Very Interesting.
Thank you Mr Burns
That is not very nice though.
I do see your point.
These townhouses were new off the plan and of course unleased.
We had to take a risk that they would be rented at a certain price to be positively geared.
We managed to rent them for $250 per week from day one.
As posted previously this IP was rented to the same people for nine years.
Today they are rented out for $450 per week.
Owners also lease back their own property at inflated rents to get a high price from inexperienced buyers, goes on all the time.
It's a jungle out there.
I recall it was very common in your neck of the woods Burnsie. I can't recall this ever being done in Perth.
Perth *was* good value in those days.
***Bursts out laughing!!Well I expect Allan Bond would have kept it all on the straight and narrow
This is a good marker of value.
This was possible 10 years ago when there was value.
This is nowhere even remotely possible today.
If it is, show me. I'll buy some.
I think it's a bit more complicated than that; but the simple bit is that the economy is reliant on high RE values. As such, governments will create policies to support prices.That's true. In Sydney, last last year in many area's this became possible - no coincidence I think that it turns out that time now marks the bottom of the market here. Perth has little/no value by this measure today from what people here say - so clearly it is expensive. The thing is this does not guarantee by any means a return to "value" any time soon.
Value does not tend to hang around for too long. What keeps it there is a higher level of perceived risk (think of the XAO at 3100 - didn't last long did it? Was real value there as it turned out, but fear/perceived risk created the opportunity). Perth used to have value, because people were unsure what the long term future of the city was in terms of growth (economically, population etc) potential, compared to say Sydney/Melbourne. Now, the outlook for growth in Perth continues to be high, so without that risk, the value goes away..... But that's a market for you!
Cheers,
Beej
However, Mr Joye said he did not expect the recovery to run at the same pace in the coming months
well maybe some should consider we are heading towards a European style of living....??? larger % of renters than owner occupiers.....and Switzerland had only 37% owners......due to constraints in available land etc.....the high cost of avaliable housing.....higher % would like to own a home...but could not afford it.....
and today more modest rises in house prices.....
http://money.ninemsn.com.au/article.aspx?id=869574
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