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Sorry for that, don’t know what in hell happened there, Oh yeah, it 7.00 on a Fri night time to go home.
Want I meant to say was , Yep we will raise our rates or money will flow to more attrative investments.
So its rates up or dollar down.Originally posted by AUSPROP:Originally posted by foundation:Originally posted by AUSPROP:Boosting inefficient exporters by devaluing currency is not a step forward improving the economy.
…but the alternative is raising interest rates – significantly. Which option would you prefer?
Cheers, F.[cowboy2]please expand… dmichie is saying the devaluation will lead to higher rates. are you saying if the currency doesn’t devalue we will hav higher rates?
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Sorry Kay, somehow the quote survived but the message dropped off.
The agent was referring to Beecroft and Cheltenham as boutique. In my opinion it is totally out of wack with surrounding suburbs, they must know something we don’t.
Maybe it is the wonderful rumblings of the diesels heading north on a cold winters night.
Originally posted by kay henry:gmh,
West Pennant Hills as a “boutique suburb”?? That must be a joke.
kay henry
Originally posted by depreciator:I’m selling a car at the moment. It’s an unusual one – 1957 VW beetle with modifications.
. It amazes me that people will spend more time thinking about and looking at a $3,000 car than they will a property.
Anybody hazard a guess on why?Guess he’s a hobbyist and people spend a LOT of time on their hobbies.
Been there, worked out the guy was only looking my car over as a comparo of his own. Was okay as a buyer came over bought it while he was still checking it out and drove it away.
I remember the comment about the jobs we are producing in this country are for dirt diggers, farm hands and chamber maids. Oh yeah and chippies and plumbers.
The strength of our economy in recent years has been one boomer selling their overpriced house to another, kicked off by the First Home owner grant designed to save the Fed Govt from a blder lead revolt following GST.
They tampered with the economy many ppl joined the band wagon and here we are with no where left to go but down.
As for Chinese investing in RE at rates of return in 2-3% mark, you may be a little optomistic on that one. Have you ever tried to get any money out of China ???? It is no 1990 Japan.
And agree, I think a rate of 67% is pretty good, 48% was scarey though.
Originally posted by dmichie:Quote:I attended a few auctions last Saturday and not only was the reserve not met, no-one made a bid at any of them.AND that is one of the problems. When people beleive the market is going up you buy first and scamble to sell your place knowing that demand is there. Now people are waiting until they sell before they buy. Less people selling, = less buying and so it continues to slow. Winter should be interesting.
My wife wants to buy in Beecroft or Cheltenham (Sydney siders know where …for others its about 40mins by rail in an older upper middle suburb backing onto BIG reserve areas.)Due to the reserve they are very small suburbs. Anyway I told her we are not buying yet but start looking around to get a feel for what $800k buys. She checks out a 3Br two bath dble garage, for 930K. Despite the misleading wording of the ad it was a 1960s house with 1960s bathroom and kitchen 20yr old carpets and older fittings carpets etc. Would take 70k to bring it up to par. When Helen informed the agent that she was looking at a 1M house and 2klms away at West Pennant Hills 1M bought something very nice, he replied (they have knocked back an offer under 900k and it is a “boutique suburb”. The owners are retiring and moving to the Sth Coast”. They are cashing in their only big asset and are waiting for their last feed. They will not even look until contracts are exchanged.
I think this market is not going sideways, it is stalling.
Marsden said it for me but got to agree that Dimichie and Foundation don’t appear to be selling anything and are attempting to read the data accuately.
A lot of lending is debt consolidation, don’t know how they extract that from the figures, but it is what Sydney brokers have been telling me for a while.
Not sure about Nth Beaches but I am seeing a lot of “empty developments” soaking up the developers profits, and a lot of optomistic holes in the ground.
Have heard stories of the central coast recently, with a halving of agents in some areas, (it’s amazing how agents who should know better, set up shop at the PEAK of a boom …..) and older agents sounding like farmers…. ” this is the worst slump since ….”.
And agree it has been irritating in recent years (about 1 1/2 ) as Sydney has been starting down the other side of the crest, contributors in other states have been proudly telling us their patch of dirt was still booming. SYDNEY always leads on the way up and the way down. (certain boutique areas being the exception… Broome, Central Highlands etc )
Yes I am still interested in the “market” and am looking forward to my next purchase, I am also happy that my purchase dollars seem to be growing, and know the real challenge for me is making the spouse wait some more. AND as more people follow it becomes a self fulfilling prophecy
Originally posted by AUSPROP:as for the smaller investor… there has been talk for some time now that an undersupply of new apartments in the pipeline may result in problems down the track. Developers are gettting scared of reports of a glut of apartments, so why build when there is no one to buy your product and your construction costs are going through the roof? Simple answer – chop the development. The trouble is these projects are long term, the demand / supply imbalances are short term. Picking up a new apartment off of a distressed buyer could be a good addition to your portfolio.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
The talk of a glut of apartments appears pretty accurate to me, it depends where you look.
In the Sydney outer rim there are a host of developments ranging from holes in the ground to completed complexes selling VERY VERY slowly.
Don’t know where you are looking but the oversupply is very real in some places and already having an effect.
Eg 2br old apartment 6 yrs ago for around 180, now new modern 2br, slightly bigger for asking of $249, probably take $220. (Parramatta) Now one of these developments …hole in ground .. is selling OTP 2brs, slightly smaller (in mid Parra mind you ) for originally 350s, with much higher outgoings.
Now Parra is around 14 klms from CBD. 30min by train, and not the boonies.
Houses in many areas are holding up as retirees get one shot at cashing out (Beecroft & Cheltenham are so over priced its funny ) but think it may eventually trickle across.
I personally think apartment prices in Sydney rim will continue to ease or hold for a long time, …. maybe until after the next crunch.
Originally posted by g7:Building a house, especially house and land packages are just so horrendously expensive these days,
In the next 18 months, I believe real estate will trend back to the prices it should have been had we not had a boom.(quote)I agree completey, but my take on the stats was that it tanked because of a drop in apartment applications. Looks like the developers finally are seeing the writing on the wall…
Originally posted by LeighK:Hi Guy
Hyperthetical
What would you do with 5 acres of land and small 3 bedroom cottage on it and not subdivable for maybe 5 to 15 years, located approx 1hr from Sydney CBD (that’s normal in Sydney) to make it CF+?Let’s here your creative thoughts.
Cheers
Leigh KWe bought one of these 5-10 yr ones 11 years ago and if you talk to ppl they still tell you it is at least 5-10 yrs.
If the numbers stack up its great, ( ie its been a great home for family, dogs, possums, snakes, kookaburas, owls, bats, black cockatoos and the odd echidna…..and I can be on the harbour bridge in 45 mins on a sunday morning after 9.00am ) BUT I’m glad I did’nt stretch myself financially over the “it will be 5-10 yrs ” we were told when we bought.
So…you are willing to put up your time, effort and “zeal ” balanced by my capital….hmmmm how do I know how hard you will work to make my capital a winner and not a LOSER ?????
What part of your anatomy are you willing to offer as security ????
Originally posted by AUSPROP:if BGC stopped selling homes completely it would take them 2 years to get on top of the situation!
Sorry John can you elaborate on above.
Thanks TerryYep and sentiment will shift as the stories become common.
A large amount of these new apartments are coming off their Rental Guarantees this year. A broker has passed on some stories on some Darling Harbor apartments which had a rent drop from $800 per week down to under $500 when the retal support finished.Some investors who were steered into this avenue may have a very tough year coming up
Originally posted by gmh454:Quote:Saw in a RE window last week a weathboard in Parramatta for around 580K. Polished floorboards new kitchen, bathroom, light fittings, curtains, shrubs in the yard BUT with a house that is still way small for Sydney, single garage (shed) with a large yard. It reminded me of the old saying can’t polish a T@#$d. As I looked at the freshly painted bowed weatherboard panels I thought they had spent time and money but this is still worth barely more than land value. Made me wonder why ????
Hate to quote myself but something in this mornings Telegraph made me think our readership may be broader than we think.
Basically it said if you want to Reno for a hobby go for it. If you want to Reno for a profit, you might have missed the boat. A RE agent was also quoted that some land values in their area have dropped 50+% . Good to know broad generalisations are not restricted to boom times.
A general rule of thumb is that unless it has a special character, like a inner city terrace, older houses utilise too smaller % of available land.
PPl today simple want a larger living area than can be found in older houses.
I beleive next month in Kellyville they are giving away a free RE agent with each town house (the ones next to the mall )
Agree on Nth Parramatta.
I am amazed at how many Town houses Apartments are coming up for completion in next 18 mths in a area that has yet to absorb a huge number of those released at end of last year. Thank god for the 1000 ppl moving into Sydney each week ( being sarcastic ….sorry could’nt help it )
So yep, Nth Parra looks better value for lots of reasons.
Would have thought you could get a lot better than 500K for a good Townhouse at the moment.
Junkers, could not agree more.
Originally posted by Derek:Hi all,
One isse that doesn’t seem to have been raised yet is that the Australian property market is not a single entity.
There are different states, different cities, different towns/shires and finally individual properties can and do perform differently to the broader market. They are not all at the same place at the same time as different state and local factors can come into play.
Agreed and it been interesting in the last year or so on this board as people in WA & SE Qld were still chasing Cap Gains while ppl in Sydney could see it had topped and the next cycle was starting. (not next boom….next cycle ). It’s often been arguments over the merits of apples vs oranges.
I think we will all be on the same page soon.
Was a interesting piece in the Fin Review last weekend on Qld development market. Found it hard to absorb how the building costs had blown out.
Also the big drop in renos seems to indicate that part of the market is slowing.Saw in a RE window last week a weathboard in Parramatta for around 580K. Polished floorboards new kitchen, bathroom, light fittings, curtains, shrubs in the yard BUT with a house that is still way small for Sydney, single garage (shed) with a large yard. It reminded me of the old saying can’t polish a T@#$d. As I looked at the freshly painted bowed weatherboard panels I thought they had spent time and money but this is still worth barely more than land value. Made me wonder why ????
Originally posted by ian_from_brisbane:Originally posted by christobell:…he said there are twice as many sellers as buyers at the moment..Hmmm..what does that tell us.
It tells me that now is a great time to buy.
WHY ?????
