Forum Replies Created
Oh yeah real estate dropped 20% or close too. in Sydney
had a house quoted by three agents at 250k -270k no sell a year later when we put it on the market at 210k. Sold it for 215 another year later.
Client bought at Mosman for 650k in 1989 paid around 20% interest and sold for 560K two years later.
Lots of examples, beleive it …. property dropped.
Originally posted by paulmeese:at the bottom Sydney
They beleive we can expect another property surge in late 2007/2008 and then we should not expect to see another growth phase for a substantial period.
As we well know the media is very good at being pesimistic with the market which means more options for the savy investorsSydney at the bottom ????? You are kidding right ??
Sydney has slumped while interest rates at sub 7% are at 30 yr market lows. Now they are on the move. 1/4 next week, 1/4 in Nov
and probaly 1/4 in Feb – Mar.That is .75% added to 1/2% already since the peak. Now that is 1 1/4% on 6% or a increase of 20% in total interest cost.
“That’s gotta hurt …as george would say..”
Still reckon there will be more to come.
Now I know a lot of us smuggly sit there on our 5 yr fixed rate.
the problem is a buyer next year cannot fix at our current rate, and will be the one hurting and prices will go down..
Sydney at the bottom ????? Don’t think so.
And as for a surge during rising interest rates in 2007/2008 on a market already giving uncommercial returns… I can’t wait…
Originally posted by roodog:On the ABC last night they said Perth has officially gone past Melbourne and is now the second most expensive place to buy RE…
Wow heard that yesterday on ABC radio…
I thought it was just my meds kicking in early
Originally posted by Derek:An article I read today mentioned that the rental returns in Perth are now the lowest of all Australian cities.
“Lets do the time warp again …….its just a jump to the ….”
Damm, Derek that is what happened in Sydney in 2003. We had clients coming in talking capital growth about litle units in Leichhardt and Annadale at approaching $700K with net returns of 1.8% if they had no vacancy or repairs…..HELLO.
But think of the capital growth they said as they scurried off and bought, …how to drop a $100k without really trying.
WE WERE ONCE KING OF THE LOW RETURN AND YOU GUYS HAVE TAKEN IT OFF US.
And when Perth becomes the MOST EXPENSIVE city in OZ we will be left with nothing,,,,nothing…sob sob.
Okay, accountants charge by time
they do not usually overcharge as they want to keep clients happy
happy clients come back refer other good clientsComplete info with queries answered quickly is efficient
Incomplete data that requires chasing phone call and staff revising the job everytime they pick up adds time that may not be productive.
Everytime a job is picked up to review and put back down can take 1/4 hour, even if the review finds that the job cannot start again because info is still missing.How much do you pay your plumber for a 5 minute job ???
How compete was the data ??
Sounds high but if your data was incomplete then it could happen
I would suggest finding out what he requires to minimise costs next year and then seeing if that does not reduce bill.
Go to another accountant and you will be back at square one.
Yes I am an accountant, specialise in business clients and try to advoid individual property owners as costs and expectations don’t match.
Originally posted by perthman:By the way – I wll give everyone here a bit of inside info. It has been noted that a quite a few property owners (especially around the wealthier suburbs) are selling up and deciding to rent for the next 6-12 months, and the people that are doing this are definately not silly.
Maybe someone can care to explain this phenomenom?
Damm, you are kidding. It also happened with Balmain Waterfronts (expensive) in around early 2003 from memory. Have a friend who lives there and her hubbie does reno style building for many.
BAD SIGN for Perth, as this starts to become a self fulfilling prophecy. Makes interesting watching.
Originally posted by Carl.Alexander:The RBA has to be careful if Interest rates increase then rent prices could sky rocket also if Petrol keeps going up it may be another reason to keep another rate rise down.
My 2 cents
Please explain.
Perthman, was thinking the same. Where did the Easterners go.
A lot of my clients two years ago beaming with pride over how “clever” they were now just don’t know what to do.
As BAD (bid audio dynamite sang) … “do I stay or do I go”
IF they decide to all go at the same time, THEN it could be interesting.
Can see the headlines now. REI say “never been a better time to buy”
And I too am positive about my investments, just a little more conservative.
Can read between the lines, the Perth posters are sounding very 2003
Signs, well when it came to an end, there were none. We were expecting a nice show, fireworks would have been good, some melodrama wringing of hands and the “end of the world is nigh” headlines, but nothing really happened.
We had RE agents saying the market will go for another two years BUT expect ONLY 10% return from now on, run concurrently with attempts at detailed forecasting by various papers, on page four, that were hard to follow.
Guess the first real signs was when the property hype TV shows could not sell their properties at record prices, and these dropped off the air. This was then followed by a long pause.
Think Perth may make a little more noise, cause it is way more heated.
Think trigger will be things in China. End is pretty predictable.
Hope we get some fireworks.
And I bet you are hearing the same arguments for capital growth we had,
“it’s different this time because of ….
deregulated banks
first home grants
twin income family’s
my cat is over weight ….well whatever…Plus you have the minerals boom will never end, just like the IT boom of the late 90’s or the Tiger economies of the 90’s.
Oh yeah I forgot…”.Property doubles every 7 years …and inflation and wage rises are NOTa factor. ” ……sigh
Makes great viewing from here.
Many will make great Cap Gains, and think they are visionary investors, and not just specualators and many coming in now….well there will be tears…
Yep Enmore, Stanmore Annadale etc within 10 klms of CBD sound like great value to me.
Nice post, but guess you are sailing against the wind.
What you described pretty well sums up Sydney in 2003.
People excitedly jumping up and down about buying a fixer upper ( …start the bulldozer Lenny) that three years before they would have laughed at….just to get in the market.
Agents would say, that the market is moving that fast they could not get the numbers right, but, yeah, it also created the desired, “we will never be able to afford if we don’t buy now”.
Perth’s time will come. If Perth goes much farther, the buyers should think of moving East.
Yes it is, thank you.
Last year a new client, quite smart lodged his own property return he
1) added the reducing and prime cost depn schedules he got from his surveyor together (double claimed depn and property allows)
2) claimed all the stamp duty on purchase plus all legals.
When I told he he had pulled an extra $5,000, deduction illegally, it did not phase him as he explained he had checked ALL the websites and done his research.
Has no idea
Ignorance is bliss.
Not sure if the buyer and seller have the same name whether they will ask for a valuation, a phone call will check.
Guess it took around a day all up but because we used the Parra S/duty office. If using city prob still a day including phone calls, travel cues etc etc.
You can download a tsfer form form the OSR (NSW) and after you get it stamped you take that to the title deeds office (along with original deed) and they change the title.
Nothing magic, but as solictors do this all the time, a lot of the info you would expect available is not there, so you may get a fair bit of trial and error, and different public servants ask for diff things.
Done it three times so far.
make you you get the actual names used on the original title deed correct otherwise you will be going back for amendments.
If not sure ring them, it can be painful, but worthwhile, and next time will be easy.
I have assumed this is not divorce or will, and you are paying full duty, (not sure if a transfer to relative has any exemptions)
Oh yeah you will need a formal valuation as well.
Rgds Terry
Originally posted by DanielCummins:Quote:[. anyone got any ideas on how to utilise said areas?Hmmmm… what about a nuclear waste dump …
“Go West young man”
Thanks Jaff I have a couple of clients who bought into the tax effective unit trusts being flogged around in the last ten years.
Told em I had seen em all.
mango, macadamian, pine trees, emus, ostriches, crayfish, crockodiles, olives, tea tree oil etc and they all give back a tax break but never make enough money to get back to square one.But the financial planner says,
“hey they are great.. bought into two myslef ….more red wine..have you tried the lobster “
Anyway they pretty well flushed their dough, but the scenario above actually played out. The promoter after taking the investment as a management fee, bought the whole thing back for 3c in the $$.
Don’t know what will happen but kind of shows how poorly thought out and policed govt handouts can screw the free market.
Could say something about home owner grants, but not her and now.
Can I ask your involvement with Grapes, investor, farmer, observer.
Don’t want to say too much if it may touch a nerve.
In the Hills ourselves. Do you mind me asking where ???
