This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

The future of Australian property prices

Jump to new
It's seriously fantasy land up there.

http://www.realestate.com.au/proper...eal+estate-+port+headland+port+hedland/zpcayz

An asking price of almost $1mil for a dog box in need of TLC.
 

At the moment, the cheapest 2 bedroom house on the market in my not very desirable area is $365,000.
 
to be honest i would have thought a lot more than 3 million hahaha...it has a tennis court, lift, indoor pool etc etc etc etc etc etc etc etc etc etc

N.T
 

I'm a boilermaker, 31 and am on $53K/year {38hr week} (though earnt slightly more with O/T...so there is yet another flip side to your argument

Not all blue collar works get the big dollars your quoting. Only the ones that go to the mines.....the rest of us who work in the city earn alot less.


Thanks for your thoughts MR

The shame is its been a double edged sword. Trying to save a decent deposit whilst absorbing the ever increasing rent from landlords over the last couple of years.
My wages certainly haven't kept up with the cost of living.

The other thing is....
However probability equates to, houses will keep rising if rates stay where they are. Not right away, but sooner rather than later once the change of tone sets in of rates being steady.
Click to expand...

this....is what lured first home buyers in.
As someone who has been looking to buy for 18months+ now, its the one thing I heard again and again...."Just buy something...get into a property" we got told. They wont go down much...only up because of supply demands"

We have had a stoke of lucky with the block of land my partner and I are buying. We have part of the contract signed but due to all the rain, it keeps getting pushed back till registration...we we have secured the block but had 3 extra months to save our arses off whilst not paying a morgae of the block yet.

Its all less we have to borrow from the bank :>

New job with more $$$$ this year anyway. Thats my goal anyway.
 
drsmith said:
It's seriously fantasy land up there.

http://www.realestate.com.au/proper...eal+estate-+port+headland+port+hedland/zpcayz

An asking price of almost $1mil for a dog box in need of TLC.
Click to expand...

Yeah but rent it out at $1200/week, and that $62400K/yr!
Single guys in the mines team up and rent it together. 2 guys $600 each, on say $2K/ week each...that leaves em with $1400 for everything else.

Still not bad money.

If your an investor already, you might have enough equity is other homes to cover some of the costs.
 

This is why...

http://loanmarket.com/?p=2741

The age of first home buyers is increasing.
I again take myself as a classic example. My partner and I are in our 30's.
We want to start a family and not raise kids in a unit...but something with a backyard... and a sandpit for the kids...something like I grew up with (like many of us in our 30's)

We have NO intetion of moving anytime soon. What we are buying now will be our home for years to come.

Beside...I'm helping the economy by building a new house...doin my bit for Australia

Just a suggestion as to why we want the best now.
 

Bought my first home for 81k. Spent 20k on reno's. Sold it for 260k.

Did it again 3 times and bought a 600k home outright. I'm only 31 too.

So we're not all like that

It was painful, we lived in one for 3 months with one liveable room (tiny bedroom), one power point, no bathroom/toilet/shower/kitchen and a wad load of dust.

Gave me enough leverage though to quit my job as a builder and go to Uni.
 

Well done mate!
You made the right choices in life.

Helps being a builder with the reno's though doesn't it :> Most people have to pay for laboour cost.

Well done once again
 
Go Nuke said:
Well done mate!
You made the right choices in life.

Helps being a builder with the reno's though doesn't it :> Most people have to pay for laboour cost.

Well done once again
Click to expand...

Cheers Nuke. You're not wrong about the choices mate.

I wanted a nice home, but didn't want to pay the bank for the next 30 years to get it. Suffered the pain of living in a dog box (almost literally for bit there LOL) and have not looked back since.

Building is in the blood which made it a little easier. The old man had me sweeping floors on his sites from the age of 6, so I had enough background to get the job done at minimal cost. Makes it easier dealing with the other tradies (plumbers, electricians etc..) to make sure you get the most bang for your buck.

That said, I have a few friends (with no carpentry/building skills whatsoever) who did much the same and still came out well on top. So it's definitely the choices mate, all about choice.

Cheers again buddy.
 
There should be a sign on the approach roads saying "Welcome to the boom town".

God help the poor fools that buy anywhere near the top because it will be a long, hard and fast ride down from those stratospheric rents and prices.
 
drsmith said:
There should be a sign on the approach roads saying "Welcome to the boom town".

God help the poor fools that buy anywhere near the top because it will be a long, hard and fast ride down from those stratospheric rents and prices.
Click to expand...

Well at least someone has said it.
 
newbie trader said:
to be honest i would have thought a lot more than 3 million hahaha...it has a tennis court, lift, indoor pool etc etc etc etc etc etc etc etc etc etc

N.T
Click to expand...
If what's around it is typical suburban housing then it does appear to be, well, slightly (cough) overcapitalised.
 
drsmith said:
God help the poor fools that buy anywhere near the top because it will be a long, hard and fast ride down from those stratospheric rents and prices.
Click to expand...


Yep.

Its looking fairly obcene up thataway...........yet the dollars keep rollin ......

for now
 

That's fair enough, it's your decision but one thing I should point out.

An economy grows by savings and then using that savings to buy assets. Did you leverage up to the max to buy your home. If you did, as with many other first home buyers do then it isn't helping the long term economy.
 
Dowdy said:
An economy grows by savings and then using that savings to buy assets. Did you leverage up to the max to buy your home. If you did, as with many other first home buyers do then it isn't helping the long term economy.
Click to expand...

Sorry you are wrong on that point.

Savings do not help grow the economy as much as you would think.

If you took all the debt out of the economy we would suffer a depression larger than the great depression.

If all the debt was repayed in Australia our money supply would shrink to about 1% of what it currently is. and it would result in a shrinking economy.
 
drsmith said:
There should be a sign on the approach roads saying "Welcome to the boom town".

God help the poor fools that buy anywhere near the top because it will be a long, hard and fast ride down from those stratospheric rents and prices.
Click to expand...

I'm happy to be called a fool. But given properties are achieving $2,500 pw and are positively geared it's sitting good at the moment.

As for dropping, no chance in hell. I've watched this market for 10 years and it has never been so stable and secure. There is a hell of a lot of money flowing in through the States Royalties for Regions scheme and from the mining companies.

Then there is the current plans to turn Pilbara towns into cities. Currently Port Hedland has plans for a new town centre, new marina, new hotels a new hospital is currently being built. BHP has funded rapid expansion 6. Port Authority is expanding the number of berths (obviously hightly sought after, see Atlas Iron and Aurox merge). Council are increasing zoning density to try and cope with demand for housing. Rationalisation Plan has identified possible areas where land could be released in Port Hedland, which is finite.

The financial crisis has basically paused this market and any drop in rents or prices has since corrected back to to pre crisis levels. The only thing I'm really noticing is that those that are trying to get into these towns are having a hard time with the banks, lots of finance falling through.

Long term I think this ticks all the boxes for an investor. So this fool is more than happy to put it's money into the Pilbara property market.
 
SM Junkie said:
Long term I think this ticks all the boxes for an investor. So this fool is more than happy to put it's money into the Pilbara property market.
Click to expand...

Atleast for the life of the mining projects and other sources of high paying jobs.

I wouldn't invest in this asset class myself because I don't have a clear understanding of these mining towns. But it sure does seem to be alot of cash being made by people that got in early.

The main risk I can see is the supply demand risk. If part of these new "cities" you say they are planning includes construction of alot of new modern dwellings in the form of apartments with all the mod cons, then you may find downward rental pressure on the older style houses, and if you over paid thinking the ultra high rents were guranteed for life you may find that positively geared buffer shrink along with the asset price.

But offcourse if you got in early and paid a low price the ultra high rents would be fantastic.

Last time I was in port hedland (passing through on a military op), it seemed like a bit of a hole. However if you look forward say 30 years, it would not be unlikely that a town will develop in northern WA that could be of a scale of townsville.
 
You must log in or register to reply here.

Similar threads

3
Future of $100,000 overland tourer Aussie lifestyle and the EV era
2
Replies
21
Views
2K
qldfrog
A
The future of Astraya
2 3
Replies
45
Views
8K
SirRumpole
Ultimate Acronym List (UAL)
Replies
0
Views
5K
Dividend
A
Factors affecting property prices
Replies
3
Views
11K
Space Invader101
Australia's own Ponzi scheme: the property market
Replies
4
Views
5K
Glen48
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...