Forum Replies Created
There must be a reason why its not selling !!
Can you provide more details ?
Where is it, how big, is it urban or rural, or rural residential?
Price range ?It sounds like its open listed with a few agents and yourself trying to sell it at the same time.
Most agents will not put too much time into such a listing as they stand to miss out on a commission if they don’t find the buyer.Beyond this, maybe you can sweeten the deal for a prospective buyer…..offer some vendor terms, or a rebate on their interest rate, etc. or offer to package it up with a house…….
I dont know, the possibilities are pretty much limitless.If you can provide more details on the block, maybe the forum can come up with some options and ideas…
kp
Interesting discussion…
So it comes down to ‘IF’
If China slows down, etc.
I think the market is a bit bigger than China.RIght now the Chinese are having to compete with the Japanese and Koreans for resources, including both commodities and natural gas.All this competition is keeping the prices up.
The Chinese are taking a more proactive role, by investing directly in these projects to gain some control and thus guaranteeing their stock for the future. Its a bit unprecendented.
I am still looking towards a 10 yr ‘construction’ horizon and feel that yo can safely invest for the next 2 to 3 and make some decent returns.
kp
Originally posted by gmh454:ABC current affairs dedicated their first 45 minutes (1 hour ) of the Midday bulletin covering the crash in Sydneys outer west.
Not a slump a crash, property selling for 850K at castle Hill by owners eventually sold for 680k by Bank who would no longer wait.
Some agents say 50-90% of auctions are Mortgagee but banks are instructing agents not to disclose the fact,
One agent said worse he had seen at the fairfield area in 32 Years.
Another agent in Bankstown said he had seen more forecloseures in 6 months than in previous 16 years.One agent said foreclosures is his main business now, done 25-30 in last 6 months but only 15 sales.
Properties selling for half of the boom price is a recurring theme.
Sheriff turning up with locksmith and agent and simply putiing people in the street, with the clothes they are wearing and what they can pack in less than an hour.
40K families are in arears with their loans and most are refinancing hoping the market will turn.
Banks are mostly okay as most covered by loan insurance.
ABC were asked to leave two pre auction inspections.
AND ………………………. we will probably get a new rise tomorrow, just heard job vacancies are up. Got to cool the economy somehow.
Reminds me of 1991. The 17% was actually on felt by a few, a lot were happily sitting on 11% and were benefiting from the effect 14% inflation had on houses.
Not a lot hurting, but enough to kill Sydney market.
Are we there yet…think we are.
Scary statistics and good to know about them as well !!
It would seem that its being hushed up with the banks going into damage control.
After all, they let these people into these big mortgages in the first place.These poor buggers are just the casulties of war.
I’ll bet the picture is much rosier in the eastern suburbs …kp
Originally posted by gmh454:[
When you travel internationally, you will find that even Sydney ( or Australia) doesn’t rate on the world stage as being newsworthy.Hmmmmmm …. guess thats why when you look at LA ,NY, Tokyo, Paris amd London, one of them has dropped out of the the five most expensive cities in the world to make way for Perth
(Based on income to med property price)Not quite my point.
If Sydney doesn’t rate on the world stage, then Perth as a ‘backwater’ rates even less so…We’re on an isolated island and Perth is the most isolated city in the world….. we’re only newsworthy on the world stage lately, as a result of our involvement in Iraq in coalition with GB anf the USA.
But our economy ( and population) is tiny in global terms…
kp
Yer it would be good if someone quoted the ‘nett’ migration….
I have heard this mentioned before, and essentially its overstated regarding the southeners moving north.
Having said that, it is becoming obvious over the last two yrs that we have been travelling up to Qld that it is getting pretty congested on the roads around Bris/Sunshine Coast.kp
Originally posted by wealth4life.com:Well tomorrow will be interesting with interest rates …
Many experts have been saying that the property market has bottomed however recent news is indicating that Sydney will come back another 10%.
What do you think will happen to the other states???
D
I think you need to look at specific segments of the market.
At the lower and median level, it may slow down or stall, but at the top end the interest rate level will have no effect.Its not ‘hurting’ yet at this stage.
SOme markets arer simply experiencing a chronic shortage of housing ( regional and mining areas) and it will have no effect here. They are simply trying to catch up with a 2 yr backlog of required houses and it will take 2 to 3 yrs to achieve this.Simple survival requirements such as a roof over your head.
Till this is satisfied, the property market will stay strong..kp
Originally posted by kingbrown:Perth info:
After reading this post, there seems to be some confusion about “why” Perth is still booming.
All of these facts can be confirmed:
* Currently the lowest unemployment in Australia. In fact, the lowest unemployment EVER recorded in any city of Australia.
* Second highest (highest now?) average wage in Australia.
* The houses in WA are generally larger, on larger blocks of land. Compare inner city Perth to inner city Melb or Sydney, the houses and land in Perth (especially the land) are larger. Comparisons are apples v oranges.
* Wages are now high across the board – situations such as recent accounting grads are now getting paid 100k, not just the “laborers and miners” you read about.
* Perth is the second fastest growing city in Australia (after Brisbane). This is a long term trend. Currently 100 people a day (approximately). This is a large number for a city of only 1.5 million.
* The commodities market will of course cycle, but – the world will need more resources in the next few decades than it has ever needed. WA has A LOT of resources, and can meet demand.
There is so much misconception about Perth from the “rest” of Australia. My opinion is that if people REALLY new what Perth was like, prices would be even higher.
On another popular property forum, I stated that the Perth median would EASILY crack 400k this year (I stated that about 18 months ago). There was utter disbelief. Well, we know how that one turned out.
Perth will EASILY become the highest median price in Australia, surpassing Sydney, I would expect within 6-12 months. Do the numbers – it won’t take much of a fall in Sydney, nor much of a rise in Perth for this to happen.
I own in Melb, Sydney, and Perth. My next purchase will be in Perth, based on CG alone. I have lived in all three cities – all are magnificent, but Perth hits the sweet spot in so many regards.
For example, I have just made an offer on a 850sqm block with house less than 6kms (about 10 minutes peak hour drive) from the CBD, less than 1 km from the Swan River, that is zoned triplex. Price – $380k.
126k for a block of land in a state that is booming with high wages, low unemployment, and great weather???
THAT is a bargain.
Now back to lurking.
Great post !
I think its this paradigm shift that everyone is having trouble accepting that Perth can surpass Sydney on median price.
Part of this Sydneycentric view of the world.When you travel internationally, you will find that even Sydney ( or Australia) doesn’t rate on the world stage as being newsworthy.
Probably the last thing reported in the international press was when Steve Irwin died.
Nothing has happened here since !!
Perth and WA is just going through a catch up phase,( prabably 20 yrs behind the Eastern States) and the mining and stamp duty royalties are fuelling the govt spending on infrastructure projects that are well over due.
Its the perfect development storm where all sectors are firing ( mining, infrastructure projects, commercial and residential projects, industrial projects, etc) and overlayed over each other which has led to a chronic shortage of manpower and equipment to get the job done. Nett result is delays and therefore this growth and development will take years to complete.
Property prices will stay up as a result.
kp
When we were up there in August it was obvious that there was a real buzz about the place.
Hard to find short stay accomodation, hire cars and even a seat on the plane.Ther is a real lack of quality new property available for companies and families.
We bought some blocks in the new Healy Heights subdivision and are in the process of building some quality 4 bed 2 bath homes to suit this new location.
No doubt this will be the premier suburb in Mt Isa with the undergrounbd power, and building covenants in place.Ironically we are not targetting the mine personnel as tenants or buyers.
There has been strong interest from local businesses and companies such as the Flying doctor Service and a medical group to buy these properties.
Currently have two presales in place well before completion.Rental returns will be from $600pw to $700pw so they will also be cashflow positive.
When the mining companies push to GO button and start to spend 100s’ of millions in expansion projects, but at the same time declare that they are ‘not in the housing business’ its a sure fire receipe for an opportunity going a begging.
I am sure that prices and rents will continue to climb in these regional mining areas over the next few years.
We are finding the same applies in the Pilbara area of WA, but only more aggressively.
Super commodity cycles = opportunity to capitalise and profit if you can solve the property problems.
kp
Hi Markat
I came across these guys recently.
They have one solution that may work for you.
Spent two days with one of the directors, and came away impressed with both their bona fides, as well as the system.Essentially, they have a full asic approved pds in place, to raise funds for their developments, on which they pay between 12% & 15% monthly.
If you draw down on an LOC to buy into the fund, then it generates pos cashflow, which you can use for additional servicability, which allows you to keep adding property to the portfolio.
They are primarily property developers based in Brisbane.
May pay you to have a chat with them.Standard Disclaimer: I am not affliated, not do I receive commissions, or referral fees, or am I recommending their product or system.
Kevin..
Thanks Rav,
No need to be green eyed….(just get even!)) LOLTheres no secret…we were just a bit more organised this time.
We got 4x blocks in stage 1, and after doing a local visit, realised that its a very good story….both whats going on up there and the new subdivision.So we planned, and got organised to make sure we were in a position to bid on a few more.
If you look into the history of that subdivision you will realise how cheap those blocks were.
I am convinced you will not see those prices again, in the future stages of the release.AS it is, we already have sales evidence of a block being resold in Stage 1 for $87.5k which is much higher than the original purchase price.
Plus the sworn valuation on ours has already confirmed higher values than purchase prices.
What seems to have held back local buyers is the concern that they can’t get a house built on their block if they decided to purchase.
Once we get construction underway, they will realise that there is an altrnative solution.
Hopefully, this will give locals the confidence to buy in future stages to build their dream houses as well as to invest in their own town.If we are successful with some our our ideas for that area, then I am quietly confident you will be seeing some more news and activity on the ground to speed up the problems of land and housing shortages up there.
KEvin
Hi Don,
PM sent mate…
Don’t build them yourself…stay with the family in Brissy !!I am sure we can help out with a quote, etc.
All we need to start with is a contour survey, of the proposed subdivided block.
Do you need a soil test report where yours are, or not ?
I would think not, but its up to the council in the end.Xstrata were suggesting that they will require another 1000 employees to add to thier 1083, by 2008..
Got me beat where they are all going to live [blink][blink][blink]
Kevin
Hi Don,
What I am amazed about is how quickly you heard about it ???
Can you clarify how you got the info so fast ?Its a huge country but indeed a small world !!
To over come the builder and trades problem we are taking our builder from Sunshine Coast up with us.
Some of the things I learnt by investing and building in Karratha, we are applying to Mt Isa to make it go smoother and thus reduce the risk factor.
We are also offering the building service to other block owners in Mt Isa.
Then we will be duplicating this strategy back in Karratha soon.
Both these mining towns have serious shortages of quality housing, as well as a lack of available builders to provide the houses.
At the moment we are treating it as turnover business hence the completed houses will be for sale.
In fact they are being offered for sale off the plan with a 5 year lease in place at $600 pw to $650 pw.Any other queries, pls feel free to ask.
Kevin..
** WOW ** !!!
Almost famous….
That was me who bid on those blocks.
And it was 12 in the end not 11.The number was scaled back to 21 on the day of the auction, as 5 were apparently ‘reserved’ by a govt department or something.
No one is saying exactly whats going on.We also got 4 in stage 1 and prices didn’t really go any higher in stage 2.
We have also been doing some buying and building in Karratha WA.
Mt Isa has some very similar parallels, with the same pressures on housing.Its a good news story as far as I am concerned..
Kevin
Man, that was well thought out and well written Anthony.
Understand what you are suggesting DLPP.
All I would say is that the assumption is that both markets are peaking. They peak will only be determined once it is reached, and we may not be at that point yet. There is talk of further price rises in the current negotiations with Chinese and Japanes buyers for ore prices,and the general concensus is that teh property market has further to go. At least 10% and maybe 20% for this year.SO from a big picture point of view, and taking heed of the cyclic nature of these things, sure enough, it will have an end, but when it the question.
I also agree retail is both doing it tough and going to do it tough Agave.
The sales are all 50% off ( on selected items !!) and on all the time. Surely the average puppy dog is now immune to this sort of advertising ??
kp
Thats really taking a contrarian view Steve,
As winter approaches you should be flying to Mackay from Melbourne, not the other way around.
And if you don’t want that parcel of land, how about passing it on to a buddy ?DLPP,
I would think coal is a very different proposition from iron ore or oil/gas for example.Price taker or not, when the expansion projects are in an upswing, and more 25 yr contracts are being signed starting from 2010, I don’t think the prospect of mines and oil/gas fields closing is imminent.
Therte seems to be this pervasive sense of caution, doom and gloom that eminates from the eastern seaboard.
We have been buying property ( no equities )non stop over the last few years, and not just in WA, this year is going to be our busiest, and most profitable.
I’m not sure what everyone is waiting for ??
( Give me a sign…give me a sign …)kp
After what we saw in Isa we decided to avoid block, or colourbond cladding.
Its time for a change.
We are going to do rendered and brick exterior, with high spec fitouts including granite benchtops, etc.Its taken for granted in the city but ppl in the bush are also wanting a certain level of comfort and it has been sadly lacking to date.
I have visited and stayed in regional places in WA and Qld and I have to say that I also liked Isa.
Its a great little town,that has huge potential imho.I see parallels with other mining towns that are further ahead into the cycle than Isa is…
kpHey congratulations on the bulding licence ! Thats a huge achievement.
I am surprised by the delays you have experienced with the council.
When we saw them they were suggesting 10 days for planning approval and a further 10 days for building approval.I guess it may be different for new building on clear land, compared to addition of an extra dwelling in an established area.
I thought you were in Isa, so i guess it would be difficult to organise from Brisbane.
I wouldn’t use a transportable home. What we are doing is freighting all the frames/fitout in, and then erecting locally.
kp
Hey reelygood,
Can I ask when the local builder will commence construction assuming you sign a building contract with them ?
I mean will they start straight away?
And how long are they quoting to build ( 6 months or faster ?)I am curious to know as we heard that all local builders are snowed under and can’t start anything new till after December.
Also I wonder if that $1200 psqm rate is still applicable ?
We heard that they are quoting frm $1500 to $1700 psqm.Would be nice to verify the fact from the fiction.
kp
Hi Aly
DPI = Department for Planning and Infrastructure.
Strata title subdivision is handled by the local council but if you do a green title subdivision the application has to be lodged with DPI.
Sometimes the council will knock you back but DPI can over rule them ( ie…the minister for that Dept)and you can still get your subdivision through.A good surveyor can explain the process to you should you decide to go the subdivision route…
( Sell me Wellard…!!! I am in Perth till the end of next week )
kp
Who me ????
We are doing Transportable homes on concrete slabs to Karratha atm.
First batch turn up late May and into June.
Can’t comment till they are set and completed.
They are at a big savings to using a local builder.
kp
