The future of Australian property prices

[MovingAverage]

Yep the baby boomers are making it hard for the younger generation, I just wish I had the same problems these younger people had.

‘Overpaid a tiny bit’: Doctors spend $3.295 million on Lane Cove first home

They outbid a dozen others at the auction where buyers were reluctant to place bids from beginning to end.

www.smh.com.au

From the article:
Bidding further slowed after the $3 million mark, and two agents fought tooth and nail for every increase from the two remaining bidders. The home eventually sold for $3,295,000 to the first home buyer couple who are renting in North Ryde.

The pair, both doctors in their 30s who declined to be named, said they felt they overpaid for the property a “tiny bit”. The reserve was $2.8 million.
Selling agent Julia Sikora of McGrath Lane Cove said it was a stand-out result for a market where many homes are selling prior to auction due to the lack of competition. She noted the vendors’ expectations had been in line with buyer feedback.

The Reserve Bank’s decision to lift the official cash rate another 0.5 per cent on Tuesday, was “definitely a talking point and buyers are taking that into consideration”, Sikora said.

3.29 million to first home buyers…yup I’m a cold heartless old man, but would have no sympathy for them should they experience mortgage stress.

 

[qldfrog]

3.29 million to first home buyers…yup I’m a cold heartless old man, but would have no sympathy for them should they experience mortgage stress.

They are doctors, out of the actual economic cycle with gov garanteed income. Directly via bulk billing and indirectly with mandated private health cover..only a really incompetent GP would ever have money issue in this country

 

[3 hound]

Yep the baby boomers are making it hard for the younger generation, I just wish I had the same problems these younger people had.

‘Overpaid a tiny bit’: Doctors spend $3.295 million on Lane Cove first home

They outbid a dozen others at the auction where buyers were reluctant to place bids from beginning to end.

www.smh.com.au

From the article:
Bidding further slowed after the $3 million mark, and two agents fought tooth and nail for every increase from the two remaining bidders. The home eventually sold for $3,295,000 to the first home buyer couple who are renting in North Ryde.

The pair, both doctors in their 30s who declined to be named, said they felt they overpaid for the property a “tiny bit”. The reserve was $2.8 million.
Selling agent Julia Sikora of McGrath Lane Cove said it was a stand-out result for a market where many homes are selling prior to auction due to the lack of competition. She noted the vendors’ expectations had been in line with buyer feedback.

The Reserve Bank’s decision to lift the official cash rate another 0.5 per cent on Tuesday, was “definitely a talking point and buyers are taking that into consideration”, Sikora said.

Members (students) of the association of medical students have not even graduated and they are already publicly complaining that they will have to work to hard when the get a job.

 

[MovingAverage]

They are doctors, out of the actual economic cycle with gov garanteed income. Directly via bulk billing and indirectly with mandated private health cover..only a really incompetent GP would ever have money issue in this country

As young doctors they will no doubt still have a massive loan for that property (unless of course they have have used the bank of Mum and dad. Agree with what you say but with a big loan from a bank even young doctors will feel mortgage pain

 

[qldfrog]

As young doctors they will no doubt still have a massive loan for that property (unless of course they have have used the bank of Mum and dad. Agree with what you say but with a big loan from a bank even young doctors will feel mortgage pain

If inflation is 10%, they will probably get 10% extra income soon enough and rates might go to what 1%?
Unless they are really reckless i would not worry too much for them

 

[againsthegrain]

If inflation is 10%, they will probably get 10% extra income soon enough and rates might go to what 1%?
Unless they are really reckless i would not worry too much for them

They will be fine, should be rite, pick up a few extra shifts and sleep in the hospital. Who cares they will never spend time in the mcmansion Its about the bragging rights in the lunch room anyway right?

 

[MovingAverage]

They will be fine, should be rite, pick up a few extra shifts and sleep in the hospital. Who cares they will never spend time in the mcmansion Its about the bragging rights in the lunch room anyway right?

Reality is you’re aren’t far from the truth

 

[3 hound]

They will be fine, should be rite, pick up a few extra shifts and sleep in the hospital. Who cares they will never spend time in the mcmansion Its about the bragging rights in the lunch room anyway right?

Have you worked with many millennials??

You are lucky to get them TO the job let alone pick up extra shifts and sleep at their workplace.

 

[againsthegrain]

Have you worked with many millennials??

You are lucky to get them TO the job let alone pick up extra shifts and sleep at their workplace.

Can't say I have, in that case with a 3m mortgage seems like somebody's balls are in a vice then ?

 

[3 hound]

Can't say I have,

As a millennial co-worker explained to me, that how I lived for my job where his job is just to support his lifestyle and the job will treated in direct proportion to how it meets his needs.

Had to concede he was correct on many levels.

 

[againsthegrain]

As a millennial co-worker explained to me, that how I lived for my job where his job is just to support his lifestyle and the job will treated in direct proportion to how it meets his needs.

Had to concede he was correct on many levels.

I can't say I don't agree, can't stop the wheels of time and progress whatever direction may be heading. Thinking and habits change with each generation.

 

[divs4ever]

I can't say I don't agree, can't stop the wheels of time and progress whatever direction may be heading. Thinking and habits change with each generation.

the education system had a part to play in that thinking

i hope they remember that when it all derails

 

[Belli]

Loud is the cry for introducing land tax all for the good of those who are living in houses beyond their needs aka, I want it so you should move in order I can have it.

Well, while my home is a nominal four-bedroom, it isn't any longer as rooms have been repurposed (guitars and associated equipment, study for my PC and associated equipment, entertainment room with TV and, yes, associated equipment.) Plus there are no steps, it's inexpensive to run with solar systems installed, my outlook cannot be built out due to the location, my garden provides privacy at the front, large front and back decks, which in Summer when house is open avoids the need for air-con although I have it just in case, double glazing which provides for a subdued environment and it is in a cul de sac so traffic is minimal.

To any accusation my home is inappropriate to me needs my response is two words, the first is three letters and starts with a "G", the second is six letters and starts with an "F."

 

[Belli]

Very rarely do I bother about property, especially prices, but one thing has surprised me in regard to my home. Bought in 1996, four-bed room on 894sqm and, with throwing a lot of money to tradies, now built out to the building line and can go no further unless I go up which is not on.

The surprising thing to me is the present Unimproved Capital Value is just under twice what we actually paid for the house. Bizarre.

 

[dyna]

From today's AFR :

A Melbourne property manager, whose dream home with $ 400,000 still outstanding on its 2021 mortgage, says she's sold one of two investment properties, to put into the couple's off-set account.
That $440 a week 4 bed rental now goes for $ 550 a week.
Melbourne house prices are expected to fall 13% while it could be a bit more like, 17% in Sydney.

AMP's chief economist Shane Oliver predicts house price falls of 20%, nationwide.
CoreLogic, on the other hand, says not so much, but does concede current price falls are becoming faster and sharper than the last tightening-led housing downturn of 2017- 19.

 

[divs4ever]

i would expect an uneven slide , quality properties ( not mansions ) well located will hold the value better as both investors and high paid staff will be able to afford a 'fair price ' and service any loans without a lot of duress

the top end ( mansions ) and lower end will face more pressure from slower credit markets

also worth remembering was the over-heating in the market right up to the end of 2021

 

[Dona Ferentes]

i would expect an uneven slide ,
-- quality properties ( not mansions ) well located will hold the value better
-- the top end ( mansions ) and lower end will face more pressure from slower credit markets

There is a well located property near us, city views , harbour views, (negatives are S facing and next to anodyne walk-up apartment blocks).

It underwent a hugely complex upgrade optimising the block, modern extension, award winning suspended floors, top of the line fit-out, etc

Came on market with a price range $15mill with the usual high-end marketing at the start of year. Passed in at auction, then listed forTrade Sale. Then we walked past the other day, and the removalists were taking everything out and a sign on the gate stating it was repossessed. Clearly someone is blowing a lot of money.

 

[againsthegrain]

Anz and Cba both passing on the full rate...

ANZ has become the second of the major banks to hike interest rates in response to yesterday’s decision, announcing it will increase variable interest rates across its Australian home loans by 0.50 per cent p.a.

with the cherry on top:

ANZ will also increase the bonus interest rate on Progress Saver accounts and ANZ Plus accounts by 0.50 per cent pa.

 

[Trader X]

ANZ will also increase the bonus interest rate on Progress Saver accounts and ANZ Plus accounts by 0.50 per cent pa.

Until the interest rate on savings deposits at least meets or exceeds the rate of inflation, cash is still trash. Those who do not pay down debt or fixed loans at artificially low interest rates deserve no sympathy.

 

[divs4ever]

There is a well located property near us, city views , harbour views, (negatives are S facing and next to anodyne walk-up apartment blocks).

It underwent a hugely complex upgrade optimising the block, modern extension, award winning suspended floors, top of the line fit-out, etc

Came on market with a price range $15mill with the usual high-end marketing at the start of year. Passed in at auction, then listed forTrade Sale. Then we walked past the other day, and the removalists were taking everything out and a sign on the gate stating it was repossessed. Clearly someone is blowing a lot of money.

yes that owing lots of money will be the problem ( even if you are not behind in the coming scenario )

once the lender gets stressed bad things follow