As a guess, perhaps holding investment property of similar value x 3, pays no maintenance on the older house he rents, buys newer investment properties with lower maintenance bills, gummint subsidises the interest payments and any maintenance bills are tax deductable.If you own your house sure , but if you have a typical mortgage youre paying out 3x a typical rental, how can this possibly be " easier " ?
What are peoples views specifically on Sydney house prices, particularly in the eastern and northern suburbs and the inner city?
do people still think we're in for big price falls in Sydney?
Did anyone watch the 7.30 Report tonight? Alan Kohler was interviewed and suggested that the top end of the property market would see a 50% correction.
Did anyone watch the 7.30 Report tonight? Alan Kohler was interviewed and suggested that the top end of the property market would see a 50% correction.
Right... so Applecross, Ardross, East Fremantle, Mt. Pleasant, Freo et al. and coastal land down to Rockingham isn't top of the market?The good half of Sydney (east of concord) and Perth (north of the river) would be considered the top end of the market....so 25 > 50% would seem possible.:dunno:
Right... so Applecross, Ardross, East Fremantle, Mt. Pleasant, Freo et al. and coastal land down to Rockingham isn't top of the market?
Personally, despite being bearish property, I found his argument to be crap about the high end.
In Perth, you can buy equivalent property in Cot, Freo, Shelley, North Perth etc. for about 1/3rd of the price of Melbourne and Sydney equivalent property. And I'm sure it's the same in Adelaide and Brisbane. So can't see those markets falling.
I used to live in east Freo...its nice but it aint Claremont, is it chops.anyway how about
everything north of Canning Hwy then.
Yup totally, even without a recession these properties struggle, simply because the rule of thumb of 80% of the value in a new development being in the dwelling (which depreciates), and 20% of the value being in the land (in a less-desireable area) doesn't make for a happy union.It's the subdivisions out in whoop whoop with no nearby jobs or transport that will continue to cop it badly. Especially if new development creates more supply with the FHOG.
hello,
and i wouldnt be posting in this one either if the "original" big banger was still open "house prices to stagnate for years", just gone past its 3yr anniversary
i have a shrine setup in my place for that one, the colonel of them all which was closed unfortunately,
prices are still going strong though brother, records still around the place
the REIW have indicated the "median" is being heavily impacted by selling at the lower end, not lower prices
still unaffordable for a lot though I guess thats the main problem, they just cant afford it,
thankyou
robots
Problem is at 6.5% property is probably affordable, at 9% they weren't.. So down we go to make them all "affordable" again. According to the trusty mortgage calculator.
$350k = $544/wk @ 6.5%
$350k = $677/wk @ 9%
24% more expensive!
So here we go again back down to 6.5% to make sure everybody runs and jumps into property, and starts pushing the price up again so they can be unaffordable at 9% once again to anybody who missed out at 6.5%.
The whole system is so utterly ridiculous... the only way to beat the madness is to play along unfortunately.
....
The was a RE 20 yr RE agent on the Sunshine Coast who opened her own office and was making a fortune a few yrs ago.
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