Do you think $4000 (on $20,800 gross yield) is a fair estimation for both maintenance expense and to improve the quality of the property in line with the rate of quality improvement in the median house?
Median Price YOY
Sydney $500,000 0.5%
Melbourne $475,000 -4.3%
Brisbane $420,000 -6.6%
Adelaide $380,000 -4.5%
Perth $455,000 -6.3%
Darwin $425,000 -3.3%
Canberra $490,000 1.9%
National $455,000 -2.9%
Hobart* $320,000 -4.4%
1, Melbourne median dropped by 4.3% to $475k.
2, So buyers who waited 12 months saved themselves $20k?
Or saved themselves about $400 every week for a year?
3, Or saved $30k-$40k (including mortgage interest), simply by waiting one year?
Is is any wonder that buyers have become more cautious?
So with a 4.3% drop, Melbourne property still out performed the ASX200 by a bit over 6%, I guess they will be happy with that.
And yes, buyers have become very cautious, take a look at the asx panic thread,... lol
Just stirring, I don't really care which way property prices go, it would offcourse be nice to see some decent falls though, I still don't think it will happen, But I have been wrong before.
Forgetting the effects of gearing again I see.
Your right, I guess it's worth a mention.
If you had used 50% leverage you results would have been as follows,
Asx200- down 22% of your starting capital
Melbourne real-estate- down 8.6% of you starting capital.
Your right, I guess it's worth a mention.
If you had used 50% leverage you results would have been as follows,
Asx200- down (22%) 12% of your starting capital
Melbourne real-estate- down 8.6% of you starting capital.
Think you may have embellished the figure a little to much.
Just keeping it real
So with a 4.3% drop, Melbourne property still out performed the ASX200 by a bit over 6%, I guess they will be happy with that.
And yes, buyers have become very cautious, take a look at the asx panic thread,... lol
You supplied the figures mate.
Cheers
BUYING a home in Australia's most populous state has become "simply unachievable" for some, real estate experts have warned.
In a major blow to those looking to get on the property ladder, the NSW Government has scrapped stamp duty concessions for 80 per cent of first-home buyers.
From January 1 next year, newcomers to the property market will no longer be able to avoid having to pay transfer title charges on existing homes under $600,000.
Stamp duty exemptions will now be restricted to newly built and "off the plan" properties only.
The NSW Budget: Dissected and in detail
The housing industry reacted angrily to a hike in stamp duties.
Real Estate Institute of NSW president Wayne Stewart said: "Australia weathered the last global financial crisis because the property market was invigorated. Yet those lessons have been ignored today."
And he warned that a rush to beat the deadline would push up prices of existing homes.
"It is inevitable that, as first home buyers scramble to beat the January 1 deadline, we will see prices increase as demand exceeds supply," he said.
"Unfortunately for some, the dream of home ownership will now become simply unachievable."
Martin Real Estate managing director Jeremy Martin added: "Between now and January rivers of gold will flow but after the party there will be a hangover."
The vast majority of first home buys in NSW - 42,000 out of 50,000 - being made on existing homes.
NSW is now one of the few states not to have a stamp duty concession for first home buyers purchasing existing homes.
However, construction and property groups welcomed the change and said the concession simply pushed up house prices.
"This reform will make housing more affordable for first-home buyers by boosting the new housing supply," said Aaron Gadiel from the Urban Taskforce, a large developers' lobby.
"Newly built housing will now be more competitive relative to existing housing. It should have been that way all along."
He said the threshold for receiving the benefit, which tails off between $500,000 and $600,000, should be increased. "A first-home buyer with children looking to buy a three-bedroom apartment in Sydney will struggle to find one less than $600,000," he said.
The Property Council of Australia said tying stamp duty concessions to new housing supply was "a smart choice".
"Housing supply remains limp across NSW and gearing incentives to motivate the construction of new stock makes sense," executive director Glenn Byres said.
Read more: http://www.news.com.au/money/proper...le/story-e6frfmd0-1226131040137#ixzz1XDy5LdFt
Dear Robots,
I really miss your input.
Can you please let me know your professional opinion of what will happen the the realestate market in NSW with stamp duty changes.
Can you also please give me some advice on what is happening with clearance rates in the Melbourne auction market, as you are clearly and expert, during the last year alone you predicted 365 of the last 50 clearance rates over 65%. I think the only way is up for you on this front, next year I am predicting it will be 366.
I hope that your work schedule permits a prompt response,
Sunshine and ever diminishing bubbles
MW
Good to see you are the "better man" MW, and never stoop to Robots level:
Not a bad move, I agree with the new home buyer concession going to newly constructed homes.
There is an upcoming government tax summit, and I have seen some discussion about only allowing negative gearing of investment property to be allowed for new homes. That would be a massive change to the market, so I highly doubt it would happen. If it did, they would have grandfather provisions so that it doesn't impact on current investment properties I am sure.
Considering you cannot possibly know who robots is, then why does it matter?
Robots?
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