House prices to keep falling for years

[theasxgorilla]

This was marketed for around 550k - 600k, but it sold for 124k over the reserve.
This house still needed about 100k to put this place on the market for rent...This is a good example of how I think the innerwest is still doing well and auctions we have been attending are outperforming what the general market.

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=29862901&s=nsw&tm=1222913114

Very interesting motion.

Where is Glebe btw? I don't know Sydney that well...what is the status/demographic of the suburb?

 

[aleckara]

Very interesting motion.

Where is Glebe btw? I don't know Sydney that well...what is the status/demographic of the suburb?

Glebe is very close to the Sydney CBD, at the university end of town. You have USYD and UTS nearby, and you are walking distance to the city.

These areas will always be the absolute last areas to be really affected by the downturn. Poorer homes (i.e Western Sydney) will be affected first. After a number of foreclosures due to the loans at the start of the boom, and if the housing sector causes banks pain only them IMO will we see any real pain near the CBD, and even then not by much unless we have debt deflation occuring (and while it may be a chance I don't see it nearly as likely in Australia as the US - at this stage the mining boom still has some legs). With petrol prices high, and travel times minimised these areas will always be at a premium.

Not a reflection of the market as a whole. It is all about location with real estate.

 

[pepperoni]

l
This was marketed for around 550k - 600k, but it sold for 124k over the reserve.

550 - 600 when one down the road just went for $670????

Even 670 is absurd ... christ you have a similar property to those in paddington with easily comparable amenity for 30% less??????!!!!! Christ my friend in glebe walks to the cbd every morning in around 12 mins!!!!!!!

In fact Id say 670 was a rare bargain ... in this sort of market they come up from time to time (not every time) and you need to be ready to buy when they do ... as i say Ill buy tomorrow id the bargain comes up on a place I like.

I had a friend with a semi type place behind the morgue with no parking that was worth not much less than 500k ten years ago!

IMO all this proves is that inner west is absurdly cheap for the convenience and you and your agent need to be more realistic with your valuations.

 

[pepperoni]

Just one other thing .... if the place has historic charm potential (federation/victorian) add at least 10%. A property with a federation face in mosman will go MUCH higher than the same house with a 70s facade.

I saw a true derelict but large federation and a decent block go for $5m in the boom.

Also land size ... an extra 10% land can sometimes mean 10% extra price.

Im sure you know all this but thats a nice historic home with "good bones" layout and a huge rear yard!!!

 

[pepperoni]

.... and just because Im intrigued and not up to date with the area ... dont you think after spending your 100k that the place would be worth 1m??? Any man and his dog would do this reno for 20% return.

If not how much would a modernised revamp of it be worth?

And finally ... that place doesnt need a DA or structural just a reno ... Ive done that to a whole house with a pool for 20k.

50k self managed should get the whole place nice with new bathrooms and kitchen!

 

[gfresh]

lol, pepper is pissed he missed out

Looks nice, plenty of character, good location, worst house in a good street, yada. Looks only needs a repaint and some basic maintenance (from the photos anyhow).

 

[pepperoni]

These areas will always be the absolute last areas to be really affected by the downturn. Poorer homes (i.e Western Sydney) will be affected first. After a number of foreclosures due to the loans at the start of the boom, and if the housing sector causes banks pain only them IMO will we see any real pain near the CBD, and even then not by much unless we have debt deflation occuring (and while it may be a chance I don't see it nearly as likely in Australia as the US - at this stage the mining boom still has some legs). With petrol prices high, and travel times minimised these areas will always be at a premium.

Agree 100%.

And if 600k terraces are the glebe market now Id say it cannot go down from there. $600k is a 2 bedroom unit in many places including some places 30 mins from the city!!!!!

 

[pepperoni]

lol, pepper is pissed he missed out

Looks nice, plenty of character, good location, worst house in a good street, yada. Looks only needs a repaint and some basic maintenance (from the photos anyhow).

Gutted is more the word ... I wanna see this place for 670!!!

Seriously going onto domain now and moving to glebe if I can rent a tearrace for $600 pw.

 

[YChromozome]

Property prices fell 5.7% in Perth in last month alone. Resources boom, where art thou?

http://www.watoday.com.au/wa-news/p...silient-despite-price-fall-20080930-4ra8.html

It's interesting that the above article states "Perth was one of just two state capitals - along with Sydney - to record a fall in prices in August." So according to the article average house prices in Perth fell 6.53%.

The ABC runs the following article Property prices slump which states "House prices in Hobart fell 7.8 per cent for the month[August], with the median price dropping to $300,000"

Quite possibly house prices have turned and turned quite dramatically in many states.

 

[chops_a_must]

It's interesting that the above article states "Perth was one of just two state capitals - along with Sydney - to record a fall in prices in August." So according to the article average house prices in Perth fell 6.53%.

A lot of stuff on the market that can't sell in Perth seemingly...

 

[wayneL]

Latest figures out in the UK prove that house prices only ever go up</sarcasm>

UK house prices fall most on record
House prices are falling at the fastest annual rate on record, according to the latest survey from the Nationwide Building Society.

By Jamie Dunkley
Last Updated: 8:42AM BST 02 Oct 2008

The average UK home lost 1.7pc of its value in September, leaving prices 12.4pc lower than they were a year ago. The drop eclipses the worst annual fall during the house price crash of the early 1990s, when in the final three months of 1990 prices were 10.7pc lower. http://www.telegraph.co.uk/finance/...0824/UK-house-prices-fall-most-on-record.html

 

[robots]

hello,

http://www.theage.com.au/articles/2008/10/02/1222651222638.html

i hope she got an uzi, armoured humvee, sniper rifle, 9mm with lazer, a couple of pitt bull's in the yard because you need them in that wak country

kids rollin with 45's in their pockets

thankyou
robots

 

[dhukka]

Latest figures out in the UK prove that house prices only ever go up</sarcasm>

Picture tells a thousand words. It shold be noted that prices have only returned back to early 2006 levels which indicates there is a lot more to come.

 

[pepperoni]

hello,

http://www.theage.com.au/articles/2008/10/02/1222651222638.html

i hope she got an uzi, armoured humvee, sniper rifle, 9mm with lazer, a couple of pitt bull's in the yard because you need them in that wak country

kids rollin with 45's in their pockets

thankyou
robots

Im expecting to see these $1 houses around inner sydney soon .. Im gonna buy a few thousand of them and sell them when they get back to the $1.20 mark for a tidy profit. :

 

[motion]

550 - 600 when one down the road just went for $670????

Even 670 is absurd ... christ you have a similar property to those in paddington with easily comparable amenity for 30% less??????!!!!! Christ my friend in glebe walks to the cbd every morning in around 12 mins!!!!!!!

In fact Id say 670 was a rare bargain ... in this sort of market they come up from time to time (not every time) and you need to be ready to buy when they do ... as i say Ill buy tomorrow id the bargain comes up on a place I like.

I had a friend with a semi type place behind the morgue with no parking that was worth not much less than 500k ten years ago!

IMO all this proves is that inner west is absurdly cheap for the convenience and you and your agent need to be more realistic with your valuations.

I think you need to do your home work the same place in paddington is around 1.3 million... I know cause I have been to many auctions...

The house sold for $698k which was still a good price but with 150k to get it up to scratch you are well into a reno house which will give you a quicker return on your money.... which I sure you understand..

pepperoni I guess you do not know the inner west market as this was not a steal... as there are many places like this.. Just get into the market and I will see you at the auctions...

But back to the point to this chat, this was over 10%- 20% of what it was valued at ... and this is something you said would never happen...

 

[Glen48]

A lot of money to out lay for a long term return and a lot of risk as well better of with Starbucks shares

 

[motion]

Very interesting motion.

Where is Glebe btw? I don't know Sydney that well...what is the status/demographic of the suburb?

Glebe is 5km from the harbor bridge... 3km from the city I nice walk if you got 40 minutes... It's middle class... which some nice $ 2 - $ 5 million homes around... it's changed a lot over the last 5 years but well worth a look for it's next to the UNI... great rental return....

 

[pepperoni]

I think you need to do your home work the same place in paddington is around 1.3 million... I know cause I have been to many auctions...

The house sold for $698k which was still a good price but with 150k to get it up to scratch you are well into a reno house which will give you a quicker return on your money.... which I sure you understand..

pepperoni I guess you do not know the inner west market as this was not a steal... as there are many places like this.. Just get into the market and I will see you at the auctions...

But back to the point to this chat, this was over 10%- 20% of what it was valued at ... and this is something you said would never happen...

No i said you and your agents were valuing too low and everything you have said since confirms it. You are talking redfern prices in glebe.

150k will just about build a terrace ... you must be extending out back with that money.

But whatever ... back to my question, what would it be worth after you did your reno?

 

[motion]

Just one other thing .... if the place has historic charm potential (federation/victorian) add at least 10%. A property with a federation face in mosman will go MUCH higher than the same house with a 70s facade.

I saw a true derelict but large federation and a decent block go for $5m in the boom.

Also land size ... an extra 10% land can sometimes mean 10% extra price.

Im sure you know all this but thats a nice historic home with "good bones" layout and a huge rear yard!!!

The thing I look for is return I do not want to borrow or have to pay this off... I want the return on the place.... hence the reason I want a 3-4 bedroom near a uni near the city... which people can afford... with not much over head for me...

I'm very handy and this is how I make my money....

Plus I love old places... I love something with a story... Mosman is very different to the inner west.... thats like talking about apples and oranges...Hence the reason I'm giving you examples.. so you can understand...

 

[theasxgorilla]

But back to the point to this chat, this was over 10%- 20% of what it was valued at ... and this is something you said would never happen...

Ties in with my earlier point about why it's impractical and ridiculous to mark property to market based on valuations.