The future of Australian property prices

[willy1111]

Or possibly there were numerous eastern staters that moved to Perth to work in the mines and get ahead...when the mining boom finished, they got sick of the fly in fly out or saved enough... they sold their homes in Perth and took their money back east and bought homes in the east.

 

[sptrawler]

Both good points, there did seem to be a lot of new housing construction going on during the boom and post boom a mass exodus from W.A.
But at current prices, it is cheaper to buy than rent, it is as though people are just not interested in property.

 

[lusk]

Both good points, there did seem to be a lot of new housing construction going on during the boom and post boom a mass exodus from W.A.
But at current prices, it is cheaper to buy than rent, it is as though people are just not interested in property.

Have 2 mates that have come back to Victoria both with homes over in Perth hanging on to them hoping to get out when prices rise again. I wonder how many others have returned but are trapped and don't want to accept the loss.

 

[moXJO]

Talk on most property forums is negative. Most saying it is harder to squeeze money out on renos or development. Some talk of looking at WA for cash flow + buys.

 

[sptrawler]

Talk on most property forums is negative. Most saying it is harder to squeeze money out on renos or development. Some talk of looking at WA for cash flow + buys.

W.A is really in the doldrums, prices are ridiculously low IMO, however as Humid, lusk and others have said, there was a lot of stock built during the boom.

 

[moXJO]

W.A is really in the doldrums, prices are ridiculously low IMO, however as Humid, lusk and others have said, there was a lot of stock built during the boom.

Yeah I feel there will be better opportunities down the track.
Some property investors really know their stuff and have a lot more confidence then me.

 

[sptrawler]

Yeah I feel there will be better opportunities down the track.
Some property investors really know their stuff and have a lot more confidence then me.

Property is a long game, but as with shares, you also need to know when to get out.
There is opportunity in Perth, but it will be hard to attract tenants, as there is a smorgasbord for them to chose from.
Also the population growth in Perth, isn't what it is over East, so long distance ownership will be a long and tortuous path to riches. IMO

 

[moXJO]

Property is a long game, but as with shares, you also need to know when to get out.
There is opportunity in Perth, but it will be hard to attract tenants, as there is a smorgasbord for them to chose from.
Also the population growth in Perth, isn't what it is over East, so long distance ownership will be a long and tortuous path to riches. IMO

Yeah I agree.

Worth keeping an eye out on good located property. But you really need to do the figures. I'm banking on further falls unless govt relaxes the overseas buying rules. That in itself will just create bigger problems down the road.

 

[sptrawler]

This is another example of collateral damage in a falling housing market.

https://thewest.com.au/business/homeless-fears-for-sterling-first-investors-ng-b881225119z

Having said that, what were these people thinking, sinking their life savings into a scam like that.

 

[jbocker]

This is another example of collateral damage in a falling housing market.

https://thewest.com.au/business/homeless-fears-for-sterling-first-investors-ng-b881225119z

Having said that, what were these people thinking, sinking their life savings into a scam like that.

They got a piece of me. I have a comparative small amount invested waiting on the float. Use RMA on managing one of my properties and the front line office (tenant managers) have been great. I liked the concept and in better times may have worked quite well. But in this market as you say, difficult to achieve anything.

 

[IFocus]

This is another example of collateral damage in a falling housing market.

https://thewest.com.au/business/homeless-fears-for-sterling-first-investors-ng-b881225119z

Having said that, what were these people thinking, sinking their life savings into a scam like that.

Shezzas that's ugly

 

[sptrawler]

They got a piece of me. I have a comparative small amount invested waiting on the float. Use RMA on managing one of my properties and the front line office (tenant managers) have been great. I liked the concept and in better times may have worked quite well. But in this market as you say, difficult to achieve anything.

Investing in them, is different to putting your future living arrangements in their hands, with no security of tenure.

 

[Smurf1976]

Seems to be cracking up now with apartments:

https://www.dailymail.co.uk/news/ar...ding.html?utm_source=share&utm_medium=ios_app

 

[sptrawler]

Things don't appear to be getting better, yet.

https://www.abc.net.au/news/2019-07-08/corelogic-property-pain-and-gain/11287638

Perth has some ugly figures:
Across the capitals, the share of properties resold at a loss varied significantly — Sydney (9pc), Melbourne (6.4pc), Brisbane (11.5pc), Adelaide (8.4pc), Hobart (2.1pc) and Canberra (10.2pc).

Meanwhile, resale losses for Perth (32.8pc) and Darwin (45.5pc) were at record levels.

However, these figures were not as severe compared to regions that are still grappling with the end of the mining boom.

The weakest property market in the March quarter was, by far, Darwin — 58.2pc of apartment vendors sold for a loss, compared to 40.8pc for house vendors.

It was followed closely by losses in regional Western Australia (apartments: 47.4pc, houses: 37.3pc) and Perth (apartments: 49.2pc, houses: 28.8pc).

 

[sptrawler]

Here is another post that shows the suburbs, that had the worst results, with regard selling for a loss.

https://au.yahoo.com/finance/news/a...ng-worst-property-price-losses-013245413.html

 

[satanoperca]

This is fantastic news for the community and society as a whole.

However % mean nothing, how about the average loss in $$$ terms over a period, say 3 years. Making it more real and less sensationalized.

 

[IFocus]

This is fantastic news for the community and society as a whole.

However % mean nothing, how about the average loss in $$$ terms over a period, say 3 years. Making it more real and less sensationalized.

Really common around my area for those that brought land and built are selling out $100K less than what they paid.

BTW I am selling and got a lot of estimates from agents $300K less than I wanted.

Accepted an offer yesterday for around $250k more than the agents were telling me, my place was a bit different which they didn't want to accept.

 

[moXJO]

Really common around my area for those that brought land and built are selling out $100K less than what they paid.

BTW I am selling and got a lot of estimates from agents $300K less than I wanted.

Accepted an offer yesterday for around $250k more than the agents were telling me, my place was a bit different which they didn't want to accept.

Never listen to agents. They will lowball for quick turnover and minimal work.

 

[sptrawler]

Really common around my area for those that brought land and built are selling out $100K less than what they paid.

BTW I am selling and got a lot of estimates from agents $300K less than I wanted.

Accepted an offer yesterday for around $250k more than the agents were telling me, my place was a bit different which they didn't want to accept.

So are you fully down South now Ifocus?

 

[IFocus]

So are you fully down South now Ifocus?

Not yet need to buy in the deep south........Falcon to Dawesville cut area