While a little off-topic ([cap]), the Perth residential market has some interesting points.
Perth’s annual growth is currently just under 10%, but slowing. The growth of median established house price has been roughly:
2000 – 155k – +3%
2001 – 160k – +3%
2002 – 182k – +14%
2003 – 208k – +14%
2004 – 249k – +20%
2005 – 275k – +10%
Perth’s boom began…[Read more]

Originally posted by grossrealisation:
Sydney is the second most expensive city in the world to live in.
This could very well indicate that Sydney has currently the second most over-valued real estate market in the world…
it has had one of the highest growth curve of all developing cities in the world ( except saudi).
The growth of sydney…[Read more]

Originally posted by shake-the-disease:
1) Owning cost = CG – M – (G – N)
2) Renting cost = G

Lets look at a median priced house in Melbourne, the figures look like this:-

1) Owning cost = 8% – 7% – (3.5% – 2.5%) = 0%. Yes, this means effectively it is free to own a property based on those figures.
2) Renting cost = 3.5%
Therefore you should…[Read more]

Ross Gittins article on Vendor Duty changes

It’s reassuring to occasionally have economists draw the same conclusions as one’s self![blink]

The irony is that, to the extent that the evil vendor tax was discouraging investors from selling, it was – by holding back the dam – helping to hold up the price of investment properties and housing…[Read more]

Originally posted by Qlds007:
If you were to sell the property you will need to live somewhere by either paying rent which is dead money
We’re talking Sydney here… renting a similar unit should cost around half of the current interest payment. In this case, selling up, breaking even and renting will save Appless half the dead money currently…[Read more]

3 years worth of the kind of value loss & slowdown currently being experienced in Melbourne would effectively wipe out their equity and make their properties difficult to sell… leaving them with a 4.2 million dollar hangover that they can NEVER AFFORD TO PAY FOR! [blink]
A 1.0% rise in interest rates would see them lose the lot, while half that…[Read more]

Here in Victoria an incredible number of grants have been repaid, with interest and other costs. Checking with neighbours, gas & electricity companies etc have been used – not just to see whether the services are connected and you are living in the new house, but also to see whether they have been disconnected & you have moved out of the old…[Read more]

As I said before, I think it will make the decision to sell a property easier, but will not effect buyers. Only lower prices will entice buyers back.
F.[cowboy2]

Dazzling & GrossR,
I’m not saying (never have) that there is no way to make money in real estate, even with the current outlook. Development (particularly large scale ie 19/20 units!) can be one very good way, providing you know what you’re doing and have the ability to weather the inevitable issues…
On the other hand, buying a house or a unit -…[Read more]

I would not be surprised if this occurred. However, I would be surprised if the following 2 situations did not:

1) The removal of another disincentive to sell adds to the over-supply problem in Sydney.

2) House + flat prices continue to fall at increasing speed thanks to supply growing as demand continues to shrink.

Excellent news for those…[Read more]

Originally posted by Beast:
Im hoping to buy property while the market is down and sit on it for 5 to 10 years and hopefully get a decent profit.

So you’ll be buying in two or three years then? We are currently at or just past the peak of the biggest speculative bubble in history, and residential real estate is still considerably over-valued in…[Read more]

Originally posted by grossrealisation:
here to help
That’s great, but I couldn’t understand a word of it. Probably best to read over what you’ve written before you hit the ‘Post New Reply’ button.

In regards to the question, I think some such people (debt junkies) are simply beyond help. I wouldn’t get involved unless it was a close family…[Read more]

The State Revenue Office in Victoria has raised the possibility that all Victorian real estate over $20,000 held in a trust structure will be subject to land tax.
Be aware & beware.
Link Here
F.[cowboy2]

Originally posted by RichardRoper:Why would any body Take up a wrap ?Perhaps for hedging reasons? If the house appreciates in value they can pay out the wrap and refinance, but if the house loses value they can walk away, leaving the vendor with the negative equity much more easily than they can with a bank.
And if the vendor persues them for…[Read more]

Originally posted by munjy:
the central banks increasing liquidity would have to be a fairly way out idea.
With our gross domestic product growing at what, an average of around 4% pa and our broad money measures increasing by 10-14% pa over the last 6 or so years* do you not perhaps think this may already have been occurring? Is this not the…[Read more]

Originally posted by munjy:
For those who believe that such a collapse will be as severe as predicted, in what way will you be insulating yourself? Buying gold? Buying a farm?

Gold of course, but also property. Many, many houses, as highly geared as possible. Triple digit inflation would (at least) halve your debt in a year… Yield would not be…[Read more]

Interest only loans are a great way to increase the cashflow…. of your mortgage broker. Their trailing commission is set at a percentage of the loan balance for the life of the loan. If a mortgage broker ‘advises’ you to take out IO over a PI loan they are:
a) Acting in their own interest.
b) Possibly breaching laws pertaining to financial…[Read more]

Originally posted by MichaelYardney:
BIS Schrapnel seems to get lots of publicity for their forecasts which is curious since they are invariably wrong.
<snip>
Have a look what they said last year and the year before and how they predicted huge drops in property values in Sydney and Melbourne – these haven’t occurred.
Ok, will do. Last year:
August…[Read more]

Well, I think your ‘aha!’ moment for today should involve the lesson Don’t believe everything you read on the internet![biggrin]

Cheers, F.[cowboy2]

How can a young couple getting married afford to buy an average house for $350k. Well thats what you need in surburban Melbourne….which may go some way to explaining:
Bankruptcies rise by 10 per cent
July 08, 2005
From: AAP

WHILE key indicators point to a booming economy, the latest bankruptcy figures show a rise of almost 10 per cent.
The…[Read more]