Australian (ASX) Stock Market Forum

The future of Australian property prices

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House prices CAN fall, they HAVE fallen previously and currently ARE falling, and you still preach that they are infallible.
Click to expand...

Painting all property investment with the same brush is a common ploy.
There are still great property opportunities out there.
My last purchase was an Industrial block in Seaford. That settled in May.
Today the same block ( one the same size 2 blocks down) sold for $50k more than I paid.
He called me and offered the same deal to me.

We have a new train line and widened freeway coming to the southern suburbs of Seaford and you can still buy property at $300k.
In 2 years they will be high $300 ks
I have property in Moana which rose 18% last year.
I stared buying property here in 1996 I have a few some at a buy price of $90,000
some $200k bought years later all gained that 18 % on LAST YEARS PRICES.

Sure you get prices falling in low demand over supplied high density areas.
But just like investment in any asset----not ALL suffer the same fate in difficult times.
If you think profiting in property is no longer possible--- then for YOU
It won't be.
For people like me who look outside the square with all investments
It will be possible.
 
Avoid question much?

In that case I will assume that I am correct.

I would be very cautious in the houping market at the moment.

Gonna lose a LOT of geared dollars aren't you Robots?
It might hurt, but just take another job or two.

Keep hoping for the houping market to spare you. It is likely to come and take things away from you.


MW
(The original Robot destroyer)
 
Hello,

amazing, just for posting up the auction results and saying hello to everyone

just goes to show the people we have in society now, i dont know

should be able to get some help here at ASF though, with like the ASX down at 4200, must be plenty who have gone through 30-40% falls

oh well

thankyou

professor robots
 
hello,

have to get a security specialist around tomorrow, change the daily routine, check the windows,

get one of those devices to check under the car for bombs

they reckon homegrown terrorism is always the biggest concern

thankyou

professor robots
 
robots said:
should be able to get some help here at ASF though, with like the ASX down at 4200, must be plenty who have gone through 30-40% falls
Click to expand...

or greater.

Don't worry, you might be in good company soon, with limited liquidity, and limited ability to average.

MW
(Robot mutilator)

PS I think Robts is down over 15%
 
tech/a said:
Hmm I must be on ignore
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Of course not, I love everyone.

Your post just had no obvious flaws for me to attack.

You are obviously a keen investor ( Just as I am with businesses, but not being lucy with property atm)

You are an absolute exception, most people in property are losing considerable money, and will continue to do so, and some are getting hammered.

MW

PS If any more real estate agents call me, I am going to vomit into my phone.
 
Foreclosure's rose 7% in USA a nine month high so much for growth and a recovering economy see waht they come up with on 21 sept.
 
robots said:
hello,

have to get a security specialist around tomorrow, change the daily routine, check the windows,

get one of those devices to check under the car for bombs

they reckon homegrown terrorism is always the biggest concern

thankyou

professor robots
Click to expand...

so you criticise what other people contribute to the thread then come out with manure like this?

you know worry can cause cancer, so maybe sell some properties now before its too late? Dont worry no need to tell us.

Sunshine and lollipops / looking forward to your dribble reply, tally ho dear chap.
 
I'm pretty out of touch with real estate so would appreciate any input re the following situation.

My cousin, aged mid 40's, two teenagers still at school, working as a teacher two days a week, receiving some Centrelink benefits, plus maintenance from ex husband, paying no tax, has only small mortgage remaining on her home in a good part of Sydney (Epping), which agents have said will sell for about $1.3M. It's too big for her and she's
thinking about selling and then buying something smaller to live in plus an IP.

She's bright but inexperienced in investment, i.e. has never owned shares, and revealed in a conversation yesterday that she'd never heard of the sub prime issue and had no idea about the current chaotic state of world financial markets.

She is thinking she could sell now, rent for a year or so, and then find the market considerably lower, at which stage she could buy again.

She says a basic IP unit in Sydney would be around $500K. If that's right, what sort of rental income would it produce?

I've done some very rough calculations on around $500 p.w. which is only about 5% gross, and assumed (on the basis she does not now pay any tax) the tax free threshold of $6000, then 15% on the remaining $20,000 = $3000.

Then there would be council rates and body corporate, plus maintenance and insurance which optimistically all up would be around another $4000. Is this about right?

This would be a net yield of less than 4%.

How realistic is the above?

Wouldn't it also affect her Centrelink benefit?

What have I failed to think of?

I'm concerned that she has a blind faith that property - because it's all she has experience of and even then just that in which she has lived - is necessarily going to be a 'fantastic investment'.

I'd be appreciative of any comments members could offer.
 
Julia said:
I'm pretty out of touch with real estate so would appreciate any input re the following situation.

My cousin, aged mid 40's, two teenagers still at school, working as a teacher two days a week, receiving some Centrelink benefits, plus maintenance from ex husband, paying no tax, has only small mortgage remaining on her home in a good part of Sydney (Epping), which agents have said will sell for about $1.3M. It's too big for her and she's
thinking about selling and then buying something smaller to live in plus an IP.

She's bright but inexperienced in investment, i.e. has never owned shares, and revealed in a conversation yesterday that she'd never heard of the sub prime issue and had no idea about the current chaotic state of world financial markets.

She is thinking she could sell now, rent for a year or so, and then find the market considerably lower, at which stage she could buy again.

She says a basic IP unit in Sydney would be around $500K. If that's right, what sort of rental income would it produce?

I've done some very rough calculations on around $500 p.w. which is only about 5% gross, and assumed (on the basis she does not now pay any tax) the tax free threshold of $6000, then 15% on the remaining $20,000 = $3000.

Then there would be council rates and body corporate, plus maintenance and insurance which optimistically all up would be around another $4000. Is this about right?

This would be a net yield of less than 4%.

How realistic is the above?

Wouldn't it also affect her Centrelink benefit?

What have I failed to think of?

I'm concerned that she has a blind faith that property - because it's all she has experience of and even then just that in which she has lived - is necessarily going to be a 'fantastic investment'.

I'd be appreciative of any comments members could offer.
Click to expand...

I have no idea about the implications to her centrelink benefits, But If the house is too big and she wants to downsize I would be looking at selling and buying a smaller home outright and then investing the remaining funds.

I guess where those funds are going to be best invested comes down to your cousins temperament. If she is likely to be upset by market fluctuations then maybe a property investment would be best, that way she can focus on the weekly rent without paying heed to the ups and downs in it's capital value.

If she can take market flucutations with a degree of equanimity, maybe averaging into asx index fund may be better suited.

If you don't mind me asking, why is she on centre link benefits, you said she is bright and her kids are teenages, surely she could be working more than 2days a week. That way she could earn more money and also invest without worrying about losing benefits, probably met more people too.
 
Julia said:
I'm pretty out of touch with real estate so would appreciate any input re the following situation.

.....
Then there would be council rates and body corporate, plus maintenance and insurance which optimistically all up would be around another $4000. Is this about right?
.....

I'd be appreciative of any comments members could offer.
Click to expand...
Hi Julia,
would not consider myself a property guru but I have an IP bought earlier this year in Brisbane for around $270k;
the rates, water and body corporate (low for this unit) amount already to $4k per year add 300 insurance and a few hundred for maintenance, I believe you are probably more near $6k or $7k a year for a $500k IP in Sydney;
Any Sydney person to confirm??

So your return would end up even lower;
If paying no tax (and so no negative gearing), and with my current pessimistic of RE, what is wrong with a term deposit/corporate bond???
Hope it helps
 
Julia said:
My cousin, aged mid 40's, two teenagers still at school, working as a teacher two days a week, receiving some Centrelink benefits, plus maintenance from ex husband, paying no tax, has only small mortgage remaining on her home in a good part of Sydney (Epping), which agents have said will sell for about $1.3M. .
Click to expand...

Gotta love this country..

$1 million asset, and get centrelink benefits.
 
I'd advise you're friend to investigate what(if any) implications there are with regard to Centerlink benefits in these scenarios.

Cheers
 

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