Bware the mother of all housing booms
- Thread starter Ausprop
- Start date
Lock and loaded!
the mama of all housing booms will be followed by the big daddy of all economic down-turns.
"Seven-six-two millimeter. Full metal jacket.
This is my rifle. There are many others like it, but this one is mine. My rifle is my best friend. It is my life. I must master it as I must master my life. Without me, my rifle is useless. Without my rifle, I am useless. I must fire my rifle true. I must shoot straighter than my enemy, who is trying to kill me. I must shoot him before he shoots me. I will. Before God I swear this creed: my rifle and myself are defenders of my country, we are the masters of our enemy, we are the saviors of my life. So be it, until there is no enemy, but peace. Amen." Full Metal Jacket (1987)
That's right. In the next 2 years, this country's growth is now going to slow down to the level that the USA wishes to achieve in 10 years. Doom times ahead.
No doubt growth is slowing - this much is common knowledge and has led to interest rates being slashed to all time lows.
In every slowdown I can remember, going back to 74/75, property prices rose during recessions.
Obviously, those who pay too much or buy junk will find that it all ends in tears.
That said, there are careful profits to be had for those who buy into the lowest decile of Australian property.
As property prices rise , we'll feel wealthier ( well we actually will be ) , we'll feel more confident and we'll start buying things . I might get that Cobalt the kids want ...that's after we get the Jetty I want ..
The property market is a large section in the australian economy. I think increasing prices will lead to increased building and this will be one factor leading to an improvement in our domestic economy.
Cliff
The property market is a large section in the australian economy. I think increasing prices will lead to increased building and this will be one factor leading to an improvement in our domestic economy.
Cliff
There's opportunities in every boom and recession.
I don't know if you have to buy only in the lowest decile to achieve that though.
I don't know if you have to buy only in the lowest decile to achieve that though.
I hear what you say - and you are right. As President Kennedy's dad used to say: "A rising tide raises all ships."
However, IMHO I get a better feeling of safety in buying the cheapest 10% of asset classes in any one suburb. When you do it that way, its like shooting fish in a barrel and its pretty hard to go wrong.
My brother has a holiday house in Busselton and he mentioned that though the market has tightened, less stock now than last year certain pocket have not yet recovered, in particular properties which are not on the beach side or West of Busso.
I am not familiar with this market but from what I have heard you have time on your side but I would be looking at purchasing sooner than later.
Also, if you can buy on the beach side it may be the way to go for future growth.
MTR
Sydney market..."hot, hot"
McGrath fears property market running too hot
"Even John McGrath, Sydney’s most prominent real estate spruiker, is concerned the nascent real estate boom spurred by low interest rates is at risk of overheating.
Mr McGrath, the chief executive of McGrath Estate Agents, says the *Sydney market is “hot, hot”, citing *auction clearance rates above 80 per cent over the past three months...."
http://www.afr.com/p/national/mcgrath_fears_property_market_running_1bYTy2Cd3O838PNEoefJKI
"On Saturday property developer Legacy Property sold 90 off-the-plan apartments in a new tower that will be built in Bondi Junction in Sydney, a sale of four every minute."
http://legacyproperty.com.au/capitol-bondi-junction/
More news articles referring to nascent boom:-
http://www.theaustralian.com.au/bus...housing-and-boom/story-fn9656lz-1226695169315
http://www.brw.com.au/p/business/handle_the_boom_back_experts_say_UG8poK5A1WDZcc17tvyWQK
"...Sydney real estate agent Ray Fadel says he’s flogging homes at the fastest rate he’s seen in his 13 years in the industry. Over the past four months he’s sold 22 of 24 properties, and three have topped $3 million.
“I haven’t had that high clearance for the whole time I’ve been in real estate,” Fadel, the principle (sic) and licensee of Raine & Horne Sans Souci, tells BRW. “It’s been about three years since we’ve had a couple of $3 million-plus sales in this area, and I’ve had three in the past 12 weeks.”
McGrath fears property market running too hot
"Even John McGrath, Sydney’s most prominent real estate spruiker, is concerned the nascent real estate boom spurred by low interest rates is at risk of overheating.
Mr McGrath, the chief executive of McGrath Estate Agents, says the *Sydney market is “hot, hot”, citing *auction clearance rates above 80 per cent over the past three months...."
http://www.afr.com/p/national/mcgrath_fears_property_market_running_1bYTy2Cd3O838PNEoefJKI
"On Saturday property developer Legacy Property sold 90 off-the-plan apartments in a new tower that will be built in Bondi Junction in Sydney, a sale of four every minute."
http://legacyproperty.com.au/capitol-bondi-junction/
More news articles referring to nascent boom:-
http://www.theaustralian.com.au/bus...housing-and-boom/story-fn9656lz-1226695169315
http://www.brw.com.au/p/business/handle_the_boom_back_experts_say_UG8poK5A1WDZcc17tvyWQK
"...Sydney real estate agent Ray Fadel says he’s flogging homes at the fastest rate he’s seen in his 13 years in the industry. Over the past four months he’s sold 22 of 24 properties, and three have topped $3 million.
“I haven’t had that high clearance for the whole time I’ve been in real estate,” Fadel, the principle (sic) and licensee of Raine & Horne Sans Souci, tells BRW. “It’s been about three years since we’ve had a couple of $3 million-plus sales in this area, and I’ve had three in the past 12 weeks.”
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There's no doubt after (maybe 6 months, 1 year or 2 years) of sustained growth, Sydney will enter at least 3 years of stagnation and maybe slight retraction in prices.
That happens in every mini cycle, every major run-up, every city, every country. Not sure why people are "concerned". It's all part-and-parcel.
The question people should be asking is why they didn't see this run-up coming and whether they've positioned themselves to make $$$$$ in the last 6 months.
That happens in every mini cycle, every major run-up, every city, every country. Not sure why people are "concerned". It's all part-and-parcel.
The question people should be asking is why they didn't see this run-up coming and whether they've positioned themselves to make $$$$$ in the last 6 months.
