Average suburb – Sydneylong time ago, property is only $150,000
few years ago, property is $400,000
now, property is $700,000the prices is going down now…indeed. but what about later?
what will the prices be 10 years later?Is it possible to find almost every single house in big cities to be $1 million and above?
Is it possible to find regional places like TOOWOOMBA, IPSWICH, Queensland to be over $600,000 for a rundown 3 bedroom house? ten years later?
Is it absurd to think that we will be talking as “1 million, 2 million, 5 million dollar” price on ordinary houses ?
Honestly, it sounds absurd to me.
But if we look back in time, when we still talk as “$12,000 house, $50,000 house).. it was absurd to get upto $300,000 isn it?
Of course, there is inflation, wage rise and all to take into consideration.. but what do u guys really think the prices gonna be like in 10 years?Do share your views – what do u think property prices gonna be like in 10 years time
please reply [buz2]
I think that major citys will not see prises move much .Up down or sideways over the next ten years , of coarse there will always be pockets of real estate that will move due to trends or infrastructure.
However in 10 to 15 years I think that there will be massive movement in the market .
Only my opinion.Cheers Rick
Monopoly, my favourite game
hi visiongirl
I work on a steady 6% increase on top of cpi which takes in rises and falls.
and if you project far enough forward the 1 and 2 mil is within that area.ashfield to the city is at 1 mil now for a 1/4 acre block with house.
I’m in ashbury(15% increase this year for this suburb don’t see falling prices here) next to ashfield and you can’t buy under 600k for a 1 and 1/2br house.
scary or absurd depends which side of the fence your on or suburb your inhere to help
At the moment house prices will continue to go up in capital cityies due to an ever increasing population that seems to be growing much faster than new housing development. More people = higher demand = higher price = high value. This is why housing in sydney has gone up much faster than elsewere in australia over the past 15 years.
More people = much faster reproducing of MORE PEOPLE. Demand in sydney is therefore insane and therefore housing prices will continue (even tho there has been a slump) to go up in the future.
Only an opinion
Stephen
My parents bought their first house for about $2000 in the early 1960s. Friend bought two houses in East Brisbane about 1978 for around $18K and $20K. I bought and sold two IPs (don’t remember prices, but didn’t make a big profit – just forced savings really) then my first PPOR in 1983 for $46K. Married in 1986 – sold PPOR for $56K and upgraded to $93K (next suburb, much better house, same market).
My point is that for ever and a day house prices have risen in spurts and then levelled off. Personally, I think houses will keep going up forever.
My $46K first PPOR would sell now for around $450K I guess. If you told me that 15 years ago I would have laughed. The world keeps spinning and houses keep going up. Luckily, so do wages and rents, but not always at the same time.
I think people who say buying a house nowdays is too expensive forget that we all thought that, but most of us did without flash cars and expensive toys and got on with it. Many friends chose to go overseas but my passion was houses. I couldn’t afford to do both, so I stuck with houses. However, if I had wanted to travel, I would have bought a house so someone was paying it off while I was away.
I know I am sounding like an oldie but I really think that many young couples and singles nowdays don’t want the little two bedder as a stepping stone to the next one. They want the four bedroom, two bathroom with everything that opens and shuts as a starter. There are still plenty of “starter” houses which are affordable.
Just my thoughts, Wylie.
I guess it’s a risk we all take when invesing in property that we think or hope it’s gonna grow in value, although if you’ve done your Research, it’s a more educated guess to where to invest.
The fact is we live in a very young country and the sky is the limit realy.
Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auOriginally posted by stephen051:More people = higher demand = higher price = high value. This is why housing in sydney has gone up much faster than elsewere in australia over the past 15 years.
More people = much faster reproducing of MORE PEOPLE. Demand in sydney is therefore insane and therefore housing prices will continue (even tho there has been a slump) to go up in the future.
The very simple proof this theory doesn’t hold water lies in rental returns. Why in a time of such huge demand for housing have not rents risen in concert with house prices?
F.[cowboy2]Totally agree, Foundation.
However, I’d guess you don’t argue with the longer term proposition that an Australian median price of $1 mill per house is quite feasible (not that being a millionaire would be very special by that time)
Originally posted by foundation:Originally posted by stephen051:More people = higher demand = higher price = high value. This is why housing in sydney has gone up much faster than elsewere in australia over the past 15 years.
More people = much faster reproducing of MORE PEOPLE. Demand in sydney is therefore insane and therefore housing prices will continue (even tho there has been a slump) to go up in the future.
The very simple proof this theory doesn’t hold water lies in rental returns. Why in a time of such huge demand for housing have not rents risen in concert with house prices?
F.[cowboy2]Because developers in Sydney built way too many apartments.
sorry to pop both ian_from_brisbane and foundation bubble but sydney rents are currently moving up and the demand is returning to some suburbs.
The demand currently for the dulwich hill ashfield marrickville area out strips supply and will for some time as supply is not there.
when demand outstrips the inner sydney supply then the prices will rise.
As foundation will know I watch rental rises as that gives me the potential growth areas.here to help
Thanks for the responses everyone [biggrin]
GP,
Seeing you have a finger on the rental pulse.
When did you last increase your rents?
I’m thinking of increasing the rents in October.
Am I being too quick?Roy H. if you’re selling all your Brisbane properties, what would you do with your Melbourne investments?
Visiongirl, There’s no such thing as any property being average in Sydney.Home units are climbing towards the million dollar mark.
So for you, do this!!! Buy a 1.5 million dollar property. Renovate for another mill. then sell.
Price three million plus dollars. It’s still happening in the right spots.bruham.
Roy H. if you’re selling all your Brisbane properties, what would you do with your Melbourne investments?Hi Bruham,
What do you mean??
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
gpsnetwork,
Sorry the brain went back to one of your old posts that you wrote about selling all your brisbane properties.Saying now is the time to get out.
Assuming that you have properties in the state of Victoria, that’s where you work.
Are you flogging them off as well.You being one of our website proffessial property people.
just thinking aloud,that’s all.bruham.
Hi Foundation and Bruham,
We’ve just raised our rents across the board on our IP’s, The PM yesterday said the tenant was more than happy to pay the extra and wanted to sign up for 12 months on one IP..we did so, with a rent review in the contract at 6 months.
I was playing around with CG rates in excel last night on a $200,000 IP for year 1 then increasing at various amounts each year for 10 years..
5%……….8%……..10%……..12%……..15%
$210,000 $216,000 $220,000 $224,000 $230,000
$220,500 $233,280 $242,000 $250,880 $264,500
$231,525 $251,942 $266,200 $280,986 $304,175
$243,101 $272,098 $292,820 $314,704 $349,801
$255,256 $293,866 $322,102 $352,468 $402,271
$268,019 $317,375 $354,312 $394,765 $462,612
$281,420 $342,765 $389,743 $442,136 $532,004
$295,491 $370,186 $428,718 $495,193 $611,805
$310,266 $399,801 $471,590 $554,616 $703,575“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorgpsnetwork,
Sorry the brain went back to one of your old posts that you wrote about selling all your brisbane properties.Saying now is the time to get out.
Assuming that you have properties in the state of Victoria, that’s where you work.
Are you flogging them off as well.You being one of our website proffessial property people.
just thinking aloud,that’s all.bruham.
Hi Bruham,
I think you may have confused me with someone else on the forum, we are based in Sydney and we do have properties in Qld & WA not much in VIC though..
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
If you apply a global perspective, most will agree I think that what you get in return for your hard-earned money buying Australian real estate is:
Good quality land
Good quality constructionin a land with stable political and social systems, secure property laws and land titles system, sophisticated real estate industry.
And as we have seen o’seas, we might worry over termites, however (touch wood), land here is relatively safe from terrorism, hurricanes, earthquakes and other natural disasters.
Scarecrow7
“In times of crisis, both danger and opportunity are present”
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