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I think its all rubbish, these bank ceos make these comments to benifit themselves (the banks) . In my opinion property prices are going to go down before they go up (and I dont think they will make an upward movement for years to come) , people talk about the shortage of houses and land, all you need to do is pick up your weekend paper and take a look at all the houses in the real estate section, or drive out to the outta suburbs and take a look at all the for sale signs on the vacant blocks of land. There is NOT a shortage of houses at the moment what there is a shortage of is money and people that can afford to pay the prices for these houses. Once house prices come down and 'meet' the market then you will see them slowly go back up but how far they will go down we will just have to wait and see. My advice to first home buyers, dont buy a house for 2-3 yrs , If houses dont sell then the prices will go down… Investers, banks and land developers want people to 'panic buy', Panic buying is what investers and speculators want and alot of people during the boom fell for it and now im sure alot of those people are regreting it, my advice stay at home if you can of if you need to rent share it with 2-3 other people so you can still save for a deposit. Thats what im doing, I live in perth, there is 17 000 houses and blocks for sale at the moment with no buyers, soon (in the next 6 months) there will be even more houses for sale when peoples fixed interest rates go from 6% to 9%, and if there is a recession and unemployment goes up there will be more banks taking houses and more houses for sale. Way to many ifs and buts for my liking, ill keep my ass outta the property market for now thank-you
I reckon we bring Scamp over to Australia and make him head of the RBA, or even prime minister
Devo76 may I ask how "Italian Dragon" is not here to help? Just because he is not here trying to talk up the market or tell people to buy dosnt mean he's not here to help, if anything he's is making people more aware of what is going on in the market such in this case as all the bank repossessions going on at the moment due to morgage stress which does affect the market. It annoys me when property investers and real estate agents come on here and just try 'talk up' the market and how prices are going to keep booming etc. then when someone comes on here and looks at things from a different angle they get told to go away. I think anyone that is going to buy property at the moment do your OWN research and dont listen to bias opinons from people who have an invested interest in the market continuing to boom.
My first bit of advice would be dont be afraid to offer less than the asking price because I can tell you in perth there are alot of people having trouble selling their homes due to the lack of buyers and the amount of properties for sale. I would say Craigie wouldnt be a bad area for long term investment, I wouldnt say it has peaked, i mean 2 years ago i remember seeing 3×1 houses on decent size blocks in craigie for around 300k now the cheapest listings seem to be around 340k so I wouldnt say that it has had massive growth over the last few yrs. I guess other areas you could look at would be Heathridge, Beldon, Padbury or if you wanted to go further inland you could look at Alexander heights or Marangaroo. You say you wanted to stay relatively close to Woodvale which I think is a good idea anyway because in my opinion any suburbs north of joondalup (the outer northern suburbs) are going to drop in value over the next year or two (fuel prices, way to much for sale, first home buyers being hit hard, morgage stress, developers dropping the prices on blocks) so it would be a good idea to stick to more established suburbs
Good Luck anywayPaul.
Well I can tell u in perth I am confident house prices will drop espically at the lower end of the market, there is 17 000 houses and blocks for sale with hardly any buyers, houses are just sitting on the market, agents cant sell them . In my opinion in a years time there is going to be more people in morgage stress, so there is going to be even more houses for sale, what are people going to do that cant sell their house and need to? drop the price is what they will do , and eventally across the board i think prices will fall in perth. There is no guarantee but i think it makes alot more sense that prices will fall than increase, people cant afford to fork out more moneyto buy a house, now with higher interest rates, higher fuel prices, we are also paying more for food , water, council rates . Yields are also very low in perth and I can tell you now there is no investers buying property in perth not like when the boom was when every 2nd buyer was an invester and now its the investers that are flooding the market with houses for sale and making it harder for each other. I only really follow the perth market but ive heard inter state things arnt much better.
I was in a simular situation CHIS, I bought a block for investment in the northern suburbs and thought i could make money on it, but with the downturn in the market and over supply of land at the moment i didnt even break even when i sold it, even tho i made abit of a loss im thinking long term now instead of forking out nearly $1500 in interest every month which i was paying on a block that wasnt going to get any capital growth i have sold it now and am just gonna save up for a deposit and buy something in 2-3 yrs time. I think when i bought my block i got sucked in with all the media type regarding a "land shortage" , in my opinion there was never a land shortage, i think the develpers over heated the market so they could jack up all the prices , only releasing blocks in small amounts at a time, making people think they had to rush in a buy a block before its too late, now that the market has turned its flipped 180 degrees, they cant sell blocks so they are offering all sorts of discounts and incentives to lure people back in , like i said IMO they overheated the market delibertly and milked people for every cent that they could get out of them.
Hi , nope you cannot claim any interest on vacant land, the only way you can claim interest is if you buy a house or unit and rent it out to someone then you can negative gear it. As to your other question, with the price of land , maybe for a little extra you could buy a 1-2 bedroom apartment of flat somewhere close to the city? Then you could use it for tax purposes too, where in australia are u thinking of buying tho? If you are thinking of perth where I live i would suggest dont buy anything at the moment because i think the market may take abit of a dive as there is way too much for sale and no buyers. As far as land investment goes too I would suggest you will not make a quick buck in this market and u would want to be prepared to hold onto the land for a very long time, an example, I bought a block about 1 year and a half ago when perth had a supposedly 'land shortage' . I ended up buying a block in the northern suburbs, 500sqm and close to a shopping centre, I paid 195000 for it, I thought i would hold onto it for a while then sell it as I thought i picked it up for a good price, I paid interest only on the loan and after a year I put it on the market, I was hoping to get 260 000 or atleast 250 000, 6 months later I sold it at a price where when i added everything up i barely broke even. Problem i had was there was way to much land for sale and no one buying land plus all the developers couldnt sell land either so there all offering incentives to buy land off them because even if the markets quiet they still need to keep selling land. And they are also dropping the price, before i bought my block i looked at an estate in butler (outer northern suburbs of perth) and for a decent size block u would be looking at around 210-230 range, now in todays paper satterley is advertising they are releasing blocks in the 500-600sqm size for 180000- 190000. So basically anyone that bought land off them a year ago going by those prices would have lost 20-30 grand atleast.
I think they will defiently here in perth, I know the markets pretty dead here at the moment, something like 17 000 houses and blocks for sale and alot of properties that have just been sitting on the market for a while. I think with every interest rate rise we have had it has basically meant fewer buyers looking around to purchase something, I recently just sold a block of land in the northern suburbs in perth, i first put it on the market in December 2007 and only just sold it recently, and it was about 30 grand less than what i first wanted for it, when i first bought the block a few years ago there was all this 'land shortage' talk around and there was hardly any blocks of sale, now theres something like over 2000 blocks for sale plus all the develpers putting ads on tv and the radio saying ' if you buy a block we will give u 10 grand worth of fencing/landscaping, pay your rent while you build, give you a lower fixed interest rate for the first 3 yrs" .. next they will be sending people on an around the world trip just for buying a block of land .. things seemed to change extremely quickly from the land shortage we had a few yrs ago.
Gday Nejas, Nah thats not complete .. that price is what I got off the builder to build the house and site costs .. the rest of the stuff like floor coverings, blinds, aircon , landscaping etc, i was gonna do all that myself because i have some cash saved up for that and was just going to borrow 150 which would covering building the house basically..
cheers
paulOk thanks that makes sense, while im on the topic can any1 recommend to me any accountants in perth??
cheers!
In reply to foundation: well i had 3 appraisels done , and yes they were all in the 270-280 grand mark, so it went on the market at from 270 , the agent said the biggest problem I am having at the moment is there are bigger blocks in the same suburb for cheaper than mine, but the reason why we valued mind abit higher was it is like 5mins walking distance from a fairly major shopping centre so we thought the location would put the price up and we could achieve 270-280, this hasnt happened so far, the problem in perth at the moment for people like me is their is a heap of house/blocks on the market so it has become a buyers market not a sellers market, the agent said he has been getting calls but people are just not interested in the price. I think what is also happening abit in perth, is house/blocks are taking along time to sell, so people are dropping the price to speed up the time it takes to sell and i think that has happened in the area where my block is, i saw another block in the same area went on the market from 240-260 and within about 3 weeks i saw the same block advertised at 220-240 , shit like that is killing my chance of getting a good price, One question I do have tho .. with agent selling fee's .. if they achieve under what they orginally appraised the block at or what the block orginally went on the market for .. am i able to say to the agent .. look .. maybe take a few grand off the selling fee because we arnt gonna achieve wat u told me we could kinda thing?? if any1 could reply to this msg 2 and give me any advice that would also be great, thanks
ok thanks for that wayne just checked my records and that guy that did the firebreak never sent me a reciept so i phoned him and he;s gonna send one out to me next week. Just got another question while we r on the topic .. wif my block of land I just pay the interest only , if i was to pay like a chunk off my loan, like if i put 20 grand down on my loan to reduce the interest, does that affect my capital gains at all?? Or does it just mean I have less to pay the bank back when i sell it?? I assume that it wouldnt but some1 told me for investment loans its better just to pay the interest but i dont know if they were talking about capital gains. thx
Gday Wayne just got a question on that “cost base” that u were talking about, just wondering (because i also have an investment block of land) would getting a firebreak done on the block come under that?? I had to get a firebreak done on my block last month and just wondering if i should like keep the reciept for when I go to sell it etc. ?? thx!
Yeah I think u can only get the grant if you are going to live in it so renting it to some1 or if its just a vacant block of land u wont get it. I recently bought a block of land and emailed them to ask them about the grant and they told me that coz its a block of land I cant claim it but when i show them a building contract to build a house on it I can get it then
