News story in daily telegraph "properties poised to bounce back". Normally I don't listen to media, and if I do, I think to do the opposite. But I couldn't resist…
Could this be the start? I for one hope so!
Chippendale 25%!!??
http://www.news.com.au/dailytelegraph/story/0,22049,23567042-5006009,00.html
We have very lazy media in Australia who run press releases from the REI and developer lobbies as news, without any analysis.
Very scepitical of positive news in RE.
In US Merryl Linch sacked 4,000, Citi Group 6,000, mortgage stress in OZuilding, UK govt bailing out banks. yep Sydney will turn any day, BUY NOW !!!!!!
On a sidenote just did a cap gain calc for a client who bought Mosman in 2003 at $1,175,000 and is selling at $1,850,000 cap gain is around $20,000 as the raw stats don't show the $400,000 +++++ in a reno, and do not reflect the $100,000 in maintenance claimed during the reno.
Raw facts can be very deceiving..
The experience of our agents "on the ground" in Sydney also confrim that things are starting to happen.
But it's only patchy – some suburbs are performling strongly due to affluent owner ocupier demand, and others are floudering due to first home owners running into mortgage stress.
There is huge pent up demand in Sydney and when it does take off, it will perform strongly as Melbourne and Brisbane did last year.
But you will have to buy selectively – not all properties will perform well. We are currently buying selected properties for clients in the inner western suburbs, some eastern suburbs and lower north shore suburbs.
There are great opportunities there and relatively healthy rental yields
We have recently dealt with those agents on the ground Michael mentions, and have invested in one of these areas (which is why we are following this area in the media!). Time will tell of course, however we think (thanks to Metropole) that we have done very well. We like many, are more interested in capital growth and are very confident in that, however the bonus is the rental yields at the moment in these areas, which are great!
Thanks for the help from Pino. Worth every cent.
Really happy with what we got…
Nope don't agree at all and you can hold me to this as well …
900,000 will be in mortgage stress by November 2008 … Fin Review … fact
Australian Credit Card debt is now 50 billion dollars which is the highest in the world … fact
It's "patchy" every where and not just in Sydney … welcome to the real estate business … very open statement
Western suburbs are being hit with RISING rates and not falling rates … petrol is closing to 160 per litre … toll ways have increased and the cost of living has jumped but wages are behind … mums and dads out west are hurting big time.
Any body can buy a block of land in Turramurra for 600k then get a 40sq/m 5 bed 3 bath Westminster built and landscaped for around 400 k and resell it for 1.3 – 1.6 million … quality North Shore suburbs always work and you don't need to be a rocket scientist to do it
There is a credit squeeze on major corporations for over drafts with drawls and administrators are having a field day, I could mention some companies but because of privilege and my qualifications I am unable to …
So I think there are some challenging times ahead … and I don't think it's getting better yet … lets see who is right and who's wrong.
Good luck to all … D
Jarra,
I'd like to hear about your experience with Metropole. What did you use them for?
wealth4life.com wrote:900,000 will be in mortgage stress by November 2008 … Fin Review … fact
Why is that statement a fact?????
Jarra,
The country is going broke, and you beleive that house prices will rise?Debt is going to make all of us worse off, things will get worse over the next few years, everyone will be selling, over a million on the dole, government will put them all on food vouchers, things are going to get a lot worse than you all think.
Do not go into debt now.
Very interesting to read that from last year, gives me a warm fuzzy feeling…
ABC just ran a piece in Sydney on the downward pressure on rents in the mid to upper end…
always thought the "rental house so rare you had to sell a kidney to get one," was REI BS, will be interesting to see how long before it filters down..
also saw Perth is starting to spit blood, or so the figures would appear…will be good see Harbs viewpoint
House price recovery is very subjective at the moment from my dealings/discussions in various areas. The crunch which was felt 12 months ago in West/South-western Sydney is now filtering through to the more affluent suburbs (have been feeling the pinch for the last 4-6 months but have managed to withhold properties from the market), inner west is just as strong as ever with some good results at recent auctions (some quite surprising results).
The strength seems to be in the west where prices did drop substantially but the margins for negotiation are much slimmer with some noticable price rises/stability. Depending upon the price bracket, existing stock and type of property some sectors are quite strong eg LNS sub $500k units, mid ns Sub-$1m.
A sustained turn around would not suprise me. A few years ago i was just about to jump on a christies beach property.Turns out around 2 years later the same property achieved over 50% growth before subdivision( Big block). My target after that was a unit in a converted wharehouse in chippendale. Units in the same block a year on have an asking price of around $50,000 higher with sold sign soon after. Seems im falling into that woulda,shoulda,coulda hole.Am i convinced we are at the bottom,no. but with my success rate so far that might be a sign to others to buy right now.
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