Melbourne Boom...Take 2!
- Thread starter JIT
- Start date
i paid 190k for a 1 bedroom unit in newport in january of 2009.
It is now rented for $200 a week.
Agent thinks he could get 215k for it.
no point i selling it though as i need to move into it in october to fill home owners grant requirements.
I am in the uk and prices in london are extreme! They beleive prices have begun to rise there also.
It is now rented for $200 a week.
Agent thinks he could get 215k for it.
no point i selling it though as i need to move into it in october to fill home owners grant requirements.
I am in the uk and prices in london are extreme! They beleive prices have begun to rise there also.
options
I'm looking at Melb for an IP but it looks like yeild is pretty low compared to other areas, eg Bris. Apartment close in SE suburbs or development opportunity a little further out are my preferred options for Melb. Any thoughts on these as far as yeild and CG goes.
I'm looking at Melb for an IP but it looks like yeild is pretty low compared to other areas, eg Bris. Apartment close in SE suburbs or development opportunity a little further out are my preferred options for Melb. Any thoughts on these as far as yeild and CG goes.
I'm looking at Melb for an IP but it looks like yeild is pretty low compared to other areas, eg Bris. Apartment close in SE suburbs or development opportunity a little further out are my preferred options for Melb. Any thoughts on these as far as yeild and CG goes.
Any shortfall in yield will be more than made up by capital gains in the next few years in Melbourne it seems.
Yep.. ditto..
Melbourne's inner/ middle ring has been on the move for the past 4 odd months...
Now its gearing momentum... but still early days (if its more than a spurt).
Clearance rates even higher than the 2007 inner melbourne boom..and been consistently so for the past 10 odd weeks, so positively more than a short spurt.
The market in 2007 then started moving but only those who were looking actively and on the ground noticed that movement. It became common knowledge soon after and it continued marching up for about another 8 - 12 months, during which most suburbs appreciated by over 25%.
I guess we have just past that initial point and its more visible now with media latching on to it quite strongly.
Most inner/ middle ring suburbs are up between 10% - 15% on Jan 09 figures, although yet to check whats happening outside that zone in outer burbs.
Harris
Melbourne's inner/ middle ring has been on the move for the past 4 odd months...
Now its gearing momentum... but still early days (if its more than a spurt).
Clearance rates even higher than the 2007 inner melbourne boom..and been consistently so for the past 10 odd weeks, so positively more than a short spurt.
The market in 2007 then started moving but only those who were looking actively and on the ground noticed that movement. It became common knowledge soon after and it continued marching up for about another 8 - 12 months, during which most suburbs appreciated by over 25%.
I guess we have just past that initial point and its more visible now with media latching on to it quite strongly.
Most inner/ middle ring suburbs are up between 10% - 15% on Jan 09 figures, although yet to check whats happening outside that zone in outer burbs.
Harris
OK you guys are doing it for Melbourne.
I'm calling boom in Sydney too. I have never seen such craziness as I did last week-end at Opens I attended. Prices way over what I expected. Multiple offers on properties. All listings sold within 1 - 2 days of listing. 55+ people crammed into apartments during OFI's. Its a boom.
I'm calling boom in Sydney too. I have never seen such craziness as I did last week-end at Opens I attended. Prices way over what I expected. Multiple offers on properties. All listings sold within 1 - 2 days of listing. 55+ people crammed into apartments during OFI's. Its a boom.
If prices really are bouncing it could be a good opportunity to sell.
I'll be putting my NSW house on the market if prices are still bubbling at xmas, because I don't think it's sustainable and I can use the cash better elsewhere instead of watching it slowly decay in value in the years ahead (it's also at sea level & close to beach which could amplify the decline...)
I'll be putting my NSW house on the market if prices are still bubbling at xmas, because I don't think it's sustainable and I can use the cash better elsewhere instead of watching it slowly decay in value in the years ahead (it's also at sea level & close to beach which could amplify the decline...)
Yep, close to the beach isn't doing you any favours at all
...Is it global warming you're worried about here?
Inner city Melbourne
In my neck of the woods Northcote we have seen quite a few first home buiyer range properties get passed in in recent weeks. Strange.
The upper end is going well though.
2 bedroom single fronted victorians are usually the type of properties that get talked up yet they are having trouble moving (sub 650). If you check realestate.com you will see a few now for private sale. I agrree with the rest of you that the middle and outer rings seem to be booming. Interesting market conditions
cheers
Aussie
In my neck of the woods Northcote we have seen quite a few first home buiyer range properties get passed in in recent weeks. Strange.
The upper end is going well though.
2 bedroom single fronted victorians are usually the type of properties that get talked up yet they are having trouble moving (sub 650). If you check realestate.com you will see a few now for private sale. I agrree with the rest of you that the middle and outer rings seem to be booming. Interesting market conditions
cheers
Aussie
Will be interesting. A house is up for auction in the same street I purchased in last year. Will post back results once house is sold.
Yup, Melbourne has been very active. A lot of it has been FHB activity on the outer ring. No secret about it.
RismarkRPData Take
Melbourne Melbourne is the second best performing capital city market with home values up 6.5 percent over the first half of 2009. Houses and unit performance is virtually on par with values in both sectors increasing by 6.5 percent. Melbourne’s median house value is 20 percent, or $117,000 lower than Sydney house values, reflecting a significant value differential. This may be one of the reasons why Melbourne’s housing market performance has been so strong. Melbourne’s rental market hasn’t kept pace with capital growth however, with rental yields now the lowest of any capital city. Melbourne houses are returning a gross yield of 4.2 percent and Melbourne units are returning a gross yield of 4.8 percent.
ABS Take
Established house prices, Weighted average of eight capital cities - Quarterly % change
Established house prices, Quarterly % change - June quarter 2009
RismarkRPData Take
Melbourne Melbourne is the second best performing capital city market with home values up 6.5 percent over the first half of 2009. Houses and unit performance is virtually on par with values in both sectors increasing by 6.5 percent. Melbourne’s median house value is 20 percent, or $117,000 lower than Sydney house values, reflecting a significant value differential. This may be one of the reasons why Melbourne’s housing market performance has been so strong. Melbourne’s rental market hasn’t kept pace with capital growth however, with rental yields now the lowest of any capital city. Melbourne houses are returning a gross yield of 4.2 percent and Melbourne units are returning a gross yield of 4.8 percent.
ABS Take
Established house prices, Weighted average of eight capital cities - Quarterly % change
Established house prices, Quarterly % change - June quarter 2009
yep.. increased NSW cyclone activity, erosion, and a local council policy of "erosion retreat". plus rising sea levels, or even the future threat becoming more accepted, is enough to reduce values quickly.Yep, close to the beach isn't doing you any favours at all
Is it global warming you're worried about here?
anyway back to melbourne...
So funny this thread popped up, I was doing a search on some suburbs the other night and ended up re-reading this thread
http://www.somersoft.com/forums/showthread.php?t=34809&referrerid=5034
and thinking 'I wonder if another thread like this will pop up now - Melbourne's market seems to be in the same situation around this exact time 2 years ago' (except no GFC!)
We've decided we're going to be moving back to Melbourne, haven't watched the area much in over a year - but a bit shocked at the clearance rates and prices - we're currently in NSW, so haven't been able to view anything in person yet - but wondering if there is as much underquoting going on as there was back in 2007? Curious so I can get a better idea of what something is really going to sell for and manipulate my search engine effectively - I'm not searching for a bargain or yield for once (PPOR this time!!). I'm very prepared to come down to check properties out, but don't want to be wasting my time like I did for 95% of it in 2007
Look forward to hearing all from all those who are 'pounding the pavement'!
Cheers,
Jen
http://www.somersoft.com/forums/showthread.php?t=34809&referrerid=5034
and thinking 'I wonder if another thread like this will pop up now - Melbourne's market seems to be in the same situation around this exact time 2 years ago' (except no GFC!)
We've decided we're going to be moving back to Melbourne, haven't watched the area much in over a year - but a bit shocked at the clearance rates and prices - we're currently in NSW, so haven't been able to view anything in person yet - but wondering if there is as much underquoting going on as there was back in 2007? Curious so I can get a better idea of what something is really going to sell for and manipulate my search engine effectively - I'm not searching for a bargain or yield for once (PPOR this time!!
). I'm very prepared to come down to check properties out, but don't want to be wasting my time like I did for 95% of it in 2007 Look forward to hearing all from all those who are 'pounding the pavement'!
Cheers,
Jen
Look forward to hearing all from all those who are 'pounding the pavement'!
Cheers,
Jen
Long time no hear Jen! Welcome back. Yes, I am pounding the pavement again. I think it's harder to buy now than it was in 2007!! So many FHB's around! In the area I live, property doesn't even last a couple of hours once it has been put on the net it is under contract!
Banks are now requesting full valuations for anything selling for $500,000 and above as they are wary of this latest surge in prices. Anything around $450,000 or so still gets away with a curb side valuation.
mmm. Interesting times!
Regards Jason.
Hi MTR,
I am not really sure whether the current prices are sustainable. I would say if you are buying for the long term then low interest rates make now an attractive time to buy. Population is also predicted to increase in Melbourne in the future. Add to that the restrictions that have been removed by the FRB for overseas buyers and I guess there is a case to say that property in Melbourne will be in demand for some time to come.
I should have bought again last year - it would have been a much easier market to buy into! Oh well.
Regards Jason.
I'm hearing of a few ''sold before auctions'' atm...
I think in the auction suburbs this may be a good way to get a good property at a fair price, without emotional bidding pushing prices up to silly levels.
You just need to be able to put a finger on what is a fair price so that you can confidently make a decent unconditional offer before auction.
I think in the auction suburbs this may be a good way to get a good property at a fair price, without emotional bidding pushing prices up to silly levels.
You just need to be able to put a finger on what is a fair price so that you can confidently make a decent unconditional offer before auction.
Yes, seen a few examples of this in around Frankston of late too.
Looked at a few houses in Frankston area and Mornington and am amazed at the prices and how quickly they have sold, and/or, the interest shown in them.
Man, at the moment it seems you have to be real quick, if you're that keen on buying.
