Welcome Guest [Log In] [Register]


Reply
An historical event about to take place in Australia; Rental prices have peaked in ALL capitals and will now decline for years
Topic Started: 13 Jul 2014, 06:59 PM (18,311 Views)
Guest
Unregistered

Guest
13 May 2016, 01:21 AM
I would say rents are falling slowly in Adelaide. Compared to two years ago when we were looking it is a completely different market now - definitely a renters market. Our renewal was up last month and our landlord called and implied that he wanted to raise our rents up another $10/week and sign a contract for us to stay another two years. We replied "no and no" and his reply was "okay" :D not fighting it. but we agree to just a six month contract. If he had forced the rental increase we would just say "see ya!" :bye: Because there are plenty of rentals out there to choose from.
I would expect Adelaide rents to be more stable and possibly more sustainable than most other capitals, except for Tassie. The main reason being debt levels there have not risen like others over the last five years. By comparison, they look virtually flat. I would expect Adelaide has not seen the building boom others have seen because of that, and will not see the levels of oversupply as a result. Its mainly unemployment that would be effecting rents in this market one would think. The recent bonus for Adelaide and France, was the governments mindless waste of 50 billion of taxpayers money to build some submarines. Which will no doubt like always, be out of date by the time they are completed, and like most things, already were before they started. I expect this is the governments attempt at a government funded jobs program to somehow boost the numbers. The 50 billion they have stopped funding(propping) the car industry with, and associated jobs, can now be funneled into the next waste of 50 billion of taxpayer monies.

As for rents overall, they just simply are not growing like the old days. And are now falling in quite a few capitals. I thought the most recent core logic report showed annual rents had declined by 0.2% over the year, and the biggest or only reported fall in their twenty year history was what was claimed I believe.

And all these units completions coming on in most capitals will no doubt see further downward pressure on the rental market.

A lot of talk in todays Australian financial review about the banks cracking down on foreign lending and some examples of the fraud going on. Some agents there saying the numbers of foreign buyers at opens has dropped off, and that where these whole buildings were selling off the plan in one day not long ago, that is no longer the case. I know of an offer recently by chinese buyers on quite a large sum, between 5-10 mill. The offer was excepted but they were unable to obtain finance and deal fell through.

"REPLY WITH QUOTE" Go to top
 
Khaderbhai
Member Avatar
Wealthy Suburbanite

MMM
13 Jul 2014, 06:59 PM
we have now reached this peak from which rental prices will not only no longer grow, but they will start falling

they will start falling to levels that will be historic falls in rental prices for Australia

What we are about to witness in all capitals, will be historic rental price declines
Still no sign of these rental declines (outside Perth and Darwin anyway).

All other capitals are up for the year. Up 2.2% nationally according to SQM research (after rising last year as well)...

http://www.sqmresearch.com.au/

And this just out today from APM. Sydney unit rents up 4% for the year, and houses up 2%...

Sydney units almost as expensive as houses after ‘surprise’ rent jump: Domain Group

What happened to your 'historical event' MMM, did it get postponed for a few years?
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Profile "REPLY WITH QUOTE" Go to top
 
Guest
Unregistered

Guest
15 May 2016, 02:01 PM
I would expect Adelaide rents to be more stable and possibly more sustainable than most other capitals, except for Tassie. The main reason being debt levels there have not risen like others over the last five years. By comparison, they look virtually flat. I would expect Adelaide has not seen the building boom others have seen because of that, and will not see the levels of oversupply as a result. Its mainly unemployment that would be effecting rents in this market one would think. The recent bonus for Adelaide and France, was the governments mindless waste of 50 billion of taxpayers money to build some submarines. Which will no doubt like always, be out of date by the time they are completed, and like most things, already were before they started. I expect this is the governments attempt at a government funded jobs program to somehow boost the numbers. The 50 billion they have stopped funding(propping) the car industry with, and associated jobs, can now be funneled into the next waste of 50 billion of taxpayer monies.

As for rents overall, they just simply are not growing like the old days. And are now falling in quite a few capitals. I thought the most recent core logic report showed annual rents had declined by 0.2% over the year, and the biggest or only reported fall in their twenty year history was what was claimed I believe.

And all these units completions coming on in most capitals will no doubt see further downward pressure on the rental market.

A lot of talk in todays Australian financial review about the banks cracking down on foreign lending and some examples of the fraud going on. Some agents there saying the numbers of foreign buyers at opens has dropped off, and that where these whole buildings were selling off the plan in one day not long ago, that is no longer the case. I know of an offer recently by chinese buyers on quite a large sum, between 5-10 mill. The offer was excepted but they were unable to obtain finance and deal fell through.
http://www.adelaidenow.com.au/business/50-billion-submarine-contract-will-not-make-or-break-south-australian-economy-deloitte/news-story/4e641fd2851a6c82cb5e05c0cb965f64


Sorry, subs are not going to save SA. You are wrong - Debt levels have risen here. The only reason they may not be as high as the bigger capital cities is due to the lower property (still pricey for a city like Adelaide) but factor in that people earn less here than it is just as ugly. I know many friends here who bought a house before prices skyrocketed and they think they are super rich with all this new equity so they remortgaged their house not once but twice to live beyond their means. Now they are mortgages to their eyeballs and living pay check to pay check. Rental prices not going down in Adelaide? I beg to differ. Just look at all the rentals sitting on realeatate.com for months with price drops every 3 months. You have to see it from the ground level and don't believe the fraudulent data the media feeds to keep the greedy gullible investors happy.
"REPLY WITH QUOTE" Go to top
 
Khaderbhai
Member Avatar
Wealthy Suburbanite

MMM
13 Jul 2014, 06:59 PM
rental prices in Australia will hit a peak from which they will then decline for years as jobs will no longer be there to sustain them

have been declining since 2008 when the gfc first rared its head.

we have now reached this peak from which rental prices will not only no longer grow, but they will start falling

What we are about to witness in all capitals, will be historic rental price declines. This will continue for years

So we are now at a historical point in Australian history, from which rental prices can no longer grow. Not only can they no longer grow, but they cannot be sustained. And for this reason they will fall.

The dawning of reality has arrived
So three years later and Crazy Ted's wild predictions still haven't eventuated.

From $3000 to $6000 a week: Asking rents double as supply dwindles

Rents continue to climb everywhere except Perth and Darwin. Up 3% nationally for the year... http://www.sqmresearch.com.au/index.php

Posted Image

Posted Image
Attached to this post:
Attachments: Sydney_Rents_Boom.jpg (97.25 KB)
Attachments: SQM_Rents_Boom_2017.jpg (82.05 KB)
Edited by Khaderbhai, 8 Mar 2017, 12:37 PM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Profile "REPLY WITH QUOTE" Go to top
 
Rat
Member Avatar
Filthy Rodent

Sydney rents surging at the fastest rate in five years...

https://www.domain.com.au/news/sydney-rents-rise-at-fastest-rate-since-2011-in-worrying-trend-20170420-gvo921

Posted Image
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
Profile "REPLY WITH QUOTE" Go to top
 
Bardon
Default APF Avatar


Rat
21 Apr 2017, 02:14 PM
Sydney rents surging at the fastest rate in five years...
That would be consistent with previous cycles and would indicate a tempering of price rise increases ahead for now. Prices go up, then rents go up, then prices go up, then rents go up .......... type of thing.
Profile "REPLY WITH QUOTE" Go to top
 
Largerfield
Unregistered

A couple of years ago my friend who is rich invited me to his apartment. He was showing me the fleet of cars from residents who parked under the carpark.

All you could see were BMWs, Mercedes, Audis etc. He then showed me his next-door neighbour's brand new M3 which was around $140k.

I asked him 'damn, what does this guy do for a living'. I thought his reply would be 'lawyer', but turns out the guy was a plumber!

He then proceeded to show me the plumbers beat up ute. The M3 is his second car and his wife has another Audi!

It dawned on me that people like us bears are risk adverse. People like these plumbers are willing to take risk, probably based on limited data.

If all his mates are making money from buying property, he’ll go out and do the same. He’s not going to sit on the internet and research for hours about a possible downturn.

They are do-er’s, we are sitters. Sometimes, too much information creates paralysis.

I have a family member who married in. Won't even share the same room as the rest of us as they consider themselves just too good. Literally say it to our faces.

This person came straight out and said that they have set themselves up for life through their savvy real estate decisions!

Has a child under six months old, mortgages well into the millions. Receptionist type jobs.

Its so hard dealing with the arrogance of these morons. I warned them five years ago about impending Sydney property collapse disaster and now they laugh at me.

Its really disheartening to know, to absolutely KNOW that this person will be put up one day in my own home, while I raise their children after they're wiped out by the crash and I can finally buy a home for my own family.

Every bone of my being wants this housing crash to come quickly so I can say 'told you so, I was right!'

I want it to come because it will make this country a far, far better place.

It will make people appreciate things more, look after each other and become more humble and understand life.

Which makes it OK to pray for this crash.
"REPLY WITH QUOTE" Go to top
 
Bardon
Default APF Avatar


Largerfield
21 Apr 2017, 06:01 PM
Every bone of my being wants this housing crash to come quickly so I can say 'told you so, I was right!'
Sorry brother I have some bad news for you.

Posted Image
Profile "REPLY WITH QUOTE" Go to top
 
herbie
Member Avatar


Bardon
21 Apr 2017, 07:37 PM
Sorry brother I have some bad news for you.

Posted Image
I suspects that just coulda bin a post by our erstwhile ole mate Shady? ... :)
Edited by herbie, 21 Apr 2017, 07:46 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
Profile "REPLY WITH QUOTE" Go to top
 
Chris
Default APF Avatar


herbie
21 Apr 2017, 07:45 PM
I suspects that just coulda bin a post by our erstwhile ole mate Shady? ... :)
Wreaks of his MO, it takes a very sad sad individual to write such bear porn hoping to get a rise out of someone.

Cheap tacky endeavours from a man that is 'a superior investor', laughable but also deeply disturbing
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
DealsFor.me - The best sales, coupons, and discounts for you
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy