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Bruham Ausprop you guys are reflecting what I feel.
Ausprop very good point, we are entering a two economy country. I personally am constantly amazed by the prices members here are quoting for WA which is clearly booming.
Saw some figures last month on housing where the annual figure droped last quarter. Funny thing was it went up in all states except ACT and NSW, where the drop was big eneough to pull down the national average (Vic was close to flat).
Housing sucks so much cash out of the NSW economy that it has stalled. It was the extraordinary housing boom that kept it rolling along, not real growth. In the Nth West 1/4 from Parra to Hornsby to Penrith, there are a lot of completed projests selling very very slowly.
Now Sydney would benefit from a rate cut, but can’t see it happening, without seriously upsetting other areas.
Westan, and it is interesting to note that Sydneys economy is gradually slowing as a disproportionate amount goes into mortgages and families now try to clean up their personal balance sheets.
High house prices on the way up good for economy. High prices heading down, bad for economy.
Maybe Bob Carr knew more about economics than he admitted.
Originally posted by westan:Hi Flash
sorry to tell you this but how about taking some responsibility.
It looks like they sent you an email, (maybe not the best form of communication) but its you who didn’t access it. How were they suppose to know you had changed email address’. I communicate by email and usually only email with many of my managers. Oh well its all a learning process.
regards westan
Agree completley with Westan, you are a investor and hence a business person as are they. They did contact you, at the e-mail address you gave them .
Why did’nt you give them your new e-mail address ???
Dosn’t look like a PM problem to me.
Talking about Sydney (its what I know ) have several clients with a total of around 10 in last 8 years. Pretty average cap gain with great rentals.
No problems really in this period as the economy has been great. Remember these same guys in 1990-92 picked some of these up for 120K when they had been listed by developer for over twice that. (bought from administrator ) Vacancies very high, 6 mths free rental in 3 or 1 yr in 5 pretty common.
If you can ride out a possible slump, and although we have not had one in 13yrs they do happen, they would be a good part of your portfolio.
As examples in the hills area NE of Sydney most ppl on acreage are land banking in their own way.
Two of our neighbours who moved in during the last 6 years sold their acreage and then bought in Glenhaven hoping to sit and do it again.Some others bought 5 acres with older simple 3 bedder brick for 2.05M when it no sold for 1.55M six mths before. The reason, they thought they could sit for a few years and go Sep 5 (O/55 dev)
Laws changed and they are stuck with something that probably could not get 1.45M at the moment.To do land banking effectively you need to have several to spread risk. If one goes off then your average rate of return jumps significantly. Problem is finding like minded souls. Who are patient enough to lock in for 10 – 20 years. (or who have a relative on council )
Your idea of jt venturing is right on the money.
Originally posted by Dazzling:
yeah this is my favourite piece of trueism from the last boom.
This ignores that the statistics its drawn from are from an era of high inflation.
I can remember my boss saying just add 10% to last years bill. Wage growth was 10%+ per year, wages doubled …..every 7 years.
Did that have anything to do with property doubling in the same period nahhh it was a coincidence.
Now my receptionists wage over 12 years has gone up only 50%, as we are now in a low inflation environment.
Ave wage was how much 12 years ago 30K ???
From this you could buy middle class suburbia for 200K. (if you both worked.)
Now their wages are 40K and the same house is 500K. (note that is is 12 years not 7 ) and they cannot buy into middle class suburbia.
In 7 years their wages will be 50K each and the house will be 1 Mill, but the really exciting thing is that in 14 years from now they will both be earning 61.5K and the house will be worth 2M, and then in another 7 years their kids will then be earning 75K trying to buy that same house for 4M.Any brokers here interested in that one ?????
PS bring foundation back !!!!!!
With our foreign debt mounting, will this not also place pressure on rates (ie attract funds from o/s)
Apparently our foreign debt GDP ratio is worse than when Paul made the BIG BANANA speach.
Also saw figures that our non business debt, rose close to 12% in a year when most property markets slowed or moved south.
Borrowing just to fuel consumption ?????
Not a good sign for economy.
The increase in median sales price is more likely a reflection of the type of properties changing hands… although if the REINSW use the same dubious recording methods as their Victorian cousins I would ignore their numbers altogether.
Bear in mind that such organisations are currently between a rock and a hard place – trying to convince the RBA that the market has ‘softened’ dramatically, yet maintain Joanne Average’s belief that house prices are rising.
Cheers, F.[cowboy2]
Agree completely. My guess is REI turned those figures inside out to find some angle indicating that “now is a good time to buy”
Wonder if they have a statistic on how many “new agencies ” have folded in the last 18 months.
Yesterday the Syd Fin Review, had on its front page, “Property Developers are dumping developments sites “.
Guess they don’t think the dead cat will bounce.
