House prices going up??

[DukeNinja]

My ex landlord who's also a REA has said there has been a number of sight unseen purchases, mainly from interstate. 

[Parley]

House prices are going ballistic in Melbourne near where I live (Eastern suburbs).

I was bored yesterday and went along to an auction of a 2 story townhouse. 5 min walk from my place.

The townhouse which was the rear one of 2 on the block was 2 years old. A big townhouse of 4 bedrooms but only 287 sqm of land.  A house had been demolished a couple of years ago and 2 townhouses built.

The single townhouse sold at auction for $1,363,000.  And regular houses nearby (usually renovated to have nice modern interiors), are going for over $1.6M.

[Parley]

On 08/09/2020 at 06:45, newjez said:

Perth prices were rivalling Sydney in the boom. That was never going to last. Like Tesla's share price. Reality was going to catch up sooner or later.

Tesla is the most valuable car company in the world ?

[rtritudr]

2 hours ago, Parley said:

The single townhouse sold at auction for $1,363,000.  And regular houses nearby (usually renovated to have nice modern interiors), are going for over $1.6M.

Sounds like a bargain.  Knocking down a house worth 1.6M and then putting up a duplex like that would easily go for over 2M in Sydney.

[newjez]

11 hours ago, Parley said:

Tesla is the most valuable car company in the world ?

Tesla is worth about the same as all other car manufacturers in the world combined.

If you can justify that to yourself, then buy Tesla.

[HappyHeart]

On 25/04/2021 at 10:32, Parley said:

House prices are going ballistic in Melbourne near where I live (Eastern suburbs).

I was bored yesterday and went along to an auction of a 2 story townhouse. 5 min walk from my place.

The townhouse which was the rear one of 2 on the block was 2 years old. A big townhouse of 4 bedrooms but only 287 sqm of land.  A house had been demolished a couple of years ago and 2 townhouses built.

The single townhouse sold at auction for $1,363,000.  And regular houses nearby (usually renovated to have nice modern interiors), are going for over $1.6M.

That's crazy. Is it a highly desirable area? 

[Parley]

11 hours ago, newjez said:

Tesla is worth about the same as all other car manufacturers in the world combined.

If you can justify that to yourself, then buy Tesla.

How many Bitcoin do they own ?

[Parley]

2 minutes ago, HappyHeart said:

That's crazy. Is it a highly desirable area? 

Everything is relative I suppose.

I like it but it is not a traditionally high prices suburb.

[HappyHeart]

5 minutes ago, Parley said:

Everything is relative I suppose.

I like it but it is not a traditionally high prices suburb.

Absolutely. I hope prices keep increasing in Perth as we will be looking to sell at some point. The land we are currently building on went up by 37% in value in the 18 months we have had it. The neighbours bought their block without viewing it in person... 

[Blue Flu]

The worst possible outcome longer term would be for prices to continue to rise in a place like Perth. Just when prices were correcting , artificial stimulation is introduced by State Government , reintroducing the insanity. The cost will likely be enormous for the future as well as place great strain on government when the need comes to increase interest rates. (let alone those that borrowed to the hilt)

 

[newjez]

On 26/04/2021 at 03:42, Parley said:

How many Bitcoin do they own ?

If you want to expose yourself to the risk of bitcoin, why would you do it via Tesla? Why not just buy the Bitcoin?

[jimmyay1]

I feel for may British people who were thinking of emigrating to Australia and for whom even the cheaper states and areas are probably now forever out of reach in terms of buying a house. 

For anyone wanting to move to Aus the high cost of housing is going to become a real disincentive to bothering if they already live in a reasonable but better value area overseas. 

[newjez]

3 hours ago, jimmyay1 said:

I feel for may British people who were thinking of emigrating to Australia and for whom even the cheaper states and areas are probably now forever out of reach in terms of buying a house. 

For anyone wanting to move to Aus the high cost of housing is going to become a real disincentive to bothering if they already live in a reasonable but better value area overseas. 

House prices are doing pretty well in the UK at the moment. Not sure what will happen after the stamp duty holiday, but for now they are chugging along nicely.

[ramot]

19 hours ago, jimmyay1 said:

I feel for may British people who were thinking of emigrating to Australia and for whom even the cheaper states and areas are probably now forever out of reach in terms of buying a house. 

For anyone wanting to move to Aus the high cost of housing is going to become a real disincentive to bothering if they already live in a reasonable but better value area overseas. 

I’ve posted before, it all depends where you are moving from in UK, to where in Australia. London and Bristol for example are very expensive, as are Sydney and Melbourne. If you move from London to Sydney you can afford it. So rather than just posting that Australia houses are unaffordable, give examples of where to where. A 2 bed terrace in UK, doesn’t compare to a 4 bed beachside house, it wouldn’t in UK either.

My UK son, Bristol, 4 bed 1930’s semi, 4th bedroom in loft extension, living room, extended kitchen and dining room, 2 bathrooms, small garden, garage too small for car 750,000 Uk pds. Equates to $1,344.498

Australian son, Brisbane, 4 beds, large open kitchen dining and living area, large extra lounge, 2 bathrooms, 2 car garage, large covered outdoor seating area, larger garden $700,000. Equates to $390,407,48

Both in good suburbs, schools shops etc

So please give examples of where you want to move from and where to in Australia, that gives a more balanced comparison, of like for like.

 

 

[Blue Flu]

On 28/04/2021 at 20:36, jimmyay1 said:

I feel for may British people who were thinking of emigrating to Australia and for whom even the cheaper states and areas are probably now forever out of reach in terms of buying a house. 

For anyone wanting to move to Aus the high cost of housing is going to become a real disincentive to bothering if they already live in a reasonable but better value area overseas. 

It just adds to the consideration of it being worthwhile transporting one's life to the other side of the world or not. That's an increasingly hard thing to justify, I suspect. Clearly very massive changes from those that emigrated in earlier periods for sure. Clearly housing is essential so a big consideration, but we should recall many (most) should have profited from UK housing inflation as well. A lot will depend just how much a mortgage one will need to take out. One thing for certain, few will be able to but outright these days, which was often the case some twenty years back when house prices were much lower than better UK places. 

But it is also the sort of area able to be brought into. Like everywhere, there are suburbs in all Australian cities, (and towns) probably wouldn't be chosen for any reason other than price. If not for social problems, then lack of infrastructure (often two go together) or sheer distance to get anywhere. Obviously housing is but one possible disincentive. But a very important one. 

 

[Marisawright]

28 minutes ago, Blue Flu said:

It just adds to the consideration of it being worthwhile transporting one's life to the other side of the world or not. That's an increasingly hard thing to justify, I suspect. Clearly very massive changes from those that emigrated in earlier periods for sure.

Agreed.   When I migrated over 30 years ago, it was a no-brainer because there were four strong reasons to move for almost everyone:  cheaper housing, good job opportunities, better salaries, lifestyle.  

Nowadays, SOME people will still find those four elements to be true:  e.g. a doctor from the South of England moving to Brisbane.   However, an accountant moving from Stranraer to Sydney would find that none of them was true - not even lifestyle, because they'd find themselves marooned in a faceless outer suburb, far from the beach. 

[Toots]

45 minutes ago, Marisawright said:

Agreed.   When I migrated over 30 years ago, it was a no-brainer because there were four strong reasons to move for almost everyone:  cheaper housing, good job opportunities, better salaries, lifestyle.  

Nowadays, SOME people will still find those four elements to be true:  e.g. a doctor from the South of England moving to Brisbane.   However, an accountant moving from Stranraer to Sydney would find that none of them was true - not even lifestyle, because they'd find themselves marooned in a faceless outer suburb, far from the beach. 

We bought a block of land at Mullaloo (Perth) a few minutes walk from the beach for $12,000 in in the early 80s.  Easily affordable then .  Now a block there is from $199,000.  The median price of a house in Hobart is now $600,000 ...............  a huge rise in a few years.

Totally agree that anyone with a comfortable, happy life in the UK should think very carefully before migrating these days.

[jimmyay1]

A lot of the attraction for fairly everyday working and middle class British migrants 20-30 years ago was that they could buy into the classic "aussie lifestyle" suburbs - reasonably well off areas in  the main metropolitan centres or other places with a really good quality of life and plenty of well paid jobs.

It was definitely a big draw, many bought in without mortgages, and could genuinely transition to a better lifestyle than they had in the uk.  

Many coming now feel superficially better off ( bigger houses, better weather) but very long commutes, congestion, long working days,  being based in outer suburbs miles from anything much other than a characterless strip mall  - and certainly not the "dream", pool, trendy area  etc  achievable by the average person in times past. 

You only need to look at the type of suburb and home featured on WDU for the average migrant , and  then match it with your experience of the lifestyle and locations the better off people in Syd and Melbourne live, to see there is a big and growing disconnect between expectations of Brits who wish to emigrate and the reality of where they will end up being based and what they can afford.    

People want the pool, garden,  short commute, nice high street etc.  The reality  is that so many people in these cities now live in apartments or townhouses with no back yard of much size and very few will be able to afford the space etc to have pools unless they live far out or in a cheap, less desirable area. Whilst the outer suburbia in the UK and close to the countryside areas are expensive, in Australia, outer suburbs are generally seen as poor suburbs with low amenity and full of relatively less well off first generation Indian, Chinese and, inceasingly, British migrants. 

The desirable inner areas have become hard to afford unless you are very well off. 

Perhaps in years to come the exchange rates, house prices in uk compared to oz, etc will make it more worth it again.   

Edited April 30, 2021 by jimmyay1

[Toots]

16 hours ago, ramot said:

I’ve posted before, it all depends where you are moving from in UK, to where in Australia. London and Bristol for example are very expensive, as are Sydney and Melbourne. If you move from London to Sydney you can afford it. So rather than just posting that Australia houses are unaffordable, give examples of where to where. A 2 bed terrace in UK, doesn’t compare to a 4 bed beachside house, it wouldn’t in UK either.

My UK son, Bristol, 4 bed 1930’s semi, 4th bedroom in loft extension, living room, extended kitchen and dining room, 2 bathrooms, small garden, garage too small for car 750,000 Uk pds. Equates to $1,344.498

Australian son, Brisbane, 4 beds, large open kitchen dining and living area, large extra lounge, 2 bathrooms, 2 car garage, large covered outdoor seating area, larger garden $700,000. Equates to $390,407,48

Both in good suburbs, schools shops etc

So please give examples of where you want to move from and where to in Australia, that gives a more balanced comparison, of like for like.

 

 

I am surprised at the price of houses in the area of Scotland I came from.  A house, a mile from the nearest town recently sold for 400,000 pounds.  There are of course cheaper houses but you get what you pay for.  All the nice houses in the towns are expensive.  The cheaper ones need a lot doing to them and have small, pokey rooms.  It is increasingly difficult for young locals to buy a home.  It's getting like that here in Tasmania too.

[Parley]

It seems a world wide thing. Houses in the US have gone up a lot as well.

I think the main issue is lack of new supply, ie new houses being built. Construction has obviously slowed a lot or stopped during covid.

I expect it will level off over the next year or so. I don't think prices will drop though.

CBD apartments are becoming very cheap though due to a glut, so there are options for buyers who don't mind apartment living. They will probably be happy.

Edited April 30, 2021 by Parley

[Parley]

1 hour ago, Toots said:

I am surprised at the price of houses in the area of Scotland I came from.  A house, a mile from the nearest town recently sold for 400,000 pounds.  

Is that expensive for the UK, equivalent of $720,000.

I would think that is a cheap property if it was in Australia.

[Toots]

22 minutes ago, Parley said:

Is that expensive for the UK, equivalent of $720,000.

I would think that is a cheap property if it was in Australia.

It's a very rural area Parley   ..................  farming, forestry and fishing - not much else also low wages so yes, it is expensive for housing.  Thankfully every little village and town provides some council (state) housing.  It probably does seem cheap as Australia has some of the most expensive housing in the world.  Goodness knows why as the quality of the builds can be pretty poor.

[Blue Flu]

1 hour ago, jimmyay1 said:

A lot of the attraction for fairly everyday working and middle class British migrants 20-30 years ago was that they could buy into the classic "aussie lifestyle" suburbs - reasonably well off areas in  the main metropolitan centres or other places with a really good quality of life and plenty of well paid jobs.

It was definitely a big draw, many bought in without mortgages, and could genuinely transition to a better lifestyle than they had in the uk.  

Many coming now feel superficially better off ( bigger houses, better weather) but very long commutes, congestion, long working days,  being based in outer suburbs miles from anything much other than a characterless strip mall  - and certainly not the "dream", pool, trendy area  etc  achievable by the average person in times past. 

You only need to look at the type of suburb and home featured on WDU for the average migrant , and  then match it with your experience of the lifestyle and locations the better off people in Syd and Melbourne live, to see there is a big and growing disconnect between expectations of Brits who wish to emigrate and the reality of where they will end up being based and what they can afford.    

People want the pool, garden,  short commute, nice high street etc.  The reality  is that so many people in these cities now live in apartments or townhouses with no back yard of much size and very few will be able to afford the space etc to have pools unless they live far out or in a cheap, less desirable area. Whilst the outer suburbia in the UK and close to the countryside areas are expensive, in Australia, outer suburbs are generally seen as poor suburbs with low amenity and full of relatively less well off first generation Indian, Chinese and, inceasingly, British migrants. 

The desirable inner areas have become hard to afford unless you are very well off. 

Perhaps in years to come the exchange rates, house prices in uk compared to oz, etc will make it more worth it again.   

I can see the possible attraction of someone on a WHV , still in their twenties, without children, feeling the desire to stay on, but already established with a family? Why would you put yourself through that? 

Class divisions have certainly greatly expanded in Australia. With housing a little odd. Either massive Mcmansions build on too often small blocks, or small villa type constructions , built too close to neighbours, too often with disputes over one thing or another. Even if most keep to themselves and are hardly social.

It should be remembered also, that living inner city or close to, too often endures high strata costs. Checking out Cairns recently was astounded at the high strata. It's almost if paying rent. 

Another issue is drugs. I would always check out to the best of my ability if drug using or manufacture is detectable. It can make life most unpleasant. Speaking with real estate agents, it is everywhere.

[Blue Flu]

2 hours ago, Parley said:

It seems a world wide thing. Houses in the US have gone up a lot as well.

I think the main issue is lack of new supply, ie new houses being built. Construction has obviously slowed a lot or stopped during covid.

I expect it will level off over the next year or so. I don't think prices will drop though.

CBD apartments are becoming very cheap though due to a glut, so there are options for buyers who don't mind apartment living. They will probably be happy.

The main issue is cheap money. Low interest rates mean savers looking to invest money with some return. Housing, especially with government created incentives tend to make an ideal vehicle. Inner city apartments by and large, not wanted by permanent residents. Too often poorly built product which was marketed at the short term International students, short term working holiday visa cohort and similar. 

Prices would drop if market had not intervened. Perth was seeing quite large corrections. At a time of low migration and international students, prices should be spiraling downwards. 

[rtritudr]

3 hours ago, Parley said:

It seems a world wide thing. Houses in the US have gone up a lot as well.

I think the main issue is lack of new supply, ie new houses being built. Construction has obviously slowed a lot or stopped during covid.

The whole world is being flooded with cheap cash due to the pandemic.  This compounded with the low-interest policies that have been in place throughout the world since 2008 means that lots of money are trying to find a place to go and property is one of the biggest markets capable of taking all this cash.

It's not the only one of course.  The share market is reaching new highs too.