Where's the Doom and Gloom???

Reports of death of RE is greatly exaggerated

Went to an OFI today and was required to line up to view the property given the amount of people waiting, with 2 agents taking people's contact details. I counted 30 people and that was only 10 mins in.
 
buzzlightyear said:
Went to an OFI today and was required to line up to view the property given the amount of people waiting, with 2 agents taking people's contact details. I counted 30 people and that was only 10 mins in.
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Wow, Buzz - awesome!

Where abouts was this and what price range? - was it an FHB job?

I don't think that's everywhere though. Certainly not down here in my little domain. All quite down here; top end has stalled - unless it is really spectacular with no work to do, middle is very slow and some minor activity at the bottom and "land value only" dumps.

I reckon all this frantic activity is going to be mostly in the "cool" cafe areas that FHB's can still afford (unless they are higher earner FHB's), and in the "corridor tract" areas which are new and cheap.
 
BayView said:
Wow, Buzz - awesome!

Where abouts was this and what price range? - was it an FHB job?

I don't think that's everywhere though. Certainly not down here in my little domain. All quite down here; top end has stalled - unless it is really spectacular with no work to do, middle is very slow and some minor activity at the bottom and "land value only" dumps.

I reckon all this frantic activity is going to be mostly in the "cool" cafe areas that FHB's can still afford (unless they are higher earner FHB's), and in the "corridor tract" areas which are new and cheap.
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It was this property. The property itself is probably worth in the mid-5's. Pretty much spot on Marc for where it is. This is effectively entry level price for a 2br house in Richmond (Melb). Most were couples in the late 20's & 30's and parents with daughters/sons. Some FHB's for sure, but i think probably its the upgrade from the first property.

I was mainly interested to see how the reno update for a small cottage had been completed with the updated floor plan.

Went to 6 OFI's on Saturday in total - all were houses, period homes (Vic or Edwardian)
Richmond - 2, with property prices (well my valuation ;)) in the low to mid 5's
South Yarra - mid 6's
Fitzroy North - up to 7
Carlton - mid 6's
Kew - high 6's to 7

Solid crowds in all, except for the Kew one, but that is because it is overpriced. Listed at $760k.

I agree that it is not going to be prevalent in all areas, but well located property in the inner suburbs, will always have strong appeal for renters and OO's (Gees I sound like an agent :p)
 
buzzlightyear said:
I agree that it is not going to be prevalent in all areas, but well located property in the inner suburbs, will always have strong appeal for renters and OO's (Gees I sound like an agent :p)
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You're absolutely right. Again :)
I've lived in the "well located inner suburbs" for the past 25 years and have watched a lot of real estate change hands during many property cycles.
Regardless of the economic climate, interest rates etc etc, there has always been a strong and consistent demand for these types of properties.
I don't see that trend changing any time soon.
 
I still reckon Australia will be 18 months behind the rest of the world. However I can't see much pain yet.

Spent the weekend at a resort in the Hunter Valley with a bunch of farmer friends. Everyone was bragging about how much they'd made from the sharemarket since November. Place is booming despite the slump in global wine sales and oversupply of grapes. Full of city people spending up with a quiet weekend away from the rat race.

Spent the Jan holidays on the Gold Coast as per usual. Property seems down a bit in price but you'd expect that on the Gold Coast. The theme parks and shopping centres were packed full of people spending all they had.

My local rural area would still have full employment. I don't know of a single person who has lost their job. New industry has moved in. Grain prices are still above the long term average, and seem to be increasing steadily. With some good seasons behind us, My local area has never been more prosperous. I don't think house prices have dropped at all.

I'd love to pick up some resi property bargains but it may not happen?.

Maybe Australia really is different..??


See ya's.
 
buzzlightyear said:
I agree that it is not going to be prevalent in all areas, but well located property in the inner suburbs, will always have strong appeal for renters and OO's (Gees I sound like an agent :p)
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agreed. Well located inner suburbs are still doing really well. The 2 we went to auction were in Canterbury and Surrey Hills. Others that we inspected in Balwyn North and Kew last few weeks were also sold @ auction yesterday for above what we expected in low $700k and early $500k
 
After nobody coming to Mum's open house on Saturday, she had a call on Sunday from two young ladies who were having trouble finding somewhere to rent due to one of them having a dog. They looked at it on Monday, loved it, and took it from today.

Funny thing was hubby pulled the laundry out on Sunday and has bought everything to re-sheet, install a new tub and install a new window to replace louvres etc. They were fine with no laundry until the weekend when he will do the job, but mum has reduced the rent by $40 for two weeks to compensate.
 
topcropper said:
Spent the weekend at a resort in the Hunter Valley with a bunch of farmer friends.
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ummm - you weren't there for "farmer wants a wife" by any chance? ;)

yes - the half day drive from sydney resorts are booming. the whale watching at port stephens has also taken off and there is barely a place to rent.

short breaks instead of a week in fiji methinks
 
lizzie said:
ummm - you weren't there for "farmer wants a wife" by any chance? ;)
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No way. Been happily married for 12 years, and my lovely wife was with me. It was an annual get together for our farmers group. We had a business motivator type bloke talk to us, we heard about some new develpments in farming and the rest of the time was spent boozing and eating, [and annoying my wife, or as OO would say, trying to throw the leg over:) as my oldies had the kids for a change.]

See ya's.
 
Wow!!! That is one lovely (but very, very small) place. I wonder who the buyers are for that size place. I would assume young couples or downsizers?

I wouldn't think our family of two adults and three teenage boys would fit in there too comfortably, but in its past, it probably held a family of seven :eek:.
 
Propertunity said:
The listing REA only expected it to sell for $500K max :confused:
Change in sentiment underway methinks.
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You'd just get (maybe) a newish 2 br apartment for that in Richmond ($500k), but still surprised at the good result. Plenty of genuine interest for this one which made for competitive bidding.

Same for this Port Melbourne Edwardian, which sold for $750k. A good price for both the vendor and seller IMO. Solid crowd at auction and 5 genuine bidders.
 
buzzlightyear said:
You'd just get (maybe) a newish 2 br apartment for that in Richmond ($500k), but still surprised at the good result. Plenty of genuine interest for this one which made for competitive bidding.

Same for this Port Melbourne Edwardian, which sold for $750k. A good price for both the vendor and seller IMO. Solid crowd at auction and 5 genuine bidders.
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On the other side of the ledger, two houses 3 and 5 doors down from me have come on to the market over the last 3 months.

(a) very nice townhousy thingy advertised at $900ish, dropped to $850ish, sign removed, up for rent at close to $600pw...currently wanting $500pw and still vacant
(b) nice but smallish freestanding stone house, been on the market for 2 momths and now down 15% on asking price
 
buzzlightyear said:
You'd just get (maybe) a newish 2 br apartment for that in Richmond ($500k), but still surprised at the good result. Plenty of genuine interest for this one which made for competitive bidding.

Same for this Port Melbourne Edwardian, which sold for $750k. A good price for both the vendor and seller IMO. Solid crowd at auction and 5 genuine bidders.
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Hey Buzz,

I notice too that the Melbourne market has sparked up hugely! Not good news for me as I am looking for another property!

2 bedroom flats with car parking are hot property. One sold in Dickens st, St Kilda for $553,000. It was an ordinary flat in a 1970's complex. Admittedly it was very well located - opposite the St Kilda Gardens and within walking distance to Acland Street, the beach, public transport etc.

Still, I thought it was pricey!

Regards Jason.
 
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Token Funder said:
On the other side of the ledger, two houses 3 and 5 doors down from me have come on to the market over the last 3 months.

(a) very nice townhousy thingy advertised at $900ish, dropped to $850ish, sign removed, up for rent at close to $600pw...currently wanting $500pw and still vacant
(b) nice but smallish freestanding stone house, been on the market for 2 momths and now down 15% on asking price
Click to expand...

TF, where abouts is Bizzaro World? I am not across the property market there? ;)

Where I am looking at (Rich, SY, Prahran, Sth Melb, Port Melb etc...) I am finding that some prices are strengthening and with good interest and solid crowds. I don't assume this applies to the myriad of submarkets in Melbourne metro. I don't know them. Admittedly, I suspect, that some vendors have realigned their price expectations and are meeting the market. How else can you explain a high 80's auction clearance rate?

I was hoping for the winter to kill off these green shoots of confidence.
 
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