The future of Australian property prices

[banco]

I got this from DHA this AM.



It is obviously designed to encourage me, DHA have become more active of late, pushing harder than normal. Anywhoooooo.... for some reason it had the opposite effect.

It's pretty strange that a Government body is pushing this stuff.

 

[Julia]

It's pretty strange that a Government body is pushing this stuff.

They consistently advertise quite aggressively in various papers.

 

[Mr Z]

It's pretty strange that a Government body is pushing this stuff.

It's what DHA do! Rather than use their capital to house the defense force they use ours... in return for rent. In some respects its a good deal but I have heard that they can treat owners badly.... either way its the income stat that is interesting, not much fat on those bones IMO.

 

[Mrmagoo]

but honestly all that chart proves is the uselessness of using the median price for comparison especially on small samples....

Yet they'll crap on about that same figure in boom time. yawn.

 

[Cradled Gold]

Thnx. I'll remind my boss to pay me more as I should be getting paid more than the women I work with. Awesome. I'm getting a raise !

I would not advise anyone under 30yrs to buy a home without firstly having a good income paying job and a good savings! Contrary to belief, "you cannot have it all NOW" and "no one owes you anything"...the two greatest demons sitting on the shoulders of those laboured by these beliefs created by the academic bleeding hearts making up excuses for everyone! There are no excuses...there are no easy paths...there is such a thing as hard work, saving diligently, not buying everything new and having to 'keep up with the jones', spending less time wasting your money on too much booze and meals out...

And yes, property and the dollar is over valued in Australia; we pay way too much for most of what we purchase; no excuses! Each generation has had its financial hardships at some point in time. I believe property value will continue to fall...who knows what all that will bring! Remember last years ABC 7.30 Report on our own Banks Sub-prime mirrored faux pas?...we are yet to realise the financial costs to this behaviour!

I also believe that affluence has a great deal to answer for...and yes, kids need to have quality and quantity time with their parents! The 'Love' of money is taking over the 'Love' shared in a home! Many Baby Boomers saved up, did not mind second-hand clothes, furniture, cars, appliances...and insisted on their young people showing them a bit more respect than what the youth of today seem to ignore...or perhaps are simply ignorant of its personal value!

Nevertheless, times are different now as times are different for each generation...but no excuses...make something out of what you have and not expect too much too soon...each individual has to work towards not only something material, but something that hopefully builds their moral fiber and helps them gain a bit of wisdom!!!

 

[Julia]

For those familiar with Sydney prices, this property goes to auction this coming Saturday. It's in Chesterfield Road, Epping. What do you think would be a realistic price?

http://www.realestateview.com.au/Re...Property-Details-buy-residential-4944533.html

 

[FlyingFox]

For those familiar with Sydney prices, this property goes to auction this coming Saturday. It's in Chesterfield Road, Epping. What do you think would be a realistic price?

http://www.realestateview.com.au/Re...Property-Details-buy-residential-4944533.html

It's been a while since I was in sydney but I worked at Mac Uni for a year so I kinda have a vague idea about the area. Given the land size etc, a realistic price should be 700K-900K. The large range is because I haven't seen the property and I have been away from the Sydney market for a long time

What will it go for? My guess is if it sells, it will be around the 1.2 to 1.4M range.

Too far off?

 

[Julia]

It's been a while since I was in sydney but I worked at Mac Uni for a year so I kinda have a vague idea about the area. Given the land size etc, a realistic price should be 700K-900K. The large range is because I haven't seen the property and I have been away from the Sydney market for a long time

What will it go for? My guess is if it sells, it will be around the 1.2 to 1.4M range.

Too far off?

Thanks, Flying Fox. It's my cousin's house. She says she will not accept less than 1.6M. I have no idea how realistic that is which is why I put it up here.
I've been there. It's a very pleasant area, a few minutes to the train station, leafy and quiet, surrounded by similar houses. I'd have thought for that money, one would expect a decent driveway.

 

[So_Cynical]

For those familiar with Sydney prices, this property goes to auction this coming Saturday. It's in Chesterfield Road, Epping. What do you think would be a realistic price?

http://www.realestateview.com.au/Re...Property-Details-buy-residential-4944533.html

I've walked past that house a few times, very quiet and a very good area....beautiful houses in surrounding streets but not over the top beautiful.

realistic price: over 1.1 would be my guess...it is Epping after all.

 

[FlyingFox]

Thanks, Flying Fox. It's my cousin's house. She says she will not accept less than 1.6M. I have no idea how realistic that is which is why I put it up here.
I've been there. It's a very pleasant area, a few minutes to the train station, leafy and quiet, surrounded by similar houses. I'd have thought for that money, one would expect a decent driveway.

Sydney prices are crazy. Epping is (well was, its been over 6 yrs since I was in Syd) meant to be one of the outer suburbs for first home buyers and young families. Don't know how many people in that category can afford 1.6M?

 

[Mr J]

Sydney prices are crazy. Epping is (well was, its been over 6 yrs since I was in Syd) meant to be one of the outer suburbs for first home buyers and young families. Don't know how many people in that category can afford 1.6M?

You may call it entry level to a good area, i.e. the families will tend to be better off than those in cheaper suburbs further west. It is most certainly not an outer suburb, unless you are like me and insist on every west of the bridge to be "way out west" .

For 1.6m I know I would look at other areas.

 

[FlyingFox]

You may call it entry level to a good area, i.e. the families will tend to be better off than those in cheaper suburbs further west. It is most certainly not an outer suburb, unless you are like me and insist on every west of the bridge to be "way out west" .

For 1.6m I know I would look at other areas.

Fair enough. Like I said, it's been a while since I was in Sydney. The point being though, not many families can afford a entry level house in a good area.

 

[Julia]

Heavens, if this house can be considered 'entry level', then I have a new comprehension of why so many aspiring home owners complain that getting into property is impossible!

 

[McLovin]

Thanks, Flying Fox. It's my cousin's house. She says she will not accept less than 1.6M.

I think she'd be doing very well for herself to get near $1.6m. I agree with others, around $1.1-$1.2m. Nice house too.

 

[tech/a]

I ll suggest handed in in the 1.3-1.4 range.
Then negotiation starts.
Anything over 1.4 would be a job well done.
To keep on holding for higher would be unwise in my view.
In 12 mths 1.4 ish will be seen as a great sale!

Ive sold quite a few over the last 6 yrs and still selling
some. Each sale while Id have liked more has been a good sale.

The only ones I wont negotiate on are those giving me massive passive income
IE they are freehold or close.
Other than that---Im out!

 

[maffu]

Heavens, if this house can be considered 'entry level', then I have a new comprehension of why so many aspiring home owners complain that getting into property is impossible!

I would consider Epping a pretty middle-class / upper middle-class suburb. Sydney has a median household income of about $1450 per week, while Epping is slightly higher at a median household income of $1683.

It's still a 40 minute commute away from the CBD, so its in the outer ring for professionals who need to commute in. So it's pretty fair to say that Epping was considered an affordable area for new professional families.

The median house price for Epping has been around $900,000 for the past year, so by Sydney standards its probably in the top 35-40% of suburbs by median price, but no where near the top. So sits nicely in the upper middle class suburb category.



If that house is significantly better than the rest of the houses in Epping, I have no idea. So maybe that is at the upper end of the Epping scale and not appropriate for first home buyers. But plenty of first home buyers would like a 4 bedroom house with parking in Epping.

 

[Mr J]

Heavens, if this house can be considered 'entry level', then I have a new comprehension of why so many aspiring home owners complain that getting into property is impossible!

Sorry, I was referring to the area, not the house. It would be one of the better houses in the area.

Flying Fox, it may be unaffordable for most young families, but it is a better part of Sydney. In that position I'd rather look at somewhere cheaper, further out with good transport and some nearby parks. Quiet leafy streets aren't what they used to be for the kids.

 

[againsthegrain]

There were links to similar properties that sold in the link under, and i saw this

http://www.realestateview.com.au/Real-Estate/hillside-crescent-epping/Property-Details-sold-residential-4773215.html

Had a very very quick look, but on first inspection seems like a very similar property, 4 bedrooms, slightly larger land size, 2 garages ... sold for 900k so alot less then the above property mentioned.

 

[Julia]

Thanks for the comments. I've only been there once. The area seemed pleasant but quite far out compared to where I lived in Sydney, viz Balmoral Beach and Double Bay.(I should be clear that we were renting!)

I suppose that same house in either of the above areas would be considerably more expensive?

I was pretty surprised when she said she wouldn't accept less than 1.6M. However, the place has only been on the market for the pre-auction campaign of about a month. If it's still sitting there in a few months, she might start to take a different view.

Mr J. thanks for clarifying the 'entry level' remark. I'm relieved to know that much house is not necessarily considered a first step into property ownership.

 

[McLovin]

I suppose that same house in either of the above areas would be considerably more expensive?

In Double Bay, a block that size (it looked enormous in the photos!) would probably go for $2.5m+. That size in Balmoral with water views, you could probably go for $5m+