I think that in a down market also creates opportunities. I can see that a city like Brisbane is currently under valued.
I do not like boom markets its a little like being on the set of the walking dead. People over pay because they are worried about missing out. In a market like this if the deal works then in the medium term you will make money
Well said, we purchased few IP's lately, it's defiantly improving from investor point of view.
Shopping around now is a pleasure, 10% discounts are a norm. We make offers with 20% discounts, some are been considered by owners.
My take on prices in Brisbane (CBD + 30 min radius) to trend down some more. Say 10-15% is very realistic figure, since you already can get this level of discounting.
Been to few inspection this weekend, agents look lonely at some of the places.
Capital city home values fall over consecutive years, down -3.8%in 2011 and -0.4% in 2012.
RP Data just released their end-of-year housing data for 2012 and it confirms what many already knew. 125bps over the last 12 months still hasn’t been enough to get traction under the market and as we roll into the “fiscally responsible” new year 2013 isn’t looking all that great either. The latest uptick in commodity prices should provide some support for national incomes, so that is a positive as long as it can last, but given what we’ve seen in the trend in credit since the GFC that may just result in further down payment of debt rather than increasing asset prices.
With governments across the country all hoping that housing construction will provide some economic support it’s going to be an interesting year for the housing market, but with immigration again on the rise and the RBA predicted to cut deeper they may still be some upside in 2013. For the bulls Sydney and Darwin are still looking good, for the bears there is everywhere else.
I was in the U.S. during the massive and worse property collapse in the nations history. It was really bad. And the average buyers got scared off and many were not able to get mortgages. However, the luxury market just increased during this property collapse – as odd as it may sound. And it's still booming. More buyers from abroad than previously, but certainly booming.
The areas that are mainly affected by a sluggish property market are those where it is already cheap and easy to buy properties in a booming market. Cities generally keep maintaining their value and even experience increased prices.
I was watching Los Angeles area, lower part of it some 2 hours from city.
Over the last few years higher end properties have sank down a bit, but still fairly expensive. I was concentrating on 700K – 1.5Mil. I did not see any price crash in good areas near the water, same confirmed my a friend who live there.
As Tinim mention above, it's poor and low end suburbs that actually got hit bad.
In Australian on the other hand, particullary in Brisbane, waterfront houses sank down from 2Mil to 1.5Mil and still falling. Properties on the Brisbane River are not much better, some go with 20-25% discount from 2007-2009 prices.
Cheaper houses are little bit better, 10-15% discounts from market high are more common.
I'm into making money at both ends of the property investment life cycle. If I decide to sell early on, I make money because I nabbed a bargain. And by holding onto well-positioned bargain buys as I like to do, I'm looking forward to decent growth over the long term.
600K Property, 5Km from the CBD Brisbane. Mortgagee sale. Started at $600K,got to $635 with 3 people out of 30 active. One out of three was employee of the real estate agency (by my observation) who ended up with highest bet. No sale I guess.
1.5Mil property (reserve), about 6-8 buyers. No offers at 1Mil Passed in.
Top of the hill, 7km from the Brisbane CBD
Seem like there are two types of PPL come to the actions, mom/dad with low budget hinting a discount and investors who ready to offer 20-30% below market value. None of them want to pay advertised or reserved price.
A house (good area, 20 min from CBD) purchased in 2007 for 1.1Mil, valued at 2011 at 1.5Mill but did not sold in 2011. On the market again, trying to sell for 1.3Mil. No offers at this point in time. People are looking but noone willing to offer over 1Mil.
Been observing number of specific properties around Brisbane for the last 4 years. Areas of interest Ascot, Hamilton, Wynnum, Bulimba, Hawthorn.
In Ascot, house on the hill, valued at $3.5M sold for $1.9M after 12 months on the market (bank sale). Second house valued at about $3.5M (at best times) still on the market. Had offers just over $2M. Number of houses in Bulimba, came on the market, waited 6-12 and withdraw without sale. Had offers well below listed price (I made one).
There are more examples but the point is, high end is in pain. My take is that salaries are deflating, it's hard to find a job now paying over $200K that you need to support loan of this size. People lost jobs and/or big bonuses and have to let go to PPORand investments that are negatively geared.
Those who can hold-on, withdraw without the sale due market offering less than they ready to accept.
God's sake don't tell Nigel. He's still still pumping Brissy central… undervalued was his opinion if I remember correctly.
The bust has been here for a while but most don't realise it. A bust is part of a process that takes time. When a car hits the wall when was the crash? At impact or was is somewhere back in the past that the process originated?
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