WA Real Estates will start to feel the pinch just as Sydney and Melbourne Agents did after things slowed down there. Agents will eventually not only have to work hard to get the listings, but will have to work considerably harder to sell the listings that they do have after a slow down. You will see independants, acquired by larger national Real Estates Agents.
Sure buying isn’t slowing down at the moment, but it will.Mal
Getting out of your comfort zone, can help you become comfortable
Originally posted by Mkc:Originally posted by ecatt:Im with you MKC… I didnt understand what quiggles was saying either
Looks like we’re out of luck Ecatt , why do people always disappear when you want to follow up something they said .
Cheers
MkcTry this:
$200k returning 10% in six months = $20k.
Over 12 months at this same rate of return you would get $40k
If you leverage it or gear it to 50% this involves borrowing another $200k.
Now you have $400k invested returning 10% for 6 months = $40k and over 12 months you will get $80k.
Interest bill for the $200k of borrowed funds at 6.5% is $13k.Hope this helps..
kp
Thanks very much KP , will you come and oganise it for me please if it’s doable l’m selling my block next door and kicken back .
Not that l understood much of it but a few more reads and there might be hope .
Cheers.Sqirming Realeastates.
Two yrs ago l had to wait a week 2 or 3 times to get shown a property . No racing out to ask if they could help- [sell you something ] or dirve you around all day . You looked in a window & the arrogance , they wouldn’t even bother returning calls [ NSW Sth Coast at the time ] . Considering the real nature of the beast , glorified car salesman , this really made me sick . Your a customer that may spend 100’s of thousands of dollars on something they are only selling , they don’t own it all they work for the customers . l said to people then don’t you worry about that , another year or two and they’ll be back where they should be .
l suppose there’s good and bad in that and l know it sounds negative but l for one am bloody glad to see a bit of customer respect back in the game even if it is just grovelling . l think getting things back to normal is allot healthier all round and predictable unless you were one of the lucky ones .
Cheers
Mkc.Originally posted by Mkc:Thanks very much KP , will you come and oganise it for me please if that’s doable l’m selling my block next door and kicken back .
Not that l understood much of it but with another 20 reads there might be hope .
Cheers.
MkcHey Mkc,
Its very do able and very common, and you don’t need me to organise it for you.
You can do it direct through Leveraged Equities or BankersTrust ( BT) and probably some others who will happily lend you 50% against a porfolio of blue chip shares or against a selection of managed funds, including income funds.Best bet is to do some research/homework on how it works, and then with some correct structuring, you can easily generate a healthy return either by using the equity in your property, or reinvesting the proceeds from the sale of your property.
kp
Are these eastern markets falling all over we have been looking at a new apartment in Brisbane as a base in December 2004 it was $630000 for a 3 bed on the edge of the CBD it was only in new stages at this point.
Last week we where contacted by the development firm as building has just started and foundations laid they asked if we where still interested so i asked again for the figures and availability none of the 6 3bed apartments had been sold but they all had gone up in price ours was now $810000, a rise of $180000 in a year but they had not sold one apartment when i pulled them up on this they said the growth rate for Brisbane CBD was around 17.5% and this reflected there price rise ?.
Are these developers CRAZY or is it just me, who calls an interested investor 1 year on and says would you like to buy the apartment you wanted,by the way we have not sold any 3bed apartments but the price has gone up 28% i just had to laugh.But am i out of step is this right for Brisbane ?.
Thankyou so much kp .
Would that be secure or & can we keep rolling it over or whatever long term ? Probably stupid questions.
Cheers. Mkc
PS , Hey Mgr , mate l reckon they’re dreaming true to form . Counteract their rediculous offer with dropping your offer to $530 even lower , bet you get another call within a few mths grovelling .
Brissy markets slowed to . My brothers place went from 85 to 320 and now it’s down to 280 and dropping .
l was told selling my last property [ NSW ] sellers everywhere were trying to hang on to boom prices but they’re dreaming . Four different realestates told me if you really wanna sell the only way we can get people out now is by pricing it very very realistically or bargain .
And guess what , every realestate was out to see me the very day l rang , same ones that wouldn’t return calls 12 mths ago. NICE !Thanks mkc,
I thought the Brisbane CBD was overpriced in December 2004 compared to other CBD’s they are going to phone in the next couple of days , I am thinking of putting in an offer 10% below what they priced in Dec 2004 instead of 18% above.
I will leave it an open offer then they can always come back to me and i just have to hope that i have not overplayed my hand, its following the advice of most people on the forum no matter how much you want the property Business is Business.Thanks.
Originally posted by mgr:Thanks mkc,
I thought the Brisbane CBD was overpriced in December 2004 compared to other CBD’s they are going to phone in the next couple of days , I am thinking of putting in an offer 10% below what they priced in Dec 2004 instead of 18% above.
I will leave it an open offer then they can always come back to me and i just have to hope that i have not overplayed my hand, its following the advice of most people on the forum no matter how much you want the property Business is Business.Thanks.
Hi MKC,
Do not put an open offer, give them a month or something like that so they can suffer for that. If after a month nothing happens offer then 5K more for another 2 months. It is just an example but it is a good way of pressing them.
Clones
************************
The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.Originally posted by Mkc:l was told selling my last property [ NSW ] sellers everywhere were trying to hang on to boom prices but they’re dreaming .
Seeing the same.
Agents use these people to sell other properties. Show you three over priced and the people on the money look cheap. You have to know what they are selling for as what people are asking has lost its relevance.
Be very careful in WA. IMHO, the market here is just about to slow. Property is being snapped up instantly, and in my opinion silly prices are being paid. Sure mining Job’s are paying big, the economy is strong etc, but the fact remains that not many people earn more than $100k or families combined income exceeds say $120k. This means on current interest rates property mortgages of $300k are about tops..well, the WA median house price is now well and truly over that figure! WA also pays the highest Stamp Duty in Australia which will really start to hurt. I know WA is still a lot cheaper than Sydney or Melb, but given our remoate location we should not be challenging Brisbane prices! All we need is a little interest rate hike and watch the market slow up. If you didn;t buy property in WA before 12 months ago, you are too late (IMHO).
I even have a real estate agent frind of mine who has been selling RE for 12 years, tell me about the Villa’s he recently bought, paid $225,000 in Tuart Hill and said to me , oh well property will never go down..go figure.
[blink]
JES
Hey Clones , nice strategy .
Hey JVT , glad l’m not in WA then , still moving fast there , that about to stop point was a scary time over here you just had no idea what things would do , still don’t in my view .
Feel sorry for first home buyers the most that might have payed huge and over reached in a panic .Cheers
MkcJES,
Don’t be so sure!!
I recall buying my PPOR in Sydney in 2001 when things were going beserk, properties being snapped up at the first open house, or before being advertised. After this frenzy started, the market did not top out for another 2 years. In that time I had 50+% growth. That has since slipped back to about 40%, but by refinancing for investment purposes while it was at the top, gave me money to play with in areas still to take off, including Perth which I believe will still see some good growth before slowing, by which time I’ll have refinance, and started buying in Sydney which will hopefully have bottomed out.Mal
Getting out of your comfort zone, can help you become comfortable
The old trading adage – let the profits run and stop your losses. Would you have sold Nasdaq at 3500 when it was on its way up to 5000?
WA is still relatively affordable. Until I get to a point where I can sell 2 WA properties to buy one house in Syd, then its a sign to me that we’re sort of getting to some kind of equilibrium. Why would I pay $450K+ for a 30-40 year old 2bed room unit in Syd when I can pay $350K for a 4×2 in Mandurah with better yields, depreciation benefits and potential capital growth?
If you have a look at median wages, all the capital cities don’t vary by much – $4K max but the disproportionate house prices??
BTW Shwing, don’t be so quick to come back to Syd. You’ll need very deep pockets to buy IPs over here still. Vendors aren’t discounting their properties by 10-20% so not many bargains around. We’re in for the long haul before the next cycle. Just keep picking off the undervalued suburbs cos its that much harder in this cycle to just buy ordinary and ride the wave.
Talking to a couple of REA’s here in western Sydney. 1 agency is selling 2 houses a day. Others have picked up also.
They pointed out that vendors where starting to realise yesterdays prices are long gone. And are now meeting the market.
I still feel however that these bargain prices are not such bargains. Just a true indication of its real value in an overpriced market.-Thomas
“More Time To Snowboard”
Yup, I could be wrong about Perth about to slow, but the point is we can only offer opinions coz we don’t really know what will happen.
Interest rates will go up, not sure when but they will. With so many investors, flippers, FHB, paying to the MAX of their landing capacity (and sometimes more) just to secure property here the slightest rise will place pressure on high debt property owners.
The Sydney market being referred to in 2001 and continuing on for a further 2 years was in the time of lowering interest rates. Therefore the buying market was bouyed with confidence. Interest rates have bottomed out and seem to sure to go up as national debt levels escalate.
All I am saying is that you wouldn’t buy property in Perth right now. Take the $225,000 villa’s I referred to earlier. Say spend $5k to tidy up, buying costs of approx $10k, holding costs for 12 months (assume rented at $180 pw and managed) $5k, incidentals $2k – the property has to appreciate by $22k or 10% just to break even. Now if the market softens within 6-12 months, then no profit to be had, and possibly a long hold to make money, even till the next gropwth cycle which could take 3-5 years…..going on history.
Why wouldn’t you wait until the market softens (relying on interest rates) to buy? Right now the agents are unbelievably arrogant, their is way to much hype..its just mad. If yoy have IP’s in Perth…sell I reckon and make a killing! Then cash will be king for you.
JES
Don’t panic everybody
according to Bernard Salt (trendspotter for KPMG) “a modest upturn will kick off from Sydney in late 2007,or perhaps 2008”
and “There’ll be another weak boom in 2018-2020”
and after that “all the baby boomers will be dead and then the property market will hit the wall”
something to look forward toooespecially if you’ve paid to much for your IP….still 2018’s looking good.
sorry
ignore last post
more bad news
“A new international housing affordability survey has rated most of Australia’s capital cities as severely unaffordable.The survey compared house prices with the average annual income in Australia, Canada, New Zealand, Ireland, the UK and the United States.
Co-author of the report, Hugh Pavletich of New Zealand, says Sydney is the most unaffordable in Australia with residents needing to spend eight-and-a-half times their annual average income to buy a home.
In a surprise result, Hobart came in as Australia’s second most unaffordable city for housing, with residents needing six times their annual salary.
Mr Pavletich says it is an acceptable and unnecessary situation.
“We do have examples throughout the world and particularly through North America where cities are currently affordable, where in other words people do not have to pay any more than three times their annual income to buy a home, instead of the six and eight times – that is the case in Australia and New Zealand,” he said”
source abcwill someone stop these people
how the hell are we going to make any money
average salary $50k…thats should make properties $150k…impossible
Yup, I could be wrong about Perth about to slow, but the point is we can only offer opinions coz we don’t really know what will happen.I just spent 20 minutes preparing a detailed reply to your comments JES, but I’m a lot calmer now and don’t feel the desire to anymore. I’ll leave only one comment that I wrote.
Yup, you could very well be wrong.
Originally posted by hb:sorry
ignore last post
more bad news
“A new international housing affordability survey has rated most of Australia’s capital cities as severely unaffordable.The survey compared house prices with the average annual income in Australia, Canada, New Zealand, Ireland, the UK and the United States.
Co-author of the report, Hugh Pavletich of New Zealand, says Sydney is the most unaffordable in Australia with residents needing to spend eight-and-a-half times their annual average income to buy a home.
In a surprise result, Hobart came in as Australia’s second most unaffordable city for housing, with residents needing six times their annual salary.
Mr Pavletich says it is an acceptable and unnecessary situation.
“We do have examples throughout the world and particularly through North America where cities are currently affordable, where in other words people do not have to pay any more than three times their annual income to buy a home, instead of the six and eight times – that is the case in Australia and New Zealand,” he said”
source abcwill someone stop these people
how the hell are we going to make any money
average salary $50k…thats should make properties $150k…impossible
Hey Hb.
l’ve been saying 2-3 yrs Australian prices are rediculous but l’m always amazed at how no one ever agrees .
Personally l reckon that 2018 thing would be spot on because it will take that long before our now prices are justified .Mkc
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