The future of Australian property prices
- Thread starter Joe Blow
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Like I said, in W.A I think most are taking the current boom in prices to offload property even Mandurah is selling, Sydney, Melbourne well that IMO is property lotto "everyone's a winner.
In W.A most are realists, they have seen the highs and seen the lows, my guess is most are bailing out.
So it will be interesting to see what policies are suggested, to curtail the Melbourne, Sydney lotto scheme.
But are they offloading to homeowners or more investors?
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I remember years ago when I was looking for an investment property, a real estate agent taking the wife and i around said "when you buy an investment property, it is important that it is something that you can be proud to show off to your friends". well he showed me one property and I thought WTF was that about.
I bought a crappy house on a triplex block and let the tenant stay rent free, when he left I demolished it and kept the block, then sold it ten years later.
Also I didn't show my friends, like why would you be trying to impress your friends by gloating, what the hell is wrong with people.
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I'm really not sure sure yet, because it has only happened in the last couple of months, but one thing I think is having an effect is FIFO's from Eastern states relocating to W.A.
Also the Federal and State handouts I think they can total $65k, is going to change the dynamics, because if you add to that the amount of money people are not spending by the virus it really becomes a situation we haven't seen in a long time.
Just going off someone close, who has a working wife and three kids, he is a wage earning tradie in mining and is paying off nearly $10k a month, that is a $hirt load of money IMO.
So the virus has caused a huge change in the financial dynamics and it will take some time to work out where the money is flowing.
Also you have overseas countries like HK. U.K the U.S.A etc that their residents are seeing Australia's advantages, when something like the virus hits, take Helmsworth and all the U.S Hollywood brigade, that all of a sudden call Australia home.
I think us and our media are the only ones trying to take the pi$$ out of ourselves, everyone else is going, how the fluck do we get there.
So that is probably having an effect on the buy without seeing brigade that have heaps of money.
Then add to that list old retirees, who have an investment property that doesn't pay rent and the tenant can't be evicted, they would be saying, "I'm too old for this $hirt, property prices are up, I'm out".
A lot of strange issues have surfaced due to the virus, that have never been seen in recent history, but many probably think might become more regular.
Just my thoughts.
over9k
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True, but how much keeping up with the joneses is actually driving the market? I mean it exists of course, but it's not enough to keep an entire city going.
There's also the very simple fact that younger people are bailing out of the cities like mad due to the affordability problems and I can't say I blame them. I'd live in wollongong long before I lived in western sydney for example.
Ok, so there is a national timber shortage.
House prices will be up a lot. Apparently between the fires, housing boom and covid we are running out.
We are going to be very short on stock.
Mates house up $200k in 3 months just out of Sydney.
House prices will be up a lot. Apparently between the fires, housing boom and covid we are running out.
We are going to be very short on stock.
Mates house up $200k in 3 months just out of Sydney.
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A pretty sobering account of the rental shortage in Brisbane.
Great for landlords, not great for tennants.
www.abc.net.au
Great for landlords, not great for tennants.
'We have to be brutally honest': Residents told to relocate or live in a car 'for the rest of your life'
Renters struggling to find a home are being advised to move hundreds of kilometres away to secure long-term housing as there are so few accommodation options in popular coastal regions.
www.abc.net.au
Market is ridiculously hot in Sydney and surrounds. Barely any stock. And anything on the market sells quickly. Where I am its selling before the signs go up.
They can't build to keep up with the pace fast enough. And once immigration comes back, it's bound to get worse.
They can't build to keep up with the pace fast enough. And once immigration comes back, it's bound to get worse.
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Prices keep going up. But where is the additional money coming from?
over9k
So I didn't tell my wife, but I...
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0% interest rates.
(credit)
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From people staying at home and not buying anything but toilet rolls. ?
Same with everything though. Who the hell is buying all this Doge coin?
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Simple,billions and billions of debt money..sorry stimulus with no creation of value so inflation of liquidity.
Your wages might have been flat for 5y or more but there is money overload and serious inflation in day to day costs.people rush to buy things..houses,shares, Cryptos , certificates of..ownership of thin air, and they can not get enough cars,pets,etc in their gilden house arrests.
In that case, real estate makes a lot of sense, not for IP, but just to improve your jail cell.
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Budget to bet on consumers spending their $130 billion savings
Australians saved $130 billion through the pandemic. Josh Frydenberg is hoping they will spend that cash to offset a huge fall in COVID government support.
Treasurer Josh Frydenberg’s budget and the fate of the country’s recovery from the coronavirus recession will depend on consumers spending more than $130 billion of pandemic savings to offset the biggest one-year drop in government expenditure on record.
There are already signs that after spending much of the stimulus showered on them through 2020, consumers are starting to run out of things to buy with the quantity of retail goods bought through the March quarter falling.
Total household bank deposits grew to more than $1.1 trillion in March this year, up a record $130 billion since just before the pandemic started in February last year.
They're back! (In NSW, at least), investor loans now account for 1 in 3 new mortgages. The largest rise in this type of lending since 2003. Even in WA, loans for IP's have doubled in the past 12 months.
According to CoreLogic IP loans surged13% during March having fallen from 46% of mortgage commitments in early 2015,to a record low of 23% last January.
Morgan Stanley estimates about 1.5 million households now hold 1 IP and there are about 40,000 with 2.
Any one who has made a motser out of real estate over the last 25 years or so, knows you always make your money when you buy and nobody with half a brain buys into a sellers market, that we see today. I can clearly remember the 1980's and even into the first half of the next decade, when real estate prices pretty much went nowhere.
According to CoreLogic IP loans surged13% during March having fallen from 46% of mortgage commitments in early 2015,to a record low of 23% last January.
Morgan Stanley estimates about 1.5 million households now hold 1 IP and there are about 40,000 with 2.
Any one who has made a motser out of real estate over the last 25 years or so, knows you always make your money when you buy and nobody with half a brain buys into a sellers market, that we see today. I can clearly remember the 1980's and even into the first half of the next decade, when real estate prices pretty much went nowhere.
over9k
So I didn't tell my wife, but I...
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If I had that kind of money to drop on a place, I wouldn't be doing it in victoria.
Make the "rich" pay? Economist Saul Eslake says "How is it fair that someone who lives in the same property for 25 years [such as a Toorak mansion] contributes nothing to the cost of providing schools,hospitals,police,roads and public transport.But someone who moves 3 times because they change jobs or their family is growing, do?"
