(expert) A drip under pressure, sorry, an expert is a person who WORKS for some one and has no money thats why they have so many opinions, most of them are doom and gloom merchants.
Phil
2005 is thought to have some inflationary issues in Australia (where the RB’s inflation target of 2-3% will be overshot). It’s likely IR’s will rise to keep this in check. I know people have traditionally thought inflation means rising RE prices… but inflation has been significantly low in the past few years, and the RE market has risen beyond all expectations, so it’s been an inverse relationship.
I read an article (but now I can’t find it) which says that it’s thought that the sydney market will rise 3-5% over this and next year, so it will be in line with inflationary expectations- good enough for me
At least it won’t be capital loss.kay henry
Depreciator,
I have also been looking in south Marrickville, not a bad area.It’s a big suburb. South Marrickville is really good. I’ve lived there for a couple of years. I moved there partly for the anticipated capital gain (which I got), but also because I like the character of the suburb. Sure, Marrickville still has the odd shooting, but that just adds to the character. And the gangs tend to shoot eachother anyway. I didn’t ever get my terrorism kit and fridge magnet, either. I think it’s because there are heaps of people of ‘middle eastern appearance’ in Marrickville and they didn’t want to tip them off.
McGraths sold a tidy 2 bedroom terrace with great city views, good yard, close to station, shops etc for $530K last week. I think it would have been a good buy for possible future gain – lousy return in the meantime. A renovated 4 bedroom terrace with city views and RLA sold for $635K a few months ago. It was a very quick sale. If I thought for a minute it would go so cheaply, I would have tried to pick it up. Again, I would have been thinking about future growth as opposed to current returns.
Henry Kay had a big development site in Marrickville (ex warehouse). I think the banks now own it. Not sure what is happening with that site. I heard there were some structural issues with the old building.
ScottMarrickville? Still a dodgy suburb in my book. Pay half a mill to live amongst gangs and shootings? HMM. The thing is that I think you might be able to get the A-grade Sydney suburbs for that kind of money pretty soon! I guess that means that I think capital ‘loss’ is likely if you are trying to SELL in the next year or more.
If you are trying to buy I think it would be a pretty good time.
I guess I agree with those experts (whoever they may be!) about 2005.I’m trying to get prepared for what I expect to happen next year. And then guess what I’m gonna do!
cheers-
Minijoy to the world
It all depends on what you’re looking for. I cannot fathom why someone would pay 550k for a house on 350 metres of land in Kellyville when they can pay the same price for a house in Glebe.
I used to work with streetkids in Marrickville, Lakemba and Belmore. I have some colleagues who now live in Marrickville- and it’s been gentified somewhat with the boom (due to proximity to the city really and affordable house prices relative to the suburbs nearby like Newtown, Enmore and Stanmore), but I wouldn’t live there or buy an IP there if you paid me.
Once you’ve worked in a suburb in that kind of job, and have seen the underbelly, it can really change the way you view things. I know some people discuss Marrickville now like it’s some yuppy haven… but it will always be Marrickville to me.
kay henry
Ahhh, perfect. It’s all going according to plan – talking down Marrickville, that is. Did I mention that there are a few boarding houses dotted around the suburb, too?
Sydney’s Inner West has been very good to me – it’s my comfort zone. Of course, the property boom has been good to me, too.
My friends said I was mad thinking Erskineville would go up in value when I bought a house there in the late 80’s – it was the only suburb I could afford. They told me I was crazy investing in Camperdown, too. They said the same thing when I bought a house in Annandale in the early 90’s (still got that one). Of course, when I bought in Hurlstone Park in the late 90’s they thought I had really lost the plot – made $450K on that one. I’ve done well with regional properties, too. But hey, maybe I’ve finally made a mistake.
Warning to all investors: DON’T TOUCH SOUTH MARRICKVILLE (leave it for me please).Good for you Scott!!!
I’m sure I am not alone when I say, that if I had listened to my friends when I bought in various suburbs, I would not be where I am today!!!
You gotta love the “herd” mentality; it is so predictable!!! [rolleyesanim]
Well done on having the foresight, and ba**s to take a chance, and come out the victor!![medieval]
Jo
hehe depreciator… what I really meant was that Marrickville doesn’t present IP value to me- it is hugely expensive, as are most of the inner-west suburbs- anyhoo, it’s considered super-fashionable these days by Y-gens, so there- now I’m talking it up :+P
I love the inner-west too, Scott- I’ll never leave the ‘hood if I can help it- culture galore. I also wouldn’t live on the north shore- the culture there just doesn’t grab me.
kay henry
The really good areas are the ones that people talk down. The inner west is a great region and should continue to grow.
This can go in the market turning thread also
I have been monitoring a block of studio units in Bondi Junction for some time
During Q-2 04 2 units sold for $190k
Aug 1 sold for $200k
Last week another sold for $202k
Perhaps a little confidence returning
and *&&%%& the exit taxCheers
“When you can walk on water…take the boat”
Or maybe they are simply good quality apartments in a highly sought after area.
At least it won’t be capital loss.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
