ShozInOz

You can download the Sydney Property Guide (by Sun Herald) giving house price info in each suburb at www.domain.com.au

Domain also states that interest rates look due to rise 0.5% to official base rate of 5.75%. This may send house prices into a bit of a slide.

bondipom

I hope so. I have read that due to the level of investment property ownership Australia is one of the most highly rate sensitive nations in the world. According to the SMH the eastern burbs are very sensitive due to the amount of investment properties in the area.

ShozInOz

Me too if we settle here! I have little time for investors. Whatever happened to the Ozzie dream of owning your own house? It has been replaced with a greedy dream of owning lots of houses. The NSW Gov't exit tax on investments was a great idea. Still, I feel for those that bought their own homes at a stretch 12 months ago or so. I would like to see a correction of 20%+ downwards in both Australia and the UK. 2005 predictions for the UK are generally a slight fall, see http://news.bbc.co.uk/1/hi/business/4072901.stm

bondipom

I am not convinced by the exit tax as it seems to have made investors hold out for a Brogden government. Ian Macfarlane (the Chairman of the RBA) criticised the way investment in Australia is directed to property due to tax legislation. The skew to property leaving more important sectors with more expensive capital whilst Meriton is whacking up more and more unwanted concrete towers.

As the property industry is the biggest donor to Australian politics I cannot see matters changing.

bondipom

http://www.smh.com.au/news/National/...546835107.html


One in five face rate hike trouble: survey

March 1, 2005 - 10:38AM

Australians earning more than $80,000 a year would have trouble covering a 0.5 per cent increase in interest rates, a new survey has found.

The Hawker Britton UMR survey found 28 per cent of Australians with a mortgage said they would have trouble making payments if rates rose half a percentage point.

The Reserve Bank board is meeting today, with economists unanimous in expecting rates to increase by 0.25 percentage points for the first time since the end of 2003.

There is also growing speculation the board may lift rates again, to keep a lid on wages-led inflation and to control Australia's burgeoning trade deficit

Quinkana

Oh Dear, some sail close to the wind - 0.5% on a $500,000 mortgage = $2,500 per year = ~$50 per week extra. Save that by cooking at home and eating better and less.

RichS

that was my initial reaction.
However I guess the multiple unit owners etc will get hit up for a bit more.

bondipom

From what I read the investment property owners are up for the biggest whack because they are borrowing so much in relation to their earnings. Around here the investment properties are not cash flow positive so the Eastern Burbs maybe in for a big bump.

RichS

or alternatively our rents will be in for said bump

bondipom

Only if vacancy rates drop. Still no rent rise despite a rate rise and tax rise since moving here.

Quinkana

Rent rises are late this cycle.

Amazulu

We are property investors in the UK & we've done really well out of it. We've backed out of it now because the returns are not there anymore, well not for a few years anyway. We plan do do the same in Australia, again maybe not for a few years. I have no qualms about it, if by me buying up cheap houses so that people cannot get on the property ladder, then tough. It's part of living in a capitalist society. Anyway pensions are crap & this is the only way I can see us having a comfortable, early retirement.