Brace for even higher price!

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

I think it got close or hit 75 this year, but it recently went close to 80.
 
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.

Agree, RBA won't be raising IR anytime soon.

Au$ attractive for o/seas investors.

One strategy to slow the market - tighten finance, not sure whether this will work?

More steam left in Melb market, watch this space:)
 
Google this.

Security location guide - Australia - from Genworth

And you will get full list.


This is myth though... Most postcode on their list (in meto city) is dominated by overseas purchasers where there is none to 60% lvr.

Such restrictions ultimately affects average local Joe and fhb.
 
postcode lending restrictions are the obvious answer

post code lending restrictions would possibly lead to putting more pressure on other suburbs where finance is not restricted.

This type of meddling approach would lead to more negative consequences than just letting the market decide where to put its money.
 
post code lending restrictions would possibly lead to putting more pressure on other suburbs where finance is not restricted.

This type of meddling approach would lead to more negative consequences than just letting the market decide where to put its money.

if postcode restrictions is meddling then that meddling is already happening with all the consequences that go with it. this is just changing things around a little. Simple as any postcode 2xxx is deemed high risk, LVR Max 70%
 
This is myth though... Most postcode on their list (in meto city) is dominated by overseas purchasers where there is none to 60% lvr.

Such restrictions ultimately affects average local Joe and fhb.

DK... one minute I am told overseas are not fuelling the market, next I hear they are the devil
 
Yep....and when buying off the plan ensure that you also pick a developer who is financially solid....banks are know to pull funding mid way through if they feel the market is going to get ugly an cut losses...:D

I feel the low risk approach is not to develop but to flog the development approval....in a hot market. The risks associated with develop are to huge to mention...probably why 80% of developers eventually go bankrupt unless you are one of the big boys who are cashed up...

Google this.

Security location guide - Australia - from Genworth

And you will get full list.


This is myth though... Most postcode on their list (in meto city) is dominated by overseas purchasers where there is none to 60% lvr.

Such restrictions ultimately affects average local Joe and fhb.
 
Most bigger project will require pre sale to level of 70 to 100% debt coverage.


If you line up ducks right... Can avoid market movements.

Also,I am not aware of cases, where bank pulls out of signed loan contract, if all paritrs involved haven't breached any conditions.
 
Scenario...what happens if there is a problem with end values on the development and none of the products value up??

Can you afford to sue the buyers enforce the breach on their side...and stave off the banks?

Most bigger project will require pre sale to level of 70 to 100% debt coverage.


If you line up ducks right... Can avoid market movements.

Also,I am not aware of cases, where bank pulls out of signed loan contract, if all paritrs involved haven't breached any conditions.
 
Hypothetical scenario!! Very slim chance of happening IMO.

Anyway..I haven't done concrete jungle projects ...so can't weigh in..

However.. Small developments with healthy margin to begin with would be way to go.

And something that can be retained and rented to pay off mortgage would add another cluster of safety.
 
OK...just that in 2012 I picked up a 3x2x2 T/H in Wyong which WBC took off a small developer who was building three.

How do you manage the end cost? Building T/H and Units is very different to H&L packages...any case I am sure you have done you due diligence.

Hypothetical scenario!! Very slim chance of happening IMO.

Anyway..I haven't done concrete jungle projects ...so can't weigh in..

However.. Small developments with healthy margin to begin with would be way to go.

And something that can be retained and rented to pay off mortgage would add another cluster of safety.
 
Could be number of factors in play...may be topic for.another thread.

Sticking to original thread...will be intresting to see how market plays out over this summer..
 
Yep...vive le diffrence......

I am just an old and crusty collector..... :)

Could be number of factors in play...may be topic for.another thread.

Sticking to original thread...will be intresting to see how market plays out over this summer..
 
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Also,I am not aware of cases, where bank pulls out of signed loan contract, if all paritrs involved haven't breached any conditions.

really? it's quite common. and of course was particularly rife during the GFC... St Gge have a reputation now after their conduct during the GFC with developers. Don't trust the banks for a minute.
 

BIS Shrapnel get's 9/10 of their prediction wrong.

In the news.domain.com.au 1 July 2013...


"We are forecasting total price growth in Sydney over the three years to June 2016 to be 19 per cent, or a moderate 5.9 per cent per annum."

"BIS Shrapnel is also enthusiastic about Sydney's neighbours with 18 per cent growth expected over the three years in Newcastle and 17 per cent for Wollongong"


Source: http://news.domain.com.au/domain/re...dney-property-on-the-rise-20130701-2p61k.html

Sydney in most suburbs did 18% in ONE year alone.
 
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