PROPERTY FUNDAMENTALS
1. Australia's Populations (now 21,700,000) is growing both local migration and International Migration.
2. We are not building enough properties (both homes or units/apartments), there is a major under supply of property.
3. Rental Occupancy rates are at historic highs at 98.5% ( or 1.5% are vacant) in most capital cities.
4. Rental prices are increasing, now Australian average is over $350 pw and rising.
5. Employment is at 95% (5% unemplyed)Like it or not, we all need a place to live in, either rent or own home.
Last year we saw properties rise at 11% even in tought circumstances, unit/apartments rose 17%. Some suburbs grew a lot more than this.
To get the best pulse on the market go to inspections, either rentals or buying. There are a good steady flow o f poeple looking at renting and buying right now.
If everyone just holds their ground, be confident that things will cool down over the next 6 months to 12 months, and do not panic, we will see a steady market/economy once again.
Eric
Badgers_R_Us wrote:Hi Eric!
Super great to hear from you. I bet you are a really super guys who's really great. Great! Love all your ideas – great, super, AMAZING. You must be a really good guy, and great as well . And I bet you'd be great at anything you do. Super.I'm sorry Eric but have you been lobotomised and had the bit removed replaced with a super Tony Robinson happy chip of some kind? Being +ve is one thing, but it sounds a bit fake mate. "I bet you are a great mother" good grief!
Badger r us,
Im not sure where you're going with this, but I'll tkae it a s a compliment.
Have a SUPER day !
Eric
Internation wrote:
Last year we saw properties rise at 11% even in tought circumstances, unit/apartments rose 17%. Some suburbs grew a lot more than this.
What a load of crap.
WJ Hooker,
DARWIN grew last year 10% for houses 17% for Units – Matusik Property Insights.
Eric
INTERNATIONAL EMPIRE wrote:PROPERTY FUNDAMENTALS1. Australia's Populations (now 21,700,000) is growing both local migration and International Migration.
2. We are not building enough properties (both homes or units/apartments), there is a major under supply of property.
3. Rental Occupancy rates are at historic highs at 98.5% ( or 1.5% are vacant) in most capital cities.
4. Rental prices are increasing, now Australian average is over $350 pw and rising.
5. Employment is at 95% (5% unemplyed)Like it or not, we all need a place to live in, either rent or own home.
Last year we saw properties rise at 11% even in tought circumstances, unit/apartments rose 17%. Some suburbs grew a lot more than this.
To get the best pulse on the market go to inspections, either rentals or buying. There are a good steady flow o f poeple looking at renting and buying right now.
If everyone just holds their ground, be confident that things will cool down over the next 6 months to 12 months, and do not panic, we will see a steady market/economy once again.
Eric
Hi Eric,
Can you offer some thoughts around the ongoing capital appreciation of property VS income rates which are growing nowhere near the value of this capital appreciation. How can banks continue to support property prices that may end up at $1,000,000 median value, if an average person's income cannot support this? Don't you see property values evening out at some point to reflect this?
Regards,
AjayHi Eric,
Excellent post regarding the property market in Australia at the moment – just looked at the website link and it looks very interesting.
I'm a young lad in South Australia and have saved a resonable deposit over a few years and am now looking at buying a property for initially living and in the long term an investment property. I now find it to be a good time to get into the property market. I'm am in the process now of deciding whether an apartment/unit would be of better value or house.
A friend of mine is looking to do the same and has suggested going "tenants in common" with him which gives me the option of buying a more expensive property….
Do you or anyone else have any thoughts on these?
Regards,
Reece
Dont want to appear to be a doom merchant but buying with a friend can be fraught with issues.
If you eligible for the FHOG then why not take this whilst you can and satisfy the conditions before moving out and converting the loan into an IP.
One thing to make certain is that the loan is structured correctly from day 1 to maximise your future claims and to ensure your savings are used effectively in your favour.
Your mortgage broker should be able to assist with this if he is investment orientated.
Richard Taylor | Australia's leading private lender
INTERNATIONAL EMPIRE wrote:Badgers_R_Us wrote:Hi Eric! Super great to hear from you. I bet you are a really super guys who's really great. Great! Love all your ideas – great, super, AMAZING. You must be a really good guy, and great as well . And I bet you'd be great at anything you do. Super.I'm sorry Eric but have you been lobotomised and had the bit removed replaced with a super Tony Robinson happy chip of some kind? Being +ve is one thing, but it sounds a bit fake mate. "I bet you are a great mother" good grief!
Badger r us,
Im not sure where you're going with this, but I'll tkae it a s a compliment.
Have a SUPER day !
Eric
Not flattery at all. I was questioning your sincerity. Perhaps you are just Corny, but I'd hate to hear your chat up lines – "Hi Gorgeous, do you come here often?", or maybe it would sound something like; "Hi Gorgeous I suffer from amnesia brought on by my Tony Robinson super-happy lobotomy, do I come here often?".
International,
So what we do is look at all properties around Australia, we find one suburb that has capital gain, and we say this is what happens to all properties. Sign on the dotted line…………..Reece,
Great to see you are looking to buy a property, please do see a financier to see how much you can afford first. If you can buy it on your own then great, go ahead.
In regards to buying with a friend, this is good in theory but may be challenging in the future. You may wish to seel and buy something else, they may not agree. Your friend must have the same goals as you do and have a strong arrangement, even in writing. Only you will know if this is a good idea of not.
On the question of unit or house, well this then goes to your own situation fincially. Rents are very strong in Adelaide city at the moment as there is not much available. Homes have done vey well over the recent 3 years as well.
If you would like someone to see or talk to, I can refer an investment advisor in Adelaide that you can talk to for FREE advice.
[email protected] ask for Ilvana. She's an investor and very passionate about property.Hope this helps.
Thanks.
Eric
Ajay
Prices of residential property have proven to increase in value over the past 60 years in Australia. Obviously incomes were much lower back then as well, the australian dollar was different and rental were different.
But its all relative.
Incomes have also increased to since then, today average inome based on ABS is close to $60,000 now.
Also inflation plays a part to the dollar value as well.
Again, everything is relative.
Pertol prices used to be only 59 cents a litre years ago now over $1.20 a litre.
A litre of milk used to be just $1.00 and now well over $3.50 a litre.
So, once again, everything is relative.
If you're talking about property, how can you justify a property in central New York worth over $1,500,000 US? or London $1,200,000 pounds! Sydney prices are already well above $2 million now is central locations.
Compared to what? compared to who?
Eric
WJ Hooker
Can I ask you a question?
Do you believe property increases in value over time?
Eric
Three posts in a row is at least one too many, Eric. Please don't thank me for my reply!
Badger r us,
Once again, I've never met you, nor you meet me. How can you make a judgement on someone you never met?
I have not said anything towards you at all.
I do thank you for your comparison of me to Tony Robinson. This is a major compliment as he is one of the worlds most successful and powerful coaches. He has encourage millions of people worldwide to change their lives for the better.
I am only a simple person trying to do extraordinary things.
If everyone only had positive thoughts and not negative, the world would be a much brighter place to live in.
Whatever happened to live, laugh, love, smile, give, encourage, gratitude, thankfulness etc etc.
I seriously do hope you really have a pleasant day. its your choice, good or bad day, its your choice.
Cheers!
Eric
Cargill,
Sorry, too many comments, I'm just trying to respond where I can. Better than no replies.
Cheers.
Eric
International,
Yes.
Do I think petrol, water, power, flowers, wages, registration, insurance, etc etc – shares have increased at a greater rate than properties over time, no maintenance costs, no hassles from tenants, etc.Do I own property ? Yes. Am I rich ? Yes. Do I recommend people buy property at the moment – NO.
Have a nice day.
59 cents yearsss ago… ???? probably more than 10 years ago… since I bought my first car in 2001, I can remember that the petrol price was 80cents.
Taking into account of inflation (but excluding fluctuation of AU$ vs. US$… you bought the crude oil with US DOLLAR) and assuming inflation at 3.5% pa therefore at least the inflation itself has factored 40% into the oil price… $1.20
so.. where is the beneficial of your argument….???? Yes the price is increase because of inflation itself, not because it has increased in INTRINSIC VALUE itself..
INTERNATIONAL EMPIRE wrote:Badger r us,Once again, I've never met you, nor you meet me. How can you make a judgement on someone you never met?
I have not said anything towards you at all.
I do thank you for your comparison of me to Tony Robinson. This is a major compliment as he is one of the worlds most successful and powerful coaches. He has encourage millions of people worldwide to change their lives for the better.
I am only a simple person trying to do extraordinary things.
If everyone only had positive thoughts and not negative, the world would be a much brighter place to live in.
Whatever happened to live, laugh, love, smile, give, encourage, gratitude, thankfulness etc etc.
I seriously do hope you really have a pleasant day. its your choice, good or bad day, its your choice.
Cheers!
Eric
Eric, if you post here then expect responses, and if your posts include cheesy lines then don't be surprised if you get paid-out.
god_of_money,
I can remember petrol being less than 50cents a gallon ( 4.5 litres ) , I could fill my motorbike for about $1.50. that was about 1970 I think.Hi Ajay, I live in Adelaide and I DO NOT BELIEVE that Adelaide prices will go up the way that they did in 07.
I further think that they won't go down much either. So if you're buying 1st home with govt grant, not much point waiting. Buy as good as you can.
What I would not do is buy believing that after I buy, the capital gain will be such and such.
There were long periods when Adelaide prices languished [up to ten years] and who knows if we're going into such a period?
I bought in 98/99, caught the 03/04 boom and bought again in 05/06 and caught the 07 boom.
The reason I bought in 05/06 was I sold in 04. I saw that prices didn't go down and I wondered why. Based on those reasons, I had to buy again in 05. You can look through my posts in 06.
You'd do far better if you go and look at the houses for sale for a few months and then choose what to buy.
Good luck,
KY
Super great to hear from you. I bet you are a really super guys who's really great. Great! Love all your ideas – great, super, AMAZING. You must be a really good guy, and great as well 
. And I bet you'd be great at anything you do. Super.
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