Is Melbourne cooling?

yougotchange4me said:
It's amazing what info can be gained from these highly educated individuals.
Click to expand...

It's amazing people's lack of understanding of the English language on this forum. I said it was merely an observation, ALONG WITH the fact we had lots of sales enquiries today! The sales enquries is a fact, whether it means anything, I don't know, maybe next week it will be dead quiet.

But if you'd prefer I not mention my experience then I'll just keep quiet and not share what's happening.

And, by the way, if you do know how to read, you'll see that I agreed with Player, that it probably doesn't mean anything, that this was just an observation (you might want to look up the meaning of that) today.
 
Biggles said:
It's amazing people's lack of understanding of the English language on this forum.
Click to expand...
What, like this sentence?
The sales enquries is a fact
Did you mean:
The sales enquiries are a fact :)
Biggles said:
I said it was merely an observation, ALONG WITH the fact we had lots of sales enquiries today! The sales enquries is a fact, whether it means anything, I don't know, maybe next week it will be dead quiet.
Click to expand...
Yes Biggles, I understood it was your observation, not your opinion.
My apologies if it seemed like I was having a go at you directly.

I just find it fascinating when REA's make statements like that.
"We've hit the bottom so I'm thinking of buying next week"
I mean really, what basis are you making that assumption? (Mr REA that is, not you Biggles :) )

Especially when most economic data, and the general feeling in the market points to a slight downturn.
Take a look around, it does have the smell of early 90's about it.
 
Last edited:
EnzoR said:
Don't need to know anything about history, there's been a paradigm shift and we're in uncharted territory. The old rules do not apply any longer.
Click to expand...
You also forgot to add:
And this is Australia so it's different here.
Click to expand...

But this takes the cake as one of the best RE lines I have heard:
EnzoR said:
Housing is still the best investment, without question. If you're not buying now, you should take any money you have and burn half of it, not acting now will be disastrous for your future prosperity.
Click to expand...

Champagne spruiking Enzo...
 
EnzoR said:
Don't need to know anything about history, there's been a paradigm shift and we're in uncharted territory. The old rules do not apply any longer.

If you own your own home, free and clear, people will refer to you as a fool, with all that money sitting there, doing nothing. Investors have a good reason to come out and buy again. We're now in the 'middle innings' of the current economic expansion, and the next economic recession is not yet in sight.

Housing is still the best investment, without question. If you're not buying now, you should take any money you have and burn half of it, not acting now will be disastrous for your future prosperity.
Click to expand...

This guy must be some kind of joke, right?
 
The rodeo is over

Enzo,

leave the yippee kayay's for another cycle.

The rodeo in Melbourne finished in March/April of this year :rolleyes:
 
It may not be the real one

buzzlightyear said:
I am not sure if Enzo is taking the p1ss.

If he is, then he is having a laugh. If not....., mmmmmmm:eek:
Click to expand...

Actually having given this some thought, I am wondering if this is a joker who is pretending to be the real Enzo Raimondo. :confused:

I have heard him speak once briefly at an event a couple of years ago and his manner and language was not as curt or abrupt at all. I didn't agree with all he said, however he did not come across as forceful nor with the expressions of this poster.

On reflection I wouldn't think that a CEO of any organisation in the public eye would come onto a site and use the tone and ramping (psuedo spruiking) that the posts exhibit.

So EnzoR, are you pretending to be the REIV's chief? I don't see any links to the REIV or your domain under your signature tag, although as a fresh newcomer they may not be allowed just yet.

In any case, if you are who you would have us perceive please come along to our next SS Melbourne dinner as a guest speaker to enlighten us lesser informed mortals of where and how we should be buying next. :rolleyes:
 
Player said:
Enzo,

leave the yippee kayay's for another cycle.

The rodeo in Melbourne finished in March/April of this year :rolleyes:
Click to expand...

Player said:
Well done Buzz. :)


I sold at auction after a very quick three week campaign. I was a realistic vendor however and so were you.

In Feb and March of this year yours probably would have sold in 6 hours not six weeks. The ones struggling now are due to persiting unrealistic expectations from vendors and more stock than buyers. there is a lot of hesitancy out there and for good reason.

.
Click to expand...

The Market has definitely cooled and I agree that the rodeo finished in March / April. I have just sold in Melb for around 5% under what was quoted to me by the agent in April.

Like you I had realistic expectations and accepted the offer as holding out for that little bit extra in a cooling market is a risky strategy.

The sale process took about 5 weeks.

I am now looking at investing the sale proceeds on Shares or another asset class that looks to be presenting good value.
 
Selling now would be selling into a weak / weakening market. Not sure if there's much point unless you have clear outperforming assets and insufficient funds.

When property does a turn and picks up, re-entering the market risks missing a first leg up (resulting in higher entry prices) as well as substantial entry costs via stamp duty.

Not to mention the inability to leverage shares for the long-term (due to margin lending) would mean a 20% gain on property at 80% gearing would require a 100% gain in a share to match.

So given all this, I'm not convinced it's time to sell and would rather hold and ride through the wave since the properties make me money and the inability to replicate the gains of a sudden leg-up (due to leverage) and the cost of re-entering post leg-up are too much of a detriment.

The best time to sell was March / April. No matter how I look at it, now is a horrible time to sell and if anything the window for buying will open up in 12 months. Of course, each to his own and each person's circumstances are different. If you hold the property and pay say $20-30k pa due to negative gearing, then maybe you should sell since I don't anticipate much more growth. However let's say you positive gear by 10%, depending on your risk averseness, there's compelling reasons in relation to re-entry costs and the inability to perform similar leverage on other forms of equity investments that would point against selling.
 
Deltaberry said:
Selling now would be selling into a weak / weakening market. Not sure if there's much point unless you have clear outperforming assets and insufficient funds.

When property does a turn and picks up, re-entering the market risks missing a first leg up (resulting in higher entry prices) as well as substantial entry costs via stamp duty.

Not to mention the inability to leverage shares for the long-term (due to margin lending) would mean a 20% gain on property at 80% gearing would require a 100% gain in a share to match.

So given all this, I'm not convinced it's time to sell and would rather hold and ride through the wave since the properties make me money and the inability to replicate the gains of a sudden leg-up (due to leverage) and the cost of re-entering post leg-up are too much of a detriment.

The best time to sell was March / April. No matter how I look at it, now is a horrible time to sell and if anything the window for buying will open up in 12 months. Of course, each to his own and each person's circumstances are different. If you hold the property and pay say $20-30k pa due to negative gearing, then maybe you should sell since I don't anticipate much more growth. However let's say you positive gear by 10%, depending on your risk averseness, there's compelling reasons in relation to re-entry costs and the inability to perform similar leverage on other forms of equity investments that would point against selling.
Click to expand...

Personally I am at the stage where I wish to:
  • reduce my negative cashflow investments (income draining) and increase my positive cashflow investments (income providing).
  • I am looking to convert equity into income such that I can eventually not have to work at my day job to support my lifestyle
  • I believe that selling a Melbourne IP willhelp me achieve this goal sooner
  • I have made substantial gains with this IP since I bought it 3 years ago.
  • I do not believe that i will get any more substantial growth over the next few years from this property.
  • I am basing this statementon my experience at perth where the gains were spectacular and then prices went slightly backwards and have now stagnated for over 3 years.
  • Selling the IP will increase my cashflow by $5k
  • The proceeds of the sale will also be invested produce even more positive income.
  • My net cashflow position has therefore improved substantially.
 
Last edited by a moderator:
Biggles said:
It's amazing people's lack of understanding of the English language on this forum. I said it was merely an observation, ALONG WITH the fact we had lots of sales enquiries today! The sales enquries is a fact, whether it means anything, I don't know, maybe next week it will be dead quiet.

But if you'd prefer I not mention my experience then I'll just keep quiet and not share what's happening.

And, by the way, if you do know how to read, you'll see that I agreed with Player, that it probably doesn't mean anything, that this was just an observation (you might want to look up the meaning of that) today.
Click to expand...

in my opinion just go right on posting your opinions, most of this forum is just opinions.

Just because one poster wants to nick pick, doesnt mean others dont appreciate your opinion.
Maybe the 'silent majority' is happy to read your posts, just lazy to comment all the time.
 
Africandaisy said:
EGB18CT said:
I don't see Inner West cooling... Some ridiculous prices still being had at auctions around ascot vale, kensington, flemington.

You hit the nail right on the head. I was interested in this one bedroom townhouse

http://www.domain.com.au/Property/For-Sale/Apartment/VIC/Kensington/?adid=2008445552

The EPR was $350-390. It sold at auction today for $445. Nearly half a million bucks for a one bedder!!!:eek:
Click to expand...

I am still quite bullish in the longer term about inner north & west. The price differentials between properties in these areas versus the more traditional inner east inner south is well out of kilter imo. Call it arbitrage opportunities!

Disclaimer: Yes, i did purchase in Moonee Ponds last year.
Click to expand...
 
You must log in or register to reply here.

Similar threads

R
Waiting for the Sydney bust - auction clearance rates
Replies
5
Views
3K
Phiber
P
see_change
See Change and Richard Feynman . let's hype the sydney market thread .
48 49 50
Replies
988
Views
175K
Shadow
Shadow
J
How do I predict a boom in regional Victoria - Seaspray, Tallangatta etc
Replies
3
Views
2K
S.T
S
D
History repeats - Sydney and Melbourne at record prices
Replies
0
Views
1K
Deltaberry
D
G
Does Brisbane still stack up?
8 9 10
Replies
194
Views
40K
Roosterman
R
Back
Top