Brace for even higher price!

Discussion in 'Property Investment - Other' started by mflying, 15th Jun, 2015.

  1. mflying

    mflying Property Developer

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    interesting article.

    http://www.smh.com.au/business/the-...even-higher-house-prices-20150615-gholmq.html


    Employment is going well
    Falling AUD
    Property hype by media
    Record low interest rate
    Higher cost of subdivision
    slow approval process.

    are contributing factor to price.

    Hearing bubble is going to burst soon.. but as long as above factors stays strong and govt doenst introduce any new policy.. i personally don't see this boom coming to end any time soon ... (12-18 months)

    Investor will just keep moving to more affordable states/cities..

    Sydney..melb..Brisbane..Adelaide...
     
  2. MsAli

    MsAli www.propertytwins.com.au

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    If prices are to double from last peak in 2003-2004, agree there is sometime to go..But I'm just watching to see what happens...

    Btw, falling AUD - isn't that what the government want?
     
  3. sash

    sash Member

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    Its already done that Sind1...

     
  4. Beelzebub

    Beelzebub Member

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    I think they see an ideal and balanced AUD around the mid 70c mark. Too low and it hurts importers, too high and it hurts exporters. If it goes too low the Reserve might put up interest rates to encourage foreign investment in AUD

    My understanding anyway

    Beelzebub
     
  5. Zos

    Zos Member

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    All this bubble talk is rubbish. I have a few mates who are waiting for this bubble to burst to jump in and buy their PPOR. All that is happening is the price of property is getting further and further away from them.

    All these so called experts just keep stating the same rubbish year after year thinking they might get lucky with their prediction.

    Less and less land will be available year after year and what is property supposed to get cheaper.

    That is what I think anyway.
     
  6. mflying

    mflying Property Developer

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    Most Chinese investors.. invest their funds via Singapore /HongKong or other Asian countries.

    SGD has done well against AUD over years..
     
  7. sash

    sash Member

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    Bubbles are created in certain markets...there are markets within cities...

    There is a bubble forming in some parts...but not all.

    As always ...the property market is cyclical. Some people always think the property market will crash. Sometimes they are right but not always...

     
  8. windyzz

    windyzz Member

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    Wait until interest rate rises, or over supply in some area where there are very high vacancies.... You'll see prices will drop significantly
     
  9. mflying

    mflying Property Developer

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    Already happening in some part of Perth... rents are dropping by $40-$80 per week.. longer vacancy period in between tenants..

    but cant see that happening in Sydney and Melbourne for little while.

    lower interest is here to stay for while.


    like everything, this boom will come to an end...but not in near future.
     
  10. windyzz

    windyzz Member

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    Yeah agree that rate will stay low for some time, but Melbourne are more prone to over supply. Their vacancies rate is passed 3.5%, where Sydney still in 1.5%. But imo even in Sydney we'll see some correction in some area soon
     
  11. NeilP72

    NeilP72 Member

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    Interested to hear which areas in Sydney or Melbourne you think
    Will be most impacted if rates rise.
     
  12. mflying

    mflying Property Developer

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    If rate rises.

    As usual blue chip and some

    Developers who paid stupidly high price for land or house

    Concrete jungles like mascot, Zetland,wollicreek..anything with higher starta fees

    If unemployment rises..

    Some part of western sydney is in firing line..where ppl paid 1 million plus for old fibro homes.
     
  13. windyzz

    windyzz Member

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    Melbourne will be dockland, southbank. Sydney maybe zetland, mascot..
     
  14. mflying

    mflying Property Developer

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    Why Sindhi..

    If anything sassy and smart!!!!!
     
  15. Zos

    Zos Member

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    I know there are a heap of apartments being built in Melbourne.

    How is that going to effect a house with a 600sqm+ block?

    If a ton of houses hit the market on new estates (further and further away from the CBD) don't see how that is going to impact established suburbs either.

    Only place might be where people are paying stupidly above what something is worth are at risk. That in itself is a very small portion of Melbourne I would think.

    So 2% of Melbourne is in a bubble and the rest 98% is not. But reading the headlines you would think it is the other way around.
     
  16. windyzz

    windyzz Member

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    Im not sure about houses.. I don't think houses will be affected with the apartment over supply. Generally apartment especially those who bought 2 bed OTP in inner city for like 1.5 mill lol
     
  17. Zos

    Zos Member

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    Yeah I agree!
     
  18. sash

    sash Member

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    Yes some parts....but if you differentiate your products it is okay. I just rented mine which completed in April for $390pw....this was a small 17 sqm house on 284 sqm.

    I personally think interest rates will start rising from late next year. People will be caught unaware....

    I have seen 2 cycles already.....the mom and pop developers will lose the lot. It happens every cycle. Agree about Zetland and Wollicreek. I feel that once the price adjusts Zetland will offer potential for the future just like what happened with Redfern and Surry Hills.

    Western Sydney (in particular Blacktown and Hills) and Epping/Eastwood will also take a hit.
    Not likely...it looks like Melbourne is going and Brissie also once these cities and Adelaide go...RBA will have not choice but to raise the rates.
    A private joke a post many moons ago...
     
  19. MsAli

    MsAli www.propertytwins.com.au

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    That's cos sri sash thinks we wanted to get every dollar out of our demo...

    I said may be guju???
     
  20. JDP1

    JDP1 Member

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    I'm not sure how much southbank and Docklands will take a hit once rates rise. The reason is that most are pimped off to overseas buyers who are not rate sensitive. In their own countries, yes, but not really here. What will hit them is if rents collapse, and I can't see that happening with rate rises. Rises will hit those who have leveraged to the max without prospects of income increases. Saw something similar in the US during the gfc..