Don't tell my brother, he bought last year in Brunswick for just above $600k
I will let you know how it goes as it will be a good indication of the first home buyers market. It is worth around 500K.
I now expect falls of up to 30-50% in the next 3 years.
The agents I spoke to also fear the same, they are secretly telling me the party is over.
the agents like a quick sale....I know several..due to dealings with them...
when I bought those 10 props between 2000 and 2002....they thought the GST would stop everyone from buying....they had lost a bit of money in the sharemarket and were positively gloomy about property.....but I gave excuses, house for brother...or daughter etc...
I believe they did not have a clue....nor again when I was selling between 2003 and 2004....they were a bit excited about all the city people who had sold houses and were heading for tree changes...cashed up buyers
again I gave an excuse to sell....never once mentioned I had tripled my money on the deal.....told them I needed to fund another project....
have an agent looking after commercial props....he has done a lot of money in the stock market....and again are rather gloomy.....
knocker...you dont know how it works.....you never bought or sold a property ??
At least 4000 new apartments are still unsold in Queensland and most of them are believed to have fallen into the hands of their financiers.
Mortgagee sales remain prominent on the Gold Coast, where 1383 new high-rise apartments were for sale in the November quarter. Only 37 were sold in the three-month period.
I see all you pesky southerners sucked into Gold Coast realestate are getting smoked, first its was 10pc price drops last year and now this enlightening news ......
awwww that learn yahs to gamble eh ?
Queensland beautiful one day perfect the next ? nirvana ?
http://www.theaustralian.news.com.au/business/story/0,,24976946-25658,00.html
Dont worry Kincella, Beej and Robi - your blokes houses/apartments are booming, no pesky commoner could ever afford to purchase them from you ....
Have to wonder how many of those are stupid developments where the developers didn't liaise with LMI on whether the apartments were acceptable for their purposes - once GE & PMI say no, you lose a fair portion of your market (including fully securitised lenders having to walk away from the deal).I see all you pesky southerners sucked into Gold Coast realestate are getting smoked, first its was 10pc price drops last year and now this enlightening news ......
Wayne,
"doesn't matter" It appears I don't understand! ???
Capital risk: are we still talking about Government bonds? There is most certainly capital risk for corporate bonds.
If the government guaranteed bonds are "not" traded/sold before their maturity, isn't your nominal capital still guaranteed? I can only assume you speak of selling the bond before maturity?
So then risk is just inflation?
Deduct (tax paid) inflation from the small return and left is your real gain.
(if any ofcoarse) Hold until mature!
Otherwise it troubles me as what you are talking about exactly!
It's all part of learning!
with thanks.
MR.
Bonds still carry capital risk, whereas term deposits do not (ignoring default risk.)
Capital risk: are we still talking about Government bonds? There is most certainly capital risk for corporate bonds.
If the government guaranteed bonds are "not" traded/sold before their maturity, isn't your nominal capital still guaranteed? I can only assume you speak of selling the bond before maturity?
So then risk is just inflation?
Bonds have a set "coupon" interest rate. As "real" interest rates fluctuate the value of the bond fluctuates.
For instance to buy a bond right now, because interest rates are lower than coupon rates, you would have to pay more than the face value of the bond, only to be redeemed the actual face value at maturity... a capital loss.
Yes, but during that time the bond was held the interest was at a/the higher rate, (than the market rate at the time of purchase.) The actual "outlay" is not a capital Loss but the face value is as you say.For instance to buy a bond right now, because interest rates are lower than coupon rates, you would have to pay more than the face value of the bond, only to be redeemed the actual face value at maturity... a capital loss.
You can of course get capital gains as well, but we're talking about certainty here.
The value moves around just like a stock.
It's the reason bonds are such highly traded instruments.
The Gold Coast has long been home to some of the state's highest median prices and, despite recent media attention suggesting otherwise, little has changed.
Mermaid Beach's median increased by 9 per cent to $1.3 million last year, based on 55 home sales. At Surfers Paradise, there was a modest 2 per cent jump to $1.27 million.
The UK's largest mortgage lender the Halifax has reported a 1.9% rise in house prices during January.
The group said it is important to not place too much emphasis on any one month's figures, but added market activity may be stabilising.
Gold Coast prices on the up
http://www.brisbanetimes.com.au/new...ian-house-price/2009/02/05/1233423369334.html
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?