[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

May 25, 2008 - 11:02 am

vicgirl wrote:

Well, I've been keeping an eye on some properties lately and as I was checking my saved list on the weekend, I saw that 5-6 of them were sold in the last two weeks, so it's not like people have stopped buying. I do see more properties coming on the market in my neighbourhood, nothing more than what I regard as normal, and a lot of them are getting snapped up in a week or so. I think I'm going to record perhaps the number of internet listings in my area on a weekly basis and see what that suggests.
So it's Monday, 19 May and the total number is 124 – very low still compared to let's say what it was 2-3 years ago. I'll have a look next Monday.
Anyway, we all wish we could predict the market's movements but if we're going to follow in the US' footsteps then we're looking at lower interest rates, which are clearly not in sight at the moment, so perhaps we are as Tony says coupled to the emerging Asian economies and are at a different time of the cycle. Those who maybe haven't noticed, we did have pricedrops and a plateau for example between 2003 November and 2007, here in Victoria anyway.

Looked again today, no change to the number of internet listings at all.

Now about the fixed rate mortgages, will they all mature at the same time in September? LOL…

About the government's rental policy, there was a link on this website a few weeks ago to an article in which you could read that Rudd's idea is to give investors tax breaks for new housing that will be let for 20% less than the market rent.

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

May 25, 2008 - 10:44 am

blogs wrote:

vicgirl wrote:

Michael Matusik disagrees.

That guy is a joker-tell him hes dreamin!!! lol interest rates have plenty of up before they can even THINK about coming back down….

Simple -you just watch the supply come on the market when all the fixed rate loans come off and have to be re financed. Im sue all the armchair expert property investors who watched it on telly so bought a house will soon flood the market….

But you and Scamp are saying we are yet to follow in the footsteps of the US where interest rates have come down…then you're also saying ours will keep going up…excuse me for ending up confused about the logic behind your comments.

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

May 21, 2008 - 10:07 am

Another opinion about whether or not we are likely to meet the same fate as the US/UK:

NEGATIVE SENTIMENT IS MISGUIDED

There is an increasing number of detractors warning us that Australian house prices are overvalued and comparing the US credit crisis with our current situation. However, local research specialist Michael Matusik disagrees. CLICK HERE TO FIND OUT WHY.

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

May 19, 2008 - 12:04 pm

Well, I've been keeping an eye on some properties lately and as I was checking my saved list on the weekend, I saw that 5-6 of them were sold in the last two weeks, so it's not like people have stopped buying. I do see more properties coming on the market in my neighbourhood, nothing more than what I regard as normal, and a lot of them are getting snapped up in a week or so. I think I'm going to record perhaps the number of internet listings in my area on a weekly basis and see what that suggests.
So it's Monday, 19 May and the total number is 124 – very low still compared to let's say what it was 2-3 years ago. I'll have a look next Monday.
Anyway, we all wish we could predict the market's movements but if we're going to follow in the US' footsteps then we're looking at lower interest rates, which are clearly not in sight at the moment, so perhaps we are as Tony says coupled to the emerging Asian economies and are at a different time of the cycle. Those who maybe haven't noticed, we did have pricedrops and a plateau for example between 2003 November and 2007, here in Victoria anyway.

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

May 18, 2008 - 1:41 pm

Well, I've just seen this today:

http://hp-consumer.aol.com.au/news/story/-Special-investigation-Agent-orange-town/480201/index.html

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

May 18, 2008 - 12:17 pm

The official cash rate in the US is 2% and it could stay flat for the rest of the year.
In Australia it's 7.25% and still no signs of easing.

Roll on the property market crash!  I would much rather hold property than cash when rates are starting to fall. Yes, a seasoned investor will survive and even make money in down-trending markets. I notice, even Scamp is planning to invest in Australian real estate soon

As for gold, there are equal numbers of bears and bulls.

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

May 4, 2008 - 1:16 pm

Well, finally found something on the ATO website but I don't know if my interpretation is correct. According to this information the "cost base" apart from the purchase price, legal fees, building inspection fees, agent commission, also includes capital works that qualify for a deduction but of course without any deduction that was made if the property was let.

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

April 14, 2008 - 11:49 am

It's tempting to draw a comparison with the American and UK (or even the NZ) market but the situation is a bit more complex here. For example, NZ's net migration is in decline whilst we continue to grow. Or aside commodities, Australia can benefit from increasing food prices (just look at the price of dairy products) that could result from the global recession. But the strongest indication of a market trend is always the levels of supply/demand and this is telling me that any bargains should be picked up this year

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

December 1, 2007 - 12:53 pm

Three terms of Labour government in New Zealand did not break the property cycle there…

vicgirl

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

December 1, 2007 - 12:23 pm

What if you have bought a block in November, then build a house on it and sell it a year later?

vicgirl

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 16, 2007 - 2:53 am

I find it a little bit confusing that PIAA (in Australia) stands both for:

1.)  Property Investors Association of australia Inc. (http://www.piaa.asn.au)

2.)  Property Investment Association of Australia (http://www.piaa.org.au)

Are they actually the same or two different organisations?

cheers

vicgirl

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 16, 2007 - 2:39 am

Terry, thanks for the suggestion. I'm continuing the research and have found a course that seems to be exactly what I need, through Deakin…I will try to determine the usefulness of completing this course.

Cheers,

vicgirl

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 11, 2007 - 3:21 am

Regina, it seems like you have done well purchasing in Safety Beach as not many interesting properties seem to be on sale there at the moment. What are your thoughts about buying in Dromana?

vicgirl

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 10, 2007 - 6:57 am

Nats and Michael, thanks for sharing your thoughts.

The idea of building a single house has been on my mind too for a while because of it's perceived (?) simplicity. Unfortunately, moving in every second year or so is not so attractive to me at my age and in my circumstances (I've had my fair share of moving in the last 15 years).  Would you use a prestige housing company e.g. Porter Davis or a private architect/builder?

Subdividing land or building second dwellings has brought me considerable success in the past so I guess I will pick my favourite areas and visit council offices to gauge their attitudes toward development, proabably go as fas as asking them which neighbourhoods they think would benefit most from such activity. I too believe that some of the outer areas will grow in popularity, especially around the "1.2 million suburbs" as an alternative to those who cannot afford them. 

vicgirl

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 9, 2007 - 10:54 pm

Michael, you do have a point.

I am still interested in other people's experiences with their local councils, especially in the inner suburbs or coastal areas.

vicgirl

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 9, 2007 - 5:28 am

NATS, thanks for the insight, I get the picture, there are a lot of people with that attitude and I think I can risk saying that it's fuelled by jealousy and it's best to understand their motives and move on to somewhere else . Building a nice, large single house sounds an attractive option but how do your numbers stack up?

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 9, 2007 - 3:38 am

"It's about time someone said it. Well done!
I too believe it is impossible to find these CF +ve properties."

You can always "create" a CF+ property.  Knowing you've got the backing of the bank, you can make unconditional offers and buy at a bit of discount, go for the highest number of bedrooms on the largest block of land you can afford. Also check out the sudivision potential. Example: $270K plus $11.5K stamp duty paid for 4 BRM on 1/4 acre, 28 km from Melbourne CBD (walk to school, train, shops). Cost of new kitchen: $10K, we gave the interior a coat of paint to refresh and it was rented for $250 pw ($13,000pa)

Land was consequently subdivided (cost 15K) and back block sold to a builder for $103K after agent fees). Additional costs expected around $15K for the outstanding siteworks and dbl lockable carport. If the original house is kept, over 70K of the proceeds of the sold block can go towards reducing the mortgage making it a CF + investment or that amount pays the deposit on a slightly larger property, you can do the sums and let me know if I'm wrong. (worst case scenario: you can't subdivide the land – you still have a great block which will be always in high demand and will appreciate well, and a fairly good return on your investment, so if you are not over-leveraged, your future gains are secured).

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 8, 2007 - 11:42 am

Although the bond was 35,000 in Knox too

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

October 8, 2007 - 11:40 am

Regina, thanks for your valuable comments. (my daughter's name is Regina too). I will cross Maroondah off my list.
Dealing with Knox City was not a bad experience, I was lucky to get my permit though as one of the last ones in that area of Boronia (close to the hills). I might do another one closer to Wantirna, although somebody told me that if I try to do something bigger than dual occupancy, the council contribution gets quite expensive in Knox but not in Monash.

[vicgirlMember@vicgirlJoin Date: 2004Post Count: 69]

February 13, 2006 - 1:58 pm

I thought building on a subdivided 1/4 acre would be a costly exercise but after a brief look at the first quote for a 17 SQ house I am definitely inclined to put the backyard up for sale, rather than pouring $250K or who knows how much more into the project and come out with a house worth $300-320K.