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Report Housing Affordability; Secure a home... at pre-boom affordable prices
Topic Started: 5 Jan 2011, 07:51 AM (1,183 Views)
Black Panther
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Satterley pushing cheap packages for first homebuyers

* Ashlee Mullany
* From: PerthNow
* January 04, 2011 11:30AM

FIRST time buyers struggling to get into the property market will be thrown a lifeline this week, with Satterley Property Group and leading building companies set to offer what they say will be the cheapest house-and-land packages in the state.

In an attempt to address the state's housing affordability issues, the developer has joined forces with 17 of the state's building heavyweights to offer packages as cheap as $272,000.

It is the first time in more than 40 years the developer has called on the state's building industry to support a major campaign, according to the company.

Satterley boss Nigel Satterley said he believed the new packages at "pre-boom" prices would provide a much-needed boost to the state's struggling real estate market.

"It's my belief that the West Australian residential property market is rattling along the bottom of the cycle - the median house price house bottomed out," Mr Satterley said.

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"Over the next 10 years we will need at least 180,000 new dwellings because I think Western Australia will grow by 400,000 people, 40,000 a year.

"We believe what we are doing will help stimulate the home building industry and give people the opportunity to secure a home... at pre-boom affordable prices."

The packages will be available at eight different estates across the state from Saturday, including estates in Butler, Iluka, Secret harbour, Baldivis, Bunbury and Busselton.

The list of builders includes Dale Alcock Homes, Ventura Homes, Celebration Homes, Scott Park, Collier, Ross North and Summit.

Housing minister Troy Buswell said the State Government supported the initiative.

"Housing affordability is one of the critical issues facing Western Australia for two reasons: firstly from the social perspective to make sure than young western Australians and secondly from an economic point of view," Mr Buswell said.

"If we let a situation arise again where median house prices go up by 80 per cent.. we will quite simply create a lot of social problems and economic problems in terms of attracting labour into Western Australia.

"It's fantastic to see the industry tackling the affordability issue head on in the way that they are."

The announcement comes as Mr Buswell prepares to release his Housing Affordability Strategy in the coming weeks.

http://www.perthnow.com.au/business/satterley-pushing-cheap-packages-for-first-homebuyers/story-e6frg2ru-1225981741760
BLACK PANTHER
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BubbleTrouble
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Pre-boom priced packages will just bring prices down even further. May as well wait and save even more.
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This story is about an industry in trouble and resorting to desperate measures in their minds, only problem will be demand still, so let's see how they sell before rushing to the bank.
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Harpy
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"FIRST time buyers struggling to get into the property market will be thrown a lifeline this week"
Bit like a Tuna long line, covered with barbed debt hooks, and they don't come out without tearing a lot of flesh, very painful.

I'd like to see the areas where they are looking to do this, this type of last ditch attempt usually ends up in a poverty trap, cheap land too far from services, reliant on long commuting sold to people who can't afford a decent car, not to mention a house. Car breaks down, bang trap goes off, lose the job, lose the house, lose the family, back to social security with less than you started with.

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Black Panther
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Harpy
5 Jan 2011, 08:49 AM
"FIRST time buyers struggling to get into the property market will be thrown a lifeline this week"
Bit like a Tuna long line, covered with barbed debt hooks, and they don't come out without tearing a lot of flesh, very painful.

I'd like to see the areas where they are looking to do this, this type of last ditch attempt usually ends up in a poverty trap, cheap land too far from services, reliant on long commuting sold to people who can't afford a decent car, not to mention a house. Car breaks down, bang trap goes off, lose the job, lose the house, lose the family, back to social security with less than you started with.

Very negative way at looking at this news.

Packages as cheap as $272,000 is great news for those wanting to buy a new home.

I would also say, the chances of buying this cheaply dont come around to often, so smart bears will would take advantage of this.

As the article states, the next up cycle is just around the corner.

"It's my belief that the West Australian residential property market is rattling along the bottom of the cycle - the median house price house bottomed out, Mr Satterley said.

Over the next 10 years we will need at least 180,000 new dwellings because I think Western Australia will grow by 400,000 people, 40,000 a year."

BLACK PANTHER
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barns
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I don't know much about WA (being a Sydneysider) but have visited a few times, most recently August 2010. During that trip I drove down to Margaret River and saw new suburbs and even new towns full of pastel rendered house and land project homes. I think there is risk in these are there were a lot of them. Having said that, free-standing houses in well located suburbs close to the Perth CBD (Subiaco, North Perth, Scarborough) don't seem to have suffered much, ie, less than 5% drops, and due to the increased wealth from mining can expect to at least hold their own I would imagine. I don't believe you will get 'bargains' in such places even if some out suburbs continue to have falls.

http://apm.domain.com.au/Research/?AddressLine=subiaco&LocationType=Suburb&State=WA&SuburbId=13578
“You Keep Using That Word, I Do Not Think It Means What You Think It Means” - Inigo Montoya
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raveswei
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This is a good plan. Adding more supply on huge oversupply will just help push prices down faster.
By the time these homes are completed there will be thousands of $270k houses on the market.
Finally government did something to improve affordability and to help the economy on the long run.
http://popping-bubble.blogspot.com/

Thinking of an Australian property speculator (PI):
Inaction = missing opportunities.
Missing opportunities = losing.
Too much thinking = inaction.
Thinking = missing opportunities.
Therefore thinking = losing.

disgraceful little man Frank Castle owes a house to Salvation Army

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Harpy
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Black Panther
5 Jan 2011, 08:56 AM
Harpy
5 Jan 2011, 08:49 AM
"FIRST time buyers struggling to get into the property market will be thrown a lifeline this week"
Bit like a Tuna long line, covered with barbed debt hooks, and they don't come out without tearing a lot of flesh, very painful.

I'd like to see the areas where they are looking to do this, this type of last ditch attempt usually ends up in a poverty trap, cheap land too far from services, reliant on long commuting sold to people who can't afford a decent car, not to mention a house. Car breaks down, bang trap goes off, lose the job, lose the house, lose the family, back to social security with less than you started with.

Very negative way at looking at this news.

Packages as cheap as $272,000 is great news for those wanting to buy a new home.

I would also say, the chances of buying this cheaply dont come around to often, so smart bears will would take advantage of this.

As the article states, the next up cycle is just around the corner.

"It's my belief that the West Australian residential property market is rattling along the bottom of the cycle - the median house price house bottomed out, Mr Satterley said.

Over the next 10 years we will need at least 180,000 new dwellings because I think Western Australia will grow by 400,000 people, 40,000 a year."

Article written by developers, paraphrased by a pseudo journalist, are we to believe that this is a truly benevolant gesture and the builders and developers are forgoing profit to provide affordable housing, there's always a catch. My policy is to make informed decisions, that is knowing all the downsides you are buying, the upsides are easy, the seller will tell you these.
I do not doubt that WA may well continue in the mining boom for a long time yet, but that's a big may?
Particularly in WA, all hopes seem to be reliant on the mining boom underpinning all aspects of the economy and it has been like this for a long time, hence other sectors of the economy have been neglected, if there should be a small decline in the mining sector the effects will be multiplied many fold in WA. Global economies need China to hold the 7-8% growth rate and China is struggling with this, not to maintain it but to manage side effects, the talk is if they fall back to 5-6% then this will reverberate throughout the world, this looks unsustainable.
Just look at comodity prices, they have peaked because of a true shortage of supply, but supply is ramping up, if Chinas demand were to fall just 5%, thats where all the cream is, suddenly the negotiations at the table flip it becomes a buyers market and comodity prices fall.
A cappachino is just a flat white with a lot of froth and sprinkle of cocoa, that stuff on top is less than 5% of the true volume, below that it's just a coffee.
Unlike peak oil?, iron ore and coal reserves are plentiful, this is just a short term blip, they will come back to base cost of production and China (and India) will buy from the cheapest supplier, that's capitalism.
So I would more likely be looking to buy property in areas that have not shown the boom growth of this decade, like some of the good stable regional centres.
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BubbleTrouble
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Black Panther
5 Jan 2011, 08:56 AM
As the article states, the next up cycle is just around the corner.

"It's my belief that the West Australian residential property market is rattling along the bottom of the cycle - the median house price house bottomed out, Mr Satterley said.

Over the next 10 years we will need at least 180,000 new dwellings because I think Western Australia will grow by 400,000 people, 40,000 a year."
Opinionated rubbish. Hope is not a strategy.
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Black Panther
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BubbleTrouble
5 Jan 2011, 09:52 AM
Opinionated rubbish. Hope is not a strategy.
Interesting Responses, question, how low does the price of a entry level house and land package have to go before you's would consider purchasing one ...
BLACK PANTHER
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