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Point taken ASG .....
These guys are using my favorite bait and im hungry
Great to see someone else copping a serve except me.
I might be vicious and hateful but I mean it in a loving caring way.
House prices to keep rising for years
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Great to see someone else copping a serve except me.
I might be vicious and hateful but I mean it in a loving caring way.
Prawn
Those comments are valid and apply here in Perth as well.
However $300pw in Perth anything half decent near the campus is considered acceptable to reasonable for 2 bdrms.
A number of the foreign students are happy to pay a bit of a premium but then dip out in the end of the year and don't have the burden of being on the bond or contract. Plus the little extra may include some services. Horses for courses but in Perth things shot up and placed a lot of pressure on students away from home. As with all things if you dig a little deeper there are compelling reasons and quite frankly the dynamics for students who want to make a go of it is far from funny for the locals let alone the foreign kids who are just happy to pay a little more for the convenience.
Those comments are valid and apply here in Perth as well.
However $300pw in Perth anything half decent near the campus is considered acceptable to reasonable for 2 bdrms.
A number of the foreign students are happy to pay a bit of a premium but then dip out in the end of the year and don't have the burden of being on the bond or contract. Plus the little extra may include some services. Horses for courses but in Perth things shot up and placed a lot of pressure on students away from home. As with all things if you dig a little deeper there are compelling reasons and quite frankly the dynamics for students who want to make a go of it is far from funny for the locals let alone the foreign kids who are just happy to pay a little more for the convenience.
You might be able to get $200pw for a spacious bedroom in a fully furnished home, with all utilities included. But nobody will pay that much, long term, to rent a bunk at a barracks. There are many other options available in that price range. They could share a unit with a friend, or live with an accredited homestay family (with meals included) for less than $250pw.
Actually, it's more like $22 per night. Backpackers don't mind paying that, because it's short term holiday accommodation. It's like how hotel suites go for $200+ per night, yet you don't see landlords getting $1400pw for studio apartments.
wayneL
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Yeah but if you look at the price of real estate in say, London it could go down 80% and you'd still have to be a squillioinaire to buy in.
xao....students....fully furnished everything provided....luxury accommodation...broadband.games room.separate study with pc.s
as for serviced apartments....between 500 to 700 pw in the regional for a 1 bdr or 2 bdr city...higher in melb...again everything is provided...
friend stayed in melb last year a 2bdr in the city...1200pw...was ordinary,,,but still cheaper than hotels...a 3 star rating ??? brings the price down....on and off seasons here anyway..cheaper after the kids go back to school...
as for serviced apartments....between 500 to 700 pw in the regional for a 1 bdr or 2 bdr city...higher in melb...again everything is provided...
friend stayed in melb last year a 2bdr in the city...1200pw...was ordinary,,,but still cheaper than hotels...a 3 star rating ??? brings the price down....on and off seasons here anyway..cheaper after the kids go back to school...
wayneL
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Yer not wrong Narelle. I posted some photos I took of an EA's window in Knightsbridge a while back... I'm still reeling.
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Got it in one Mr Burns
Were property prices to plunge I along with many bulls would be in there buying like crazy cause we look long term and below a certain threshold plus with low rates you would be a fool not to. We obviously are the biggest of them all as we did it with the last recession when after that any fool could have made money and we did.
Now this time , should it happen, guess who will be there before the hopeful bears, Passive and his cronies buying up big for his kids and grandkids because it will be an opportunity of a lifetime. Now with another million or so cashed up boomers in Aus doing the same what chance have the hopefuls got? Some have no idea. Top end of town have lost heavily and quite frankly if it all came back down it would not be long before it zoomed up again because there is so much in favour of property investing in Australia it seems absolutely ridiculous to preclude this asset class from your portfolio if you have half a decent income and equity elsewhere.
Were property prices to plunge I along with many bulls would be in there buying like crazy cause we look long term and below a certain threshold plus with low rates you would be a fool not to. We obviously are the biggest of them all as we did it with the last recession when after that any fool could have made money and we did.
Now this time , should it happen, guess who will be there before the hopeful bears, Passive and his cronies buying up big for his kids and grandkids because it will be an opportunity of a lifetime. Now with another million or so cashed up boomers in Aus doing the same what chance have the hopefuls got? Some have no idea. Top end of town have lost heavily and quite frankly if it all came back down it would not be long before it zoomed up again because there is so much in favour of property investing in Australia it seems absolutely ridiculous to preclude this asset class from your portfolio if you have half a decent income and equity elsewhere.
IFocus
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Apparently that cannot happen here...........just like it couldn't happen there.........we are special.........not
IFocus
You are arguing with a Galah
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Risk management?
This crisis is global and X 10 the last recession why would you buy in a falling market this time?
Not so sure you understand its not necessarily about bears I see it as risk bias still unfortunately 2009 will fly past and we will find out soon enough but I suspect we will still be talking about this come the end on 2010 if we are still solvent.
lol, it wouldn't be only the bulls buying I'm sure some cashed up bears will be buying when they see value.
Bears are bears to become bulls again.
Why do some of the bulls on this thread continue to think the bears are totally stupid? And why do they also think the bears have never made money off real estate?
wayneL
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This was exactly what the pommy property bulls were saying a few months ago. It's not working out that way.
The reason is that anybody who is leveraged has had their equity totally decimated, and deposit requirements have been increased. Result, BTLers cannot get finance. In fact they are going broke in their droves as rents are also getting squeezed because of the number of accidental landlords.
This will all eventually happen in Oz, sure as eggs.
IFocus
You are arguing with a Galah
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To be honest passive I hope you are closer to the mark than I
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The property market wont have bottomed until everyone including all of you and I just aren't interested any more, all the spark will have gone there will be no rush and all the fever of the boom will have been forgotten.
So you buy then, but dont expect another boom for a long long time, this one was fuelled by record low interest rates for a very very long time.
They will go back up and stay there and property will no longer be booming.
It will revert to the developers who will make money from property, take a block of offices, subdivide it and re sell on.......that sort of thing.
Simply buying a residential property and stitting back watching the value go berserk just wont happen any more.
So you buy then, but dont expect another boom for a long long time, this one was fuelled by record low interest rates for a very very long time.
They will go back up and stay there and property will no longer be booming.
It will revert to the developers who will make money from property, take a block of offices, subdivide it and re sell on.......that sort of thing.
Simply buying a residential property and stitting back watching the value go berserk just wont happen any more.
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BUT - yes thats when I'll be buying for the long term (I hate that phrase because it's been over used by wankers but in this case it's appropriate)
Well to be honest, it's actually not that uncommon, especially in Melbourne. For them, they're coming to a country they barely know how the system works, and also have to deal with various prejudices and discrimination from realestate agents and landlords when trying to find accommodation.
With no rental history, no employment (mummy and daddy paying their costs most likely), and in inner city Melbourne, a fairly tight rental market, the chances of finding somewhere pretty decent are very low... hence they have been forced into places such as this.
You've also got to look at the transient nature of international students, often back home for 9 months of the 12 months of the year, doesn't really offer a great picture to a standard landlord.
So maybe it's not so stupid.. although I know recently they were talking about (or just recently introduced?) regulation to stop these sardine factories getting out of hand. You'd also have to look at things such as liability insurance, fire prevention, and all sorts of other costs compared to a standard rental - probably becomes closer to a commercial property I would imagine?
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Two yellow thumbs up MrBurns.:iagree:
Last time this happened (in WA atleast) was 20 years ago and probably won't happen again for another 20 years.
Glen48
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Kincella
Why have some tenant paying of your liability when it is sinking in price?
Sell now if you can find a sucker and wait until the market has hit rock bottom in a few yrs time and then look at buying back in.
I have brought and sold about 7 houses and only made money on 2 of them the last one I sold in 07/08 an waiting for the market to die and pick up again, waiting for house prices to go up more will never happen once this bubble pops nothing will happen in RE for a long time, i have seen it were houses go no where for 10 yrs or more.
In the first lot of post there are some good charts showing how much OZ's suckers are in debt.
Why have some tenant paying of your liability when it is sinking in price?
Sell now if you can find a sucker and wait until the market has hit rock bottom in a few yrs time and then look at buying back in.
I have brought and sold about 7 houses and only made money on 2 of them the last one I sold in 07/08 an waiting for the market to die and pick up again, waiting for house prices to go up more will never happen once this bubble pops nothing will happen in RE for a long time, i have seen it were houses go no where for 10 yrs or more.
In the first lot of post there are some good charts showing how much OZ's suckers are in debt.
glen thanks for the advice...really, but I am fairly stubborn....
I have bought 10, sold 5 made good money everytime....would never dream of selling for a loss, and I have earmarked one for a major renovation, with very low interest rates, it should be a breeze....
claim the tax loss on running costs,if there is a loss on the other props
hopefully there will not be a shortage of builders...but I doubt it.....
depending on how busy I want to be,,,might buy another little bargain if I can find one....just rent it out and sit back and wait....for the recovery....
or I can do nothing....a passive investment....
see regardless of all the predictions....with low interest rates its better to be borrowing and buying bargains...than doing nothing....changes the goal posts....would only pay down capital when rates are high...do the opposite when rates are low....but this is my personal view,,,,contrarian type investor, inclined to do the opposite of what everyone else is doing....worked for me before.....
refinanced loans in December...wiped off 16,000 pa in 2 loans....expect to better that with the next rate cuts...aiming for a reduction of 30,000 in interest costs...like having another wage without having to work for it...
cheers
I have bought 10, sold 5 made good money everytime....would never dream of selling for a loss, and I have earmarked one for a major renovation, with very low interest rates, it should be a breeze....
claim the tax loss on running costs,if there is a loss on the other props
hopefully there will not be a shortage of builders...but I doubt it.....
depending on how busy I want to be,,,might buy another little bargain if I can find one....just rent it out and sit back and wait....for the recovery....
or I can do nothing....a passive investment....
see regardless of all the predictions....with low interest rates its better to be borrowing and buying bargains...than doing nothing....changes the goal posts....would only pay down capital when rates are high...do the opposite when rates are low....but this is my personal view,,,,contrarian type investor, inclined to do the opposite of what everyone else is doing....worked for me before.....
refinanced loans in December...wiped off 16,000 pa in 2 loans....expect to better that with the next rate cuts...aiming for a reduction of 30,000 in interest costs...like having another wage without having to work for it...
cheers
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