Any property gurus?

[GASWAGON]

Dave 289 Sold his property at least three years ago.....Now I am not saying that was exactly the right time to leave the market I personally think 2013/14 is the peak anda good time to sell and make a profit and move out of town to the country somewhere cheap and maybe even have some money in the bank aswell?......If you look at the oz price chart it is VERY foolish to think that Oz RE can keep climbing higher....At least in the cities anyways....honestly how far does everyone think this bubble is going to go?

Not to mention the foriegn investment allowed by the government pushing prices to all time highs....ie Stevz previous article post 104!

[stevz]

Originally Posted by EF_6

Dave 289 Sold his property at least three years ago.....Now I am not saying that was exactly the right time to leave the market I personally think 2013/14 is the peak anda good time to sell and make a profit and move out of town to the country somewhere cheap and maybe even have some money in the bank aswell?......If you look at the oz price chart it is VERY foolish to think that Oz RE can keep climbing higher....At least in the cities anyways....honestly how far does everyone think this bubble is going to go?

Not to mention the foriegn investment allowed by the government pushing prices to all time highs....ie Stevz previous article post 104!

Anyone with an iota of common sense can see that prices are over inflated and unsustainable, yet if the spruikers were to be believed, now is the time to pick up a bargain! You can just sense the desperation when they start using phrases like that.
As for the foreign investors, the fact that they are paying well over market value for properties without even seeing them shows that the bubble is being ridiculously and artificially overinflated and should serve as a warning sign to all.
The Japanese tried the same thing in the 1980's and it all blew up in their face, losing them billions. I can see the same happening again.

[superyob]

Originally Posted by stevz

Anyone with an iota of common sense can see that prices are over inflated and unsustainable, yet if the spruikers were to be believed, now is the time to pick up a bargain! You can just sense the desperation when they start using phrases like that.
As for the foreign investors, the fact that they are paying well over market value for properties without even seeing them shows that the bubble is being ridiculously and artificially overinflated and should serve as a warning sign to all.The Japanese tried the same thing in the 1980's and it all blew up in their face, losing them billions. I can see the same happening again.

How true. Yet the bubble will not burst for some unfathomable reason and I have no idea why I think this...

[Fiesta God]

If Australia continues to increase its population every year, it will continue to increase demand in all areas. Particularly as many migrants who come here are either skilled (and therefore quickly find jobs that pay above-average incomes and enable them to enter the property market and share market), or they are accustomed to minimising costs and maximising their savings, and are able to enter the property market by combining funds with family and friends (very common in the Asia communities).

If you slow down immigration, you risk slowing down demand.

But whilst there is increasing demand for housing stock in Australia, there will be a certain underlying 'cushion' to house prices. Even they don't rise in a particular year, the long term trend will be positive.

That's not to say that the Australian economy does not have some serious downside risks, particularly over the medium term. We are in need of serious reform to government spending, serious reform to the tax system and far higher infrastructure spend.

But Australia is still the world's best manager of adversity, and it's worst manager of prosperity, so I am confident that we will find the right way - as we did in the 1980's when confronted with the same challenges.

So the bubble will not burst. It may not always be a bubble, but your $1m Sydney house that cost $500k 9 years ago will never be on the market for $500k again. It might cost $900k next year, but you can guarantee that in 20 years time, it will be worth at least $2m. Been happening since Adam was a boy...

[zilo]

Originally Posted by Fiesta God

If you slow down immigration, you risk slowing down demand.

.

I can't believe you posted such inept nonsense.

It's something Franco Costa would say on late night TV.

[Franco Cozzo]

Originally Posted by zilo

Franco Costa

Franco Cozzo?

[Yellow_Festiva]

If you want to look at who to blame perhaps speak to a developer. The hoops and costs they need to go through to create more housing is an absolute joke.

There are HUGE tracts of land within the Sydney basin that are sitting there, waiting years and years for council to change zoning, or for a change of government to move things along. I’m sure it’s the same for most other large cities.

All the while, we hear of limited supply and rental shortages...

I'm sure it's the same in other states. If we are to create more housing we either need to go up or go out. With the land we have we should be going out.

Then we have the great disparity between 'city and country'. I just sold a 2br house on 800sqm for 120k. It was in a country town of around 10,000 people. It sat for MONTHS... without any interest. That is a bloody DEPOSIT for most people in the big smoke.

Yet, in Sydney, an old fibro shack can go for 5-600k 'land value'... and that is if you have a frontage of below 15.24m, go above that and it becomes a 'development site' so lets throw another 200k onto the price. Hell, you look around SW Sydney, working class suburbs, and 4br townhouses / duplexes are going for 7,8 and 900K... if you're lucky to get one that actually goes to auction.

Where are the incentives to build? Where are the incentives to business to move away from cities and get into regional Australia? Where are the laws that limit cashed up foreigners from buying up our land and real estate?? Is it even possible for me to buy a property in China?

Is our tax system in need of reform?? Should some of the red tape be reduced or removed to create more affordable housing for Aussies only?? Should there be a serious push to create more land and in turn more affordable housing?

The notion of a 'bubble' is interesting.... I do agree that things here are inflated, but that is just the way it is. While there is money to be spent (either from locals or abroad), while there is huge demand for rentals, while there is a strong desire to stay within the cities (or no great reason to get out of them) then things will remain the same...

[Franco Cozzo]

Originally Posted by Yellow_Festiva

Then we have the great disparity between 'city and country'. I just sold a 2br house on 800sqm for 120k. It was in a country town of around 10,000 people. It sat for MONTHS... without any interest. That is a bloody DEPOSIT for most people in the big smoke.

I like where I live in rural Victoria, about an hour from Melbourne, but even out here its becoming too expensive, small 1500sqm are $200K+.

I'm looking at the other side of Bendigo around 250km out from Melbourne, properties under $50K, and about 50 minutes out from Bendigo, a big rural city.

$50K for the property, what does a decent house cost to build these days?

[Yellow_Festiva]

Originally Posted by Big Damo

I like where I live in rural Victoria, about an hour from Melbourne, but even out here its becoming too expensive, small 1500sqm are $200K+.

I'm looking at the other side of Bendigo around 250km out from Melbourne, properties under $50K, and about 50 minutes out from Bendigo, a big rural city.

$50K for the property, what does a decent house cost to build these days?

Damo, just to put into perspective, I bought a vacant block in Sydney this year for $525k, all 1400sqm of it (well, actually a bit less but lets round up for arguments sake).

It was part of a sub division, the remaining block of 450ish sqm went for, I'm led to believe around the $450k mark.

Just dirt and a driveway... I probably got mine too cheap, the other guy probably got their too expensive in the scheme of things. The owner had to sell them 'cheap' as he had the intention of building 10 townhouses on them. With the stroke of a pen the zoning changed, and so did his plans.

You may look at that patch of dirt as being expensive, and, compared to what it would have been worth 10 years ago it very much is, but in 10 years you will wish you had got it, and recalled how it was 'so cheap' back then.

Just the nature of the game.

As for a house. That all depends! You can get a basic 3br kit home built for perhaps 100k (hell, even Bunnings are doing Kit / Modular homes), a little less if you have friends in the trades and, well after that the sky is the limit.

It's much of a 'how long is a piece of string' question...

[Franco Cozzo]

Puts it into perspective when I'm around the corner from big properties from 50 - 100+ acres though, next "suburb" along from us, no houses allowed on properties under 100 acres.

Thats why I couldn't stand living in a city or even suburb of one, small property sizes and half a million people in your court.

I'm going to try and do it without getting a loan, or only a small one, I don't really want to be a slave to a bank for 30 years, thats the worst thing, I see so many unhappy middle aged men at work, who cant change their circumstances or can't settle for less pay for a new start and I don't want to join their ranks.

Would rather be in the position to work part time, enough to support my life style or be able to tell a boss to jam it and work somewhere else without putting myself on the street.

I think I'm going to go more rural, its more affordable.

[Yellow_Festiva]

Originally Posted by Big Damo

I'm going to try and do it without getting a loan, or only a small one, I don't really want to be a slave to a bank for 30 years, thats the worst thing, I see so many unhappy middle aged men at work, who cant change their circumstances or can't settle for less pay for a new start and I don't want to join their ranks.

Would rather be in the position to work part time, enough to support my life style or be able to tell a boss to jam it and work somewhere else without putting myself on the street.

I think I'm going to go more rural, its more affordable.

Loans aren't a bad thing. You may be actually creating negative equity by saving for something. While you are saving, the property you are wanting is also increasing in value. You will also be paying tax on the interest of the savings!

Biting off more than you can chew and overborrowing is where people get undone. Often, people save more when they have a loan to reduce, as 1) They can see the light at the end of the tunnel, ie the place becomes theirs and 2) they see their debt reduce.

30 years is what the term of the loan is as per the banks paperwork, adding a bit more each week drops it to 20 years pretty fast. Adding a bit more again soon makes it 15, or 10 years. In fact, if you fool around with some of the loan repayment calculators you will be amazed at how many years you can lop off a loan if you go all out for a few years!

It's a balancing act, but if you have set goals, are happy to put in the hard yards early on and are willing to sacrifice a little along the way you can achieve many things.

[nuthin' fancy]

Originally Posted by Big Damo

Puts it into perspective when I'm around the corner from big properties from 50 - 100+ acres though, next "suburb" along from us, no houses allowed on properties under 100 acres.

Thats why I couldn't stand living in a city or even suburb of one, small property sizes and half a million people in your court.

I'm going to try and do it without getting a loan, or only a small one, I don't really want to be a slave to a bank for 30 years, thats the worst thing, I see so many unhappy middle aged men at work, who cant change their circumstances or can't settle for less pay for a new start and I don't want to join their ranks.

Would rather be in the position to work part time, enough to support my life style or be able to tell a boss to jam it and work somewhere else without putting myself on the street.

I think I'm going to go more rural, its more affordable.

No mortgage is noble and what we all work for but don't forget, money has never been cheaper.

[Syndrome]

Originally Posted by Fiesta God

But Australia is still the world's best manager of adversity, and it's worst manager of prosperity, so I am confident that we will find the right way - as we did in the 1980's when confronted with the same challenges.

The issues of the 1980s are nothing compared to what is currently occurring.

[buggerlugs]

And Sydney property prices have gone thru the roof in the last 12 months , where's our mate Stevz/Dave 289 ...................

[Yellow_Festiva]

Originally Posted by Yellow_Festiva

There are HUGE tracts of land within the Sydney basin that are sitting there, waiting years and years for council to change zoning, or for a change of government to move things along. I’m sure it’s the same for most other large cities.

Well, what do you know....

NEW HOMES IN SYDNEYS' FIELD OF DREAMS Exclusive Alicia Wood

MORE than 3000 homes will be built in Sydney's southwest next year, after the state government rezoned a swathe of land in the Catherine Field precinct near Campbelltown.

NSW Premier Barry O'Farrell will today announce the rezoning, which will see 3200 homes constructed in the new suburb next year.

Figures from the state government show there has been an 80 per cent increase in the take-up of first-home owners grants on last year - with 6000 people receiving the $15,000 grant for buying new properties.

Mr O'Farrell said releasing land for new developments was important to drive down the cost of home ownership.

"We are making homes more affordable and in the process western Sydney is being transformed into a tradies' paradise, with the creation of thousands of jobs in construction," Mr O'Farrell said.

"The rezoning of land at Catherine Field being announced today tops off a bumper year in NSW, with a massive number of home approvals and a huge increase in the take-up of the NSW government's First Home Owner Grants.

"The latest figures released by the Australian Bureau of Statistics show 44,628 new homes were approved in the 12 months to October 2013, the highest level since 2005."

Developers for the Catherine Hill project will pump $30 million of infrastructure funding into the region, including an upgrade for Oran Park Drive, land for a new primary school, and the construction of a main sewerage line.

Planning Minister Brad Hazzard said land will go on sale in 2014, and the houses will be complete by 2015.

It is a win for the government, which last year,the government failed to pass landmark planning reforms, after a stalemate in negotiations with the Labor Party and crossbenchers in the upper house.

The government has gone back to the drawing board on the legislation, and has until February to find a solution

Scroll down to the bottom, last article.

http://www.news.com.au/finance/real-...-1226790856364

With the stroke of a pen a new suburb of 3200 homes is created...

[mr smith]

Originally Posted by buggerlugs

And Sydney property prices have gone thru the roof in the last 12 months...................

Just milking out the cash from those with SMSF's, there was no way that pile of super cash was going to be left out of the house bubble.
I have to give it to the lobbyists who pushed this and other housing "benefits" to keep the bubble inflated.

[buggerlugs]

http://www.news.com.au/finance/gener...-1226794883847

[Yellow_Festiva]

Originally Posted by buggerlugs

http://www.news.com.au/finance/gener...-1226794883847

And? I want a bright yellow Ferrari, but I'm realistic with what I need as opposed to what I want and understand that if I want expensive needs I got to work hard to attain them.

[aussiblue]

Reading through some of these post it probably worth reminding people that promoting tax evasion is in itself an offence and in late 2013 the Tax Commissioner succeeded in the Full Federal Court in having the Promoter Penalty Regime recognised to have far reaching impact and the potential to catch a very broad range of behaviour. Careful what you say.

[Crazy Dazz]

Real Estate IS a good investment, but like anything in the short to medium term it is a question of timing.
If you’d bought in Perth at the height of the last boom, you would have stagnated or gone backwards for a few years as prices have only recently outstripped those.

When the market was booming last time, there were naysayers right from the start, but it took years and the GFC to prove them right. People who bought even halfway in still made a killing.

The reason housing is a good investment in most centres is because our population keeps growing, as do our aspirations.

One good estimate of how the property sales market will perform is to look at the rental market. A booming rental market with high demand and low availability tends to indicate that housing demand will remain strong in the medium term.

[MercurySilver]

we had the op to buy something small on a piddley block and have half the mortgage we have now, by selling off the 2 acres we have that had a ****** transportable on it

but i jsut couldnt go back to living in full on suburbia

so we built a 320sq house on the block and will deck out the yard slowly over the next 5 to 10 years
hopefully in 5 to 10 its worth a decent amount
kinda eggs all in one basket scenario and when its time to sell we limit the market a bit (pensioners arent going to buy a massive house on 2 acres), but families wantign to escape the rat race with kids growing up sure will

would like to stay here till retirement (if ive still got a job at the same place for the next 20 years) then sell up and move to somewhere near a bit of water

[usernametaken]

If you're buying a principal place then it doesn't matter what you paid for it as long as you can afford the repayments and are financially secure.

If you're buying as an investment, well then that's another story...

The people that spruik property only goes up have never lived through a crash.

The economy needs both booms and busts equally to be sustainable.