I have given up buying a house

[Realist]

Have you been there? I doubt if you eould make those remarks if you had. If I was 30 or 40 years younger I would be there in a flash.

Been where?

I've been to every state in Aus except Tasmania.

Been to Perth twice, Adelaide only one, is that what you are asking?

 

[wayneL]

During a property seminar held in Sydney last week....
It was stated that 1000 to 1500 people a week are presently leaving Sydney / Melbourne, and moving to Perth / Queensland

Time to fade 'em then

 

[krisbarry]

During a property seminar held in Sydney last week....
It was stated that 1000 to 1500 people a week are presently leaving Sydney / Melbourne, and moving to Perth / Queensland

Ahhh but the trick is...how many are returning?

Thats the reason why the 2006 Census asked more liquid questions to show the flow to and from, rather than just one way.

Next year in May we should see a more accurate picture of the movements of Australians when they release these figures.

 

[Bronte]

Haven't sold our South Perth IP as yet.
It has nearly tripled in seven years.
Lots of interest though

 

[Realist]

During a property seminar held in Sydney last week....
It was stated that 1000 to 1500 people a week are presently leaving Sydney / Melbourne, and moving to Perth / Queensland

Hahahaaaaaaaaaaa. :

Yeah. I remember the same story 5 years ago in Sydney that 1500 people a week were moving to Sydney. As if there was a flood of people rushing to buy houses.

It was true and probably still is.

It impresses newbies!! not me though.

That means Sydney is growing by 0.03% of the population each week though.

Or 1.5% a year!!

Would you be happy if your investment property grew 1.5% a year - cause that is what the population is growing.

And that is alot slower than it has grown in the past of course. The growth as a percentage is slowing tremendously.

 

[tech/a]

Show me one property in Eastern or Northern Sydney that you can positively gear? Are you saying you should never buy in Sydney?

Funnily enough if you say yes then you are probably right.

However you negatively gear for one reason and one reason alone - Capital gains.

Now no but in 1996 yes.

Is now the time to buy IP's--NO and hasnt been for a few years.
There are very rare exceptions. I havent seen one. But know of a few that have changed hands.

If in property you would be developing high density low cost low rental community title apartments.In of course areas of high rent demand.

 

[Realist]

Haven't sold our South Perth IP as yet.
It has nearly tripled in seven years.
Lots of interest though

Bollocks!

 

[Bronte]

We took your advice Realist and listed this property for a silly high price.
It is positively geared of course, we do not have to sell immediately

 

[tech/a]

Bollocks!

I normally dont believe Bronte on anything but hey hes a long way short of Bollicks in this case.
I know of many that have more than tripled in less than 7 yrs.

 

[Realist]

Which suburb is it in?

It frustrates me no end when people tell me such and such has tripled or doubled.

I'm pedantic about these claims sorry.

 

[nioka]

Been where?

I've been to every state in Aus except Tasmania.

Been to Perth twice, Adelaide only one, is that what you are asking?

You must have gone to Perth on a bad day. My sister and brother in law went there to work for 3 years. That was 35 years ago and they won't come back. My daughter and son in law went for a look and are still ther after 3 years. ???

 

[Realist]

I know of many that have more than tripled in less than 7 yrs.

More than tripled??

I am suspicious.

 

[wayneL]

Hahahaaaaaaaaaaa. :

Yeah. I remember the same story 5 years ago in Sydney that 1500 people a week were moving to Sydney. As if there was a flood of people rushing to buy houses.

It was true and probably still is.

It impresses newbies!! not me though.

That means Sydney is growing by 0.03% of the population each week though.

Or 1.5% a year!!

Would you be happy if your investment property grew 1.5% a year - cause that is what the population is growing.

And that is alot slower than it has grown in the past of course. The growth as a percentage is slowing tremendously.

Yep heard the same plaintiff protestations in QLD as the last boom sagged into negative equity for many.

LOL

 

[Realist]

You must have gone to Perth on a bad day. My sister and brother in law went there to work for 3 years. That was 35 years ago and they won't come back. My daughter and son in law went for a look and are still ther after 3 years. ???

I like Perth, my second favourite city in Aus infact.

However it does have limitations. It's a bit quiet, small, isolated, limited job wise, and boring, it lacks top restaurants, bars, etc.

That is not being rude, just factual when you look through the eyes of a young unmarried person.

On the other hand Sydney has exhorbetently priced crappy apartments, crap traffic, too much stress, queues, rude people, expensive tolls, overpriced food and drink, etc. etc. if you look from a family perspective.

 

[wayneL]

You must have gone to Perth on a bad day. My sister and brother in law went there to work for 3 years. That was 35 years ago and they won't come back. My daughter and son in law went for a look and are still ther after 3 years. ???

Perth USED to be nice.

It is now a pretentious boring ####hole, with the worst drivers in Australia; and that is some achievemnet.

 

[Realist]

You really know if a city is crap when the locals keep asking you (a tourist) if you like their city.

I was in Singapore last week and everyone I spoke to said "Do you like Singapore, what you do think of Singapore?"

I always said "Yeah, sure I like it, it is nice".

I lied of course, it is the most boring place I've ever been to, truly sterile and yawn worthy. No natural beauty, nothing going for it at all, it is just a large business park.

 

[wayneL]

Re Perth... a great post by "Ross B" next door at RC, in particular the latter part of the post which is spot on.

I do not have the understanding of economics or fundamentals to make any comment on the article content, but something is NOT RIGHT about the extreme and enduring boomtime conditions in WA, and especially NOT RIGHT is the almost unbelievable and enduring real estate value escalation, both in Perth, and regionally state-wide.


A friend of mine bought a strata title place in North Perth just over 1 year ago for 520K, which at the time I thought was a very inflated price. He's just scored a great job in Melbourne and advertised his place for sale a week ago. He was expecting to get 600K - 650 tops. 2 agents valued it at 600K. Another said he could get 700K. My mate spoke to the neighbours and they pointed out that a bigger free-standing but much less well appointed place down the road had gone for 800K. He ended up putting it on the market with a starting price "from 740K". Within a week two offers had come in and to cut the story short, he ended up getting 762K. He made 220K tax-free in just over 12 months - and this place is nothing special!! That is MADNESS, and not at all unusual in these times.

Recent arrivals over here and younger people have got some expectation that this extreme bull market is normal. Anyone who's been around a while knows it's not, and yet, on and on it goes...

Something's gotta give, in my opinion. Maybe it will happen as suggested by Treadgold, maybe not. But it will happen. It's just a matter of when. I think it's gonna be ugly when the bubble bursts, although the whispers around here are of a "soft landing". All I know, is that the internet bubble burst with an almighty bang, and although WA's boom is not really analogous, the truism 'the bigger the bubble, the bigger the bang' seems logical.

How is it possible that Perth house prices are now second only to Sydney's, with a population of only 1.3 million?? A couple of years ago, Perth was the second cheapest city in the country for housing. Sure, those who have houses, and especially those who have investment properties (or 10), are ecstatic, but not everyone over this way is happy about this boom.

The massive migration from the eastern states and overseas has brought with it an increasing burden on the city infrastructure (especially roads), and the great advantages of living in Perth are starting to disappear. Living costs are no longer cheap. The place is far more crowded. The beach culture is changing for the worse, and mini-Gold-coast-style developments threaten to change forever (and for the worse) the character of the Perth coast. Rents have skyrocketed, and the 30% or so who have not got a house, now have virtually no chance of raising a deposit, even for a piece of crap in the outer suburbs, and less to spend or save due to increased living costs. Future severe social problems as a result of the increasing chasm between the haves and the have-nots are surely inevitable.

As far as I'm concerned, the weather is about the only advantage left in this place. Let's face it, Perth city needs a personality transplant. It doesn't compare with Melbourne or Sydney for character and atmosphere, and as with any smaller city, will never have the buzz and stimulating social environment of a metropolitan hub. It is starting to have all the disadvantages of a bigger city, with none of the plusses. Ah ****, I'll get flamed, but I don't care - this place is rampant with materialistic yuppies and their brats. It's BORING, and now it's bloody expensive as well. I'm eyeing Melbourne as an alternative place of abode, although the beach is a huge part of me spiritually, and Melbourne is, er, a little lacking in quality metro coast. But at least it has some real style and some true inner city life. Perth needs a kick in its conceited little ****.

 

[Realist]

How is it possible that Perth house prices are now second only to Sydney's, with a population of only 1.3 million?? A couple of years ago, Perth was the second cheapest city in the country for housing.

This is the key question I have as well.

Seems really weird to me.

WA is the emptiest place in the world - how it can have a housing boom is beyond me.

 

[wayneL]

This is the key question I have as well.

Seems really weird to me.

WA is the emptiest place in the world - how it can have a housing boom is beyond me.

IMO it is panic buying. People believe Gold will be $10,000 oz, Iron ore $4000 lb and even the humble rutile will be $20,000 tonne by the middle of next week... Chindia will never have a recession, oil/petrol will always be relatively cheap and abundant, and every sane billionaire in the world will want to live in the most isolated and boring city on the planet.

Buy now before it's too late!

 

[Bronte]

most isolated and boring city on the planet.

Isn't Geraldton a city then