House prices going up??

[s713]

On 28/04/2021 at 13:36, 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. 

House prices just went up 9% in the UK this past 12 months. That could offset it, dependent on area.

6 hours ago, Toots said:

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.

You probably wouldn't get a garden in Mullaloo for $199k Toots. A decent block by the beach would be $500-$750k.

[Toots]

15 hours ago, s713 said:

House prices just went up 9% in the UK this past 12 months. That could offset it, dependent on area.

You probably wouldn't get a garden in Mullaloo for $199k Toots. A decent block by the beach would be $500-$750k.

  Good grief!

[palaceboy1]

We are just moving to a retirement village in Mullaloo as the fast rise in house prices would push us further north to get a property that would suit us . The big pull for us to move over was to be in close proximity to our grandchildren and 2 km rather than 30km is the clincher . The amount saved initially on purchase price will pay the management fees and give plenty of equity to live comfortably , I realise the final exit fees make up the cost and have explained this to our family who are more than happy to have us close

[Marisawright]

12 minutes ago, palaceboy1 said:

We are just moving to a retirement village in Mullaloo ..... I realise the final exit fees make up the cost and have explained this to our family who are more than happy to have us close

I hope you've had good legal advice on the contract.   The most important thing, if you are  a couple, is to check what happens if one of you dies. Under some contracts, the death of one partner triggers the exit clause, and the remaining partner then has to pay up, AND then, if they want to continue living in their unit, they have to pay for a whole new contract.  All perfectly legal and has left many widows/widowers destitute.  And some so-called "reputable" companies do it, too.   I know Aveo did it at one time, not sure if they've changed it after there was a TV exposé.

Edited April 30, 2021 by Marisawright

[palaceboy1]

16 minutes ago, Marisawright said:

I hope you've had good legal advice on the contract.   The most important thing, if you are  a couple, is to check what happens if one of you dies. Under some contracts, the death of one partner triggers the exit clause, and the remaining partner then has to pay up, AND then, if they want to continue living in their unit, they have to pay for a whole new contract.  All perfectly legal and has left many widows/widowers destitute.  And some so-called "reputable" companies do it, too.   I know Aveo did it at one time, not sure if they've changed it after there was a TV exposé.

This is not the case where we are going it’s a joint contract in both names . 

[Marisawright]

9 minutes ago, palaceboy1 said:

This is not the case where we are going it’s a joint contract in both names . 

Yes, so were the contracts I mentioned. That's why those couples assumed they were secure.

Edited May 1, 2021 by Marisawright

[palaceboy1]

1 hour ago, Marisawright said:

Yes, so were the contracts I mentioned. That's why those couples assumed they were secure.

Partners on the contract are treated as an exemption on disposal as long as they are over 45 years of age 

[Marisawright]

54 minutes ago, palaceboy1 said:

Partners on the contract are treated as an exemption on disposal as long as they are over 45 years of age 

That's great,  I only wanted to highlight it just in case.

[Stable]

Well this is a depressing read for one like myself, still in my 20's and due to my career still around 3 years away from being able to move over.

 

Hopefully the UK housing market rises equivalent to Australia's over the next 3 years to give me a chance!

[Johndoe]

It's a shame about Perth and I feel for folk who got in a while ago during the boom but my old memory brings me back to the usual suspects 10yrs ago on this forum always preaching that the bubble would burst. Perhaps it has for a Perth but I think those doom and gloomers may have a while to wait yet for the other capitals to cop it.

[Blue Flu]

17 hours ago, Johndoe said:

It's a shame about Perth and I feel for folk who got in a while ago during the boom but my old memory brings me back to the usual suspects 10yrs ago on this forum always preaching that the bubble would burst. Perhaps it has for a Perth but I think those doom and gloomers may have a while to wait yet for the other capitals to cop it.

Shame for Perth? You don't seem aware prices are rising. I think I'm correct in saying most the losses have now been reversed. The WA government intervened in the market to address the rapid decline. long before The Fed's followed with own policy. I would say housing is the single biggest issue in Australia in affordability and lack of rentals. Present policy has aggravated the situation which will create problems further down the road. 

[FirstWorldProblems]

In terms of policy, it's always interest rates that have the greatest affect on house prices.   Look at the two charts below 

 

People buy based not on the house price, but on the montly cost - just like they do with cars. And whilst interest rates drop, house prices rise

[Johndoe]

9 hours ago, Blue Flu said:

Shame for Perth? You don't seem aware prices are rising. I think I'm correct in saying most the losses have now been reversed.

Not to my knowledge at least not back to the mining boom levels but like you, I could be wrong as I have only anecdotal evidence of a few families that were close to negative equity when they moved to Brizzy after 6yrs in Perth

[Drumbeat]

36 minutes ago, Johndoe said:

Not to my knowledge at least not back to the mining boom levels but like you, I could be wrong as I have only anecdotal evidence of a few families that were close to negative equity when they moved to Brizzy after 6yrs in Perth

Perth prices are definitely rising and houses are selling quickly. We have sold 2 properties in the last month, both had offers on them 3 days after the first home open.

[newjez]

20 hours ago, Blue Flu said:

Shame for Perth? You don't seem aware prices are rising. I think I'm correct in saying most the losses have now been reversed. The WA government intervened in the market to address the rapid decline. long before The Fed's followed with own policy. I would say housing is the single biggest issue in Australia in affordability and lack of rentals. Present policy has aggravated the situation which will create problems further down the road. 

Perth prices are rising quite fast.

But it is the first time Perth prices have risen in about ten years.

 

[HappyHeart]

16 hours ago, newjez said:

Perth prices are rising quite fast.

But it is the first time Perth prices have risen in about ten years.

 

Ours dipped to purchase price last year (bought 11 yrs ago) Recent valuation is 10% up. Bank manger says 20% likely in 2 years. Good news for us. Back to values seen 5 or 6  years ago 

[newjez]

1 hour ago, HappyHeart said:

Ours dipped to purchase price last year (bought 11 yrs ago) Recent valuation is 10% up. Bank manger says 20% likely in 2 years. Good news for us. Back to values seen 5 or 6  years ago 

House prices are irrelevant to most people, unless you own more than one house, or you don't own a house, you are up sizing or down sizing or it is affecting the greater economy, which is rare.

Edited May 22, 2021 by newjez

[Blue Flu]

Headlines in printed media the other day was house prices are too 'boom' when borders open to international migration. All sounds like spruiking on behave of the property industry . Still house prices have risen substantially on the back of cheap money and government incentive. Any further boom will be very detrimental to the State overall. Already talk of interest rate movement. What would be better is to ensure there is not another so called boom.

[Blue Flu]

On 22/05/2021 at 02:50, newjez said:

Perth prices are rising quite fast.

But it is the first time Perth prices have risen in about ten years.

 

But the previous 'boom' was excessive. The market purely corrected plus a bit more. (still not overly excessive) The fall in ore prices and loss of employment, witnessing more leaving state than entering in intrastate migration were responsible. Ore prices again at very high levels. This won't last then back to future with falling house prices the likelihood with declining market conditions due to several factors. 

[newjez]

1 hour ago, Blue Flu said:

But the previous 'boom' was excessive. The market purely corrected plus a bit more. (still not overly excessive) The fall in ore prices and loss of employment, witnessing more leaving state than entering in intrastate migration were responsible. Ore prices again at very high levels. This won't last then back to future with falling house prices the likelihood with declining market conditions due to several factors. 

Perth has always been boom bust. With employment and house prices.

[HappyHeart]

On 22/05/2021 at 20:37, newjez said:

House prices are irrelevant to most people, unless you own more than one house, or you don't own a house, you are up sizing or down sizing or it is affecting the greater economy, which is rare.

For us and our future plans, it is very relevant. 

[Paul1Perth]

On 30/04/2021 at 15:42, s713 said:

House prices just went up 9% in the UK this past 12 months. That could offset it, dependent on area.

You probably wouldn't get a garden in Mullaloo for $199k Toots. A decent block by the beach would be $500-$750k.

That's a block without a house. Not many spare blocks left now, unless you get one with an older house on and demolish. Plenty of people doing that at the moment.

Top spot though.

[newjez]

2 hours ago, HappyHeart said:

For us and our future plans, it is very relevant. 

An old friend once told me that rising house prices just means our kids can't afford to live where we do.

[Paul1Perth]

On 20/05/2021 at 13:29, Johndoe said:

It's a shame about Perth and I feel for folk who got in a while ago during the boom but my old memory brings me back to the usual suspects 10yrs ago on this forum always preaching that the bubble would burst. Perhaps it has for a Perth but I think those doom and gloomers may have a while to wait yet for the other capitals to cop it.

Perth prices are really increasing. Not to the extent of the crazy prices in Melbourne and Sydney but going up pretty fast. Houses aren't on the market long.

I think the market is more driven over East by the shonky auction way of doing business. It's like a feeding frenzy. Not so many auctions here, home open, have a look round then the price is usually advertised. Some people are getting more than their advertised price in good areas for nice homes.

[newjez]

4 hours ago, HappyHeart said:

For us and our future plans, it is very relevant. 

I would take advantage of it while it lasts. China is slowing down its credit as they are trying to roll back inflation. This will affect mining in Australia, and eventually lead to a slow down in Australian property prices. But these things take time, so prices may rise for another year or two before falling back.