Finchberks

What on earth is going on with the house prices in Melbourne

We've been watching the property market since we arrived and cannot believe from March last year a 4 bed property was worth around 650 to 700. Now the same houses are selling for $1,300

And everyone around me thinks this is OK . ARE THEY MAD

Where are the alarm bells warning people of this HUGE HOUSING BUBBLE. Oh yes of course to many vested insterests keep the lid on things.

steve`o

housing bubbles threads have been done to death lately

Finchberks

Obviously you guys have bought so have no interest in this post but for the others on their way over I think they should be aware that Real Estate Agents just love fresh Immigrants willing to pay these crazy prices.

We have been told from an Ozzie neighbour that he got his house valued and the RE Agent doubled his figure and sold it to a couple from Perth who didnt do their homework. So please guys do your homework before you consider buying .

Most UK houses are priced similar to other properties sold in the road etc. but over here they can just pluck figures out of the sky as each property is different and then they wait like spiders for some idiot to pay it................and they do

steve`o

regarding au


we have 12 houses in our street and i would say that no two are even similar another thing i would say is that some owenrs have spent a shed load more and the properties reflect this

surley as most houses are individual, therefore the prices relect how much or little the original buyer spent on design and build ?

Finchberks

I agreed but most houses have a ceiling price. We bought and sold property in the UK and found that we could generally price houses according to the market. ie. a standard 3 bed semi would be x and then a 3 bed semi with extention would be y and most of the time was correct. However one off homes down country lanes are more difficult to price but most UK houses have a ceiling price. They do not seem to have ceiling limits here.

For instance I could buy a house for 400K then but it straight back onto the market for 800K () and sell it without bating an eyelid. This is why buyer beware because you could end up buying a place to find out if you tried to re-sell it you cant get what you paid for it unless theres more immigrants or chinese buyers around the corner.

IN OZ
1. Price depends on the Real Esate Agent used
2. Seller: A house two roads away got that price so that sets their price even though it needs complete renovation and is half the size.

This is our personal finding of the market at the moment as their prices are so random over here .

BadgeIsBack

Which in itself is very amusing and you get little Englanders saying things like:

'BUT...ours has got a patio' - add 10k.

'BUT... ours has been decorated' - add 5k.

'BUT ...ours has pebble-dashed walls' - add 2k.

'BUT ours has funky night storage heaters' - add 2k..

The viewer sees:
Piss stains all over the carpet - we'll knock them down!

nickyjohnt

If they are now selling for $1,300 please put me down for 100 of them, that sounds too good to be true

fish.01

If you really believe this is common then go for it Buy that house and double your money the next month

Mipik

Reality check.

Well, there is this little database that lets you check the price house has been sold for over many years.

Agents have access to it but it's not that difficult to get the data yourself.

Due to above I really can not see anybody paying 800k for a house that sold for 400k a month ago.

fish.01

I hope that was aimed at the OP not me

Amazulu

Another one!

I though the house price thread bubble was starting to deflate - looks like I was wrong.

swigski

It ain't all on the up!!

Losses are still being recorded. A Darling Point unit sold for $3.3 million after selling for $3.45 million in 2008.

One house in Turramurra sold last month for $3.15 million, well down on its $3.75 million sale price in 2008.

A neglected Mosman house was sold by mortgagees for $2.66 million having traded at $2.75 million in 2008.

Taken from this article:

http://www.smh.com.au/nsw/record-num...0311-q1lc.html

Kalenge

You reckon everyone else is mad and you're the one saying that house prices have increased by 100% in 1 year.

NOWHERE in Australia have house prices increased by anywhere near that percentage - especially not in the last year. Knock a zero off and smell the coffee.

Sheesh ... is there no limits to the exaggerations and paranoia of these chicken littles ?

Sunshine7

Does the mortage lender in Australia not insist on a valuation, using one of their approved valuation people (oh what's the word for them it's on the tip of my tongue, but never mind you know what I mean)?

That's what the do in the UK isn't it, which makes the valuations pretty standard.