betsyboob

I read on another thread (sorry can't find it now) that house prices are going down in Sydney, that because of the high interst prices on mortgages there are people selling for quick sales, hence the prices coming down. It's difficult to know what will happen in the future, i have heard a few people on here talk of a fall in the next couple of years but hwo knows We are just basing our judgement on what we will sell for now and what we can afford over there now. I think we will have to pull the stops out to make it work but we are pretty determined.
I hope you get some luck x bex

geordie downunder

You're dreaming,1988 was the lead up to the recession we had to have.Unemployment was going up to around 12%,interest rates were heading to around 18-19%.

1988 was around the start of a big house price boom after the 87 stock market crash,prices rocketed up.Interest rates all over the world started rising rapidly to counteract the inflation.

Repossesions went sky high as unemployment rose on a daily basis.The big 4 banks were probably trading insolvent as companies went bust right left and centre.Bond etc all went belly up,total losses probably finished up at $16 billion.Probably more than the market cap of the banks at the time.

People walked away from their houses in the UK as rates and unemployment rose.Took years to sort it all out.

You would've walked into a job,got a house and been set for life?

carolinephillips

How do you start a new thread?
Caroline

carolinephillips

Just about to put house on market: wishing we had done it last summer when we applied for visa, perhaps waiting for it was wrong (still waiting but did not get in before the August rush) but it felt too soon to do so then. I don't believe in putting all your eggs in one basket, and am wary of selling, but the money will be needed in Oz to fund lifestyle and all the fees, with renting we would not have enough capital.
Caroline

Australia_bound?

Sorry, when I 16, my Uncle who was a manager on the maintainance side of state railways stated he'd see me right as could get me an apprenticeship to be an electrician.
So with an apprenticeship lined up with railways and was going to live with my Gran. Hardly dreaming as had a secure job and housing was already sorted out. Had no desire to own a house at 16, so please ask for full facts before you state about me dreaming, was all set up but I didn't go as I was 16 I got involved with other things that took me life down a different route. My grans other son who is 3 years older than me is doing very well went down same career route as I was going to now owns his own house outright and has a job for life!
But very happy where I am and don't really regret my decisions as had some bloody fun times in my life

betsyboob

Aaah, hind sight is a great thing. We went on the market last Nov, sold in 4 days fell through....anyway, six months later and 3 house sales that have fallen through later we are still on th emarket with an asking price 11k less You can't control these things, no choice but to go with it

ozzieeagle

I've got so much confidence in the Market here at present Eboy, that I'm almost certainly going to demolish my house and put up two quite large town houses, one for us, and the other possibly if we can afford rental, if not sell to cover the costs. I'll be borrowing over 500,000 maybe 600,000 within the next 12 months.

The reason I'm confident is the huge influx of chinese nationals to this part of Melbourne, they really seem to be cashed up and I cannot see them stopping. I cannot see the median dipping below 550,000 within 10'ks of the city with the amount of migration we have, I can see rents absolutely skyrocketing. When the boom was on, I was very nervous about building because I felt the builders could charge what they like, and run off to the highest paying client of the day chanting mantra from their big book of excuses. Currently the market is fairly easy to understand.... In my opinion it's a great time to buy and build at present as long as you look at it from a long term point of view.


Off to the homeshow today, to try and get a deal with a builder, apparently they are slowing down, so great timing for us

If I were just about to Migrate from the UK, I dont see how this market is that different from a booming one, IE: in the time that you arrived prices will not have jumped by 10-15 pct or more which is the case in boom times, so knowing exactly where you are before you leave is surely a better situation, especially knowing that prices will not rise in any great fashion over the next 18-24 months, confident in the fact that they will rise again, as Australia will keep its door open for migrants.

People just dont seem to want to think long term.

jasonlec

Its only money!! I have a house to sell and cars, if I make 60k on my house happy man, if I make 1k on my house happy man its cost me nowt.
Move for the right reasons not the big house, car etc.
Could get run over tomorrow and be the richest bloke in the grave-yard!
Get a job,pay bills, enjoy life.

bluejohn

Your not wrong there! My parents came out with very little, lived on the hostel for a bit rented a dump then bought a house. My parents did very well, and I think we kids were better for it.

Bonzer Sheila

Sorry to leave without saying goodbye Caroline....have got a little fed up with this site, have moved to the other one...the site which (we) daren't speak it's name!
Will start a thread over there if you care to join me?
All good wishes
BS

BATS666

No, I don't think the worst time to emigrate to Oz.....tho there's no doubt there have been better times.
Let's take property...ofcourse, it depends where you live, but as a prospective Perthite I have been taking a keen interest in prices there for over a year. Many areas (particularly central) have seen 200-300% increases over the last 8 years. In the same time the UK has seen 50-200% rises (more in central London). On that basis, moving to Perth in 2001 COULD have left you quids in compared with the UK.
Property prices have clearly peaked in the UK.....but don't kid yourself they haven't done just the same in WA. The normal number on the market in Perth is 12,000. During the boom years this dropped to 6,000....lack of supply fueled prices even more. Currently it's running at 16,000. Over supply (and higher interest rates) leads to lower prices. Houses are still on the market after 1 year. Asking prices are nowhere near met (except in the inner burbs)....now achieving as little as 75% of the initial asking price....if they can sell at all. A recent price drop saw a marina town house in Mandurah drop from $1.75M to $1.2M. So, OK, it was overpriced to begin with ($1.45M realistically) but it's a drop all the same and it STILL hasn't sold.
I'll get less on my flat in the UK (if it sells) but expect to pay less in WA too.
And I have to sell, coz I can't sublet. Moreover, if prices are coming down here, frankly it's a good time to be selling. You could come back to the market in 2 years and find the same property costs 20% less....just as people are finding in WA.
and then there's currency....yup it's crap that I had AU$s this time last year at $2.35...only to see me have to pay £££££ more for the same amount....and I'm talking £100,000s. it would have been great to have hit the market at $2.50 18 months ago (or only last August during the credit crunch) or even $3 5 years back.......but we'll still be able to buy a nice house and have a similar standard of living, so who cares ?? Serves me right for thinking I could hold on for a better rate....I'm just praying for another credit crunch later this year coz frankly it's the only thing that will hit the $. If it doesn't happen, then I'll just have to settle for $2-ish. I guess it's only natural to think how much more you COULD have had....but hey ho, it wont kill ya !
and finally.......I don't think Oz can stick its head in the sand and think that its immune to the financial probs elsewhere in the world. Oz relies on China....Chinas exports 20% of its goods to the US...ONLY 20% I hear some Oz analysts say. Well if you lost 20% of your income it'd cause you problems....add in the UK & Europe, which could go the same way as the US....and its easy to see the whole pack of cards come down.
Not that it'll happen just yet so I wouldnt hold your breath when it comes to the £ improving against the $ for a while....unless, as I said, we get more financial turmoil in the markets. That's when the AU$ drops. Pray for a slump then you might get $2.35 again.
Personally I can see me biting the bullet and buying sub $2.10. If not, it'll be down to $1.90 before I know it, wishing that I HAD bought at $2.10 (as I've done when it was $2.35 then $2.25 then $2.15 and now $2.05!!).
Good luck whatever you do....and I'll see u in Perth at Xmas !!

P

p.s and a drop from $2.50 to $2 is a 20% drop, not 25%....so who's being pedantic NOW !?

Vash the Stampede

LOL, unemployment was not "going up to around 12%". If it had, Australia would have been making world headlines all over the globe.

Unemployment peaked at 8.2% in 1986 and fell slowly to an average of around 7.3% in 1988.

Official figures are here.

You're definitely right about the interest rates, though. I remember people getting 11% and considering it a fair bargain.

Vash the Stampede

The credit crunch has already reached Australia, and she's coping very well with it - for the simple reason that she did not have the same amount of exposure as the UK and US.
Source.

@boy

Looks like we are in for a belt tightening decade

Petrol pain set to last until 2016
http://www.theage.com.au/news/nation...d=rss_national

geordie downunder

As I said leading up to the 12% unemployment.Your figures give 10.odd % for a few years in the early 90,s.WA being a boom bust resource state had around 12%,I had to leave WA at the time to find work interstate.

How can the peak be 8.2% in 86,your own figures give 10.odd% in 83.The hangover from the Fraser/Howard high interest rates of the late 70,s.

The shenanigans going on in the labour party at the time to get Hawke as leader for the election in March 83.The election that a drovers dog could win was the expression at the time.

I met quite a few people at the time from Scotland.BHP had a recruitment drive on in Glasgow for fitters etc to go to Whyalla in SA.On arrival they were told there was no work as the downturn had hit suddenly,some of them came to WA for the expected resources boom that didn't happen.Most of them went home.

Around 81 and 82 there was a big drive on to get welders and platers to go to WA for the boom that didn't happen.The domestic gas plant and North Rankin A modules were built and then we were queing up to go to Marsden Point in New Zealand to build a refinery,to escape the high unemployment in WA.

The mini boom started around 86 or 87 when the next stage of the Burrup came on,trains 1 and 2 .Talking to some of the kiwis they said Marsden Point was completed ,then mothballed,they had come to the west island (OZ)as there was no work in UN ZUD.