Melbourne's Hot Property Market

[Wibbly Pig]

Seems like the cashed up asian investors are a force in the property market to compete with its like just huge reserves of cash to play with and not afraid to bet with it in this fueled up property market.?

This statement sums up EXACTLY what is going on at the moment.
Pure rampant SPECULATION. No one knows how it will end. The market may double again in the next 12-24 months, but believe me it will end and when it does, Australia will be facing a massive economic disaster, similar to Ireland, US, Spain etc...

 

[jingo]

Jingo that's a crazy result!!!

And to think I only missed out on a wonderful top floor beauty in Haines st by 5k (sold for 405k, my offer was 400k) just back in Oct 2009.

Makes me pretty happy in my place I bought for 535k

Pity they won't revalue within 6 months.

True David.

I hear they are now going for over $700,000 in Toorak - is that correct?

Regards Jason.

 

[Monopoly]

The property next door (identical) sold on 12 December for $465,000 but I didnt have my finance sorted out then. This one went on Saturday for $545,000. That's an $80,000 price rise in 3 months.

I purchased a property in February for $445,000 which hasn't even settled yet. Last week the place next door was listed, and sold 2 days later; virtually a carbon replica of the house I purchased with a few obvious differences mainly layout (land and property dimensions almost identical) for $525,000. The REA who sold it said if I wanted to put mine back on the market, he had people interested in buying and would pay $500+ !!! Amazing!!!

 

[willair]

The simple truth is that land is expensive (and will continue to go up) because costs are so high. My friend is subdividing land in Mitcham and to cut up a 2200sqm block into 4 lots has taken 1-2 years + 50k subdivision costs + interest! The council had to get their own special plumber to connect the sewage, thus only ONE person available to service the whole area! So the 'intrinisic' value of any piece of land has to take into account all the stupid delays and irresponsible handling of subdivision/planning/building by the local councils and neighbours. Only if these unnecessary delays are removed will developers be able to lower prices yet keep a reasonable margin on their developments.

You can blame who you want,but by removing the delays do you think the price of property price will slide and take all property investors down the investment cementry road,get real not everyone stated in the property they first wanted they worked their way up over years..
willair.

 

[RedCat]

I purchased a property in February for $445,000 which hasn't even settled yet. Last week the place next door was listed, and sold 2 days later; virtually a carbon replica of the house I purchased with a few obvious differences mainly layout (land and property dimensions almost identical) for $525,000. The REA who sold it said if I wanted to put mine back on the market, he had people interested in buying and would pay $500+ !!! Amazing!!!

That's amazing and good for you! Love it.

 

[willair]

I purchased a property in February for $445,000 which hasn't even settled yet. Last week the place next door was listed, and sold 2 days later; virtually a carbon replica of the house I purchased with a few obvious differences mainly layout (land and property dimensions almost identical) for $525,000. The REA who sold it said if I wanted to put mine back on the market, he had people interested in buying and would pay $500+ !!! Amazing!!!

Sounds good on paper,but once you take all the entry and exit costs how much money would be left in the money tin if you sold for 500k plus
when everything is going gang busters like it has from my experience in Brisbane several times over the past 9 years everyone attributes their
successes when all the dots line up too their skills,,but when everything hits the fan,everybody look for external events outside our control..willair..

 

[RocketMan]

Sounds good on paper,but once you take all the entry and exit costs how much money would be left in the money tin if you sold for 500k plus
when everything is going gang busters like it has from my experience in Brisbane several times over the past 9 years everyone attributes their
successes when all the dots line up too their skills,,but when everything hits the fan,everybody look for external events outside our control..willair..

I have to agree fully here. Speculation is fine because that is how capital growth ticks over for everyone. It's just that Chinese investors have a real speculative mentality, as they love to gamble. Just look at their stock market, Macau casinos etc and you will know what I mean. Just make sure that if the bubble bursts that you are still able to service any loans. Otherwise you have no one to blame but yourself.

 

[Ms Jade]

Meh, not happy about the bubble. Looks like I won't be buying for a while until it flattens out (and it will). It seems like not EVERY property is going wildly over value but I can't be bothered looking for bargains in this environment. It was sooo much easier a year ago...

 

[jingo]

Just make sure that if the bubble bursts that you are still able to service any loans. Otherwise you have no one to blame but yourself.

I think people who are currently invested in the Melb market and are meeting their loans without any problem won't be affected if the bubble bursts. (Especially those who have been in the market for a substantial period of time).

For those with exposure to the Melb market, now is an ideal time to have the properties re-valued, draw up LOC's etc and look for opportunities in other markets (interstate, etc).

Regards Jason.

 

[Monopoly]

Sounds good on paper,but once you take all the entry and exit costs how much money would be left in the money tin if you sold for 500k plus
when everything is going gang busters like it has from my experience in Brisbane several times over the past 9 years everyone attributes their
successes when all the dots line up too their skills,,but when everything hits the fan,everybody look for external events outside our control..willair..

Who said anything about selling up (for any price) I've just bought it, and wouldn't be so silly to sell under 12 months anyway not for 500K or any price as CGT would be charged at the full rate!!!

 

[The Fence]

Sounds good on paper,but once you take all the entry and exit costs how much money would be left in the money tin if you sold for 500k plus

...and not to mention your re-entry into the market at the higher prices.....unless of course you get another 'bargain'....

 

[Giddyup]

But its not much fun though for those of us trying to buy a PPOR.

I wanted to buy this 2 bed townhouse in Kensington, which went to auction on Saturday http://www.realestate.com.au/proper...ngton-106358632?tm=1269861355&c=7517076&t=sol

The property next door (identical) sold on 12 December for $465,000 but I didnt have my finance sorted out then. This one went on Saturday for $545,000. That's an $80,000 price rise in 3 months. My recent public service payrise of $19.15 per week doesnt exactly keep pace with that sort of inflation.

Haha. I went to that auction as well. What a joke. The place is only getting $350/wk rent! The person who was throwing in 5k bids at the end was a moron.

 

[RocketMan]

guess you need to leave the public service and get more pay! lol

 

[Luv2Travel]

guess you need to leave the public service and get more pay! lol

Or ask Daddy to buy it for you...

 

[RocketMan]

That could work too. Probably much better in fact

 

[dunno]

But its not much fun though for those of us trying to buy a PPOR.

I wanted to buy this 2 bed townhouse in Kensington, which went to auction on Saturday http://www.realestate.com.au/proper...ngton-106358632?tm=1269861355&c=7517076&t=sol

The property next door (identical) sold on 12 December for $465,000 but I didnt have my finance sorted out then. This one went on Saturday for $545,000. That's an $80,000 price rise in 3 months. My recent public service payrise of $19.15 per week doesnt exactly keep pace with that sort of inflation.

Wow I have a very similar property that has two beds, two baths in Kensington. Will gladly let you have it for $550k

 

[aussierogue]

Trogdor said.

qte
And counterproductive to Melb productivity. I wonder how many people will save $500k - $1m on a PPOR and instead move to a regional city, invest the balance, and earn an extra 35 - 70k income passively from rent / dividends (taking a commensurately lower stress, lower paid job).
unqte

That thinking is close to where im at - now to convince the missus. lol

 

[aussierogue]

Give monopoly a break guys. She bought a house and it looks like it has appreciated nicely even before settlement. She has said nothing about selling and you dudes are carrying on like she doesnt know her nose from her face.

She never said anyhting about speculation

Be happy she is on a winner.

 

[paul2299]

This is a bubble. Plain and simple.

And counterproductive to Melb productivity. I wonder how many people will save $500k - $1m on a PPOR and instead move to a regional city, invest the balance, and earn an extra 35 - 70k income passively from rent / dividends (taking a commensurately lower stress, lower paid job).

I think not many. For the people who do I think they'll have alot of trouble getting back into Melbourne if they ever wanted to.

 

[aussierogue]

They key there is to keep a melbourne house.

rent in the country. Access equity.