the mother of all bubbles

Discussion in 'Property Investment - Other' started by Jk200sx, 22nd Jun, 2015.

  1. Jk200sx

    Jk200sx Member

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    http://www.theage.com.au/federal-po...818182&promote_channel=edmail&mbnr=MTE4NzMxMQ

    What do you guys think?

    They say there's an oversupply of 123,000 properties in Victoria... How much of this is in Melbourne, and how do they calculate the figure?

    On a side note, on site like RE when they mention an area has a vacancy rate of x.x%, how do they calculate this? Is every rental property registered somehow? If not, how do they make the claim?
     
  2. Jk200sx

    Jk200sx Member

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    548 views and not one reply......
     
  3. BV

    BV Think outside the square

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    I guess you will notice the oversupply when you can't rent or sell a property easily.

    I haven't looked at Melbourne for a while but I was looking at Brisbane listings on a map view yesterday and there are many properties for sale.
    I don't remember seeing this many before.
    They are obviously selling and many would be selling to interstate investors but I'm suspecting an oversupply there too.

    Currently there are no conditions for prices to come down but the economic situation can change like it has done in the past, unemployment and interest rates can and will go up one day.
     
  4. JohnHenry

    JohnHenry Mister

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    According to this graphics

    Well, if that's the case, then it is still a good timing to buy in Brisbane, but not a t all in Sydney:

    [​IMG]
     
  5. BV

    BV Think outside the square

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    Hard to tell, I'm thinking that it could be like the NSW central coast, where prices in good locations have already moved so if we were to catch the wave we would have to buy further out.
    The yields aren't anything special and combine this concern with the uncertainty of work, the tighter lending criteria plus the risk of change of legislation, plus with higher interest rates (further down the track), I'd think twice about over-extending my portfolio.
     
  6. JohnHenry

    JohnHenry Mister

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    many thanks Bill for the insight and some food for thougt :rolleyes: I really apprecaite your sharing here.