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House prices to keep falling for years

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pepperoni said:
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?
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it's a catch 22, the agents might value to low,But I think they where spot on but due the the limited housing for good return people are jumping on these places to make some money during the boom...

After all our research an asking an independent agent for a value once we did the renos, it would be about 900k-950k... and about $650-$700 per week in rent...

And just if it as a boom I'm sure you would hit the million mark give the size of the house and it's location... but that's just my thoughts...
 
theasxgorilla said:
Ties in with my earlier point about why it's impractical and ridiculous to mark property to market based on valuations.
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And this is a good point and why most banks want to send a valuer out to a place once you have bought it... because they think that's market value...
 
motion said:
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...
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????

How can you compete then???? The median price for the area is 850 down 2% in 6 months ... It must be worth alot more than that with your rolls royce reno and extension? You are bound to get smoked by potential owner occupiers and developers with your approach.

But you could have done a smart simple reno for 20k and got OVER 4% return at 700k.

So again your valuations dont ring true which could lead to alot of wasted time as an auction rent a crowd.
 
pepperoni said:
????

How can you compete then???? The median price for the area is 850 down 2% in 6 months ... It must be worth alot more than that with your rolls royce reno and extension? You are bound to get smoked by potential owner occupiers and developers with your approach.

But you could have done a smart simple reno for 20k and got OVER 4% return at 700k.

So again your valuations dont ring true which could lead to alot of wasted time as an auction rent a crowd.
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You are welcome to your thoughts but do not piss in my pot, I gave you examples and the correct info.. to show you what I was referring to.............If you think you can do it better and cheaper then go for it... but do not judge me or my reno designs without knowing what you are going on about....
 
motion said:
You are welcome to your thoughts but do not piss in my pot, I gave you examples and the correct info.. to show you what I was referring to.............If you think you can do it better and cheaper then go for it... but do not judge me or my reno designs without knowing what you are going on about....
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No, you said this was a high price but it wasnt ... it was 150k below area median that has already fallen 2% in the last 6 months. :banghead:

Then you said you have no idea what its worth renovated as you buy for rent return which disqualifies you from calling prices cheap or exy really. :banghead:

Its also absurdly flawed buying practice (ie why buy over market for good yeild as you will get nailed if you want or need to sell short term AT MARKET).

Lastly, that place will rent for well over 700k renovated which would beat most rent returns... so the fact you didnt buy and are saying its exy becomes bizzare. :banghead:

And if you feel like you pocket is being pissed in, its only to the extend you have pissed in ours by doing a chicken little calling property price surges on the basis of this nonsensical example, and in the face of all reports showing falls!
 
motion said:
After all our research an asking an independent agent for a value once we did the renos, it would be about 900k-950k... and about $650-$700 per week in rent...
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I must have missed this post ... but a 100k gross profit on a terrace reno is not a bad little profit.

Rent with a good yield and sell whenever you want for a profit.

Sound cheap to me but I guess this quarters' numbers will be the best indication of boom or bust.
 
hello,

just caught on the news the decreases on the BRW rich list,

twiggy down 4bil,

packer down 900mil

and guess what, Mr Lowy down 500mil, yes Mr Lowy the new colonel of australia

how can that be? isnt all property on a massive downward trend, valuations been smashed, commercial all fallen by the wayside

good things doing well,

clearly the results are showing how well RE is holding up

thankyou thankyou
robots
 
hello,

everywhere man, go and get the SRO from the state government, the ABS has stats on how well things travelling,

beej and motion posted results here, very selective reading as usual

thankyou
robots
 
robots said:
hello,

just caught on the news the decreases on the BRW rich list,

twiggy down 4bil,

packer down 900mil

and guess what, Mr Lowy down 500mil, yes Mr Lowy the new colonel of australia

how can that be? isnt all property on a massive downward trend, valuations been smashed, commercial all fallen by the wayside

good things doing well,

clearly the results are showing how well RE is holding up

thankyou thankyou
robots
Click to expand...

hello,

also check the highlighted parts

thankyou
robots
 
So just for the record, amoungst this global economic turmoil, you are saying that on Average RE in Australia is still appreciating at a decent clip ??
 
hello,

wanted properties are doing well, lets say 4-5% minimum for the record

thankyou
robots
 
theasxgorilla said:
http://news.theage.com.au/national/agent-fined-20000-for-underquoting-20081004-4tnj.html

Maybe you still can't believe those artificially low prices on realestate.com.au after all.
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Could also be an indication that agents are finding it hard to shift properties at the inflated price ranges that VENDOR'S want - rather than at what they believe to be reasonable BUYER'S price ranges that might eventuate in an an actual sale.

This one got caught out. I wonder how many others are getting by with this tactic under the current economic conditions?

Let's face it - RE agents rely totally on turnover. If turnover drops, it is no surprise to me that some will try just about anything to bump it up for their own benefit.

Haha Pommiegranite - you beat me to the key....
 
hello,

yes yes what another great day in australia today,

express delivery,

fantastic 68% clearance rate for melb auctions, once again the strength of RE is prevalent, through all the turmoil and doom and gloom that goes on day to day

no fancy companies, no fancy people running companies just plain old vanilla bricks and mortar killing it as usual, ha ha

and you read it all here 18mths ago, ha ha

by tuesday re owners will also get the letter saying the costs just got cheaper as well

hang on to those properties people, take them off the market, sit tight and hang on for the ride man

thankyou
robots
 
In sydneys north at least, there is no such underquoting.

If savy buyers dont report offenders other agents ALWAYS get wind of it and ALWAYS report it, and the underquoters have all been taught their lessons.
 
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