Simon Macks
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Is that all?? [blush2] Here I was thinking you were directing us to news of some martian inhabitance!!! [biggrin]
No seriously, that’s great, thanks for that Simon.
BTW she looks very much like the “Sharon King” I went to school with (little sister of a fellow classmate, a few years below us)….gotta wonder??? [blink]
I wouldn’t get too excited just yet. This is more or less a repeat of yesterday’s article:
Property rebound as home loans rise
http://www.smh.com.au/news/National/Property-rebound-as-home-loans-rise/2005/01/17/1105810817186.htmlHome loan approvals aren’t exactly the best measure of house price movements. The stats quoted in these articles do not provide an insight into why approvals have gone up. They could be due to people refinancing or, as stated in the original post, due to investors settling on off-the-plan units they bought at the height of the boom.
The bullish headlines are there to catch your attention but I suspect some media outlets have a vested interest in propping up the sagging property market.
It is way too soon to draw any conclusions from the ABS figures. Besides, if there is going to be a second wind for the housing boom it will force the hand of the Reserve Bank to raise interest rates again:
House bounce fuels rate fear
http://finance.news.com.au/common/story_page/0,4057,11972868%255E462,00.html$825k for a 2 bedroom appt. – I’d be concerned if the market went downwards if I just paid that; glad I moved to QLD!
Mick
Its a blip on the downward slide, the fundamentals just aren’t right. Pay it no heed and wait for the true bottome to come around in a few years time…
Michael.
825k for two bedroom apartment. Must be very nice location in Sydney. In Perth you get excellent river and ocean view + close to the city for that kind of price.
Will she be able to get her money back if she sell it now?
How much rent you get for this type of apartment?In Perth I’d want half the city for 825k!!!!
Jackson’s landing is an upmarket development overlooking the water, 5 minutes walk from The Rocks.
Everthing is very expensive there
Its a blip on the downward slide, the fundamentals just aren’t rightStrong economy, still low interest rates, record low unemployment, tax cuts again in July. Sure the boom is over and there will be some pullback, but I wouldn’t have thought these factors are pointers to a downward slide.
James
Will you get 800/week rental on this quality apartment?
Originally posted by ANUBIS:In Perth I’d want half the city for 825k!!!!
LOL You wouldn’t get it.
Perhaps a trendy pad in East Perth overlooking the drain?…
Originally posted by zen:Will you get 800/week rental on this quality apartment?
This is Sydney mate – 5% on res property is outstanding [biggrin]
Probably get around 550-600 at a guess – depends if it has parking.
Hi,
The 11 second guide says I should want $1,650 a week! Somehow I don’t think this is gonna pan out… [biggrin]
Anyway, I’d love to be wrong, but the fundamentals I’m talking about are the record low rental yields and the median prices well above long term trend. Sure the economy is strong, but the property market has gone bubble on us. There’s money to invest, its just that both shares and property don’t look like safe havens for those investment bucks anymore.
Off to buy some hard bullion… [biggrin]
Cheers,
Michael.Hi Simon good article but!!!
I think she could have bought much better for the same outlay than Jacksons Landing.
This area is suffering badly from the negativity of the casino. Also extreemly high body cor fees etc.
Michael is correct with the 11 sec rule and the estimated growth rate of this area is 4%.
A 2 bed unit in Botanic Cove Hunters Hill is about $650k renting for $550 per/wk with an est growth rate of 9.25% … which one would you choose.
I estimate she will have to top up her investment buy about $15,000.00 per year, i hope her other investments are really positive or she is making bucket loads of money in finance???
go figure!! confused Phil
600/week on 825k brand new apartment? How much growth can you get from here till 2010?
Say she gets 600/week, that’s 31,200/year minus corp body, insurance etc.
You will have to top up a lot more than $15,000 a year. Probably more than double that amount. This is assuming she always get tenants.Depends how much if any was borrowed really.
I really haven’t heard negativity about Jacksons besides prices. I am sick of high density developments though.
Here’s a slightly more realistic view of the current market, again from the SMH:
Stay grounded: prices haven’t hit the floor
http://www.smh.com.au/news/Opinion/Stay-grounded-prices-havent-hit-the-floor/2005/01/19/1106110809219.htmlThe author believes that there won’t be any “meaningful” increase in prices until the end of the decade.
OSienna,
Nice link, thanks! And common sense really. That’s what quite a few of us on here have been saying for a while, but its hard to be a bear in a bull REI forum.
There’s still profit to be made in a declining market, its just you need to employ different strategies such as wraps and flips, and it takes a lot more work. The old buy-and-hold as a -ve gear for CG just won’t cut it at the moment. And it might be 5-10 years before it will again. At that point I’ll be jumping in head first and buying up big on a lot of quality Sydney properties. But in the meantime, my money is staying on the fence.
Cheers,
Michael.
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