The future of Australian property prices

[young-gun]

Houses up 1.4% in September!

http://www.thebull.com.au/articles/a...september.html

and now interest rates down another 0.25%

http://www.theaustralian.com.au/busi...-1226486479765

Watching with interest!

So we're now only half a percentage point above the lows of the GFC, but without the 'GFC'....things must be going well.

[MR.]

So we're now only half a percentage point above the lows of the GFC, but without the 'GFC'....things must be going well.

Good point, we are 25 basis points from the cash rate GFC lows of 3%. (ie: 0.25%)

However, average realestate loans were at 5.55% at the GFC lows and are currently at 7%. Basically the banks have crept 1% and counting. We shall wait with baited breath for the banks response. I'm not holding me breath!

[Klogg]

Good point, we are 25 basis points from the cash rate GFC lows of 3%. (ie: 0.25%)

However, average realestate loans were at 5.55% at the GFC lows and are currently at 7%. Basically the banks have crept 1% and counting. We shall wait with baited breath for the banks response. I'm not holding me breath!

BoQ already said they're keeping 5bps...
http://www.macrobusiness.com.au/2012/10/boq-takes-5/

[Miss Hale]

Surprised at teh RBA rate cut, wasn't expecting that

With the Grand Final done and dusted, the real estate season is in full swing here now and I am receiving quite a few calls and text messsages from agents at the moment. I have noticed one interesting thing though, some properties that were on the market last spring that I assumed had eventually sold are now being relisted. I think now that they didn't sell and were taken off the market for awhile. Prices seem about the same at the moment with little movement in either direction as far as I can see.

[prawn_86]

We are actually considering buying a positively geared property. Some of the properties we are looking at, by the time you take off our deposit, would be positively geared.

Just a decision as to if we want to bite the bullet or wait and see for another 6 - 12 months

[McLovin]

Anyone see David Murray on 7:30 last night? Stock up on canned food!

http://www.abc.net.au/7.30/content/2012/s3603244.htm

[Julia]

Anyone see David Murray on 7:30 last night? Stock up on canned food!

http://www.abc.net.au/7.30/content/2012/s3603244.htm

Yes. He's initially an uninspiring speaker but there was nothing ambiguous about his message.
Leigh Sales was a bit out of her depth here.

[DB008]

Surprised at teh RBA rate cut, wasn't expecting that

Really? I was.

[Miss Hale]

Really? I was.

I was expecting it next month.

Thanks for the link to the David Murray interview McLovin, interesting.

[moXJO]

Mate just got back from doing a reno on a property owned by a mate of his. Bought it for roughly $40k spent another $20k on it and sold it for round about $168k. He was going to rent it out when he fixed it up but was offered good money for it. I was surprised as it was in a state where I thought property was moving slow.

[againsthegrain]

A mate who is mates with my other mates enemy did the same thing true story

[Miss Hale]

Mate just got back from doing a reno on a property owned by a mate of his. Bought it for roughly $40k spent another $20k on it and sold it for round about $168k. He was going to rent it out when he fixed it up but was offered good money for it. I was surprised as it was in a state where I thought property was moving slow.

This is a wind up right? Where in Australia can you buy a property of any descripton for $40K?: confused:

[moXJO]

This is a wind up right? Where in Australia can you buy a property of any descripton for $40K?: confused:

Not a wind up. Dyor as Im looking at doing the same thing.

A mate who is mates with my other mates enemy did the same thing true story

Good on him.
Not to worried if its believed or not.

[Miss Hale]

Not a wind up. Dyor as Im looking at doing the same thing.

My research tells me if you could buy for $40K (and that's a big if, don't know anywhere where you can even buy land for $40K) and spent $20k on renos, there is no way you would sell for $168K. If this was the case the peoperty spruikers would by telling us all about it Can you at least name the state?

[drew70]

there are a few 1 bedroom units (motel rooms essentially) in cairns for under 40k

[againsthegrain]

Miss Hale its all relative and can always be subject to personal bias, sure you can buy lots of properties for 40k ... you simply go back to 90s make your purchase wait 20 years and make a clean profit, chuck in a reno for better story telling

[Ijustnewit]

Some nice little places in Queenstown Tassie for under 40k.

http://www.realestate.com.au/propert...town-111662379

[Miss Hale]

Thanks drew70 and IJUSTKNEWIT for pointing out where there are $40K properties (although not properties or places I would be interested in).

[Julia]

Some nice little places in Queenstown Tassie for under 40k.

http://www.realestate.com.au/propert...town-111662379

Hopefully the 'nice little places' was tongue in cheek!

[moXJO]

Miss Hale its all relative and can always be subject to personal bias, sure you can buy lots of properties for 40k ... you simply go back to 90s make your purchase wait 20 years and make a clean profit, chuck in a reno for better story telling

Umm there is actually some on realestate.com. The property was bought this year.
I'm not pro or con property (personally I prefer business) - just that there are people out there making very good returns and it isn't this doom and gloom $hit for everyone. Ill check on the progress on the duplex I mentioned before and some of the costs. Just noticed another duplex being built up the road from a property I wanted to build something similar on. So might go up and talk to the owner about what he is doing and see if he ends up in profit.