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The violins have been playing in the background of this thread for over a year now....
House prices to keep rising for years
- Thread starter moses
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and house prices have dropped, and in another year will have no doubt dropped even more.
I have predicted this for over 2 years since the GFC....that people would move into bricks and mortar, and use their SMSF to buy commercial property, not only for a better annual return of up to 8% or more...but also for the capital gains in the future....and most others would watch with envy, compared to the 3% the banks are paying...and no capital gains for 'cash is king' sitting in the bank...
oh and I predicated the same back in 2000......
if you have been around long enough, with eyes and ears open and watching closely, you get to see exactly what is going on....no need to listen to the media or any other spruikers.....
Small firms purchase in CBD
a couple of extracts
Gavin Lloyd, a sales director for CB Richard Ellis in Sydney, said the trend for owner-occupier sales seemed to be a Melbourne phenomenon. But the Sydney strata market, which is more than twice the size of Melbourne's, has picked up since last year.
Wealthy individual Melbourne investors have also been showing interest in Sydney strata properties, including a surgeon who recently bought the fourth level of 99 Bathurst Street for $3.6 million.
Mr Lloyd said the surgeon nabbed a good deal, with the new tenant signing a seven-year lease that would bring a net return of 9.5 per cent.
"That's a much better return than if you leave your money in the bank, where the cash rate is about 3 per cent," he said
He said small-business owners and professionals were buying office space through self-managed superannuation funds, which had been battered by the sharemarket slump.
"These buyers are looking at traditional bricks and mortar investment opportunities and seeing strata investments as a viable alternative to renting office accommodation."
Gavin Lloyd, a sales director for CB Richard Ellis in Sydney, said the trend for owner-occupier sales seemed to be a Melbourne phenomenon. But the Sydney strata market, which is more than twice the size of Melbourne's, has picked up since last year.
Wealthy individual Melbourne investors have also been showing interest in Sydney strata properties, including a surgeon who recently bought the fourth level of 99 Bathurst Street for $3.6 million.
Mr Lloyd said the surgeon nabbed a good deal, with the new tenant signing a seven-year lease that would bring a net return of 9.5 per cent.
"That's a much better return than if you leave your money in the bank, where the cash rate is about 3 per cent," he said
http://smallbusiness.theage.com.au/growing/finance/small-firms-purchase-in-cbd-617506944.html
oh and I predicated the same back in 2000......
if you have been around long enough, with eyes and ears open and watching closely, you get to see exactly what is going on....no need to listen to the media or any other spruikers.....
Small firms purchase in CBD
a couple of extracts
Gavin Lloyd, a sales director for CB Richard Ellis in Sydney, said the trend for owner-occupier sales seemed to be a Melbourne phenomenon. But the Sydney strata market, which is more than twice the size of Melbourne's, has picked up since last year.
Wealthy individual Melbourne investors have also been showing interest in Sydney strata properties, including a surgeon who recently bought the fourth level of 99 Bathurst Street for $3.6 million.
Mr Lloyd said the surgeon nabbed a good deal, with the new tenant signing a seven-year lease that would bring a net return of 9.5 per cent.
"That's a much better return than if you leave your money in the bank, where the cash rate is about 3 per cent," he said
He said small-business owners and professionals were buying office space through self-managed superannuation funds, which had been battered by the sharemarket slump.
"These buyers are looking at traditional bricks and mortar investment opportunities and seeing strata investments as a viable alternative to renting office accommodation."
Gavin Lloyd, a sales director for CB Richard Ellis in Sydney, said the trend for owner-occupier sales seemed to be a Melbourne phenomenon. But the Sydney strata market, which is more than twice the size of Melbourne's, has picked up since last year.
Wealthy individual Melbourne investors have also been showing interest in Sydney strata properties, including a surgeon who recently bought the fourth level of 99 Bathurst Street for $3.6 million.
Mr Lloyd said the surgeon nabbed a good deal, with the new tenant signing a seven-year lease that would bring a net return of 9.5 per cent.
"That's a much better return than if you leave your money in the bank, where the cash rate is about 3 per cent," he said
http://smallbusiness.theage.com.au/growing/finance/small-firms-purchase-in-cbd-617506944.html
Nappy Valley about to give way to Lycra men DEMOGRAPHER: Bernard Salt | May 21, 2009
Article from: The Australian
love the heading...nappy valley...hehehehehe
Bernard seems to be doing his in depth research very well
only selected extracts here, its not the full article........
Now that those pesky Generation Y kids have finally left home, perhaps it's time to convert one of the bedrooms into a study or into a hobby room. And while you're at it, you might as well knock off the back of the house and put on an alfresco deck where you can entertain all your baby-boomer friends for brunch. And don't forget the six-burner barbie with wok burner.
One of the greatest business opportunities stemming from the transitional ageing of communities (where 50-somethings morph over 20 years into 70-somethings) is not the development of new residential product, it is in helping home owners adapt an existing dwelling to the prevailing lifestyle.
Queensland's former Shire of Maroochy (now part of Moreton Regional Council) has the dubious distinction of outgunning all other Australian municipalities in attracting most new residents over the age of 74. In the 10 years to 2019, the number of people living in Maroochy aged 75-plus is expected to rise 7000 to 19,000.
But this analysis can tell us so much more about business opportunity than what will be hot in property and where.
If you are a player in the first or even second-home market, then you need land in places like Ipswich, Wanneroo, Wyndham and Blacktown.
Developers of retirement homes, on the other hand, should be active in places like Maroochy, Caboolture and the Gold Coast between Hope Island and Robina.
And it sort of makes sense. All of these outer-suburban municipalities were initially settled as a collective Nappy Valley from the 1980s onwards. Just over two decades later and these places are increasingly being jammed with empty-nesters.
This is an issue for local councils that have developed service models based on the nappy narrative. All of a sudden demographic transition causes the mind, the mood and -- most important -- the attitude of the local community to switch from timid youth to tub-thumping middle age.
Out with demands for infant welfare facilities; in with impassioned pleas for bike paths for an army of 50-something men clad in Lycra who have taken up cycling because of dodgy knees.
For some this will mean relocation and a new property; for most it will mean ageing in place and demanding different things from their house, from the community and from the local council.
Bernard Salt is completing a study of baby boomers for the City of Monash; bsalt@kpmg.com.au; www.twitter/bernardsalt
Article from: The Australian
love the heading...nappy valley...hehehehehe
Bernard seems to be doing his in depth research very well
only selected extracts here, its not the full article........
Now that those pesky Generation Y kids have finally left home, perhaps it's time to convert one of the bedrooms into a study or into a hobby room. And while you're at it, you might as well knock off the back of the house and put on an alfresco deck where you can entertain all your baby-boomer friends for brunch. And don't forget the six-burner barbie with wok burner.
One of the greatest business opportunities stemming from the transitional ageing of communities (where 50-somethings morph over 20 years into 70-somethings) is not the development of new residential product, it is in helping home owners adapt an existing dwelling to the prevailing lifestyle.
Queensland's former Shire of Maroochy (now part of Moreton Regional Council) has the dubious distinction of outgunning all other Australian municipalities in attracting most new residents over the age of 74. In the 10 years to 2019, the number of people living in Maroochy aged 75-plus is expected to rise 7000 to 19,000.
But this analysis can tell us so much more about business opportunity than what will be hot in property and where.
If you are a player in the first or even second-home market, then you need land in places like Ipswich, Wanneroo, Wyndham and Blacktown.
Developers of retirement homes, on the other hand, should be active in places like Maroochy, Caboolture and the Gold Coast between Hope Island and Robina.
And it sort of makes sense. All of these outer-suburban municipalities were initially settled as a collective Nappy Valley from the 1980s onwards. Just over two decades later and these places are increasingly being jammed with empty-nesters.
This is an issue for local councils that have developed service models based on the nappy narrative. All of a sudden demographic transition causes the mind, the mood and -- most important -- the attitude of the local community to switch from timid youth to tub-thumping middle age.
Out with demands for infant welfare facilities; in with impassioned pleas for bike paths for an army of 50-something men clad in Lycra who have taken up cycling because of dodgy knees.
For some this will mean relocation and a new property; for most it will mean ageing in place and demanding different things from their house, from the community and from the local council.
Bernard Salt is completing a study of baby boomers for the City of Monash; bsalt@kpmg.com.au; www.twitter/bernardsalt
good article about the govt infrastructure and how it will boost suburbs OZ wide....for those that are looking for opportunities.....
I have not included the news about Vic fast tracking and removal of red tape, opening up more land, and looks like they have scrapped their silly 2030 plans....but thats for another day....could be information overload for some here today......:sheep:
extracts............
It's the infrastructure spending that will send benefits rippling through the real estate market.
Poorly informed people have simply assumed that the grant has inspired first-time buyers because the boost coincided with the uplift in activity. It also coincided with the dramatic improvement in affordability, thanks to price declines and multiple interest rate cuts, not forgetting (as most people have) the impact of state government incentives.
One of the fundamentals of Hotspotting is infrastructure because of the multiple impacts it delivers. A new road or rail link not only revolutionises a location's appeal by making it more accessible, it creates jobs and therefore demand for real estate of various kinds -- and it sends economic rewards through a local economy.
Many locations around the country can expect a lift in their property markets because of funding commitments in the budget.
http://www.theaustralian.news.com.au/business/story/0,28124,25512972-25658,00.html
I have not included the news about Vic fast tracking and removal of red tape, opening up more land, and looks like they have scrapped their silly 2030 plans....but thats for another day....could be information overload for some here today......
:sheep:extracts............
It's the infrastructure spending that will send benefits rippling through the real estate market.
Poorly informed people have simply assumed that the grant has inspired first-time buyers because the boost coincided with the uplift in activity. It also coincided with the dramatic improvement in affordability, thanks to price declines and multiple interest rate cuts, not forgetting (as most people have) the impact of state government incentives.
One of the fundamentals of Hotspotting is infrastructure because of the multiple impacts it delivers. A new road or rail link not only revolutionises a location's appeal by making it more accessible, it creates jobs and therefore demand for real estate of various kinds -- and it sends economic rewards through a local economy.
Many locations around the country can expect a lift in their property markets because of funding commitments in the budget.
http://www.theaustralian.news.com.au/business/story/0,28124,25512972-25658,00.html
Of course.. that is why the Government extended it at budget time.. because it's totally useless, and was not required
Then again, the Government would fit in well with the "poorly informed" brigade quite well - Joined
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So I guess in your wisdom you also predicted the mammoth falls in value of commercial property as well.
Perhaps you should actually look at commercial property values before making such irrational statements.
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Abhorrent as it may sound to the "Queens of the ASF", people are voluntarily dropping their asking prices!!!
Non homeowners better get in quick so they too can be the proud owner of a falling asset...
Funny there was no mention of the further discounting which is going on during the negotiation stage... 10% rings a bell from an article I read previously.
Non homeowners better get in quick so they too can be the proud owner of a falling asset...
Funny there was no mention of the further discounting which is going on during the negotiation stage... 10% rings a bell from an article I read previously.
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Abhorrent as it may sound to the "Queens of the ASF", people are voluntarily dropping their asking prices!!!
Non homeowners better get in quick so they too can be the proud owner of a falling asset...
Funny there was no mention of the further discounting which is going on during the negotiation stage... 10% rings a bell from an article I read previously.
but those ones are different and not an indication of things to come.
I mean the chinese will start buying our houses now as they will have more money now that iron ore will be 40% cheaper for them, and rents will go up because when people become unemployed, they have to rent $420 per week homes, and the government has billions of dollars in reserve to wisely stimulate the economy when it is really needed as they are very conservative and proficient.
I won't be playing a violin, perhaps a double-bass?
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I guess FHB's have been hearing "prices always rise" amidst the numerous spruiker arguments and have been conditioned into thinking that prices can't drop.... I guess their opinion will change somewhat once the boost is finally dropped.
Very interesting read..
Ive been sitting on the fence waiting and deciding wether or not to enter the property market, and with the new increased boost from $26k to $32k from July it makes it very tempting. Im only purchasing a unit for myself to live and the repayments compared to renting seem to be about the same.
Ive been sitting on the fence waiting and deciding wether or not to enter the property market, and with the new increased boost from $26k to $32k from July it makes it very tempting. Im only purchasing a unit for myself to live and the repayments compared to renting seem to be about the same.
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re the ACA story about the investor with multiple houses falling on hard times.
How can he let it get that bad, I mean if they're all rented out and since interest rates have dropped significantly in the last 6-12months wouldn't he be much better off now?
cheers
How can he let it get that bad, I mean if they're all rented out and since interest rates have dropped significantly in the last 6-12months wouldn't he be much better off now?
cheers
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I thought they were moving back home?..or was that Gen X?
Hmm not sure I can agree with that part.
Having moved to Caboolture when i was 10 and leaving when I was about 22 (with parents still living there for the time being) I KNOW that there are HEAPS of younger people living there. One of the reasons is the affordability factor.
The big joke has always been all the teenage kids pushing prams at Morayfield shopping centre
SO many people also live in Caboolture and travel either by car or train to work each day in Brisbane.
Still the whole population is aging with heaps of people coming up for retirement, so no matter where you build retirement villages I'm sure business will be good.
Thanks to the FHOG and 30,000 new first home buyers we have created a false price property economy...20%-30% increases in the last 6 months is not uncommon in some areas. The fear is when this will all stop and unemployment takes over...We will have loans at 105% of security values...Lenders have accordingly changed policies to cover themselves....
Some good news for the Sydneysiders.....
its not fhb's spending over $700k....so who are these hundreds of buyers ???
*I love the way there are just so few of us dissidents...and the rest of the mob are all following each other, with the same stories.....waiting for houses to crash so they can buy in cheaper....its the fhb's being blamed now....etc etc etc
I am always wary, when everyone is doing the same thing....bells ring...little warning tolls....:sheep:
now back to the article....
quote.......
He calculates there were more than 620 reported transactions in the $700,000 to $2 million bracket, and more than 145 transactions for more than $2million in three areas -- Sydney's eastern suburbs, lower north shore and inner west -- in 58 days from mid-March.
More than 220 were in the eastern suburbs and the city, and included investment properties, some which sold on gross yields of 4 per cent to 5 per cent.
On the lower north shore, more than 200 sales were reported in the same price bracket.
http://www.theaustralian.news.com.au/business/story/0,28124,25522088-25658,00.html
its not fhb's spending over $700k....so who are these hundreds of buyers ???
*I love the way there are just so few of us dissidents...and the rest of the mob are all following each other, with the same stories.....waiting for houses to crash so they can buy in cheaper....its the fhb's being blamed now....etc etc etc
I am always wary, when everyone is doing the same thing....bells ring...little warning tolls....:sheep:
now back to the article....
quote.......
He calculates there were more than 620 reported transactions in the $700,000 to $2 million bracket, and more than 145 transactions for more than $2million in three areas -- Sydney's eastern suburbs, lower north shore and inner west -- in 58 days from mid-March.
More than 220 were in the eastern suburbs and the city, and included investment properties, some which sold on gross yields of 4 per cent to 5 per cent.
On the lower north shore, more than 200 sales were reported in the same price bracket.
http://www.theaustralian.news.com.au/business/story/0,28124,25522088-25658,00.html
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Oh really? you think that the majority of australians think that the market is going to have a large correction? Doesn't come off that way when I ask around, in fact I don't think people realise that median prices dropped so much in the last 12 months, denial? :hide:
Perhaps you think ASF is representative of the population at large.
Depends what spin you are trying to put on it.
sales can be forced, there is always a buyer for a property if the price is right. I do notice that the author of the article provided no statistics on the price differential from 12 months ago, ie it is quite plausable to make 600 transactions if the prices have fallen substantially, due to forced sales, and now represent fair value.
dont bother to use the median price in your arguments....when you have the majority of houses selling around the 600k mark....and the middle number happens to be 450k voila there's your median price....it has nothing to do with a drop in value ...in fact a lot of the lower priced homes have gone up higher...all the current median is showing is the lack of sales of the higher priced homes in an ordinary market....
no ASF is not representative of the population....the rest of them are out there buying homes and a lifestyle...., or they are staying put, more than half do not have any mortgage to worry about, and the others are obviously upgrading...
its just the attitude from some on here as expected
oh and while interest rates keep going down, prices will go upwards....its only when rates go higher , that prices will come down....
anyway...some of us have a 30 year span for an IP to go wherever it goes...
I have been checking for bargains again....just a bit too busy with work atm...
but may make enquiries...since I dont want to miss another bargain...
there are going to be some lovely bargains of land from those mismanaged agri businesses that have just gone under.....winners are grinners....and I bet there are some great winners if looking for land...
do you know why 90% of the worlds wealth is held by less than 10% of the population ???...its because those 10% do not follow the trend and follow everyone else .....unlike sheep, who follow each over the cliff
no ASF is not representative of the population....the rest of them are out there buying homes and a lifestyle...., or they are staying put, more than half do not have any mortgage to worry about, and the others are obviously upgrading...
its just the attitude from some on here as expected
oh and while interest rates keep going down, prices will go upwards....its only when rates go higher , that prices will come down....
anyway...some of us have a 30 year span for an IP to go wherever it goes...
I have been checking for bargains again....just a bit too busy with work atm...
but may make enquiries...since I dont want to miss another bargain...
there are going to be some lovely bargains of land from those mismanaged agri businesses that have just gone under.....winners are grinners....and I bet there are some great winners if looking for land...
do you know why 90% of the worlds wealth is held by less than 10% of the population ???...its because those 10% do not follow the trend and follow everyone else .....unlike sheep, who follow each over the cliff
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