House prices drops worldwide ?

[atti]

i am just wondering if this situation is going to get any worser ? some optimise said 2010 clouds would clear but other experts expect differently, 2010 is going to be worse financial crisis in history..

we all know we can pick up a decent house in usa for 50-100 grand.

what about uk ? euro ?

what about china, thailand etc ?

if unemployment goes up to 7% (statistically ) more like (10%) actual i am sure rent and property price will fall... any opinions on this ?

 

[jaycee]

yeah, my opinion is "dunno"

 

[Propertunity]

i am just wondering if this situation is going to get any worser ?

Yes it is going to probably get much more worser before it gets any betterer.

some optimise said 2010 clouds would clear but other experts expect differently, 2010 is going to be worse financial crisis in history..

Would these optimise ppl also be the same ones that predicted:
1. This resources boom is not like the others we've had to date - it will go on for 10 years or more?
2. China has decoupled from the US economy, so even if the US goes into recession China won't?
3. The BRIC (Brazil, Russia, India & China) countries will keep Australia's resource boom continuing?
4. Interest rates will continue to rise in 2009?
5. well you get the idea.............even the best optimisers did not see the GFC coming..........

we all know we can pick up a decent house in usa for 50-100 grand.

Maybe we should go there then?

what about uk ?

Too cold. Maybe if their houses are cheaper than USA we could go there?

euro ?

Where is that?

what about china, thailand etc ?

Too hot and tsunami wash away house there. No good.

if unemployment goes up to 7% (statistically ) more like (10%) actual i am sure rent and property price will fall... any opinions on this ?

You sure? Better sell then. I might buy - How much you want?

 

[atti]

lol thats about sums it up, i freaking getting a headache weather to sell or not.. develope isnt an option as bank wont lend...

agents are knocking on ma door and droping off heaps of brochure so there must be lots of buyers in my area, 315k is what i am going to be asking

 

[Propertunity]

lol thats about sums it up, i freaking getting a headache weather to sell or not.. develope isnt an option as bank wont lend...

agents are knocking on ma door and droping off heaps of brochure so there must be lots of buyers in my area, 315k is what i am going to be asking

atti,

I think if you take the view that things are going to get worse AND for an extended period AND you have a property worth $315K which is clearly in FHB territory AND you cannot hold onto the property to ride things out, then I suspect that the next 3-4 months till June 30 would have to be the best time to sell.

 

[Perp]

lol thats about sums it up, i freaking getting a headache weather to sell or not.. develope isnt an option as bank wont lend...

Why not just ride it out? Is the cashflow a drain?

 

[kum yin lau]

Hi, whereabouts is it, Atti? Just the suburb or indication of area will do. Someone in Adelaide may be able to develop it with you.

I've seen something with DA that's doable but I just KIV it and monitor.

KY

 

[atti]

its at woodville north.

 

[atti]

cashflow is a cow for my prop as i owe bank only 70k on prop worth 315k
but i am unemployed maybe for long term (very badly broken wrist) from accident.
i am looking for other options to make me money and support me living for long term.

i have an uncle i can trust in USA that i could send money over to invest and house prices seem to keep coming down.

click on link for info on my block. thats basically just land value...
i've found out some inside info that the house down the street that was sold for 245k to family member, but for other people looking at rpdata they wouldnt take this into consideration as its same as my block. lol now everyone going to think my block is worth 245k if people relies on rpdata..

 

[kum yin lau]

Hi, sale shouldn't be too much of a problem, I'd think.

You'd get much more mileage out of developing it. Building costs are now stable and dropping. Tradies are much easier to find now.

Even DA would be easier as building activity decreases. Only problem is subdiv costs have gone up and not coming down.

Any interest in JV?

KY

 

[atti]

i have not advistised a JV agreedment yet, but from info that i have, the subdivision of the 2 block of lands directly behind me, both 3-2-1 houses were sold between 345-365k each!!! approx 346 sqm of land divided straight down middle of same block as mine.

kim do you know of any builders can built 2x houses similar for cheap ? i would much perfer joint venture and make bigger profit but houses takes approx 8-12 months to built and i am not sure if we could fetch those prices by the completion unless we get people to buy off the plans to pay for our funding of building 2 houses..

 

[kum yin lau]

Hi again, your quoted end values are correct. If you're near Westwood, then the values may be lower.

I'd place end value @ $380K but before you get all excited about it, I'd suggest you really look at the numbers. There's not a HUGE margin in it unless you bought the original very cheaply.

Land value = $315000 + costs [in this case, you've already paid]
Subdiv = $20000 [estimate only, could be less]
Let's just budget $350000 all in
Holding costs [interest] = $20000 [should be enough]

Construction = $250000

Total cost per house = $310000 [I've even put in demolition / surveys etc]

Sale price = $350000 [your estimate] means you DON'T MAKE ANYTHING meaningful.

Even $380000 is rather skinny.

Put in the GST, sale cost + holding interest.

Then you see why no one is rubbing their hands in glee or jumping up and down to do it.

For buy & hold, it has more merit because you might get CF+ but -ve gearing with depreciation to 'float' the investment along for 5 years as a rental IP.

You should easily achieve $330 pw even without considering future rent increase.

KY