Immigration, overseas investors and probably one of the best places in the world.
Keep going you beautiful thing....
The Mother of All Booms is Coming??
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Immigration, overseas investors and probably one of the best places in the world.
Keep going you beautiful thing....
So why do we have Sydney with years of severe housing shortage, no available land for years and prices going nowhere for years?
According to the pop theory it can't happen, it has, still does and will in the future.
Rents have to go up in line with inflation and expenses, otherwise they get reposessed by the bank.
If it was that predictable the evidence would be everywhere, but it aint.
I reckon Sydney is suffering a crisis of confidence and has been for 5-10 years.
Confidence is key in markets.
Sydney bashing is huge and I think even the Sydney siders are taking it personally (and it shows in the markets)
Sydneys too crowded
Sydneys not planned
Sydneys too expensive
Everyone in Sydeny talks about property and has huge mortgages
Sydney has no culture
etc etc
Prior to 5 years ago although the above things hovered in the background - Syndey was always the best place (only place) on foreigners radar - immigration, commerse, etc.
All of the above things can be overcome and personally I love Sydney. Their days in the sun will return once again and it wont be too far of imo.
Confidence is key in markets.
Sydney bashing is huge and I think even the Sydney siders are taking it personally (and it shows in the markets)
Sydneys too crowded
Sydneys not planned
Sydneys too expensive
Everyone in Sydeny talks about property and has huge mortgages
Sydney has no culture
etc etc
Prior to 5 years ago although the above things hovered in the background - Syndey was always the best place (only place) on foreigners radar - immigration, commerse, etc.
All of the above things can be overcome and personally I love Sydney. Their days in the sun will return once again and it wont be too far of imo.
For my little part of the world, I think we will have more of a slow and steady rise as we are in an outlying area and it trickle feeds through to us.
BUT rents have been going very well and in parts you are getting more than 5% which (for this area) seems to be the norm. So that could be a little bit of a nudge for prices.
I also still think that the changes to super will have an effect especially if a lot of high income earners get caught out this year we could then see a better increase in the next financial year.
BUT rents have been going very well and in parts you are getting more than 5% which (for this area) seems to be the norm. So that could be a little bit of a nudge for prices.
I also still think that the changes to super will have an effect especially if a lot of high income earners get caught out this year we could then see a better increase in the next financial year.
well im not sure....
some good signs... supply demand, population growth, economy etc etc
But then if IR increase it might put a dampner on things. Might stop some people from wanting to buy. But you never know some people can do silly/crazy things and buy when/IR are climbing and high and they are able to get easy finance. Like past history has shown. Some people dont want to miss the boat and will rush into things without thinking of the consequences (if they can afford it) Sentiment is high. This can effect things..... Emotions can have an impact!
some good signs... supply demand, population growth, economy etc etc
But then if IR increase it might put a dampner on things. Might stop some people from wanting to buy. But you never know some people can do silly/crazy things and buy when/IR are climbing and high and they are able to get easy finance. Like past history has shown. Some people dont want to miss the boat and will rush into things without thinking of the consequences (if they can afford it) Sentiment is high. This can effect things..... Emotions can have an impact!
Anyone looking at demographic indicators such as population growth need to account for a commonly known economic term called 'LAG TIME'.
Yes, if we have 1 strong year of population growth it does not mean that the same year or the next year or even the year after that there will be a housing boom.
Strong population can be a culmination of birth rates, immigration, and for a specific area interstate migration.
Immigration is one of the largest contributors to our population growth but most of these people will live with relatives or rent a place to live in.
This causes strain on the rental market, and if construction (supply) remains low will eventually lead to growth in the property market.
Hence look at Sydney, which hasn't had much growth in capital (although since 2005 I have seen about $130k growth since 2005 on avg for my properties) but on a median level there hasn't been much.
But we do have lots of immigration, and alot of pent up demand in the rental market which is why vacancy rates are so low.
This is putting huge pressure on the housing market and will eventually lead to significant growth of the price of houses.
There is just lag time to consider, plus we need a few more pieces of the puzzle; like credit policies to be loosened.
CBA has just released that no new investors can borrow more than 80% LVR from their bank.
Credit squeeze is still with us....
But piston broke you need to consider lag time. An economist could probably tell you how long, but if half the population growth is by birth, and the other half is by immigration (who are going to find a job then save up), then this could be as long as 10-15 years or more before these people purchase a property.
In the mean time the added strain to the rental market will account for something.
Yes, if we have 1 strong year of population growth it does not mean that the same year or the next year or even the year after that there will be a housing boom.
Strong population can be a culmination of birth rates, immigration, and for a specific area interstate migration.
Immigration is one of the largest contributors to our population growth but most of these people will live with relatives or rent a place to live in.
This causes strain on the rental market, and if construction (supply) remains low will eventually lead to growth in the property market.
Hence look at Sydney, which hasn't had much growth in capital (although since 2005 I have seen about $130k growth since 2005 on avg for my properties) but on a median level there hasn't been much.
But we do have lots of immigration, and alot of pent up demand in the rental market which is why vacancy rates are so low.
This is putting huge pressure on the housing market and will eventually lead to significant growth of the price of houses.
There is just lag time to consider, plus we need a few more pieces of the puzzle; like credit policies to be loosened.
CBA has just released that no new investors can borrow more than 80% LVR from their bank.
Credit squeeze is still with us....
But piston broke you need to consider lag time. An economist could probably tell you how long, but if half the population growth is by birth, and the other half is by immigration (who are going to find a job then save up), then this could be as long as 10-15 years or more before these people purchase a property.
In the mean time the added strain to the rental market will account for something.
Western Melbourne - does it have a potential?
Does anyone know anything about new development areas in western Melbourne – suburbs like Deer Park, Brimbank area? It's about 20km from Melbourne CBD. The prices are very cheap there, you can buy a brand new standalone house for under 300K, but do these areas have a good growth potential – that’s the question!
Does anyone know anything about new development areas in western Melbourne – suburbs like Deer Park, Brimbank area? It's about 20km from Melbourne CBD. The prices are very cheap there, you can buy a brand new standalone house for under 300K, but do these areas have a good growth potential – that’s the question!
Long term, of course they will especially if you've got about 20 years or so to spare.Does anyone know anything about new development areas in western Melbourne – suburbs like Deer Park, Brimbank area? It's about 20km from Melbourne CBD. The prices are very cheap there, you can buy a brand new standalone house for under 300K, but do these areas have a good growth potential – that’s the question!
There are many new development areas, popping up in each of the northern, western corridors. All good value for the budget conscious, but as far as CG definitely not suited to the short term, quick turn around investors as there won't be enough growth inside a 5 year span.
Does anyone know anything about new development areas in western Melbourne – suburbs like Deer Park, Brimbank area? It's about 20km from Melbourne CBD. The prices are very cheap there, you can buy a brand new standalone house for under 300K, but do these areas have a good growth potential – that’s the question!
a property i own in Deer Park was valued at $250k approx 14 months ago has just been revalued at $350k .... not to shabby at all
Does anyone know anything about new development areas in western Melbourne – suburbs like Deer Park, Brimbank area? It's about 20km from Melbourne CBD. The prices are very cheap there, you can buy a brand new standalone house for under 300K, but do these areas have a good growth potential – that’s the question!
Spanishdream
Nothing to do with Melbourne but we looked at properties for our son a few years ago and found a new subdivision close to shopping centre so he brought a 4 x 2 x 2 and the property has gone up 83K in 2 years. 20 K from Brisbane and not in Brisbane council area.
Look at the area is it easy to get to a shopping centre & close to a main road eg Motorway. Obviously if near rail and bus even better but not all can afford the big prices and we don't have a crystal ball - but look for what is currently available not what is expected/planned in the future.
IMHO - Brand new stand alone home under 300K sounds GOOD to me!
Regards
Sheryn
IMHO - Brand new stand alone home under 300K sounds GOOD to me!
Sounds good to me as well and it's not too far out.
Do you get aircraft noise there?
does it matter?
Is that a serious question?
Assuming it is a serious question, of course it matters. Someone was asking about growth potential in the deer park area and someone suggested that over the last 14 months their property had grown from 250 to 350. The questioner may draw some conclusions based on this.
So I asked a fair question about valuations. Did the owner really think it was worth only 250 14 months ago, or do they really think it is now worth 350. If so, what is so unique about their property?
no, i'm fairly sure there has been similiar growth in the majority of properties in that section of Deer Park
http://www.realestate.com.au/doc/Resources/News/2009-melbourne-hotspots.htm
this article in 2009 showed a price point of $255k. That price point is long gone.
A number of investors have purchased properties in the area over the last 12 months or so
this article in 2009 showed a price point of $255k. That price point is long gone.
A number of investors have purchased properties in the area over the last 12 months or so
I can see construction cranes on the horizon again which is nice
Other than that, Its been a year since I bought in Sydney and I think prices on average are around the same levels.
I'm about to have 2 rental vacancies and there is tenant interest so they should rent quickly but my rents are up to date and I can't increase them further.
