The future of Australian property prices

[wayneL]

There is actually plenty of work for my trade there, they are desperate for someone with my skills. However it's a funny game in that certain areas have formulated what they think should be a maximum price.

That price is about 2/3 if what is here in Queensland and overheads and material costs slightly higher. I would say most trades would be similar and with what you say about other jobs, that's what makes me question the real estate prices there.

Still, would love to check it out one day.

 

[over9k]

If you're serious, send me a PM. I can show you around once coronavirus is over as I'll obviously be flying down to see the old farts as soon as I'm actually able to.

 

[SirRumpole]

The urban exodus continues.

https://www.abc.net.au/news/2020-08...rty-markets-covid-urban-tree-changer/12541598

 

[over9k]

The urban exodus continues.

https://www.abc.net.au/news/2020-08...rty-markets-covid-urban-tree-changer/12541598

"CoreLogic's Eliza Owen thinks regional markets will benefit in the long term from the normalisation of remote working."

Nahhhhh... you think?

 

[againsthegrain]

"CoreLogic's Eliza Owen thinks regional markets will benefit in the long term from the normalisation of remote working."

Nahhhhh... you think?

- A single millenial moving to the country for the same price as outer suburb ~40km from melb cbd

- 600k must of had a ~300K deposit (was renting previously so nothing to sell)

Spruiking regional re much?

 

[Smurf1976]

Even gen Y'ers are all either planning to leave the cities or already have. I know a sum total of one couple that's stayed in sydney and not intending to leave at some point. One.

Much the same here. Sydney seems better if you don't need to worry too much about money.

One couple I know moved there, hated it, gone within two years. They were renting an apartment.

Only couple I know who've been there a long time, 20 years now, aren't too worried about money. They're a fair way out by choice, it's ~30km or so by road to the CBD area, but nice big block with trees in the backyard and so on.

The entrepreneurial one of the two just bought a business by the way. Price paid for the business would best be described as "fire sale" on account of the pandemic and effects thereof.

 

[sptrawler]

Well my brother in law is the state manager of a large company, I dont see him a lot but met last week.
I asked how the company was coping with the virus, he said remote meetings were the way they are going to continue, it has highlighted how much time is wasted flying people to attend meetings.
So from that I would guess a lot of people are going to relocate, to where they want to live, rather than proximity to head office.

 

[sptrawler]

NSW to phase out stamp duty:

NSW to phase out stamp duty

That’s a saving of around $34,000 on the median Sydney property.

au.yahoo.com

From the article:

Perrottet said stamp duty will now be optional, with buyers given the option between paying a large property tax upfront or a smaller annual land tax on new property transactions. The state government estimates the policy shift will add $11 billion to NSW’s economy over four years.

The tax would be set at a fixed rate, in addition to a rate applied to the unimproved land value. And, once the property becomes subject to the new tax, future owners will also pay the tax.

Owner-occupied homes would attract a lower rate of tax than investment properties, but Perrottet said there would also be protections against landlords subsequently hiking rental rates.

The Treasurer said the state’s centuries’ old stamp duty structure needed an update, but the state government will consult with the community on its proposed model until March.

Those who have already bought a home and who have already paid stamp duty on the purchase will not be impacted by the new plan.

 

[over9k]

"NSW politicians raise the prices of their investment properties by the cost of stamp duty"

 

[qldfrog]

NSW to phase out stamp duty:

NSW to phase out stamp duty

That’s a saving of around $34,000 on the median Sydney property.

au.yahoo.com

From the article:

Perrottet said stamp duty will now be optional, with buyers given the option between paying a large property tax upfront or a smaller annual land tax on new property transactions. The state government estimates the policy shift will add $11 billion to NSW’s economy over four years.

The tax would be set at a fixed rate, in addition to a rate applied to the unimproved land value. And, once the property becomes subject to the new tax, future owners will also pay the tax.

Owner-occupied homes would attract a lower rate of tax than investment properties, but Perrottet said there would also be protections against landlords subsequently hiking rental rates.

The Treasurer said the state’s centuries’ old stamp duty structure needed an update, but the state government will consult with the community on its proposed model until March.

Those who have already bought a home and who have already paid stamp duty on the purchase will not be impacted by the new plan.

Slowly we inch as someone would say..
So let's explain it in the context of the big reset
Overal increase of taxation , link to social policies so ultimately state controlled rent orice fixing.
Public housing paid directly by private funds with returns decided by government.what can go wrong..the inevitable creeping march of socialism.we are just 20y behind my birth country and aiming to reproduce its successful harmonious economy and social peace..
Irony..just in case?

 

[over9k]

Yes, there's some very ugly stuff brewing in europe at the moment frog

 

[moXJO]

Talked to a friend that's been in the real estate game forever. Reckons they have never been busier

 

[satanoperca]

They are flying, and not because our economy is doing great.
$300B + dumped into the Economy by govnuts and

 

[over9k]

Exactly. Hence why whenever anyone bangs on about inflation, I just laugh.

The question is not whether we're seeing inflation, the question is whose inflation?

 

[moXJO]

It seems like I'm waiting on a bust that is never going to come. We have been talking of deep structural problems with the economy for years. Now we can add China to the list.

 

[sptrawler]

Exactly. Hence why whenever anyone bangs on about inflation, I just laugh.

The question is not whether we're seeing inflation, the question is whose inflation?

Very true, inflation can manifest itself in many ways, one is the price of goods going up, another is the buying power of your money going down, another is disposable income changes in the form of statutory charges and non discretionary costs.

 

[satanoperca]

It seems like I'm waiting on a bust that is never going to come. We have been talking of deep structural problems with the economy for years. Now we can add China to the list.

Patience. Just look at the history of Japan, we are following the same path.

 

[againsthegrain]

Patience. Just look at the history of Japan, we are following the same path.

You have to be right eventually, keep betting 1 chip on 0 and the ball will eventually land there

 

[satanoperca]

You have to be right eventually, keep betting 1 chip on 0 and the ball will eventually land there

I don't bet. I calculate risk

 

[over9k]

We should have had financial pain years ago. Problem is, the powers that be keep kicking the can down the road trying to avoid it because no politician wants to be the one that "had the economy go bad on their watch" or words to that effect.

None of it should have ever been set in motion in the first place, but people at the time voted for it and are now trying to make everyone else pay the piper.

The result is that nothing gets done about it, so it just gets forestalled to be even worse in the future/for someone else to deal with. The people who have done it will never be held responsible. Never.

Fact is there really isn't much ammo left to fight this thing and it couldn't have happened at a worse time. I've said this before and I'll say it again: The economics isn't the concern, it's what the politicians are going to do (or not do) that has me worried.