^^^^ great time to be building.
i just got back a 3x2 unit quote at $145k turn key!!!!
i just got back a 3x2 unit quote at $145k turn key!!!!
WA - are you ready...?
- Thread starter Aaron Sice
- Start date
savaged - good word - like a rottweiler on a white cat.
Certainly will, so will employment, and the economy.
But if commodity demand and prices continue, it will fuel economic and population growth, which will in turn put pressue on wages and property prices.
US govt and big business are quietly confident about their recovery (I guess they have to be) which should prop up china's demand for resources, if it was ever in doubt.
I don't know, I think people are getting swept up in the doom and gloom created by the GFC. It's all part of the cycle, there are highs, and there are lows, we're definately in a low, no one is game to call the bottom, but it's out there somewhere...
I think the fact that so many are of the same opinion at the moment, i.e. property is doomed for the short term, is a good thing, it means less people are buying, however it means more people are waiting to buy. Demand is increasing. Rents are increasing too as more and more people choose to wait it out. There's a critical point in all of this somewhere, I'm not game to pick it, but there's no denying that the best time to buy is in a buyers market.
just finished reading the pilbara news and i've never seen/read so much bullishness - ever!
that "bullish-ness" - not "bull-s**t".
that "bullish-ness" - not "bull-s**t".
I've just done this. Our place sold in 8 days.
Ready to pounch on a PPoR upgrade... prices have bottomed out in the market in which we're looking...
They should be bullish too.
I am not saying anything which we have not all heard before. Prices for the commodities in our NW are at levels which support significant investment and expansion. While this capital investment occurs it creates a surge in employment and profits for the miners as well as contractors creating conditions which allow them to gain significant capital from investors for further expansion.
However prices for commodities are a fairly fickle thing as we saw in 08. If they fall, and one day they will, indeed the very capital investment being ploughed in today is why prices will eventually fall (i.e. this is why its called the commodities cycle afterall) which will then lead to a period like the 90s early 2000s where the mines in operation tread water and you wonder why the hell you own stocks like North ltd etc because iron is a thing of the past waiting for this commodities cycle to turn which you only read about in textbooks but have never witnessed first hand...
Anyway the upshot is the cycle has always been thus;
high prices for a commodity lead to capital investment.
Investment brings more capacity on around the globe in the specific commodity.
Prices then fall as capacity exceeds or at least meets demand.
Less investment in mines till the supply side no longer meets demand prices rise and likely a few marginal mines will fall away at the periphery, i.e. capacity retreats slowly in mining but it does retreat with a low enough price.
Prices eventually rise again and the cycle again begins.
Even with a growing demand from China, eventually at a price this far above costs of production capacity will meet demand.
The thing about mining is this cycle can take many years. A mine is not an overnight proposition. However between our investment along with Brazil, India and Russia and significantly Chinas own investment in domestic production we will eventually see capacity meet demand and prices will fall and the capital investment will again dissapear.
What I cannot fathom is why with the RSPT and income tax cuts has our government put itself into a position where it will have a significant structural deficit when this worm turns as it inevitably will?
I bought a residential block in Busselton four years ago for $185K. Today a comparable block sells for $140K. In Perth my PPOR was valued at $580K three years ago and $540K today. The glut of available properties means that the price wont be going up any time soon.
Busselton/Dunsborough/Yallingup have more land than they do residents with jobs. 1+1=2 - no surprise there.
uh, but what did you buy it for and see a rise on, before it "fell" to $540k?
We listed our IP for rent a few weeks ago and had 26 calls in 2 days. A property manager recommended it was worth 550pw, but all potential tanants said they would pay 600pw, which is what we have leased it for.
Rents are on the rise, un employment levels are very low, the mining industry is gearing up..... I could go on.... get in soon people!
Rents are on the rise, un employment levels are very low, the mining industry is gearing up..... I could go on.... get in soon people!
massive massive massive opportunities right now, especially in property. 35% + returns common. did one for a client two days ago - 80% return after costs.
although, higher end stuff has a bucket load of tyre kickers, openly telling agents they'll lowball about 20% under asking etc. stock coming off the market and not being re-listed. interesting few months ahead.
although, higher end stuff has a bucket load of tyre kickers, openly telling agents they'll lowball about 20% under asking etc. stock coming off the market and not being re-listed. interesting few months ahead.
80% return? is this a multi-unit development site? looks like I've been kept out of the loop here!! someone lend me a couple of million.
it ain't a buy, reno and hold!!
it was an isolated incident - but it's possible if you're on the money.
most are 30-40%.
and there's no secret. it's all out there for free, public planning policy on govt websites and current construction prices make many things feasible.
if i "spill the beans" and lay it out in a nice, tabled formula; liek the one that's taken me 8 months to develop - then i'm giving away my IP for nothing.
why would i do that?
the day you can get Dazz to give up one of his commercial contracts is the day I give up my IP, for whatever price he does.
Without the cash-up tire-kickers Austrtalia would come to a standstill and who starts at 20% it's hard a bit to go lower once you open your mouth.
do you support lowballing?
it's one thing to offer clearance rates for a house in disrepair, it's another entirely to insult someone with a lowball on a house that stacks up in value to others in it's immediate surrounds.
this isn't Bali. we have a certain custom around buying and selling much like they do. if those customs are being shaken, then fine - but it's in no one's interest to pay less every time - all it does is start a snowball effect.
imagine the "it's more expensive to build than buy" in a new, incomplete subdivision. that's the effect i'm talking about.
if you don't want it - fine - leave it alone.
it's one thing to offer clearance rates for a house in disrepair, it's another entirely to insult someone with a lowball on a house that stacks up in value to others in it's immediate surrounds.
this isn't Bali. we have a certain custom around buying and selling much like they do. if those customs are being shaken, then fine - but it's in no one's interest to pay less every time - all it does is start a snowball effect.
imagine the "it's more expensive to build than buy" in a new, incomplete subdivision. that's the effect i'm talking about.
if you don't want it - fine - leave it alone.