Re: Bank Warning on Australian Property Price Bubble
 

Do you think that applies everywhere in Australia ?

Re: Bank Warning on Australian Property Price Bubble
 

No, I don't think it applies to Victoria Point, Brisbane Bayside, 36km S.E. of CBD....

Re: Bank Warning on Australian Property Price Bubble
 

Actually I think it does apply here :lol:

Re: Bank Warning on Australian Property Price Bubble
 

:lol:

Re: Bank Warning on Australian Property Price Bubble
 

I have stopped beating round the bush guys and i have bought a property. I dont forsee the oz housing market dropping anymore than ten per cent. Picked a place up for 410$ pool ducted aircon, 10 mnths ago ownwers paid 440k for it, but circumstances force sale.
Simply put far to much construction work in this part the world and its going to drive prices. Oz is still some way behind other parts of the developed world in terms of infrastructure for its population and the government has got to play catch up quick if it is to compete with the developed world which in turn encourages and drives your economy.
As for your exchange rate get used to it this will be as good as it gets and i have vested interests.

Re: Bank Warning on Australian Property Price Bubble
 

My observations of the for sale properties in northern Sydney is that there are a lot of investment properties for sale. The signs are empty houses that are run down and do not smell of old people. They are selling but take time and they do not go for what the vendor hoped for. Decent non investment properties are rare and go in a flash. I guess the negative cash flow is making investors think twice. Why subsidise someone elses living?

Another interesting ad I saw was for investing in USA property. The main selling point was cash flow positive. What a novelty actually making money from a property investment!

Re: Bank Warning on Australian Property Price Bubble
 

As good for importers or exporters of cash? The AUD is at a high due to commodity exports and relatively low government debt. Where do you see both going?

Re: Bank Warning on Australian Property Price Bubble
 

If honest i think the AUD will plateau out against the pound at around 1.80 to 1.90 if we do well. This i say and i still have financial interests in the uk which would benefit me better if higher but you cant be bias. This part of the globe at the moment is an interesting place and possibly something could be on the cards which may not have been seen before by young generations so it is doubted.
We all know that Aus is being kept afloat by China and other developing countrys (economies). China is trying to keep its own economy in check with interest rates and tight legislation on house purchasing.
At the moment i cannot see a huge crash over here. Once China begins to slow India will want the resources.
Read into what you will but i reckon this generation will see a change in world power without a war.
China has that much financial interest in the U.S it could bankrupt them 2 morow.

Re: Bank Warning on Australian Property Price Bubble
 

You probably done the right thing, who wants to be paying a home loan in their 70's or 80's. Some people are sitting around waiting for prices to drop so they can afford to buy... might be years before they realise it might never happen.

Re: Bank Warning on Australian Property Price Bubble
 

With rents now rising, that will become more in fashion here again before too long.

It happened in the US due to the prices dropping though.

Re: Bank Warning on Australian Property Price Bubble
 

Rents definitely not going up where I live. And owners that tried to put them up are finding there are simply no takers. I've seen so many houses that have been on the market for 2-3 months now. One 4 bed house was initially advertised for $675 p/w, after 4 weeks advertised down to $650, then $590, finally the agent has advertised "you make us an offer"+"rent negotiable". Still no interest, so the owner has roped in an additional agent. Funny, two agents, one advertising it for $595 and the other is asking $590:D

Another 4 bed, new house, initially advertised for $1,300, now for $1,000 p/w, still no takers after 2 months. Lots of houses going for rent - I presume these are houses that couldn't get sold and hence a flood of rentals here. I noticed that the more expensive housing ($1000-2500 p/w) are taking well over 8-12 weeks to move, if at all. Others simply languish.

Re: Bank Warning on Australian Property Price Bubble
 

Agents around here are not seeing rising rents.

Re: Bank Warning on Australian Property Price Bubble
 

...and after the crash - "no one could have seen it coming" "it started in America" etc...

Re: Bank Warning on Australian Property Price Bubble
 

Australia is a funny old country, different things happen in different areas, a bit like the UK actually ;)

Australian Property Monitors reports that rents rose by only 2 per cent nationally last year, but predicts that they will grow more rapidly this year.
Renters are being told to expect steep increases this year due to low supply, rising interest rates and land tax costs, which will impact on landlords.

Research company Australian Property Monitors has forecast rent increases of up to 11 per cent in 2010 after little or no growth during most of 2009.
In Melbourne, it expects house rents to rise 5.6 per cent and units to lift 7.5 per cent.

Re: Bank Warning on Australian Property Price Bubble
 

I have seen these predictions as much as I have seen those of price crashes and booms. I think an Octopus would predict better.

NSW Labour is also putting in laws increasing tenants rights.

It still beggars belief people go into property investing making a loss and thinking it is good! I am sure many make money but the figures are terrible.