Interesting results from the new daily price index.
Australian home values are now in the black for the first time in 2012, having fully recovered from the drop recorded during the seasonally-weak month of January.
At 10 April 2012 home values across the eight capital cities had risen by 0.3% above their end 2011 levels (see first chart below).
Interesting stats, as long as you know how data is calculated.
Say, if we have more high end properties sales recently, it will indicate that house prices grow for this period:)Very different story on the streets, people loosing jobs, even QUT in Brisbane just shed a lot of people who are long therm (over 10 years there). We dismissed over 15% from our manufacturing facility in last 12 months.
Who is buying in 2012 ?
For investors yield is too low, bank give higher return in interest rates.simple wrote:Who is buying in 2012 ?Me. We just exchanged on a new PPOR in Canberra. The market here is presenting some good opportunities and the right property came up at the right price.
I have plenty of investor clients who are still purchasing and quite a few clients upgrading.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie M wrote:simple wrote:Who is buying in 2012 ?Me. We just exchanged on a new PPOR in Canberra. The market here is presenting some good opportunities and the right property came up at the right price.
I have plenty of investor clients who are still purchasing and quite a few clients upgrading.
Cheers
Jamie
Me too simple, as I said I would on your bear thread. Settled on a 4 bed 3 bath house in Mackay about a month ago, signed a contract for an OTP unit in Emerald today, and plan to purchase again within 6 months. The boat is sailing.
simple wrote:Interesting stats, as long as you know how data is calculated.
Say, if we have more high end properties sales recently, it will indicate that house prices grow for this period:)Very different story on the streets, people loosing jobs, even QUT in Brisbane just shed a lot of people who are long therm (over 10 years there). We dismissed over 15% from our manufacturing facility in last 12 months.
Who is buying in 2012 ?
For investors yield is too low, bank give higher return in interest rates.I can’t get into properties fast enough!
Yield’s are high! Much higher than the return on the Banks interest rates.
One particular property has given me 35% CG in the last 24 months and rents on a 9.3% yield…..I’m buying in 2012!
Last couple of weeks i’ve had renewed interest in buying after stopping for several years, theres some good deals out there with motivated sellers around .Negotiating a house purchase this week in Nth Qld. Good to be buying without the hype and frenzy we saw in the last property boom. With the change of govt in Qld and the carbon tax pushing up the price of new houses and land , its a safe bet buying positive cash flow renters right now. in my humble opinion. Any one else looking in the sunny Nth Qld???
NQ6 wrote:Last couple of weeks i’ve had renewed interest in buying after stopping for several years, theres some good deals out there with motivated sellers around .Negotiating a house purchase this week in Nth Qld. Good to be buying without the hype and frenzy we saw in the last property boom. With the change of govt in Qld and the carbon tax pushing up the price of new houses and land , its a safe bet buying positive cash flow renters right now. in my humble opinion. Any one else looking in the sunny Nth Qld???I’m hunting in Central Queensland…..and I agree Queensland has some great markets at the moment.
Wonderful. I'm already in for the ride!
Me too. im buying in NSW – just did a set of inspections yesterday and day before
Fascinating replies!
On our last company BBQ, I have spoken with workers (over 50ppl). Two where selling, few where regretting that they purchased in the last 3-5 years. None are buying.
So it would appear that only some specialty investors are out there doing some purchasing.
Interesting times.
simple wrote:Fascinating replies!On our last company BBQ, I have spoken with workers (over 50ppl). Two where selling, few where regretting that they purchased in the last 3-5 years. None are buying.
So it would appear that only some specialty investors are out there doing some purchasing.
Interesting times.
Seems to me your survey has too narrow a base to derive any conclusions from.
Hi Simple,
I wouldn’t consider myself a “specialty investor” as such. Just someone (prob what the “true” specialty investors on this forum would refer to as “mum & dad investor”) who decided to look outside the square when capital city investment just wasn’t cutting it. After a heap of research/DD & drawing on a huge amount of knowledge, helpful advice & inspiration from the guys on this forum, ended up narrowing our focus on central queensland (Emerald) & have signed a contract a week ago for an off the plan build. So yep, we’re buying in 2012 too!
simple wrote:Fascinating replies!On our last company BBQ, I have spoken with workers (over 50ppl). Two where selling, few where regretting that they purchased in the last 3-5 years. None are buying.
So it would appear that only some specialty investors are out there doing some purchasing.
Interesting times.
I find my best information derived from company BBQs amongst middle management and blue collar workers. People who will never take the risk necessary to change their lifestyle .. people so conformist in financial bad behaviours that they wont make the time or efforts to get rich even if they knew how to.
In fact .. to ask the man in the street works even better .. look for men in tattered coats handing out issues of THE BIG ISSUE. They also know the finite points of investing .. that got them to the graduated position that they are in. Sophisticated and knowledgeable investors whose prime tactics allow them free time, poor dental and the chance to afford tattier clothes.
Try number 37 on the roulette wheel too. Its not available, but heck .. if you are going to gamble your money on bad opinions you might as well lose properly !
Howabout next time around .. asking the investor .. the developer (who watches the street demand like a hawk to prevent himself losing money), the real estate agent who gets up everyday and lathers himself in daily market conditions?
Finally .. howabout checking the actual layout of the market in the KEY demand categories? Its visible by gathering a large segment of the properties that are actually listed on the market. And the sales listed from week to week? They are available in the paper. Sure they may be lying .. but .. every week? On every property? .. UNLIKELY.
xdrew wrote:the developer (who watches the street demand like a hawk to prevent himself losing money)Known a few over the years. At least half went broke eventually and 2 hung themselves. I have about as much regard for your run of the mill investor, RE agent or developer as I have for the local village idiot. They’ll send you up the garden path as well as anyone
The Freckle
And I notice from the next graph that every indicator is heading south again
Couple that info with the following article and included data it’s hard to see any positive info that might drive the market up this year. On the contrary.
http://www.macrobusiness.com.au/2012/04/nsw-kills-housing-finance-recovery-by-leith-van-onselen/
Add to that problems in nearly all parts of the national economy let alone international pressures and 2012 simply may be a precursor to further down turns.
Canberra doesn’t get me excited either with the planned govt layoffs. The initial figure is 1500 I believe with more to follow. The govt has a (recently) stated aim to reduce govt over head and red tape. That doesn’t bode well for a market heavily reliant on govt sector employees.
The Freckle
.Freckle,
Agree with you on sentiment. This is how I see current state of affairs in RE as well as many other industries with few exclusions.
What fascinates me is now fairly large number of people on this boards still find profitable deals in RE with reasonable risk levels. I seem to be observing major decoupling from opinions here and my research on the street.
I do my daily property searches, weekly seminars with REIA, Developers, Property Groups and so on, weekends attending open houses and so on.
There are deals there, I my self got 2 x IP in the last 6 months, BUT those are more of the creative exclusions rather than a norm. A norm on the street for mam/dad investor is to LOOSE money in RE now.simple wrote:A norm on the street for mam/dad investor is to LOOSE money in RE now.That probably fits with 90% of PI’s Over the last few decades many made a dollar not through any particular property related skill. I have a good friend who buys properties on sentiment alone and he’s an extremely smart guy who has made a bundle on property along the way.
At a purely anecdotal opinion based level I believe as many as 60% of PI’s actually make no money on investments. They’ll tell you I bought such and such for 300k 10 years ago and now its worth 500k blah blah. What they don’t tell you is how poorly structured the deal is, they paid top dollar, the loose 6 weeks a year rent, the tenants have trashed the place twice in that time and so on and so on.
If you actually sit down and crunch the numbers they’re well out the door.
If you look at how many active users here, in one of the more popular forums, you get the idea that of the 1000’s of PI’s out there very few are proactively engaging with expertise and knowledge available here. That leaves RE agents, brokers, accountants etc as their likely expert advisor. That’s scary.
The Freckle
The reality is that generally speaking there are three ways to build wealth. Property, Shares and Business Building,Owning,Selling etc.
That’s why if you look at any of the published rich lists from any source most of them will have made it there by participating in one or some of the above.
hey moxi10, did you go throiugh a buyers agent at all for the mackay property?
Just settled on a place this Sat.
6.5% returns before building Granny Flat. If you subtract the 20% deposit I used then am already over 10% return.
Will work harder to find a true cash-flow property before end of the yearSo much to learn, so much opportunity out there!
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