Now is a great time to buy

[eeew]

So what is the market like then?? Is there 'quite a bit of choice' or a 'limited supply' ??

Anyone who trots out the old housing shortage chestnut really doesnt know what they are talking about or work for the REIV.

It really depends on where you look. In certain areas, such as some parts of state capitals, there is quite a bit of supply and thus choice. Example, there is choice in the inner city apartment market.

Generally, and especially for freestanding houses, there is a shortage of dwellings and thus not much choice.

Overall, taking a generalist and macro-econimic view, there is a shortage- more people looking for the supply we have.

I got this information from Booz and Co. report. I'll have to dig it up and try and post it on here.

 

[Giddyup]

http://www.businessday.com.au/busin...ces-cap-home-building-hia-20110401-1cnsv.html

Great, a link from an article written by HIA, who are the building industry lobby group. Of course they are going to come up with as many lies as possible to try to convince the government to throw more money at builders.

60% clearance in Melbourne suggests that there are 40% of the properties unsold. Hardly a shortage.

 

[Melbournian]

really? the govt is expected to spend big in melbourne to accomodate expected future growth.

http://www.dpcd.vic.gov.au/planning/urbandesign/projects/southbank

nobody's talking about southbank there are many other suburbs you might not be aware of in melbourne. certain public schools etc.

there is also growth by doing nothing and manufactured growth by doing something.

 

[eeew]

'...
60% clearance in Melbourne suggests that there are 40% of the properties unsold. Hardly a shortage.

from rp data
'...
Consider also that properties passed in at auction should not be viewed as failures; auction clearance rates are not necessarily accurate reflections of sales success. This is because the auction process does not stop when the hammer comes down – even when a property is passed-in, it will usually have generated enough interest throughout its campaign to attract offers afterwards.
...'

http://www.rpdata.com/property_news/the_auction_option.html

 

[Felixter]

that's coz you don't know where to buy in melbourne. but nothing worthwhile to buy in my areas atm.

Makes no difference if I don't know the few scarce places to buy - Sydney is a better prospect with many more good places to buy. Even if I thought I was in the know, the risk of getting it right in Melbourne is a lot higher than Sydney.

 

[barry2007]

I've recently bought two units in Townsville CBD and hoping for it to take off in the next 4 years.

I still like Melton West, Frankston and Mornington Peninsula; however, Sydney is very attractive in the South West and the zero stamp duty for new properties is enticing.

Reserved to the sidelines until next year so we will see what happens till then!

Not sure of much growth in units in Townsville over the next few years. Seems to be an oversupply. Prices were expensive IMO in 2007 for a regional town. I know of many 2 bed 2 bath units bought off the plan in 2007/2008 for 285k and are now selling for 300k. Rent in that time averaged 300-330 p/w (not that I would pay that amount as you can rent a 3 bed house for that)

 

[_Kaos_]

Hi Barry, I am not expecting great things in Townsville in the next year although once 3 RAR gets there and other Government projects are finished we should see some good movement again.

With regards to renting a 3 BR house instead of a unit, I doubt you can rent a 3 BR house in the city of Townsville or any city for that matter. By the way, my 2 BR unit rents for $360 p/w, therefore, although you wouldn't rent one for that much there are plenty of people who will which is fine by me.

 

[newbyinvestor]

Hi Barry, I am not expecting great things in Townsville in the next year although once 3 RAR gets there and other Government projects are finished we should see some good movement again.

With regards to renting a 3 BR house instead of a unit, I doubt you can rent a 3 BR house in the city of Townsville or any city for that matter. By the way, my 2 BR unit rents for $360 p/w, therefore, although you wouldn't rent one for that much there are plenty of people who will which is fine by me.

Always handy to have somebody who owns property in the area being discussed .

 

[Mom]

I'm not convinced now is a great time to buy especially in lower end of the market. No bargain really standout and too much uncertainty in the economy due to high petrol prices, carbon tax, strong Asssie dollar. I'll sit and park my deposit in offset or redraw for the time being.

 

[newbyinvestor]

I'm convinced that I won't be making a mistake at all when I buy another property this year.

 

[BV]

I'm not convinced now is a great time to buy especially in lower end of the market. No bargain really standout and too much uncertainty in the economy due to high petrol prices, carbon tax, strong Asssie dollar. I'll sit and park my deposit in offset or redraw for the time being.

Other investors are probably thinking the same.
I've started looking again and I find that in the lower end of the Sydney market there is a lot of competition from FHB's. Maybe I need to look interstate

 

[eeew]

I'm not convinced now is a great time to buy especially in lower end of the market. No bargain really standout and too much uncertainty in the economy due to high petrol prices, carbon tax, strong Asssie dollar. I'll sit and park my deposit in offset or redraw for the time being.

I understand you concern about macroeconomics being volatile- but they always are. The dollar fluctuates, so do oil prices etc...happens all the time; now and in the future.

 

[newbyinvestor]

Other investors are probably thinking the same.
I've started looking again and I find that in the lower end of the Sydney market there is a lot of competition from FHB's. Maybe I need to look interstate

People can split hairs about things however property prices are treading water if not dipping a little. The clearance rate at auction has dropped a touch so the pendulum is creeping back into the buyers corner.
The reality is that even if a person says don't buy this year, FHB's will still exist next year and they will still be going their hardest to get their foot in the door of their first property, not to mention that FHB's don't just exist in the Sydney market.

 

[eeew]

Other investors are probably thinking the same.
I've started looking again and I find that in the lower end of the Sydney market there is a lot of competition from FHB's. Maybe I need to look interstate

I suspect this competition wont just be from First home buyers.

Reports are indicating overseas buyers are looking at AU properties as well. Although the report is mainly for Commercial proprty, the likeness with residential property will follow a similar suit.

http://www.businessday.com.au/business/property/wall-of-money-flowing-back-20110403-1ct3w.html


'...These were offshore investment, increasing sales, accelerating rental growth, tightening yields and rising capital values, and a continued thawing of capital markets....'



The emergence of foreign $ buying our RE increases the asking price, so id not wait too long to buy.

 

[Token Funder]

I suspect this competition wont just be from First home buyers.

Reports are indicating overseas buyers are looking at AU properties as well. Although the report is mainly for Commercial proprty, the likeness with residential property will follow a similar suit.
http://www.businessday.com.au/business/property/wall-of-money-flowing-back-20110403-1ct3w.html


'...These were offshore investment, increasing sales, accelerating rental growth, tightening yields and rising capital values, and a continued thawing of capital markets....'



The emergence of foreign $ buying our RE increases the asking price, so id not wait too long to buy.

No. From an investment perspective, commerical property and resi property are chalk and cheese.

 

[Wunderbar]

No. From an investment perspective, commerical property and resi property are chalk and cheese.

Agreed whole heartedly. You simply cannot compare.

 

[celsioraus]

Im fairly new here so i dont know too much but is it really a good time to buy after read todays article from the cfo of NAB?

http://www.news.com.au/money/property/house-investors-to-lose-interest/story-e6frfmd0-1226031748033

scary

 

[BV]

Im fairly new here so i dont know too much but is it really a good time to buy after read todays article from the cfo of NAB?
http://www.news.com.au/money/property/house-investors-to-lose-interest/story-e6frfmd0-1226031748033

scary

It depends on what type of property you are looking for.
Investors have dried up in many areas but this is good because there is less competition.
However, there are still buyers around.

 

[Giddyup]

from rp data
'...
Consider also that properties passed in at auction should not be viewed as failures; auction clearance rates are not necessarily accurate reflections of sales success. This is because the auction process does not stop when the hammer comes down – even when a property is passed-in, it will usually have generated enough interest throughout its campaign to attract offers afterwards.
...'

http://www.rpdata.com/property_news/the_auction_option.html

"The outcome of 116 scheduled auctions has not yet been reported. But if recent trends hold true, the sales level will fall at least a couple of percentage points further. Last weekend's clearance rate was downgraded from 61 per cent to 59 per cent.

The market has now experienced nearly six consecutive weeks of 800-plus property listings and, with about 1000 set for each weekend until Easter, it marks an almost unprecedented stock level for this time of year."

"We had been seeing a pretty balanced dynamic in the market, with supply and demand at roughly the right sort of levels. But now we're seeing the supply of properties exceeding demand"

http://news.domain.com.au/domain/home-investor-centre/vendors-remain-optimistic-20110404-1cv3w.html

Did you say shortage of housing for sale?

 

[eeew]

"The outcome of 116 scheduled auctions has not yet been reported. But if recent trends hold true, the sales level will fall at least a couple of percentage points further. Last weekend's clearance rate was downgraded from 61 per cent to 59 per cent.

The market has now experienced nearly six consecutive weeks of 800-plus property listings and, with about 1000 set for each weekend until Easter, it marks an almost unprecedented stock level for this time of year."

"We had been seeing a pretty balanced dynamic in the market, with supply and demand at roughly the right sort of levels. But now we're seeing the supply of properties exceeding demand"

http://news.domain.com.au/domain/home-investor-centre/vendors-remain-optimistic-20110404-1cv3w.html

Did you say shortage of housing for sale?

In some areas yes. Auctions 'successes' are varying in todays market:

http://www.businessday.com.au/busin...d-cold-in-a-fickle-market-20110403-1ct43.html

Some clear winners, some clear losers...

Look at it this way...in the yesteryears ( with posssible exception of 08-part of 09), demand has exceeded supply ( hence price rises). If what you say is true ( and it prob is) supply and demand are relatively equal footing, then compared to the last 5 yrs or so, is not now a good time to buy?