Property Hotspots for 2004
Jan 3rd 2004, 2:00 am
#1
BE Forum Addict
Thread Starter
Joined: Feb 2002
Location: Dream life UK....
Posts: 2,912
Property Hotspots for 2004
Little snippy from todays papers.
Research firm BIS shrapnel has predicted at least 10% growth for the Brisbane area for 2004. (Prices in brisbane went up 11% in the last quater of 2003). Queensland will be the standout performer in the property market. Price growth will slow in Sydney Melbourne and Adelaide, Perth and Hobart wont be too bad. Price growth is inevitable in QLD even if interest rates go up by 1% which we dont think will happen anyway. Economists are not forseeing a fall in prices.
Other articles (4 today alone) indicate the jobless rate is expected to dip further to 5.6% in 2004.
Property hotspots, buy Coastal (pretty obvious), however North and South coasts of NSW, Sunshine Coast and Noosa, Lorne and Warrombool in Victoria, Glenelg and Victor Harbour in SA and 100klm North and South of Perth (Coastal bits).
Now go and make your fortunes
Research firm BIS shrapnel has predicted at least 10% growth for the Brisbane area for 2004. (Prices in brisbane went up 11% in the last quater of 2003). Queensland will be the standout performer in the property market. Price growth will slow in Sydney Melbourne and Adelaide, Perth and Hobart wont be too bad. Price growth is inevitable in QLD even if interest rates go up by 1% which we dont think will happen anyway. Economists are not forseeing a fall in prices.
Other articles (4 today alone) indicate the jobless rate is expected to dip further to 5.6% in 2004.
Property hotspots, buy Coastal (pretty obvious), however North and South coasts of NSW, Sunshine Coast and Noosa, Lorne and Warrombool in Victoria, Glenelg and Victor Harbour in SA and 100klm North and South of Perth (Coastal bits).
Now go and make your fortunes
Jan 3rd 2004, 2:31 am
#2
Banned
Joined: Mar 2003
Posts: 4,432
Re: Property Hotspots for 2004
Originally posted by dotty
Little snippy from todays papers.
Research firm BIS shrapnel has predicted at least 10% growth for the Brisbane area for 2004. (Prices in brisbane went up 11% in the last quater of 2003). Queensland will be the standout performer in the property market. Price growth will slow in Sydney Melbourne and Adelaide, Perth and Hobart wont be too bad. Price growth is inevitable in QLD even if interest rates go up by 1% which we dont think will happen anyway. Economists are not forseeing a fall in prices.
Other articles (4 today alone) indicate the jobless rate is expected to dip further to 5.6% in 2004.
Property hotspots, buy Coastal (pretty obvious), however North and South coasts of NSW, Sunshine Coast and Noosa, Lorne and Warrombool in Victoria, Glenelg and Victor Harbour in SA and 100klm North and South of Perth (Coastal bits).
Now go and make your fortunes
Little snippy from todays papers.
Research firm BIS shrapnel has predicted at least 10% growth for the Brisbane area for 2004. (Prices in brisbane went up 11% in the last quater of 2003). Queensland will be the standout performer in the property market. Price growth will slow in Sydney Melbourne and Adelaide, Perth and Hobart wont be too bad. Price growth is inevitable in QLD even if interest rates go up by 1% which we dont think will happen anyway. Economists are not forseeing a fall in prices.
Other articles (4 today alone) indicate the jobless rate is expected to dip further to 5.6% in 2004.
Property hotspots, buy Coastal (pretty obvious), however North and South coasts of NSW, Sunshine Coast and Noosa, Lorne and Warrombool in Victoria, Glenelg and Victor Harbour in SA and 100klm North and South of Perth (Coastal bits).
Now go and make your fortunes
...
A "reverse seachange" is a real possibility.
ALL those people who took advantage of historic low interest rates to buy seaside investment or holiday properties may look to offload them through 2004 after they reassess the wisdom of the purchases in light of further rate rises.
...
Back from the howling old owl in the woods,
Back from hunting the horny back toad,
Back to an old rent house
Down on yellow brick road.
Jan 3rd 2004, 2:36 am
#3
BE Forum Addict
Thread Starter
Joined: Feb 2002
Location: Dream life UK....
Posts: 2,912
Re: Property Hotspots for 2004
Originally posted by Megalania
The Australian 2003 Jan 3-4
...
A "reverse seachange" is a real possibility.
ALL those people who took advantage of historic low interest rates to buy seaside investment or holiday properties may look to offload them through 2004 after they reassess the wisdom of the purchases in light of further rate rises.
...
Back from the howling old owl in the woods,
Back from hunting the horny back toad,
Back to an old rent house
Down on yellow brick road.
The Australian 2003 Jan 3-4
...
A "reverse seachange" is a real possibility.
ALL those people who took advantage of historic low interest rates to buy seaside investment or holiday properties may look to offload them through 2004 after they reassess the wisdom of the purchases in light of further rate rises.
...
Back from the howling old owl in the woods,
Back from hunting the horny back toad,
Back to an old rent house
Down on yellow brick road.
Jan 3rd 2004, 2:38 am
#4
Guest
Posts: n/a
Re: Property Hotspots for 2004
Originally posted by Megalania
The Australian 2003 Jan 3-4
ALL those people who took advantage of historic low interest rates to buy seaside investment or holiday properties may look to offload them through 2004 after they reassess the wisdom of the purchases in light of further rate rises.
The Australian 2003 Jan 3-4
ALL those people who took advantage of historic low interest rates to buy seaside investment or holiday properties may look to offload them through 2004 after they reassess the wisdom of the purchases in light of further rate rises.
Jan 3rd 2004, 2:42 am
#5
Banned
Joined: Mar 2003
Posts: 4,432
Re: Property Hotspots for 2004
Originally posted by ABCDiamond
I agree that quiet a number of the above will possibly sell, but many of the real investors locked in their interest rates at about the 5.99% rate for 3-5 years, and so will be covered with rent income paying the loans, assuming they bought correctly at the time.
I agree that quiet a number of the above will possibly sell, but many of the real investors locked in their interest rates at about the 5.99% rate for 3-5 years, and so will be covered with rent income paying the loans, assuming they bought correctly at the time.
Jan 3rd 2004, 2:48 am
#6
BE Forum Addict
Thread Starter
Joined: Feb 2002
Location: Dream life UK....
Posts: 2,912
Re: Property Hotspots for 2004
Originally posted by ABCDiamond
I agree that quiet a number of the above will possibly sell, but many of the real investors locked in their interest rates at about the 5.99% rate for 3-5 years, and so will be covered with rent income paying the loans, assuming they bought correctly at the time.
I agree that quiet a number of the above will possibly sell, but many of the real investors locked in their interest rates at about the 5.99% rate for 3-5 years, and so will be covered with rent income paying the loans, assuming they bought correctly at the time.
Jan 3rd 2004, 2:54 am
#7
Not here
Joined: Jan 2003
Posts: 1,621
Re: Property Hotspots for 2004
Originally posted by Megalania
The Australian 2003 Jan 3-4
...
A "reverse seachange" is a real possibility.
ALL those people who took advantage of historic low interest rates to buy seaside investment or holiday properties may look to offload them through 2004 after they reassess the wisdom of the purchases in light of further rate rises.
...
Back from the howling old owl in the woods,
Back from hunting the horny back toad,
Back to an old rent house
Down on yellow brick road.
The Australian 2003 Jan 3-4
...
A "reverse seachange" is a real possibility.
ALL those people who took advantage of historic low interest rates to buy seaside investment or holiday properties may look to offload them through 2004 after they reassess the wisdom of the purchases in light of further rate rises.
...
Back from the howling old owl in the woods,
Back from hunting the horny back toad,
Back to an old rent house
Down on yellow brick road.
Jan 3rd 2004, 2:56 am
#8
Guest
Posts: n/a
Re: Property Hotspots for 2004
Originally posted by dotty
Another point, most second homes here are bought to help fund retirement plans in the face of shrinking pension hopes and Superannuation that goes backwards. Assuming then most of these people bought long term investment wise and had the brains to realise the interest rate cuts after 9/11 would not hold forever? Surely that was factored in?
Another point, most second homes here are bought to help fund retirement plans in the face of shrinking pension hopes and Superannuation that goes backwards. Assuming then most of these people bought long term investment wise and had the brains to realise the interest rate cuts after 9/11 would not hold forever? Surely that was factored in?
The figures below are from a poll on a property investors forum, and show that the majority are pretty comfortable with possible future rate changes.
The question was:
At what % home interest rate would you be forced to sell an IP? -
Rate .. .. % of answers
7% - 2.82%
8% - 2.82%
9% - 2.82%
10% - 15.49%
11% - 0%
12% - 12.68%
13% - 2.82%
14% - 0%
15% - 9.86%
16% - 1.41%
17% - 1.41%
18% - 4.23%
19% - 0%
20% - 0%
Never! - 43.66%
Jan 3rd 2004, 2:57 am
#9
Banned
Joined: Mar 2003
Posts: 4,432
Re: Property Hotspots for 2004
Originally posted by Florida_03
I was paying 17% in 1990...but then I was not exposed at the levels of today...400k @ 17%...what rent would pay that?
I was paying 17% in 1990...but then I was not exposed at the levels of today...400k @ 17%...what rent would pay that?
Jan 3rd 2004, 2:59 am
#10
Guest
Posts: n/a
Re: Property Hotspots for 2004
Originally posted by Megalania
$1,307.69 / week.
$1,307.69 / week.
Jan 3rd 2004, 2:59 am
#11
Joined: Aug 2003
Posts: 11,149
Re: Property Hotspots for 2004
Originally posted by dotty
Another point, most second homes here are bought to help fund retirement plans in the face of shrinking pension hopes and Superannuation that goes backwards. Assuming then most of these people bought long term investment wise and had the brains to realise the interest rate cuts after 9/11 would not hold forever? Surely that was factored in?
Another point, most second homes here are bought to help fund retirement plans in the face of shrinking pension hopes and Superannuation that goes backwards. Assuming then most of these people bought long term investment wise and had the brains to realise the interest rate cuts after 9/11 would not hold forever? Surely that was factored in?
Something is worth the present value of future income + the present value of the sales price.
Rental income is currently paltry and less than what a bank savings account would provide. Therefore they had all better hope they do not collectively crash the market on retirement.
Jan 3rd 2004, 3:01 am
#12
BE Forum Addict
Thread Starter
Joined: Feb 2002
Location: Dream life UK....
Posts: 2,912
Re: Property Hotspots for 2004
Originally posted by Florida_03
I was paying 17% in 1990...but then I was not exposed at the levels of today...400k @ 17%...what rent would pay that?
I was paying 17% in 1990...but then I was not exposed at the levels of today...400k @ 17%...what rent would pay that?
Jan 3rd 2004, 3:04 am
#13
Not here
Joined: Jan 2003
Posts: 1,621
Re: Property Hotspots for 2004
Originally posted by dotty
Negative gearing, in OZ doesnt the defecit becomes a loss against income? that would be the worry if govvy choped negative gearing. But didnt they do that once, thought the outcome was the rental market collapsed and it was brought back in.
Negative gearing, in OZ doesnt the defecit becomes a loss against income? that would be the worry if govvy choped negative gearing. But didnt they do that once, thought the outcome was the rental market collapsed and it was brought back in.
Jan 3rd 2004, 3:05 am
#14
BE Forum Addict
Thread Starter
Joined: Feb 2002
Location: Dream life UK....
Posts: 2,912
Re: Property Hotspots for 2004
Slightly amusing side to this converstion on a Saturday lunchtime, should we not all be lying under a palm tree on a beach enjoying our OZ lifestyle
Jan 3rd 2004, 3:08 am
#15
Banned
Joined: Mar 2003
Posts: 4,432
Re: Property Hotspots for 2004
Originally posted by ABCDiamond
or $461 per week IF they had FIXED the interest rate at 6%
or $461 per week IF they had FIXED the interest rate at 6%