Property Market in Brisbane ?

[Blewyn]

What are your views on Brissie house prices ? I'm trying to buy now in 500-850K range and I'm finding a lot of recently renovated houses available.....but I get the impression all the sellers think now is the time to get out of the market. Which means that there's a drop coming soon, or at best a flat period. Also finding some optimistic asking prices - saw a 550K place which sold for 480K two years ago (about 35K spent on renovations since)....has the market actually risen here since 2010 ???

 

I don't want to blow $12k renting a flat for 6 months.....but I could easily lose that much on the house value if the market goes down. What do y'all think ?

[Battleneter]

There is clearly a property bubble here in Aus. Queensland prices have already fallen around 10% off there peak however have currently flattened out.

 

I believe prices still have a way to go, maybe another 10% but it will happen over the next 5 years. When you factor in inflation that makes housing a really poor "investment". Australia doesn't seem to have a over capacity of houses unlike Ireland where prices have plummeted, however I certainly don't buy into the shortage spin either.

 

 

As for renting, we found out a few weeks ago here in Springfield (Brisbane) one of the houses on our street is a rental. Long story short in the pathetic 10 minute allotment the agent gave to show the house, we counted 13 vehicles or groups of people go through, still had people showing up as she drove off. They were mostly middle class driving nice cars with families. Have to admit I was a little shocked as I had believed the "rental shortage" stories of late to be another media fabrication on behalf of there main customers (the real estate industry).

 

Having said all that, if you are buying a house for a long term "home" then I don't believe you will be saving $$ over renting for a number of years especially when you factor in the currently low return on savings.

 

 

Lastly renting sucks.

[Xenon4017]

Of course, there's no such thing as "_THE_ property market". There are markets within markets.

 

But in general, I think the average peak was about mid-2010, and the average price has declined about 10% since then. This you can check yourself by looking at onthehouse.com.au and looking at houses that changed hands both in 2010 and right now.

 

Part of the impetus for an increase in house rpice weas the amount of debt that was taken on both personally and state wide, which found its' way into peoples' income and into house prices. The effect of this debt are starting to unwind now, and may continue to do so for several years.

 

Personally, I don't expect prices to drop by more than 10% over the next 5 years, but I also expect insignificant capital growth. For me, the bottom line in the decision to rent or buy is: can you find a house you want to live in for rent, or is it only for sale.

 

One thing's for certain. In your price range there are very few buyers. You have no reason to be generous unless the house your after has special features which have attracted other buyers. Also don't forget, you're probably a cash buyer/no chain, whereas most Aussies in your position have to sell their house too. That's an advantage; use it!