Haha, I bet you wish there were a couple of sheep you could rent to clean up all the green waste in your backyard!

I think your situation is a fine example of how the government could move forward in their bid to cool the market, or prevent a bubble from developing: they need to create mini-hubs in multiple areas, bring the infrastructure there, and convince people to move. There's obviously heaps of land in Australia, but the difficulty as always would be convincing people to move and fill those spots.

Which is probably why people don't understand why businesses need to have their hub in the heart of a CBD when a small branch there would do. Some businesses however, appreciably will take some effort to get working in a rural setting. For example, veterinary clinics. They have difficulty finding new grads willing to work for them, and most invariably work for a year or two and transfer to something else in the city or otherwise a surrounding suburb.

Rural clinics may pay well, but they can't keep their vets. This is just speaking from personal experience in the business.

w4l you never give up on the bubble do you ?

sorry to say its not here though

I dont see creative finance, new loan products, investors piling in, 100% loans, quite the opposite in fact

I dont see finance figures exceeding price growth, so not debt fuelled either

But I never had the sixth sense either you know the one

I See Bubbles

Melbourne is one big bubble full of people willing to buy anything at any price. well it started off as a bubble now has become a mini boom. What next? Headlines with "the boom is here". The media, RBA and politicians will see what they want and will do what they want.

We as investors get to go in and make money by using our brains and our actions. I think people who are doing skinny deals and a lot of them, will be the ones who are pushed out rather than FHBs. Build in a good margin, then if the price drops 5 or 10% who cares. If the price drops more the country will be stuffed and hell would have frozen over. FHB will stick like glue to the houses which they live in. They will quit smoking, drinking, buying clothes and all that which is why property is up and retail is down.

No bubble here. Only people waving cheque books at anyone with a letterbox! Might have to take some popcorn to some auctions on the weekend.

By the way how is everyone in Perth going? Nice and slow over there pre-lunacy which will come in the next year or so? Everyone is very busy looking this side of the country.

D

Agree that Sydney prices are becoming ridiculous. A mate of mine recently bid on a 1 bedroom apmt in Potts Point (no views or Car park)  and it went for 700k.  When prices of a 1 bedder are 10 times the average wage its time to consider selling imo. I know there is still strong demand and limited supply blah blah blah but its becoming a serious problem.  The only thing holding up this market is the willingness of buyers to pay these prices. 

When sentiments change – prices will drop (aka London, UK)….

Mate I think the wide open part is sooo not going to happen. I don't want to scream "run, buy anything you can OMG hurry", but if you can snare a bargain or two now, better to do that than wait for something which may not happen. And you are telling me about the blocks, I'd love some cheapies but ain't gunna happen my friend .

I don't know about Adelaide. I had a quick look but I need to be in the same state as anything we develop at the moment (will grow out of that eventually, or move I think you can pick up some goodies if you are a good shopper! I like QLD but can't get up there anytime soon. This is the problem with sicking to Vic you are stuck with what you can get, you have to be extra choosy because of the inflated prices and expectations of vendors.

If I can pick up something in Perth I will even just to sit on. Still probably a little way off

D

Hey Wealth,

Is that 1 mil profit or in real estate purchased/

D

Well I couldn't answer that with any degree of certainty. But based on what I've read at least, I'd be betting that foreign investors are indeed bringing over their own money, or otherwise getting 'cheap credit', as it is so often referred to in the newspapers, to buy property.

This is partly why I feel that it is uncalled for to be raising interest rates for the sake of controlling property prices. They could raise it to 12% and nice properties will still sell. Why? Because firstly, quality property is always quality property. Overseas investors know how to buy in desirable areas, not mortgage belts. Secondly, there will always be some foreign investor out there looking at property here and considering it to be cheap compared to where they're from. Thirdly, 'cheap credit'. Interest rates elsewhere are low compared to that here, which in fact looks sky-high.

I've seen this in Singapore: a crappy little two-storey side terrace (mostly 99 year lease) on 250sqm of land goes for somewhere between $1.2-1.5mil. A government subsidised apartment with only a 99 year lease (aka run of the mill 'shoebox') goes for around $200K. Here, $1.5mil will get you THREE substantial freehold 3BR/1bath houses on 700-800sqm of land (possibly development potential) and maybe still have cash left over. In comparison, doesn't Australia then look cheap to someone coming from a place like that?

Danielle my precious i never questioned the size of your portfolio i am just saying that in the spirit of a famous movie ,you seem to have an unhealthy facination with the dark side. I agree you need a balanced argument and if you post in the interest of doing this then well done.But there is a constant theme and a constant moving goal post that gets a little tiring.But all in all i still like your posts. keeps everyone honest. Myself included.