The future of Australian property prices

[TimeISmoney]

Supposedly just proportion of land value..but with special higher rate

My brother's ex bought a 2 bedroom unit in Coorparoo a few years ago, I nearly dropped dead when she told me how much she had to pay. It was a lot more than my stand-alone house in the western suburbs.

 

[mullokintyre]

Be interesting to see if this divergence continues, and both go upwards.
Mick

 

[sptrawler]

It is good to see at least one section of Govt, is making moves to curb the ponzi.
From today's W.A today newspaper.

‘Greedy’: Perth council hikes rates on vacant blocks to deter land banking​

A Perth council is hiking rates by 30 per cent on vacant blocks and will use the extra money to boost urban infill.

 

[qldfrog]

It is good to see at least one section of Govt, is making moves to curb the ponzi.
From today's W.A today newspaper.

‘Greedy’: Perth council hikes rates on vacant blocks to deter land banking​

A Perth council is hiking rates by 30 per cent on vacant blocks and will use the extra money to boost urban infill.

I am sure it is for the common good, the very same council preventing: multiple dwellings on acreages, height restrictions, removing parking spaces etc
Lol
Greedy commie bastards

 

[Value Collector]

My brother's ex bought a 2 bedroom unit in Coorparoo a few years ago, I nearly dropped dead when she told me how much she had to pay. It was a lot more than my stand-alone house in the western suburbs.

Are you sure she was talking about just the rates? And not including body corp fees?

because body corp pays for a lot of costs that a stand alone home owner has to pay out of pocket themselves.

 

[TimeISmoney]

Are you sure she was talking about just the rates? And not including body corp fees?

because body corp pays for a lot of costs that a stand alone home owner has to pay out of pocket themselves.

Yep, I was also talking about it to another friend the other day, they're paying the same amount of council rates in a 2-bedroom unit as they were in an 800sq block. The land value was a little lower but the sewerage and water were almost double the cost in units for some reason.

 

[JohnDe]

My brother's ex bought a 2 bedroom unit in Coorparoo a few years ago, I nearly dropped dead when she told me how much she had to pay. It was a lot more than my stand-alone house in the western suburbs.

I was helping my sister look for an apartment, the added cost of strata fees was crazy. Yeah, the money gets pooled and is insurance for any large repairs, maintenance only covers common areas, and if they have a rooftop garden or entertainment area watch out.

My sister ended up buying a small 2-bedroom house with a small parcel of land, front & back yard big enough for her and the little Chihuahua, for less than an apartment. Apartment is eye candy to a lot of buyers, which causes potential buyers to pump up the price.

 

[TimeISmoney]

I was helping my sister look for an apartment, the added cost of strata fees was crazy. Yeah, the money gets pooled and is insurance for any large repairs, maintenance only covers common areas, and if they have a rooftop garden or entertainment area watch out.

My sister ended up buying a small 2-bedroom house with a small parcel of land, front & back yard big enough for her and the little Chihuahua land for less than an apartment. Apartment is eye candy to a lot of buyers, which causes potential buyers to pump up the price.

This mate is paying almost $3000/yr in strata fees, the complex has a pool and gym.

With my brother's Ex, they had to fork out another 10K for repairs on top of the strata fees due to builder faults.

 

[JohnDe]

This mate is paying almost $3000/yr in strata fees, the complex has a pool and gym.

With my brother's Ex, they had to fork out another 10K for repairs on top of the strata fees due to builder faults.

There are pros and cons with living in an apartment, potential buyers should be well informed before signing on the dotted line.

Apartment near the coast had a storm water drainage issue. The top floor apartments (3) are the penthouses and have a personal roof top garden and entertaining area, the builder did not put a large enough storm water system, but it did meet the regulations at the time, the fall for drainage was too shallow and the water proofing was damaged. After a few years, when it rained heavily, the water would get into the walls and flood the penthouses, and some of the lower apartments. there is also an issue with the cladding being an aluminum composite, which is the type that caused the many deaths in the apartment fire in England a few years ago.

The problems didn't become obvious for many years; the builder has gone. The body corporate had many meetings over several years, trying to get agreement from a majority to allow a fee to each owner be added to get the repairs done.

Each vote failed, until the insurance companies told each owner that they would not cover water damage, and the buildings insurance put an expiry date that would end certain claims.

The vote got through; each owner was sent a bill with the amount dependent on the size of their apartment.

The top floor/roof had all the tiles and whatever else removed, new waterproof membrane and the fall readjusted, new tiles, new storm water pipes at the required size and other drainage requirements which need modifications to the external wall.

Next will be the external aluminium composite cladding, which is still going through the courts and government regulators.

 

[wayneL]

Trivia: We were watch UK escape to the country last night. Apartment in a manor building was £400k or something. "Strata fees" or whatever they call them were £1,000 per month

@#$& that!

 

[basilio]

There are pros and cons with living in an apartment, potential buyers should be well informed before signing on the dotted line.

Apartment near the coast had a storm water drainage issue. The top floor apartments (3) are the penthouses and have a personal roof top garden and entertaining area, the builder did not put a large enough storm water system, but it did meet the regulations at the time, the fall for drainage was too shallow and the water proofing was damaged. After a few years, when it rained heavily, the water would get into the walls and flood the penthouses, and some of the lower apartments. there is also an issue with the cladding being an aluminum composite, which is the type that caused the many deaths in the apartment fire in England a few years ago.

The problems didn't become obvious for many years; the builder has gone. The body corporate had many meetings over several years, trying to get agreement from a majority to allow a fee to each owner be added to get the repairs done.

Each vote failed, until the insurance companies told each owner that they would not cover water damage, and the buildings insurance put an expiry date that would end certain claims.

The vote got through; each owner was sent a bill with the amount dependent on the size of their apartment.

The top floor/roof had all the tiles and whatever else removed, new waterproof membrane and the fall readjusted, new tiles, new storm water pipes at the required size and other drainage requirements which need modifications to the external wall.

Next will be the external aluminium composite cladding, which is still going through the courts and government regulators.

Terrifying... Probably the most complete description of the common extremely expensive issues facing unit buyers.
Poor building design and construction, long term water ingress problems, criminal use of aluminum cladding.
Would a new buyer be told of these issues ? Could he/she find out without going to extraordinary lengths ?

And all this on what I see as a top flight apartment complex that would have cost the penthouse buyers $1m plus and everyone else $800k plus.

 

[qldfrog]

Yep, I was also talking about it to another friend the other day, they're paying the same amount of council rates in a 2-bedroom unit as they were in an 800sq block. The land value was a little lower but the sewerage and water were almost double the cost in units for some reason.

Council rates are based on "land value" which is obviously very low on units, but as well a rate category:
And this is where councils are gorging ..
So 3 unit vs 1 house on the same block will bring more council rate even if the land value is the same
Plus there are fixed charges regardless of land value and categories, as well as minimal rate amount per ratepayers...
Hope this helps, and I thought it was common knowledge

 

[qldfrog]

Apartment in Australia, never again...
7k plus BC a year, waterproofing membrane issue, seaside so paint jobs, concrete cancer and metal rot a plenty, on site manager sucking more $..and illiterate owners voting for a delayed loan to pay repair using Macquarie at 10% 3y ago when rates were ultra low..yet mostly owners living there long term..plus ego and usual committee crap.
Then BC insurer and rental insurance playing ping pong with any claim...
A nightmare.so I understand the house premium vs unit

 

[Value Collector]

Yep, I was also talking about it to another friend the other day, they're paying the same amount of council rates in a 2-bedroom unit as they were in an 800sq block. The land value was a little lower but the sewerage and water were almost double the cost in units for some reason.

were they in the same council area?

But, I guess when it comes to council rates the cost of supplying services such as Bin collection, road maintenance, your share of parks etc etc doesn’t really change much whether you live in a town house or stand alone house, so we can’t expect town houses to get a huge discount on rates. but it’s weird for them to be more.

Rental properties for some reason where I live pay more rates.

 

[Smurf1976]

I understand the house premium vs unit

There are also practical reasons to want a house.

With a house you don't need to worry about some pesky owners corporation saying you can't hang washing out to dry, can't install air-conditioning or an EV charger or that your visitors aren't allowed to park their car even in your space.

Nor do you have to worry about paper thin walls and not being able to listen to music without upsetting the neighbours. You don't have to hear the couple next door having sex or engaging in a heated argument. Nor do you hear someone's washing machine running at 3am, or feel that you shouldn't use yours because others will hear it. etc.

Then there's the point that for those in the building trades, with a house they can do most maintenance themselves and won't be stuck with a huge bill for repairs to common property. Likewise a house owner regardless of occupation and skills can also just decide to not worry about the worn carpet or dated fittings if finances are tight, they're not forced to spend on anything beyond essential repairs if they can't afford to do so.

There's a place for apartments, they suit some people and I'm not arguing against them. You do need to do your research carefully though to avoid ending up with problems like those I've mentioned.

 

[farmerge]

There are pros and cons with living in an apartment, potential buyers should be well informed before signing on the dotted line.

Apartment near the coast had a storm water drainage issue. The top floor apartments (3) are the penthouses and have a personal roof top garden and entertaining area, the builder did not put a large enough storm water system, but it did meet the regulations at the time, the fall for drainage was too shallow and the water proofing was damaged. After a few years, when it rained heavily, the water would get into the walls and flood the penthouses, and some of the lower apartments. there is also an issue with the cladding being an aluminum composite, which is the type that caused the many deaths in the apartment fire in England a few years ago.

The problems didn't become obvious for many years; the builder has gone. The body corporate had many meetings over several years, trying to get agreement from a majority to allow a fee to each owner be added to get the repairs done.

Each vote failed, until the insurance companies told each owner that they would not cover water damage, and the buildings insurance put an expiry date that would end certain claims.

The vote got through; each owner was sent a bill with the amount dependent on the size of their apartment.

The top floor/roof had all the tiles and whatever else removed, new waterproof membrane and the fall readjusted, new tiles, new storm water pipes at the required size and other drainage requirements which need modifications to the external wall.

Next will be the external aluminium composite cladding, which is still going through the courts and government regulators.

I wonder who were the builders "the Dodgy Brothers".

 

[Warr87]

There are also practical reasons to want a house.

With a house you don't need to worry about some pesky owners corporation saying you can't hang washing out to dry, can't install air-conditioning or an EV charger or that your visitors aren't allowed to park their car even in your space.

This is exactly why I want a house. A townhouse may be the compromise for me.

 

[divs4ever]

My brother's ex bought a 2 bedroom unit in Coorparoo a few years ago, I nearly dropped dead when she told me how much she had to pay. It was a lot more than my stand-alone house in the western suburbs.

was that flood-prone Cooparoo ( a very long history of that ) or in the higher areas ??

not much fun being trapped in your apartment

 

[mullokintyre]

This is exactly why I want a house. A townhouse may be the compromise for me.

Yesterday was listening to the conversation hour on ABC as i was driving back from Bendigo.
Two university educated 20-30 somethings interviewing another 20-30 something researcher at a university about the need for high to medium density living.
They were all agreement how living in apartments was so much easier, close to shops, close to public transport, often close to restaurants.
The perfect world for them, and yet completely oblivious to the armies of suckers living in the burbs who have zero access to public transport, and thus rely on their own transport to even find the shops, restaurants and schools.
The only concession to made to any other group was 'the elderly', who really don't need to have to climb lots of stairs.
Forget about anyone with toddlers who also have to be mindful of stairs, or people with a disability.
They will be running the country in a decade.
Hope their level of self awareness improves a bit in the decade.
Mick

 

[Warr87]

For younger people, I definitely understand that though. But I know the cost of BC/strata can be crazy, repairs, the poor craftsmanship on apartment blocks, makes the whole thing too much of a risk/reward for me. Not everyone is going to be aware, unless they know someone who has been through it (or grew up in apartments). The younger generation aren't likely to have given houses were more common.

I agree with you that I hope their self awareness improves.