http://www.heraldsun.news.com.au/common/story_page/0,5478,8538548%255E2862,00.html
And for specifics on your suburb:
http://www.heraldsun.news.com.au/common/story_page/0,5478,8540955%255E2862,00.html
What do you think Melbourne people? Richmond, how are you finding the prices in melby right now?
kay henry
Morning Kay,
Depends what area we’re talking about, I notice places like Toorak and Mont Albert have supposedly become more “affordable” with median prices of $1.3m and $510k respectively… I’m not too sure what to make of median prices… was there more properties at the bottom of the market for that particular suburb that sold for that particular quarter? The figures are only over a quarter, I’d be more interested to see the 12 month figures. That article also says that a lot of investors are re-thinking their plans… which is a good thing for those of us who want to stick with it since there’ll be less buyers around. I bought a unit in the eastern suburbs last April for 210k, and it’s valued around 260k now, so go figure.
It’s quite amazing how people are so skittish about interest rates, considering they’re still extremely low by historical standards, even if they go up 1% they’re still low.
Cheers
rrichmond, re interest rates… my mortgage went up by about $50 a week when IR’s went up by 1%- that’s quite a hike in repayments, I reckon. That extra money comes out of my wage. To me, it doesn’t matter what rates were historically, it’s 2004, and I live in the present. No doubt in the Depression or in some cultures if high inflation, rates have been 30% or something, but still… in 2004, IR’s wouldn;t want to get too much higher, or my disposable income will be so much less, and my goose will be cooked!
Yeah, those melbourne prices are exxy at the top end for sure. I wonder if vendors are still “holding out” and setting their sale prices at the same level as before.
I reckon the older established eastern suburbs market will always maintain its value. The Melbourne establishment is not gonna let it all fall to pieces
kay henry
I’ve got mates who (foolishly, I reckon) loaded up as much they could with the low rates, and it was always going to be a problem if they moved upwards. Believing that IR’s are always going to stay low is like believing CG is always going to happen. Some of my mates will be in a bit of strife if they go up even a bit, as will many investors… but they should have all done their homework better.
cheers
rYeah, prices are just stabilising. Yeah there have been some decreases (only minor) but thats good. You cannot expect good growth every year. The surburbs I invest in Mentone (down 1.8%) I expected and South Frankston (up 16.5%) I sort of expected as this area has sort of exceeded my expectations. However there is some good stuff happening there with a Marina, restaurant on the beach above life saving club and over $100m worth of future developments in Frankston CBD including a marina development.
Richmond,
This is- we’re always being told to buy more and more property… because one just can;t have the dream by owning 1 or 2 IP’s… so whilst a contingency plan (or exit plan) is one thing, most of us will probably want to keep buying regularly to build a portfolio. I remember a while ago, my ex said to me she wanted to buy 1 property per year, and at the time, I thought she was being delusional, but now I see people doing that all over the place- and not coming from a background of large capital to do so.
So, maybe I’m changing :o)) But i guess I realise more is possible than I thought before- despite rising interest rates, one just still has to increase the portfolio- just hope it doesn;t do my head in with stress
Richmond, you and I are of about the same vintage. One gets a sense of “workplace morbidity” after a while, I think, meaning that work lives don’t last forever.
I might have to be like some of your mates and get in over my head! But I am probably different to your mates- my thing is cheaper properties, so my risk is lower.
kay henry
Sorry, I should have clarified, when I was referring to my mates, I was talking about them borrowing for PPOR’s, which is of course a bit different to borrowing for IPs…
I wouldn’t stress too much Kay… there are always people who need to rent… just give them somewhere decent to live and you’ll be right. A bloke here at work has been looking for a new place to rent for a few weeks, and while there’s a lot available, some of the landlords keep their places in pretty shabby condition, yet expect top dollar in rental. Then they wonder why their IP goldmines sit vacant for weeks. Actually, I can’t believe the number of “For Lease” signs up around Richmond right now.
Cheers
ryeah, they’re probably charging too much for rent. Some people need a big reality check. People who want to charge $350 for a 1-bed place in the cities might realise that most of the people who can afford that rent can probably also afford to buy their own PPOR.
Student markets in cities are the potential, but those kind of rents only apply to International students, and not some of the ones I deal with on a daily basis- students from bangladesh etc- sad thing is, they come over here with promises from the Universities, and end up living in overcrowded slums miles from nowhere.
And I agree- buying a PPOR at the top of the market in the cities is making a huge commitment- for 25 years!!!
kay henry
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