths after sold at 215K.Had clients that bought at Mosman for around 600k sold 1 year later for 500k and had paid 100k interest in the year. Yep 200k to live in the top end for a year. (Oh yeah he had lost his top end job by  then.)My favourite was…[Read more]

Instead of going the cash back route, you could give me $20,000 grand and I will kick you in the crutch, give you back $5,000, and in time you  will be much happier with the deal.If you want I can arranage to kick you while you are taking in a water view .Sorry ……. gor carried away…this was an old Henry Kaye technique used to sell…[Read more]

Hope this thread does not devolve, but although I think Scamp is a little too sensational, I think his basics are right.One issue that was not mentioned during the hype of the boom was the role of inflation. From the early 70s to the early 90s inflation pushed up prices. In the good old days I was staggered at my dads salary as CFO of a major…[Read more]

If public sentiment was that this was a short term blip (base this on inumerable conversations on people post poning selling until the market comes back next month, next year ) and the market went flat, think now that the sentiment moves slightly down it will head down for a while.On other news unemployment heading up, and some foerign workers…[Read more]

Skip this is the thing.If I can now buy a 700-800K house for 600 (not using extremes here), then why would I pay the guy with the 550 house more than 450, or the devloper selling new townhouses for 400 more than 350 or the apartment that sold for 290 for more than 220.It creeps bracket by bracket and suburb by suburb.Agree that rates of return are…[Read more]

In Sydney we have already seen 850K homes (asking price pre slump) sell for under 500K, Kellyville, the divorce capital of Australia.Palm Beach $6.25M to $4.5M in under a year, both ends of the market.Wonder how many of the bulls here are taking there own advice and swooping in to prop up there portfolio before the market jumps again ????

Benhaman wrote:
Does this apply for gold coast? One person once told me the prices would go down everywhere except the gold coast cause everyone wants to own there so it might slow down but would never drop,maybe i should just move out bush

In the early 80's the ABC 4 corners show ran a episode on the Gold Coast questioning whether that bubble…[Read more]

Have a client, quite a smart guy who over 20 years has built a portfolio of industrial units. He was once a tennant so stuck to what he knew. They have only had moderate cap gains but give a gross of 12% in a good year. He was telling me of a neighbour bragging about 'his" investment strategy which was buy 10 investment properties in western…[Read more]

All you need is one apartment unsold at a low price and every apartment in the block drops.At the end of the street where I work (in sunny Parramatta) there exists a brand new luxury tower (yes luxury and Parramatta in the same sentence,) don't blame me it comes from the developers literarture. This I beleive was part of the Fincorp fiasco. They…[Read more]

Jon, what if we move towards a recession and the building industry etc slows (even more) and our many 417 Visa workers go home, will that also drive up rents ?????

Jon Chown wrote:
It's funny that when ever you guys go to sell anything you are never lost for reasons as to why it's worth as much as you think it is even if it isn't – Wish we could legislate against that!!!!If everybody was to believe all of the negative statements on this site we would without doubt create a self fulfilling prophecy and sell…[Read more]

Thanks for that Alex and welcome to the Board, ….do you have any idea who is holding Dougs benifcial interests….

ASIC is an absolute joke, as HG and Roy would say, will only ever act after the ballong goes up. Thety have become just another income collector of the gumnut.That  said, what you have described it counter the cycle, as public sentiment is all time low, unempolyment moving up, loans figures have slumped and building activity lowest on record…[Read more]

What we saw locally, Parramatta 20 storey apartments,  was the rental guarantee being a top up.Say guarantee was 20K pa rent, they got tennants for 3 years at 12.5K-15K. pa then topped up the difference, Cost them worst case scenario $22,500 for a BIG THREE YEAR GUARANTEE !!!!!, and let them sell around 60K to 80K over market, as most investors…[Read more]

Scamp, as of Tuesday I think I will be billing them and walking away, new client, has previous bad advisors or themselves to blame and I don’t feel like being the messenger everyone wants to shoot.

But best advice would be to try and do a phoenix with the company and close it down as fast as they can. Cash is nil, (they took it) tax bills are…[Read more]

Have an emergency meeting with a new client next week. Found out they have a major cash flow problem. The cause a major neg gearing thrust by the directors in 2006/2007 that has left them bleeding out the comp profit to fund their personal debt with nothing left to pay the tax.  Bad advice, not carefully implemented by people one of which has…[Read more]

seank wrote:

blogs wrote:

seank wrote:
Scamp have been spending too much time in those Holland cafes? Did you read the article properly? This relates to Public trustee houses, which can't be rented out and have nothing to do with the rental shortage.

Ahhh Seank sure you read the article yourself? It isnt JUST about public trustee houses, it…[Read more]

blogs wrote:

vicgirl wrote:

Again another article in the paper on the weekend stating already properties at the top end of town are selling for $100k less than they were just 12 months ago-and we arnt even in 'financiall hardship' yet,

Client unloaded a property at Palm Beach for 6.25M end of last year, best estimate for it now is…[Read more]

Scamp wrote:

and will soon become more than clear to a lot of households when their lowest-ever 5-year-fixed mortgages will go up from 6% to 10% interest rates this september 2008.This huge increase results in average monthly mortgage repayments increasing from 850$ to 2650$.In september 2008 :

And that is the big question. So many of the…[Read more]