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The future of Australian property prices

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Can we bend this discussion back towards property prices please? It's gone completely off topic.

The thesis was that the cost of residential construction is high because the cost of labour, and presumably materials, is higher than in other countries.
 
basilio said:
Ha Ha!! Excellent. So what do we have here ?

Possibilities
1) Yep a GP told you he can or does charge $50 every 4 min.

2) You chose to believe him and quote this as the basis for suggesting doctors are making a mint. (The extrapolation I made was $750 p/h)

3) Does your belief in such a statement with no other corrorobative evidence give it validity or should we stand back and say "No reasonable person would believe this ?"

4) Or perhaps it's just hyperbole and should be seen as such

By the way I would certainly accept that some consultations take only a few minutes. I suggest the misdirection is using that as a basis for estimating the total income. In fact we came to roughly the same figure.

And I also know a few doctors.
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When times are busy they do exactly that in medical centres. You seem to imply that I think all doctors do it or that it's even possible to keep that level up. But many do indeed use that basis to work from to cover.
The argument was that tradies made near gp levels in charging which is no where near the case. Doctors have the ability to make $40-80 per 4 minutes and I've personally been in and out in less.

My uncle ran a major hospital for a time. Was a surgeon till the drink made his hands shake and is still a gp at 80 something as he can't find anyone to take over his position. Time poor asset rich. He will most likely die in the office even though he has wanted out for years, but duty of care with him. I worked for a lot of doctors on their houses and IPs. I watched one married pair of doctors go broke on a job then work everyday from 7-7 to be flush with cash again.

Comparisons between tradies wages is an insult.
 
Joe Blow said:
Can we bend this discussion back towards property prices please? It's gone completely off topic.

The thesis was that the cost of residential construction is high because the cost of labour, and presumably materials, is higher than in other countries.
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It's hard to get people to engage if I'm not a chatty pratt.

But it is circling back round.
 
moXJO said:
Must have glossed over it.

Funny you should say that. There was a lady on gumtree that had one (caravan) and was basically paying rent to park out the back of your house and use the electricity and water.

I saw a guy that had a bunch of shipping containers that had converted them to student accommodation in Sydney in a warehouse. Stacked on top of one another as well. I think he ended up on the news.
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Well for student accomidation?, good luck on him now.i believe we will see Sydney Melbourne price go down as people with money move out.lets talk in a year.
For what it is worth, in Brisbane, student accommodation companies crying for help as the market is decimated.
Even my son aussie studying at UQ with a job in CBD is not going to stay in Toowong and considering the coast or outer suburbs as there are hardly any physical uni Courses and his job is done remotely.
Student accommodation, top market in my opinion the firsts affected with a side egfect of no more Chinese investors.i agree some expats may come back but some aussies will jump out as soon as possible to fly out too
 
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Joe Blow said:
Can we bend this discussion back towards property prices please? It's gone completely off topic.

The thesis was that the cost of residential construction is high because the cost of labour, and presumably materials, is higher than in other countries.
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Agreed ?
 
qldfrog said:
Well for student accomidation?, good luck on him now.i believe we will see Sydney Melbourne price go down as people with money move out.lets talk in a year.
For what it is worth, in Brisbane, student accommodation companies crying for help as the market is decimated.
Even my son aussie studying at UQ with a job in CBD is not going to stay in toowong and considering the coast or outer suburbs as there is hardly any physical uni Courses and his job is done remotely.
Student accommodation, top market in my opinion the first affected with a side egfect of no more chonese investors.i agree some expats may c9ne back but some aussies will jump out as soon as possible to fly out
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That was about 6-7 years ago. I'd say it was a lot easier to dismantle then some of these student units.
I'll see if I can sneak a photo from one of my contacts in one of the 'plyboard room' office floors in Sydney. About 500mm wider than a single mattress. Possibly 60 rooms on that floor at $200ish. They charged for blankets as well.

Not even sure it survived after covid.
 
moXJO said:
That was about 6-7 years ago. I'd say it was a lot easier to dismantle then some of these student units.
I'll see if I can sneak a photo from one of my contacts in one of the 'plyboard room' office floors in Sydney. About 500mm wider than a single mattress. Possibly 60 rooms on that floor at $200ish. They charged for blankets as well.

Not even sure it survived after covid.
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No they are not (surviving) but i doubt many will pity them, i will not.
 
My take on residential, commercial and industrial real estate in Australia is extremely bullish.
Regional location are dominating currently with massive influx of domestication occurring driving prices and rentals through the roof.
Will this continue? Yes. Money is cheap and now sellers are realising if they are to capitalise on their profits they are buying back into the same hot market plus there are low to no rental properties resulting in a problem.
We have a mass shortage over the next ten years of residential real estate in Australia.
My company specialise in buying real estate for clients so I have on the ground knowledge of what is happening, what is driving the market, why this is happening and what is likely to occur once the borders re-open. Whooshka continues in the Australian frame of real estate given we are a safe place to travel, invest, go to school plus we have lifestyle like no other.
As they say as safe as houses as long as you're in the market.
 
sptrawler said:
It will be interesting to watch the areas that it affects.
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Goldman Sachs says NZ's restrictions on negative gearing(to be phased out over the next 4 years and holding period for CG Tax exemption extended from 5 to 10 years) could curb prices by 20% in the medium(?) term,as well as slice 1% off GDP. Our Labor party will be watching this one closely.Might embolden them to take it to the next election.Similar to OZ,the problem over there is not speculators per se,but housing supply. Be interesting to see how things develop,once immigration gets back into full swing again.
 
Which will be an election loser. Too many boomers (and even some X'ers) with IP's.
 
over9k said:
Which will be an election loser. Too many boomers (and even some X'ers) with IP's.
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That might be the case over East in the Sydney, Melbourne bubble, but over here in W.A, the people I know around the 55-80 group are all offloading.
But I guess the last 12 month moratorium on evictions and the subsequent loss of rent has been a wake up call to many, shares or super are sooo much easier. ?
Also the current surge in prices, is too good to miss, after property prices in W.A have only just got back to 2007 levels. :xyxthumbs
My 43 year old son who has worked and lived in the Goldfields for the last 17 years, has sold up everything and decided on a lifestyle change, which is 100 acres self sufficient and possibly lecturing in TAFE.
Great move IMO, life isn't a trial run.
 
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bux2000 said:
It would appear Kiwis have a love affair with selling houses to one another.

Stuff

www.stuff.co.nz www.stuff.co.nz

bux
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It certainly is weird, when I was there on holidays about 20 years ago everyone seemed to be working three jobs and house prices in real estate shop windows were stupid then.
Obviously it hasn't improved, a bit like Sydney , Melbourne it has become a status symbol obviously, a must have if you want to impress your friends while sipping the chardonnay overlooking the bay.
I find it weird, to me a house is something that keeps the weather off you and somewhere to lock up your $hit.
You can't eat it, you can't drive it, you can't take it on holidays and you have to sell it to spend it, just a dumb expense IMO.
If someone offers me a $3m house, or $3m, i'll take the money every time. ;)
Lets look at it another way, Sydney house prices have gone ballistic in the last three months up 20% after dropping 15%, well NAB were $15 last year they are nearly $26 today, I know what I bought and own.:wheniwasaboy: ?
My appologies, just checked, $26.72.
 
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To be fair, like cars, there comes a point where you need to spend a LOT of extra money to get a significant difference.

You don't get twice as much house for 3 mil as you do for 1.5, not even close.
 
over9k said:
To be fair, like cars, there comes a point where you need to spend a LOT of extra money to get a significant difference.
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Prestige.

It's a reality that people do place a value on having a desirable postcode / suburb name and an identical house in the next street may be worth substantially less if it sits over the boundary and that's a different suburb.
 
over9k said:
Which will be an election loser. Too many boomers (and even some X'ers) with IP's.
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I'm not so sure, remembering that Labor took many controversial policies that would have targeted investment properties to the last election and only lost by a few seats. Just because 67% of the population own a house/investment property, doesn't mean everyone in that group will be voting with the value of their property/investment as their sole interest.

The political risk to property prices is in my view heavily underestimated and the more prices increase the more pressure will build from the community, particularly in the labor and green base, for policies to tackle it. The shelved (for now) tax proposals will likely be top of the agenda within those parties.
 

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