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Blocks as small as 171sq m arrive in Perth
Topic Started: 2 Oct 2013, 11:07 AM (2,173 Views)
Black Panther
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Oh dear, looks like the entry point to the market just got significantly smaller.

This is what you get for refusing to get on the ladder earlier.

Two years ago the entry point was 300 sqm and I distinctly remember some say they refuse to get on the property ladder by buying a "Dogbox" on a tiny 300 sqm block.

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Kulganis
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And what happens if it causes even less people to even get on the ladder? Surely if some refused 300, more would refuse 75.

So, because of our planners, rather than fix the affordability issues at their causes, we make land, which isn't exactly in short supply, smaller and smaller so it costs less.

Great planning, wondering if they got their education from cereal boxes.
"If man is to survive, he will have learned to take a delight in the essential differences between men and between cultures. He will learn that differences in ideas and attitudes are a delight, part of life's exciting variety, not something to fear." - Gene Roddenberry

"Balloon animals are a great way to teach children that the things they love dearly, may spontaneously explode" -- Lee Camp
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Black Panther
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Kulganis
3 Oct 2013, 09:43 AM
And what happens if it causes even less people to even get on the ladder? Surely if some refused 300, more would refuse 75.

So, because of our planners, rather than fix the affordability issues at their causes, we make land, which isn't exactly in short supply, smaller and smaller so it costs less.

Great planning, wondering if they got their education from cereal boxes.
From a Market point of view it is great planning.

Affordability is maintained, so people CAN buy a starter home on a starter block (171sqm) when they first enter the property LADDER.

It also means homes on blocks larger than that are likely to become more valuable.

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MassPsychology
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Black Panther
3 Oct 2013, 10:44 AM
From a Market point of view it is great planning.

Affordability is maintained, so people CAN buy a starter home on a starter block (171sqm) when they first enter the property LADDER.

It also means homes on blocks larger than that are likely to become more valuable.
Sorry bro but I don't think there's many people out there rushing to pour 350-400k into 171 sqm that's about 45-50km's out of the CBD. All of the potential "value" of these houses is already factored into the land price and the cost of construction + materials. No one will pay a cent over the initial price for these houses in the future (In fact probably less). This is what we get for refusing to build up instead of out. Dat urban sprawl
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Veritas
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Black Panther
3 Oct 2013, 10:44 AM
Kulganis
3 Oct 2013, 09:43 AM
And what happens if it causes even less people to even get on the ladder? Surely if some refused 300, more would refuse 75.

So, because of our planners, rather than fix the affordability issues at their causes, we make land, which isn't exactly in short supply, smaller and smaller so it costs less.

Great planning, wondering if they got their education from cereal boxes.
From a Market point of view it is great planning.

Affordability is maintained, so people CAN buy a starter home on a starter block (171sqm) when they first enter the property LADDER.

It also means homes on blocks larger than that are likely to become more valuable.

Posted Image

Gotta love that ladder!
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
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Massive
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MassPsychology
3 Oct 2013, 12:29 PM
Sorry bro but I don't think there's many people out there rushing to pour 350-400k into 171 sqm that's about 45-50km's out of the CBD. All of the potential "value" of these houses is already factored into the land price and the cost of construction + materials. No one will pay a cent over the initial price for these houses in the future (In fact probably less). This is what we get for refusing to build up instead of out. Dat urban sprawl
Its a pit for smsf funds .. Has to be .... There are better developments , better value for money with better amenities , closer to the city available... Makes no sense for legitimate buyer ...

Dead capital for at least 5 to 10 years investing there for something so small
Edited by Massive, 3 Oct 2013, 12:55 PM.
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MassPsychology
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Veritas
3 Oct 2013, 12:42 PM
Posted Image

Gotta love that ladder!
But Veritas, if you don't get on the ladder right now, you'll lose out forever and a gremlin will eat your firstborn.
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mel
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Massive
3 Oct 2013, 12:54 PM
Its a pit for smsf funds .. Has to be .... There are better developments , better value for money with better amenities , closer to the city available... Makes no sense for legitimate buyer ...
you could be right, SMSF or possibly regular investors who don't know any better.

There was an entire estate similar distance from melbourne a few years ago with each block being 300sqm.

Creating an estate full of such small allotments seemed ridiculous at the time and the prices were very high relative to surrounding estates. There was a small uptick in the market and everything ended up selling though. Actually, there have been a few times when I have seen land releases which seem incredibly stupid or overpriced, and they always sold eventually.

Given that the market is in a mild upswing my guess is they will sell at close to asking, even if they have to sit there for a while
Edited by mel, 3 Oct 2013, 05:47 PM.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
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Veritas
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Black Panther
3 Oct 2013, 10:44 AM
Kulganis
3 Oct 2013, 09:43 AM
And what happens if it causes even less people to even get on the ladder? Surely if some refused 300, more would refuse 75.

So, because of our planners, rather than fix the affordability issues at their causes, we make land, which isn't exactly in short supply, smaller and smaller so it costs less.

Great planning, wondering if they got their education from cereal boxes.
From a Market point of view it is great planning.

Affordability is maintained, so people CAN buy a starter home on a starter block (171sqm) when they first enter the property LADDER.

It also means homes on blocks larger than that are likely to become more valuable.

Why do we have to maintain affordability?

Housing is jut as affordable now as it has ever been.

And anyone who says otherwise is a work shy malcontent.

Surely, Skamy,Shadow and Strindberg have taught you that?
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
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Kulganis
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Heh, so long as you don't mind a 3 hour commute everyday, then there isn't an affordability problem.

It's even better if you don't actually have a job, no commute, you could live 150km from any jobs. (unfortunately, this only works for the retired)
"If man is to survive, he will have learned to take a delight in the essential differences between men and between cultures. He will learn that differences in ideas and attitudes are a delight, part of life's exciting variety, not something to fear." - Gene Roddenberry

"Balloon animals are a great way to teach children that the things they love dearly, may spontaneously explode" -- Lee Camp
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