Australian Property Market - 2011

[mary&mat]

wunderbar:

So you're diversifying? That's a rational move. I'd love to get into business but with a young family, it's a risk I'm not prepared to take right now & put everything we've worked for so far on the line.

I'm completely happy with property being my vehicle to wealth for now & I know I'm a bull with regard to it.

All the best with your other investments - I really hope they make you great money!

(And a belated welcome to the forum too )

 

[Wunderbar]

It is hard having a family because you are inclined to be risk adverse, especially if it is a young family. Problem I find is that once you are ready to take more risk, you're already a bit too old to have the energy/drive to do it. It's a catch-22

 

[mary&mat]

Yeah, agree.

My partner's crap with money (by his own admission) so I pretty much handle all our money....run things by him & get his ok, but he trusts me. It's not always easy having the confidence to follow your instincts

So for me, property suits my risk profile & although I'm always learning, I feel comfortable putting our money into it for the lil one's future & hopefully for our retirement too!

 

[charlieandkath]

What are you talking about?

It's got nothing to do with being a 'lucky country'. It's about whether your citizens and residents alike can afford the houses? And if they can't then who's buying it...? Spruikers with massive amounts of debt? Sounds like a recipe for disaster to me.

For the record, Sydney has always been the financial powerhouse of the country, even though it's not exactly 'booming like a mad cow with disease'. It's the same as New York City and Tokyo, which are still financial powerhouses of the world even though they're in a recession...

Its got a fair bit to do with it if common sense prevails. How do you think our citizens and residents got so wealthy in the first place? If it wasn't for the resources and stable govt. system of Australia then there is no way property prices would be as high. Who have you ever met that does not want to live in Australia. People come here and push demand for housing up, if supply is not there then price goes up.

Thats what I'm talking about. Reply to that Dangleberry.

 

[Steve Fitz]

I think what was once an interesting read and good thread has been hijacked.

 

[Melbournian]

Don't kid yourself ... The reason the fall in international students isn't having an effect is because it's a lagged effect.

At the moment there're still international students living here, finishing their degree. Once we get through the next 2 years and this batch graduates and leaves, you'll realise there's a problem when there's no new students are coming to replace them. Just as inner city booms have a ripple effect, inner city busts will have a ripple effect as people realise inner city is priced nearly as cheaply if not as cheaply as outer suburbs.

But we should probably keep encouraging bogans to bash up these Indians, as it'll make the inevitable crash happen sooner. Oh yea and discouraging migrants will help accelerate that. Populist policies will help us make money

I agree with this. Many international students are on matriculation programs. The affect would be seen only in the next 2 years. Besides not all students rent apartments. There are professionals, families and others.

 

[Melbournian]

Sure, you can buy a positively geared property. They're called either a) 20sqm studio apartments in carlton/north melbourne or b) Country properties with no population. The cycle has ended - nothing is economical to buy anymore

you can pick a decent 2 bedroom 90-100sqm meters apartment if you look carefully over the year.

 

[Wunderbar]

Yeah - I currently live in that type of apartment in the CBD and there's quite a few of them for sale in my building.

 

[Melbournian]

whereabouts? i know the CBD and fringe city apartment market in melbourne pretty Ok having followed them for the last few years.

 

[Wunderbar]

Regency Towers - 265 Exhibition Street.

They're asking around 700k+ for 2 bedroom/2 bathroom/1 car space. It's damn good value. body corp ~4k p.a with a gym on top floor, swimming pool/spa and 4 lifts.

 

[Melbournian]

If you bought it 5 years ago. u're made your money.

But it's quite a chunk of money to pay to get into the market

If you're looking to sell, market to overseas investors - ones who are coming here to buy for their kids. trust me - my agent called me and said there a chinese PR who was on the end of the residency period and needed to move in to buy something quick. Unfortunately my place was tenanted. She bought something else cash within the next few days.

 

[dog]

80 pc fall in Indian students opting to study in Australia

It looks like the exit of students will make NO impact on rental market. Even after such drastic reduction in international students, rental market is still healthy in Melbourne and its supply is still very tight and rents have increased everywhere.

Certainly not the views of leasing agents in the sunshine area and surrounds in Melbourne given the bashing of Indian students last year and the reduction of those returning to study.....
Perhaps your prediction will ring true on the whole - however some areas will undoubtedly suffer in differing ways/degrees to others - as I'm sure some would see.