The future of Australian property prices

[waterbottle]

You convinced me. Why 1 ? Lets do 6 !!!!!! I'll be a millionaire in 2 years time. Won't even need to work for it. Just sick back and watch the cash flow in. (sadly this is actually true). Only suckers like what I was work for living. Lets just buy houses. Only way to be a good person. Only way to succeed.

Wonder where those poor people who weren't smart enough to buy 6 houses like me will live ? Who cares hey ? In the gutter. Maybe a hot tin shed ! Doesn't matter. To the moooonn !! Never been a better time to buy.

Gonna talk to my bank manager tomorrow. Need to borrow 2 mill.

MrMagoo, I agree that it is ridiculous to have to be spending so much money on housing, especially when higher prices are being driven up by speculation and government policy.
But what is the point of complaining? It isn't going to change investor behaviour or policy - and if it did, it would take a long time.

I used to express the same frustrations that you do now. The direction in which society was/is heading because of unaffordable housing is not one that I liked. Fact is, if society wants to head in this direction who are you to stop it?

The options as I see it are:

1. Accept high house prices and join the herd
2. Refuse high house prices and move to a different society
3. Stay the same

 

[Centaur]

Interesting thread over the past couple of years. Best summed up as follows :

The best time to plant a tree was 20 years ....the next best time is today
Trying to pick peaks and troughs in the property cycle has seen far more losers than winners.
Key to buying property is location, location, hold.
Property Investment is a great component of any diversified wealth creation strategy.

Just some thoughts. Mr Magoo - "You don't fatten a cow by weighing it"

 

[Mrmagoo]

MrMagoo, I agree that it is ridiculous to have to be spending so much money on housing, especially when higher prices are being driven up by speculation and government policy.
But what is the point of complaining? It isn't going to change investor behaviour or policy - and if it did, it would take a long time.

I used to express the same frustrations that you do now. The direction in which society was/is heading because of unaffordable housing is not one that I liked. Fact is, if society wants to head in this direction who are you to stop it?

The options as I see it are:

1. Accept high house prices and join the herd
2. Refuse high house prices and move to a different society
3. Stay the same

Nope. Tomorrow I'm going to do it. Then when they reject my loan application for not having 500k in the bank I'm sure the financial wizards on this forum will find me a broker !

 

[Bill M]

You convinced me. Why 1 ? Lets do 6 !!!!!! I'll be a millionaire in 2 years time. Won't even need to work for it. Just sick back and watch the cash flow in. (sadly this is actually true). Only suckers like what I was work for living. Lets just buy houses. Only way to be a good person. Only way to succeed.

Wonder where those poor people who weren't smart enough to buy 6 houses like me will live ? Who cares hey ? In the gutter. Maybe a hot tin shed ! Doesn't matter. To the moooonn !! Never been a better time to buy.

Gonna talk to my bank manager tomorrow. Need to borrow 2 mill.

Where I live is not a brilliant area, Central Coast that is, it's not Sydney. Over here we have the battlers, unemployed and the real true blue Aussies who are willing to commute to Sydney 200 KMS return to make a living. No rich foreigners buying here yet. If there is one thing I can say and have learnt is that the poor people have pride in themselves, they have their fibro homes and fly an Aussie flag on a flagpole in their front yard. They might not have much but that fibro home is theirs and they are happy. This is the true Aussie spirit, they are great people and I respect them. It's not about the money, it's about living in your own home, everyone can do it, you can too.

 

[Mrmagoo]

Where I live is not a brilliant area, Central Coast that is, it's not Sydney. Over here we have the battlers, unemployed and the real true blue Aussies who are willing to commute to Sydney 200 KMS return to make a living. No rich foreigners buying here yet. If there is one thing I can say and have learnt is that the poor people have pride in themselves, they have their fibro homes and fly an Aussie flag on a flagpole in their front yard. They might not have much but that fibro home is theirs and they are happy. This is the true Aussie spirit, they are great people and I respect them. It's not about the money, it's about living in your own home, everyone can do it, you can too.

The true Aussie spirit is about taking from the less fortunate and giving to yourself.

 

[Bill M]

The true Aussie spirit is about taking from the less fortunate and giving to yourself.

You love stirring people up don't ya. All the best magoo, take it easy.

 

[ROE]

there is a simple thing people can do if everything else is too hard

start with

change your thoughts and you will change your world -

being happy, learn from others and your world will be filled
with happiness and you acquire knowledge that you can use to better
your life and other close to you

being grumpy, envy you will live in misery and the world
will be against you.

you have the power to pick which side you want to be on each day

 

[banco]

there is a simple thing people can do if everything else is too hard

start with

change your thoughts and you will change your world -

being happy, learn from others and your world will be filled
with happiness and you acquire knowledge that you can use to better
your life and other close to you

being grumpy, envy you will live in misery and the world
will be against you.

you have the power to pick which side you want to be on each day

I'm surprised all that can fit in a fortune cookie.

 

[Julia]

there is a simple thing people can do if everything else is too hard

start with

change your thoughts and you will change your world -

being happy, learn from others and your world will be filled
with happiness and you acquire knowledge that you can use to better
your life and other close to you

being grumpy, envy you will live in misery and the world
will be against you.

you have the power to pick which side you want to be on each day

+1. Attitude is everything.

 

[Julia]

there is a simple thing people can do if everything else is too hard

start with

change your thoughts and you will change your world -

being happy, learn from others and your world will be filled
with happiness and you acquire knowledge that you can use to better
your life and other close to you

being grumpy, envy you will live in misery and the world
will be against you.

you have the power to pick which side you want to be on each day

+1. Attitude is everything.
Every time we pick ourselves up from some untoward event is an opportunity to build resilience and strength for the future.

 

[Mrmagoo]

+1. Attitude is everything.

As are low interest subsidised government loans.

 

[waterbottle]

As are low interest subsidised government loans.

I don't know what you want to hear

 

[Mrmagoo]

I don't know what you want to hear

Nothing at all. I make a post and a bunch of boomers decided I've asked for their advice which I haven't asked for.

 

[againsthegrain]

Its all going to finish one way or another, the so called true aussies are slowly selling themselves out to china.

The only true aussies were the aborigines, now the Anglo-Saxon will be the next aborigine while our new overlords from the north get ready to flush oir rivers with acid waste and inject plastic into food to make it even more cheaper to produce

 

[Mrmagoo]

Oh yteah this true blue Aussie wants me and others to buy up all the affordable housing where he comes from so that all the poor people won't be able to afford to live anywhere in Australia. It is the Australian w ay !

 

[Mrmagoo]

I
The only true aussies were the aborigines, now the Anglo-Saxon will be the next aborigine while our new overlords from the north get ready to flush oir rivers with acid waste and inject plastic into food to make it even more cheaper to produce

That is so far from true and incredibly racist.

You also discount the impact of Celtic people's and miscellaneous European and Chinese migrants who have called Australia home for the last 200 or so years and have no other nationality to speak of.

 

[luutzu]

Its all going to finish one way or another, the so called true aussies are slowly selling themselves out to china.

The only true aussies were the aborigines, now the Anglo-Saxon will be the next aborigine while our new overlords from the north get ready to flush oir rivers with acid waste and inject plastic into food to make it even more cheaper to produce

Keep dreaming Musashi.

The Chinese investors are being screwed by the Australians, both true blue and not so true blue, and don't know it.

It's all going to end in tears when interest rates are raised and some sort of foreign ownership levy are added... Never learn.

 

[againsthegrain]

Keep dreaming Musashi.

The Chinese investors are being screwed by the Australians, both true blue and not so true blue, and don't know it.

It's all going to end in tears when interest rates are raised and some sort of foreign ownership levy are added... Never learn.

Lets hope so

 

[Quincy]

Where I live is not a brilliant area, Central Coast that is, it's not Sydney. Over here we have the battlers, unemployed and the real true blue Aussies who are willing to commute to Sydney 200 KMS return to make a living. No rich foreigners buying here yet. . . .

I was born in Eastwood well over half a century ago and am currently renting here. I go to most of the auctions in and around Eastwood and I can't remember the last house to sell in Eastwood that was not bought by "a rich foreigner" (Chinese). The below article says it all (albeit that the subject sale occurred a bit over a year ago now).

I find it quite amusing that in the article, Wayne Vaughan (Selling Agent) is quoted as saying :-

In 24 years I have never seen anything like it," Mr Vaughan, of McGrath Epping, said. "There's just no rhyme or reason behind it."

Well Wayne, the photo of the auction might provide a logical explanation.


http://www.news.com.au/finance/real...ng-their-budgets/story-fncq3era-1226714027139

A plain house in an average suburb has sold for $2.385 million as desperate buyers keep blowing their budgets


This Eastwood property sold for $1 million above reserve. Source: Supplied


IT is an ordinary house in an average Sydney suburb, but for the owners it held a $1 million surprise.

The only thing unusual about the small, three-bedroom home at 13 Richards Ave in Eastwood, northwest Sydney, is the 999sq-m corner block.

But estate agent Wayne Vaughan - who sold the house last week for an amazing $2.385 million - said even that didn't account for it reaching $1 million above reserve, proving there is no limit to what desperate buyers will currently fork out for their dream home.

"In 24 years I have never seen anything like it," Mr Vaughan, of McGrath Epping, said. "There's just no rhyme or reason behind it."


Crowds at the Eastwood auction. Source: Supplied

"We looked at recent sales in the area," he said. "During the campaign, a five-bedroom, two-bathroom house at 16 Auld Ave (an adjoining street) sold for $1.48 million. That was on 1030sqm.

``Another home at 4 Auld Avenue sold for just over $2 million. That was one of the best homes in the suburb and was sitting on 1200 sqm, which highlights how amazing this result was."

Large blocks usually attract developers, but the winning bidder was a mother and son team.

"Developers looking to subdivide were out of play from about $1.2 million," said Mr Vaughan. "It was an estate property, so the son and daughter handling it have both become instant millionaires."


Inside the Eastwood property. Source: Supplied

During the bidding, the vocal crowd helped push the price well beyond reason.

"Before the auction, I hadn't even contemplated anything over $1.5 million," Mr Vaughan said. "Those big crowds help build the atmosphere. There was a huge cheer when it hit $2 million."

 

[tech/a]

Well that's the Richest group of Asian buyers I've ever seen!!
How then do the well heeled dress!!

But I think you may be looking at it (This sale) from a one-sided view.

If Its a corner block of 1000 meters you could get 4 or 5 apartments on it.
At a building cost of say $350/$450K each
it wouldn't be unreasonable to expect $1.1 or so for each to sell for.

There is a drink in that to the tune of around $500K

If you understand that stupid prices AREN'T paid by stupid people---
The ridiculous will look totally different.

Many years ago I passed in a Corner block at $850K and it was sold for $965K
My remark to others was someone didn't do their home work As Id come up with 4 blocks
Turns out it was ME!!

They subdivided it into 5 and made a killing!