That's only because interest rate are low at the moment. That will change.
Yields are low as well, they just look decent because of 5% rates.
Yields are low as well, they just look decent because of 5% rates.
Your market? How are things?
- Thread starter Minxdamanx
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Far NE NSW corner is busy in the sub 450k with dwindling stock. Anything above that is flattish. Over 600k - some ocean view properties are now selling at reduced prices - up to 10% down on 12 - 18 mths ago.. Not many rental properties available - but not much demand either as this is the quietest time of year. Will be interesting coming into the peak season pre Xmas to see how investors react to the situation. Credit conditions are still tight so I can't see any speculative boom happening but some decent growth is not out of the question IMO. Project Builders are still busy up here.
In the places where I'm buying there is a shortage ot stock, price rises and plenty of upgraders and investors buying (noticeably more than FHBs - although they are still there).
I was talking to a selling agent last week about a property we were interested in for a client and I asked her "How long has it been on the market?" (I already knew the answer, but I want to see if she told the truth first up). She said. "Nearly 2 weeks". (which was the correct answer). To which I replied "So what is wrong with it?" She said "Everyone says that - I don't get it." We both had a laugh.
The expectation is that good property will not last past the first Open House (which it doesn't in most cases in this area). But really this is in parts of Sydney & I see the same in parts of Newcastle too.
I was talking to a selling agent last week about a property we were interested in for a client and I asked her "How long has it been on the market?" (I already knew the answer, but I want to see if she told the truth first up). She said. "Nearly 2 weeks". (which was the correct answer). To which I replied "So what is wrong with it?" She said "Everyone says that - I don't get it." We both had a laugh.
The expectation is that good property will not last past the first Open House (which it doesn't in most cases in this area). But really this is in parts of Sydney & I see the same in parts of Newcastle too.
Is it not that there is something wrong with the property, the problem is its over priced?
After i ask an agent 'how long has it been on the market' i ask 'has it been with any other agents before you?'
Because i've been lied to when an agent has picked up a property 2 weeks ago but it has been on the market previously with another agency for 6 weeks and that agreement has finished.
The agent i'm talking to has now got the property and 'forgets' to mention that it was with another agency for 6 weeks before his 2 weeks.
Non disclosure is no different to lying. Gotta watch out for that one.
After i ask an agent 'how long has it been on the market' i ask 'has it been with any other agents before you?'
Because i've been lied to when an agent has picked up a property 2 weeks ago but it has been on the market previously with another agency for 6 weeks and that agreement has finished.
The agent i'm talking to has now got the property and 'forgets' to mention that it was with another agency for 6 weeks before his 2 weeks.
Non disclosure is no different to lying. Gotta watch out for that one.
Hmm.....
After the 'Pemulwuy (Greystanes)' thread, no one knows if your really buying or just having a joke..!! Maybe when you say you are buying you need to say if you really are or not?
See ya's.
Well yes, IMO it was also overpriced BUT I started to change my view after the auction results from last week-end came in. 2 similar properties sold for $30K more than what I thought was the top price I'd pay.
Yes, good advice
After the 'Pemulwuy (Greystanes)' thread, no one knows if your really buying or just having a joke..!! Maybe when you say you are buying you need to say if you really are or not?
You are right of course TC. It was a kind of in-house joke with Angela aka The Chaser. We had been having some Private Messages backwards and forwards on another matter and as a joke I said to her "stay out of Greystanes". I should have done this as a PM and not a public post - sorry for any confusion I may have caused. So just for the record, I am not presently buying in Greystanes. I'll leave that to Jacque.
Not that there's anything wrong with Greystanes, I'm sure its a lovely place. (don't want to offend the Greystanes people)
Fixed rates were low, not anymore though.
Are you waiting for rental yields to hit 7-8% in the inner city??
So low rates and high yields won't bring them back to the market... ?
What needs to happen for you to invest in residential property again?
How will things get ugly for investors Evan if you think that rents usually rise with IR's and borrowers have been assessed at higher IR levels?
Hi Evan,
What about Capital growth? Do you factor that into your investment strategy or do you believe there won't be much of it in the next cycle(say 7-10 years)?
I agree.
I'm guessing they'll stay low-ish (i.e. no more than an extra 1.5%) for at least another 12 months, after which time I should have seen another 5-8% growth on my Melbourne IPs based on recent activity (i.e. $20 - $32k on a 400k property).
It's a gamble but one I'm willing to take.
Prices will only drop significantly if people don't pay their loans, and people will only not pay their loans if they lose their jobs. The job market is looking pretty good and there are two measures in place (increasing the bankruptcy chase figure from $2k to $10k, and that 'repayment holiday' thing).
Usually the property market rises when the stock market crashes.
I think we threw a few "usually's" out the window in the past 18 months.
Has it occured to you that this is it? This is as good as it gets in regards to yield?
Personally, I think rents have peaked for now. Affordability is the factor. I have a built in rental increase of $10 after 6 months in a 12 month lease in QLD but I think I am pushing it.
It's anyone's call...but the market is looking good from my perspective.
Houses at the lower end go fairly fast. I also think Vendors are more realistic about prices. There are two houses nearby up for Auction in a few weeks. I'll let you all know how it goes.
Regards JO
Because owner occupiers don't receive rent and they are circa 70% of the market and it happens every rate rise cycle.
But this one i think will be quite a bigger of fallout as it was first home owners driving the market predominately. Just my opinion.
But this one i think will be quite a bigger of fallout as it was first home owners driving the market predominately. Just my opinion.
No, because i've seen it much better Jo and i will see it better again. We all invest differently, that makes it all interesting.
What do you call better? What sort of yield?
When do you think we will see it again? decades, years, months, weeks ?
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