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Guest TheLege

Aussie Housing Market - To Buy or Not to Buy

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I suppose the major difference between Australia and Ireland is that Australia sells its resources. Ireland gives them away.

 

lol sooo true!


TRA April 2011, Approved May 2011, WA SS lodged 31st May, SS approved 9th June DIAC Lodged 15 June 2011, Medicals25 July 2011 - CO 13 July 2011 - Visa Granted 3 August 2011 Whoop outta dat!!!! Flights Booked 1st June :biggrin:

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The current Economist house price indicators don't bode well for Australia, or several other European countries.

 

20110709_fnc140.gif

 

More here.

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Guest widesheds

Economy changes any time and so as the prices of properties. So price rise in home and building can rise and can fall, but a great investment option.

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Guest jparrie
Economy changes any time and so as the prices of properties. So price rise in home and building can rise and can fall, but a great investment option.

 

Not now, you can't ignore the rest of the world and think that Aus is immune. When you look at Aussie banks and see that, for example, ANZ's loan book comprises of 70% residential loans, you know there's trouble ahead.

 

The government has subsidized the building industry for far too long, has kicked the can down the road for years, and now it is all coming home to roost. Way back in 2002 the RBA published a paper voicing its concerns about the Aus housing market and the possibility of a bubble. 2002!!

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"Way back in 2002 the RBA published a paper voicing its concerns about the Aus housing market and the possibility of a bubble. 2002!!"

 

But, they were wrong. How much have prices risen since 2002? Heaps. That's the problem with these so called experts, their guess is really as good as mine as to where the housing market is going. It's a pity that there is no consequences for the people that do the forecasting. They can just say "oh well, got it wrong again".

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But, they were wrong. How much have prices risen since 2002? Heaps. That's the problem with these so called experts, their guess is really as good as mine as to where the housing market is going. It's a pity that there is no consequences for the people that do the forecasting. They can just say "oh well, got it wrong again".

 

You just have to consider why these experts made these calls and in whose interests they are. hmmmm

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Guest Home Loan Experts

In the Sydney market we are seeing most luxury properties taking longer to sell and more price discounting. In the $500k to $1m mark there is still a lot of interest and prices seem stable. The inner west and southern beaches such as Coogee are still doing quite well and are slowly rising in value.

 

The housing market in Australia differs to some other countries in that vendors tend to not sell if they can't get what they believe a property is worth. So a "fall" in prices actually just results in lots of properties on the market with unreasonable asking prices that do not sell. It is the people that are forced to sell for one reason or another that tend to sell for a reduced price.

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The housing market in Australia differs to some other countries in that vendors tend to not sell if they can't get what they believe a property is worth. So a "fall" in prices actually just results in lots of properties on the market with unreasonable asking prices that do not sell. It is the people that are forced to sell for one reason or another that tend to sell for a reduced price.

In my experience this is what happens anywhere in the world once prices go too high, I don't think that Australia is any different. I know people in the UK that have had their property on the market for three years... they have the impression that their house has some kind of intrinsic value, not realising that the only value is what what someone else is prepared to pay for it.

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From the perspective of a future buyer, I think that's all good news! In fact in the long term I think its good for everyone. With less capital invested in bricks and mortar there'd be more to invest in the wider economy. Property was so overpriced in Australia, it needed to fall, and needs to fall some more. Hasn't affected Sydney yet, but it will.

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You hear all the time about the housing market collapse in America and the news I see on TV makes it sound like they can't give houses away.

Out of curiosity I had a look on-line and tried to think of somewhere that would maybe compare with Perth so picked around the coast of California, thinking that comparable houses would be dirt cheap there.

 

Much to my surprise I found that houses near the beach and in nice suburbs were still no cheaper and in most cases dearer, than comparable houses in and around Perth. In fact if I had picked somewhere near the City and the beach they were a lot more expensive. It's interesting to check these things out now we have the internet, it's pretty easy to have a look around.

Sure, there are places in America where houses are really cheap and there are places in Australia with the same. The question is would you really want to go and live there and if you did would you get a job?

 

There are some suburbs around Perth where house prices are going backwards and others where prices continue to rise steadily. A very volatile market at the moment and with lots of well qualified people needed in Perth in the next couple of years I can't see any sort of collapse coming.

 

I have a couple of friends in the oil and gas industry and their companies are on the lookout for high profile homes to let for the incoming VIP's to stay.

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Guest Home Loan Experts

I agree Paul. Supply and demand are in balance in most Australian cities. That is what makes the prices move. If we had an oversupply like the US then sure I could see a possible problem. I can't see demand collapsing any time soon so I don't see any issues. The market in SE QLD is the only one in Australia that I know of that is in serious trouble.

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But do you think the demand in Perth is really comparable to the demand in somewhere like Malibu? Seriously?

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The question is how many of these expensive houses in the US actually sell for the asking prices?

 

There seems to be a lot of optimistic pricing going on. For example, the narrowest house in New York sold for $2.1 million last year, but after a renovation the owner is now asking $4.3 million.

 

Err, right...

 

That said, the Ennis House was originally listed at $15 million in 2009, and has just sold for $4.5 million. OK, it'll need an eight figure sum spending on restoring it, but...

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In my experience this is what happens anywhere in the world once prices go too high, I don't think that Australia is any different. I know people in the UK that have had their property on the market for three years... they have the impression that their house has some kind of intrinsic value, not realising that the only value is what what someone else is prepared to pay for it.

The difference between Aus and most the rest of the world in this case is negative gearing. If my mortgage is $1000 a week and I rent it for $500 a week I can offset the rest against tax, and as long as I rent myself and don't buy then the place is CG free for 6 years. If you can't sell you can actually make more money renting your place (and renting yourself a new home) until you sell at a price of your choice than reducing the price to sell

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Guest Home Loan Experts
If you can't sell you can actually make more money renting your place (and renting yourself a new home) until you sell at a price of your choice than reducing the price to sell

 

Personally I choose to rent and I buy investment properties. It is really affordable and I can live somewhere nicer than I could afford to if I had a home of my own. Of course it isn't for everyone. If you have a family then owning a home means a lot more.

 

We're seeing a lot of our younger Generation Y customers buying investments before they buy their home because of negative gearing or simply because they have it too good with their parents and don't want to move out!

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Guest Hatton
Yawn...

 

Tired?

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You hear all the time about the housing market collapse in America and the news I see on TV makes it sound like they can't give houses away.

Out of curiosity I had a look on-line and tried to think of somewhere that would maybe compare with Perth so picked around the coast of California, thinking that comparable houses would be dirt cheap there.

 

Much to my surprise I found that houses near the beach and in nice suburbs were still no cheaper and in most cases dearer, than comparable houses in and around Perth. In fact if I had picked somewhere near the City and the beach they were a lot more expensive. It's interesting to check these things out now we have the internet, it's pretty easy to have a look around.

Sure, there are places in America where houses are really cheap and there are places in Australia with the same. The question is would you really want to go and live there and if you did would you get a job?

 

There are some suburbs around Perth where house prices are going backwards and others where prices continue to rise steadily. A very volatile market at the moment and with lots of well qualified people needed in Perth in the next couple of years I can't see any sort of collapse coming.

 

I have a couple of friends in the oil and gas industry and their companies are on the lookout for high profile homes to let for the incoming VIP's to stay.

 

Not all of America has experienced catastrophic losses only specific areas. You also have to consider how much the houses you happened to look at would have fetched in 2007 and if this is less than they would fetch now. You would need to do some more research. As other have said, Malibu would probably attract far more 'money' than Perth as it is so much more accessible.

 

Edit - I would compare Perth to say Los Vegas which is isolated but has one very big money spinning industry just like Perth

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Guest RichB

The whole world is now on the verge of collapse.....In the past economies including house prices would go up and down but we live in different times now..Europe is collapsing and will not recover to what it was or has been before..America is collapsing which will effect Australia too, and Chinese inflation is spiralling out of control which will also have an effect on the Australian economy...My view is house prices in Australia will continue to collapse no matter what all the real estate dreamers say, and will never recover to what they were as life is alot more expensive now and people just cannot afford it anymore...The whole world is in a manufactured inflation which will not slowdown..and will squeeze more and more people in the western world into poverty..

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NOT to buy. Ive been watching the Oz market for a few yrs and its starting to slow..By late 2012 Im, in my humble opinion, expecting to see it take momentum

 

I get this feeling the powers that be know its started but almost arent allowing it to be spoken about in the media as they do not want to whip up hysteria. The big guys at the top have invested heavily in property and do not want to add fuel to the fire and devalue their own investments :cool:

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Guest RichB

The greed driven real estate industry is banging on saying investors are coming back to the market..Well whoopty doo...I have no intention of buying in the near future as the real estate in this country is an overpriced rip off.....driven by greed and lies by the industry....Wait for a few years for the collapse is what I say...People DONT have the money anymore...That will drive the prices down...

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The whole world is now on the verge of collapse.....In the past economies including house prices would go up and down but we live in different times now..Europe is collapsing and will not recover to what it was or has been before..America is collapsing which will effect Australia too, and Chinese inflation is spiralling out of control which will also have an effect on the Australian economy...My view is house prices in Australia will continue to collapse no matter what all the real estate dreamers say, and will never recover to what they were as life is alot more expensive now and people just cannot afford it anymore...The whole world is in a manufactured inflation which will not slowdown..and will squeeze more and more people in the western world into poverty..

 

I can see Australia having to correct the house prices. Hopefully (I'm in the buying market) the drop in prices will not be too severe. A crash is not good for anyone. Look at the ghost estates in Ireland. Would you want to live in a cheap house on an empty estate?

 

As for Europe; the problems aren't that hard to solve. It's just a matter of going back 20 years and undoing the mistakes. Unfortunately Brussels will not let go of it grip on power. Only debts to sovereign nations should be honoured and the bankers should choke on their derivitaves.

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Not all of America has experienced catastrophic losses only specific areas. You also have to consider how much the houses you happened to look at would have fetched in 2007 and if this is less than they would fetch now. You would need to do some more research. As other have said, Malibu would probably attract far more 'money' than Perth as it is so much more accessible.

 

Edit - I would compare Perth to say Los Vegas which is isolated but has one very big money spinning industry just like Perth

 

Why would I compare Perth with Las Vegas? Perth is on the coast like California, Has a brilliant coastline that attracts lots of visitors, Has mining, oil and gas, manufacturing, tourist industry, business district.

 

Las Vegas is in the middle of a desert and has gambling. The nearest I could come to Las Vegas in WA would be Kalgoorlie.:wink:

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