So you priced to your RE friends client's budget and they paid 10-15% more then you would get today. You instantly sold up as your friend had buyers ready and waiting for your type of property.
Sounds like a load of steaming crap.
It's normal practice in business Mike. Who sells a major asset without first lining up a good broker or agent, who lines up prospective buyers? Not all property is sold through Ray White on a bullshit three month sit on their bums contract you know.
It sounds like a bit of sour grapes on your part Mike. Jimbo has done it right and is debt free now, that's the trademark of a successful businessman, not being leveraged to the hilt in a time of economic contraction like many bulls here appear to be.
What continues to support the property market here is a very strong FHB market due to our affordable housing. 25-30% of the market is FHB, which provides a solid floor for the market, provides sales for upgraders wanting that newer bigger home as almost 2/3rds of FHB buy established houses.
Yes, I really think the WA government does deserve a hat tip for an initiative that no other Australian state government has had the balls to implement. Although perhaps WA politicians quietly, unanimously agreed that the prices of the Perth investment property that most of them own hadn't really been doing much for quite a while anyway so what did they have to lose? Juxtapose that with politicians from the rest of the country who know that too big a win for FHBers equals a loss for them personally.
Seriously, if I own investment property as a member of the house, how can I possibly represent the interests of the up-and-coming when in order for them to get ahead I'm going to have to lose out? Those who have not bought a place to live yet - largely because of their age - are totally unrepresented here by anyone in politics.
It does look a tad unusual cast against the argument that FHBers are buying in droves, just not being recorded (the latest FHBer numbers from AFG are woeful) - so the statistics are correct in WA but incorrect everywhere else?
And if they are correct and FHBers are rushing in strongly, in the only state to be implementing anything approaching a realistic affordability initiative then it becomes very, very obvious that there are serious affordability issues, despite mining truck-sized loads of denial.
It does look a tad unusual cast against the argument that FHBers are buying in droves, just not being recorded (the latest FHBer numbers from AFG are woeful) - so the statistics are correct in WA but incorrect everywhere else?
And if they are correct and FHBers are rushing in strongly, in the only state to be implementing anything approaching a realistic affordability initiative then it becomes very, very obvious that there are serious affordability issues, despite mining truck-sized loads of denial.
Yes the FHB data in WA is good but not so good elsewhere simply because WA still has a FHOG for existing homes and the other states don't, and it's the FHOG application that the process picks up. Without that FHOG application all buyers are treated exactly the same.
House prices in Perth are higher than most other cities apart from Sydney and Melbourne yet they seem affordable for FHB's
Why do you suggest that houses in Brisbane, Adelaide and Hobart for example are unaffordable for FHB's?
Any expressed market opinion is my own and is not to be taken as financial advice
Yes the FHB data in WA is good but not so good elsewhere simply because WA still has a FHOG for existing homes and the other states don't, and it's the FHOG application that the process picks up. Without that FHOG application all buyers are treated exactly the same.
House prices in Perth are higher than most other cities apart from Sydney and Melbourne yet they seem affordable for FHB's
Why do you suggest that houses in Brisbane, Adelaide and Hobart for example are unaffordable for FHB's?
Hmmmm.
I suspect that the reason why the FTB numbers are so high in WA is the fact that WA has a State owned mortgage company that issue loans to FTBs on 98% LVRs. Keystart.
Take Keystart out of the mix and the FTB numbers would be a lot lower.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
I suspect that the reason why the FTB numbers are so high in WA is the fact that WA has a State owned mortgage company that issue loans to FTBs on 98% LVRs. Keystart.
As Peter says, FHO grants are paid to buyers of established property in WA so the recorded number will be higher than states that don't pay it.
Also, over the last few years we have had a lot of 20 somethings earning big bucks for driving forklifts in Karratha and they will have spent some of their leftover money on buying a house (after the flash ute, piss and trips to Bali three times a year).
If you want to watch a suburb take a nosedive in the next year or so, Baldivis would be a good bet.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
It does look a tad unusual cast against the argument that FHBers are buying in droves, just not being recorded (the latest FHBer numbers from AFG are woeful) - so the statistics are correct in WA but incorrect everywhere else?
And if they are correct and FHBers are rushing in strongly, in the only state to be implementing anything approaching a realistic affordability initiative then it becomes very, very obvious that there are serious affordability issues, despite mining truck-sized loads of denial.
Yes the FHB data in WA is good but not so good elsewhere simply because WA still has a FHOG for existing homes and the other states don't, and it's the FHOG application that the process picks up. Without that FHOG application all buyers are treated exactly the same.
House prices in Perth are higher than most other cities apart from Sydney and Melbourne yet they seem affordable for FHB's
Why do you suggest that houses in Brisbane, Adelaide and Hobart for example are unaffordable for FHB's?
You're not aware of the initiatives undertaken by the WA government Peter? I wouldn't be surprised actually - they are so poorly publicised and you have to wonder why. The initiative appears to go far beyond any FHOG. So it really isn't that simple at all.
House prices may be higher in Perth but WA FHBers below a certain income bracket appear to have acces to lower cost land and housing than elsewhere thanks to the WA government. Mike seems to think that WA is more affordable for FHBers, if I am recalling correctly.
Quote:
Hmmmm.
I suspect that the reason why the FTB numbers are so high in WA is the fact that WA has a State owned mortgage company that issue loans to FTBs on 98% LVRs. Keystart.
Take Keystart out of the mix and the FTB numbers would be a lot lower
I agree that Keystart would play a significant role (as well as the retention of an FHOG for pre-existing) but the intiative appears to extend well beyond even that to the provision of both vacant lots and newly-built houses at prices well below current market value.
The programe's stated aim is to have provided over the next 5 years at a bare minimum.....
Quote:
8,300 more low deposit Keystart and shared-equity home loans • 5,500 subsidised private rental opportunities • 3,500 more social houses by 2013 • 1,000 more social and affordable dwellings generated by growth of the community housing sector • 32,000 more affordable housing lots through the Department of Housing
and including....
Quote:
Department of Housing affordable land subdivisions 80% below the median land price
I hear there is a non-mining building boom in WA at present, I wonder if it is related.
I actually do remember reading years ago about the affordability problem in WA coming to head and the government deciding that action had to be taken. As opposed to all the others who continue to fiddle while Rome burns.
I actually do remember reading years ago about the affordability problem in WA coming to head and the government deciding that action had to be taken. As opposed to all the others who continue to fiddle while Rome burns.
Quote:
You're not aware of the initiatives undertaken by the WA government Peter? I wouldn't be surprised actually - they are so poorly publicised and you have to wonder why. The initiative appears to go far beyond any FHOG. So it really isn't that simple at all.
It was heavily advertised in the lead up and for a few months afterwards. It was all over the TV.
The state Government had to do something as Rents had increased at 20%PA for almost 2 years. Perth needed a supply side response, investors responded.
Rates also decreased during this time so FHB started to buy housing rather then rent, so while prices of housing has steadily increased over the last 2 years rental stock has slowly increased as FHB moved from rentals to owning.
Quote:
House prices may be higher in Perth but WA FHBers below a certain income bracket appear to have acces to lower cost land and housing than elsewhere thanks to the WA government. Mike seems to think that WA is more affordable for FHBers, if I am recalling correctly.
Perth has brand new houses on the fringes for $320,000, 3x2. These are brand new suburbs. As perth has lots of land It will continue to expand outward, I can really see no end in sight to how far Perth can spread for the next few decades.
The median price now paid by FHB is $477,000.
Quote:
I agree that Keystart would play a significant role (as well as the retention of an FHOG for pre-existing) but the intiative appears to extend well beyond even that to the provision of both vacant lots and newly-built houses at prices well below current market value.
The programe's stated aim is to have provided over the next 5 years at a bare minimum.....
Keystart plays a role for those with little or no deposit. However interest rates are above market rates. They also lock you into a loan for 2 years. Then you can refinance at a cheaper rate with a new lender if you wish too.
Quote:
I hear there is a non-mining building boom in WA at present, I wonder if it is related.
A lot of construction at present, FHB building levels are steadily increasing as is buying of established homes after a drop off at the start of the year after a very strong 2013.
The main driver of construction now is the upgrader market. All over Perth you can see subdivisions with large houses being built. In new developments within 15-20km of the CBD you have a lot of activity all over in the $600-800,000 or higher price range.
At present Perth has enough supply to meet demand but with rental vacancy levels at 2.5% (3% is considered a balanced market) and supply of properties for sale hovering around 10,500 it is still a below average supply situation. You only need to look back to 2011 when Supply hit over 18,000 properties for sale, it caused over supply and prices to fall. 12-13,000 properties for sale is considered a balanced market so we are close. This is why we are seeing little movement in rents or prices as the market is healthy and balanced at present.
Any early signs of a correction would have been apparent over winter, but that did not happen. Sales held up and so did prices.
I think the next 6 months will be a good selling opportunity for anyone at that stage follow by a few years of subdued activity.
Keystart plays a role for those with little or no deposit. However interest rates are above market rates. They also lock you into a loan for 2 years. Then you can refinance at a cheaper rate with a new lender if you wish too.
What percentage of the FTB market do they have do you know?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
What do you suppose my agenda is? I am not deluded. I don't believe for a second that what I say on here is going to reduce Perth property prices. They will manage that on their own.
Meanwhile, you Mike and a few others, leveraged up to the earholes, spend your time relentlessly trying to spruik the market because you are terrified of what is coming.
If you really were highly successful property investors with positive cashflow and high net worth, you wouldn't get so tetchy when someone else says that Perth property is set for a decline.
Your main line of attack is to call anyone who says something that contradicts your illusions, a liar.
Mikes stories are unraveling daily. His claims to be an expert in statistical analysis have been exposed a couple of times as being pure bullshit. He can't even seem to grasp the basics.
You are particularly poisonous. You are an outright snob. You only deal in high end suburbs and anything south of Canning bridge is bogan territory.
You remind everyone every chance you get that you were once a glamorous model living the high life. Even your handle tries to create the illusion of glamour.
Bloody pathetic if you ask me.
I've got parents who have been actively involved in building & renting out properties in Perth for many many yrs, they have seen lot of changes & understood very well the importance of timing & what market conditions are doing.
Someone once said to Dad he was a stupid sauerkraut in working hard in property, but he was also professionally involved with some people who knew what they were doing. He began in West Perth & things progressed very well with the transformations over the years. Look at East Perth it was once a ghetto I remember looking at some old pictures that my parents have had around the city to what's its become now, a vibrant community of inner city development.
My parents are now elderly, however my Father still actively managed & maintained properties until he had cardiac issues & now in the last 2 yrs an awful thing called dementia.
My brothers & I have grown up seeing what they've achieved & we have followed their strategies. I have always had an interest in wanting to invest with realism.
I started out very young in property & quite sincerely I'm not an "average investor".
My main issues now have nothing to do with not drowning in debt. The only debts I have now is the usual bills.
My main concern is to provide some dignity for my parents, my brothers & I are involved in downsizing their PPOR, spilt their block as there's room for another property, get them to live in a single storey instead of a home thats 2 storey & not compatible with wasted space or 1 of them breaking their bones. I currently have $624 927.17 to play with. In the event that my Mother is too unwell to care for Dad, a team of carers will be employed to care for them in the comfort of their home. So the joys of employee indemnity & specific contract will need to take place.
1 development is on hold to respect conditions of my Fathers wishes, it was the first 4 houses of many he built, despite dementia he remembers the long term memory & we honour those instructions.
Understand the macro conditions yes, but do understand buying, selling, developing, building does continue to go on in a micro perspective.
What I'm guilty of is yes, I'm quite horrid to that Newjerk & I can see he's trying to make me bite but I honestly dont give a shit, he's disrespected me that it's unforgivable.
What I do regret is being mean to 1 certain poster who did make an effort to help me out in the IT stuff.
As for you, if you have been honest & that you've made $, well then you've got zilch to hide.
As for my fashion work, I was only in it short term but I enjoyed it & it's a learning life experience... it's only every so often idiots like Perthite try to insult me.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
It was heavily advertised in the lead up and for a few months afterwards. It was all over the TV.
The state Government had to do something as Rents had increased at 20%PA for almost 2 years. Perth needed a supply side response, investors responded.
Rates also decreased during this time so FHB started to buy housing rather then rent, so while prices of housing has steadily increased over the last 2 years rental stock has slowly increased as FHB moved from rentals to owning.
Perth has brand new houses on the fringes for $320,000, 3x2. These are brand new suburbs. As perth has lots of land It will continue to expand outward, I can really see no end in sight to how far Perth can spread for the next few decades.
The median price now paid by FHB is $477,000.
Keystart plays a role for those with little or no deposit. However interest rates are above market rates. They also lock you into a loan for 2 years. Then you can refinance at a cheaper rate with a new lender if you wish too.
A lot of construction at present, FHB building levels are steadily increasing as is buying of established homes after a drop off at the start of the year after a very strong 2013.
The main driver of construction now is the upgrader market. All over Perth you can see subdivisions with large houses being built. In new developments within 15-20km of the CBD you have a lot of activity all over in the $600-800,000 or higher price range.
At present Perth has enough supply to meet demand but with rental vacancy levels at 2.5% (3% is considered a balanced market) and supply of properties for sale hovering around 10,500 it is still a below average supply situation. You only need to look back to 2011 when Supply hit over 18,000 properties for sale, it caused over supply and prices to fall. 12-13,000 properties for sale is considered a balanced market so we are close. This is why we are seeing little movement in rents or prices as the market is healthy and balanced at present.
Any early signs of a correction would have been apparent over winter, but that did not happen. Sales held up and so did prices.
I think the next 6 months will be a good selling opportunity for anyone at that stage follow by a few years of subdued activity.
So you would recommend buying now, even though you don't think prices will go up for several years?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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