melbourne up 25% in 2007!

wow that's nuts... how are yields faring?

and as eastern staters said during the perth boom... "OMG, that's unsustainable, prices will crash, oh the indignity!"
 
Some suburbs are up 50% in one year....

If an asset goes up half in one year I would bet pounds to peanuts that its not going to move up much the next few years.
pieman
 
There's still plenty of affordable suburbs in Melb which I'm sure will go up as people scramble over there for more affordable houses.
 
tubs said:
There's still plenty of affordable suburbs in Melb which I'm sure will go up as people scramble over there for more affordable houses.
Click to expand...


Hi Tubs, that's why I am jumping back into this market, some of the inner city stuff still seems good value.
 
pieman said:
Some suburbs are up 50% in one year....

If an asset goes up half in one year I would bet pounds to peanuts that its not going to move up much the next few years.
pieman
Click to expand...


Has anyone ever heard of a suburb going up that much in one year? I never have.

I find it hard to believe. Not saying you're inaccurate Pie; the info you were given maybe.

Where did those figures come from?
 
not much... I think it may be a dodgy number that one. Take something like Daglish though - no redevelopment, no new housing to note... that's all pure cap gain baby!
 
MTR said:
Hi LA
I am also hoping for more growth.
Kew is one that stands out, 60.7% growth.
http://www.theage.com.au/news/natio...s-pop-champagne/2007/08/05/1186252546257.html
Click to expand...

With the highest growth of any suburb in Victoria in the past 12 months, I wouldn't be looking at Kew at this point in time (even though I have a prop there that I purchased in 2002).

Very low rentals yields for a new acquisition coupled with doubling of prices in the last 3 years; ... and the middle - outer ring looks heaps more better for future CG and yields than it has ever been since the last boom of 2000.

Harris
 
Harris said:
With the highest growth of any suburb in Victoria in the past 12 months, I wouldn't be looking at Kew at this point in time (even though I have a prop there that I purchased in 2002).

Very low rentals yields for a new acquisition coupled with doubling of prices in the last 3 years; ... and the middle - outer ring looks heaps more better for future CG and yields than it has ever been since the last boom of 2000.

Harris
Click to expand...


I agree Harris, round my way land prices are $200-300 a sqft with yields about 2% if lucky. Makes holding quite expensive.
pieman
 
With 25% being the average increase and some suburbs being way above the increase, I'm wondering what suburbs have missed out?

Anyone know of any suburbs which meet the following criteria?
a) less than 10% rise in 2007
b) has its own railway station
c) Is not adjacent to large new land offerings
 
i noticed , as the houseprices rises and the rents stay the same , whats the lowest yield you'll accept?

i mean 5% is not that great , so what about 2.7% gross? ... if you bought a house that had no or little cg in 3-4 years like sydney 2003-now , that would be a really bad deal? .... and just holding on to the next boom? and seeing week after week how the money is drained from your bankaccount ? and the renters snicker ... hmmm ...

and well the houseprices keeps going up but the rent doesnt ... somewhere there must be a breaking point where RE is not worth buying into anymore... its good enough if you bought and got great CG already...

thank you for your comments.
 
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