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

On the news last week someone said that something like 45% of all property purchases are with interest only loans, and you can only get an interest only loan if you secure it with real estate, so about half of all real estate purchases are by rich people who have considerable real estate holdings.
 
banco said:
All foreigners. But I don't see many Americans or Brits buying up houses in Australia.
Click to expand...

So how would we justify Australians and Australian companies making foreign investments if we Ban foreign investment here.
 

I think your logic is a bit faulty there.

When you buy realestate with a loan, the real estate you just purchased becomes primary security for the loan.

So people getting interest only loans doesn't mean they have multiple properties, you can put your loan on interest only even if it's your only property.
 
Value Collector said:
So how would we justify Australians and Australian companies making foreign investments if we Ban foreign investment here.
Click to expand...

I'm not sure your reading comprehension is very good. I'm merely saying we should actually enforce the existing laws on foreign ownership of residential properties (ie foreigners can't buy built residential properties).
 
banco said:
I'm not sure your reading comprehension is very good. I'm merely saying we should actually enforce the existing laws on foreign ownership of residential properties (ie foreigners can't buy built residential properties).
Click to expand...

I am in favour of loosening the laws, Australians invest in residential realestate over seas, I can't see a problem with allowing broader investment here.
 
Value Collector said:
I am in favour of loosening the laws, Australians invest in residential realestate over seas, I can't see a problem with allowing broader investment here.
Click to expand...

Lots of places have restrictions on foreigners buying property. Just because other jurisdictions decide to shoot first home buyers in the foot doesn't mean we should do the same.
 
banco said:
Lots of places have restrictions on foreigners buying property. Just because other jurisdictions decide to shoot first home buyers in the foot doesn't mean we should do the same.
Click to expand...

I don't know about you Banco but I have a lot of foreign friends and I have travelled extensively overseas and Australians can and do buy property overseas. This is not a new thing and it is easy to do. Some countries are almost begging for foreign buyers. I have mates who own properties in USA, UK, Thailand, Indonesia, Spain and the Philippines and they are just some of the countries I know about for sure.

In the mean time, local rates are down, homes still selling easily and prices are going up.

Up on a visit to the Gold Coast right now, prices hit a peak just before Christmas and have tappered off a little but there is still strong interest in houses that are waliking distance to the shops and the beach.
 
Bill M said:
In the mean time, local rates are down, homes still selling easily and prices are going up.
Click to expand...

Shouldn't that be ringing alarm bells?

Why are rates (going) down if all is well?

The is only one reason why Australia, and others, have a property bubble - there is a global glut of money looking for a home. Very little to do with demand as that perceived demand is predicated on the liquidity glut. How it ends, or more importantly when, is unknown, but I think it won't be any more beer and skittles from the sunshine & lollipops brigade.
 
Speaking to engineers (based around Oz) and people in Perth (specifically) - there are zero major projects going forward.

This is ringing alarm bells to me...
 
DB008 said:
Speaking to engineers (based around Oz) and people in Perth (specifically) - there are zero major projects going forward.

This is ringing alarm bells to me...
Click to expand...

Have friends in Construction in Perth.
They are finding it tough.

Here in Adelaide we are flat out in Civil Construction and plenty of tenders.
Our sister Company in Melbourne is the same.
Brisbane where we have a major supplier---he tells me he's also flat out.

So then there is Sydney----
 
tech/a said:
Brisbane where we have a major supplier---he tells me he's also flat out.
Click to expand...
????
please tell me if you know what/where they are doing these jobs, I will change my focus to fit..
Am not aware of anything but project on final delivery stage and closing be it residential prop /infrastructure projects
anyway, lucky them..
 
qldfrog said:
????
please tell me if you know what/where they are doing these jobs, I will change my focus to fit..
Am not aware of anything but project on final delivery stage and closing be it residential prop /infrastructure projects
anyway, lucky them..
Click to expand...

Concrib.
Flat out.
 

1.1 million for a unit in Eastwood? Why would one pay that when they can get similar much much closer to the CBD say inner west or Surry Hills? Also, then 1.1 million for a Unit?

The thing I have learned seeing the wreckage of a property bubble on a country is that people DO pay stupid money for property in the belief that down the road someone else will pay more for said asset. The castles in the sky theory.

This is not going to end well for many. I wonder are there any statistic out there indicating what % of properties are bought for foreigners and/or as buy to let. Someone mentioned that 45% of loans are interest only, that is a sure sign of trouble. When the usually conservative RBA are making noises about Sydney house prices then one has a right to be worried. However, I can't see much changing until the China tap is turned off. When it does, get the popcorn!

Being an immigrant myself, I love this country. Am now a citizen but the only thing that stops me putting down roots here is the insane obsession with property and its frankly crazy prices. This damages a country to a great extent as so much energy and effort is put into the business of building and selling properties to each other. Believe me I have seen this already in Ireland and the results are not pretty!

So many people want the train to keep on rolling though, no one will say stop until external influences dictate it. This then creates huge macro economic issues for Australia due the type of industries its involved in.
 
Also to add, I know many people who have left OZ, due to the high cost of living here. Too hard to get ahead now. We are talking white collar professionals from Ireland, the UK and US here as well. When I heard now that London is cheap compared to Sydney, it tempts and surprised me. I can earn more over there contracting, have cheaper cost of living (London property prices are falling now) and be much closer to home and live in arguable the most important city in a region of 350 million people (don't tell the French that though.)
 

I wouldn't call London cheap. My house in Sydney (Eastern Suburbs) I paid $1.3m for about 18 months ago, today it's probably worth about $1.6m. If I wanted something of equivalent size in London, in a similar area, I wouldn't be getting change from $5m. You can earn more there in certain industries (banking/finance/media) otherwise you're probably worse off there. The difference between London and the Australian capitals is that in Australia there's less of a divide, so you end up with a lot of relatively inexpensive places to live that you wouldn't want to walk around at night and a smaller number of places that have very high prices but have the amenity that you associate with Sydney/Melbourne. And then you've got be able to live with the rain and winter darkness at 3pm.

I think there's a lot of grass is greener.

ETA: I really love London probably my favourite city after Sydney, so I'm not trying to slate it just adding a bit of reality.
 
Oh, London ain't cheap. Never said it was but I know people who have moved back there from Sydney and they tell me that they find day to day living there cheaper than Sydney. Of course some areas in London are uber expensive just like Sydney. All I am saying is what I heard.
How about a place that has a similar climate e.g. LA, what would 1.3 million buy you there? A lot I would say.
There are serious issues ahead if property in Australia keeps going to way its going.
 

I looked at LA late last year because business was seeing me spend so much time in the Americas I considered a move there. Overall I found LA property to be slightly more expensive than Sydney. The places in the US that are cheap are places you wouldn't want to live. Kansas anyone?

I'm not saying property isn't expensive, but this is a global phenomenon of global cities having inflated property. It's not just Australia.
 
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...