Property Investment in Australia

[neddy]

Indeed, March sales suggest 1.8% fall in Sydney. 53% clearance rate at auction with many withdrawal last minute. Price is starting to fall and I dont' think its hitting bottom.

I think there are still some way to go. As long as US Fed rate is close to zero, I can wait. Unlike Japan, the US cannot afford to remain close to zero for a more than a decade (Otherwise I will be paying SGD$50 for a plate of charkwayteow)!!!

I dun think Sydneysiders wait to hit bottom.
For some people *** I know, once they found something to their liking (logically not emotionality), they will bargain with the seller. The seller, knowing that it is a buyer market, will usually agree.

Auctions have not really taken off in Perth. I call this WTF property sale, works only because of supply shortage.

 

[Ash007]

Yah, I always feel auctions are a huge scams by the agents. Higher commision for sales, some money back if the owner pass-in or withdraw. Either way, win-win situation for them.

I think there are still some way to go. As long as US Fed rate is close to zero, I can wait. Unlike Japan, the US cannot afford to remain close to zero for a more than a decade (Otherwise I will be paying $50 for a plate of charkwayteow)!!!

I dun think Sydneysiders wait to hit bottom. For some people, once they found something to their liking (logically not emotionality), they will bargain with the seller. The seller, knowing that it is a buyer market, will usually agree.

Auctions have not really taken off in Perth. I call this WTF property sale, works only because of supply shortage.

 

[axe168]

Indeed, March sales suggest 1.8% fall in Sydney. 53% clearance rate at auction with many withdrawal last minute. Price is starting to fall and I dont' think its hitting bottom.

Did you hear what our Finance Minister says today ? Australia is going to add another 0.5mil jobs by 2013 ! I don't think it is going to be in the bottom.

 

[Ash007]

Did you hear what our Finance Minister says today ? Australia is going to add another 0.5mil jobs by 2013 ! I don't think it is going to be in the bottom.

Should have the same rise in salary in order to maintain. The current price. A kiwi colleague just recently departed back to kiwi land citing the difficulty to get his own place in Sydney. Several other colleague are facing the same situation. Doesn't matter if there are jobs or not if the pay doesn't allow you to have the lifestyle you want people will leave.

 

[junkyard]

Darwin.

A large financial company wants to chase the paid services offered to the increasing OZ$-denominated asset chase by the Asians there. Just like Melbourne where immigration starves the real estate supply, so it is in NT as well.

 

[neddy]

Yah, I always feel auctions are a huge scams by the agents. Higher commision for sales, some money back if the owner pass-in or withdraw. Either way, win-win situation for them.

Before I leave for holidays,

I noted that the banks are not lending for housing (notice the small business loans promotions) and I will expect things to get nastier towards the 2nd half of the year.

 

[axe168]

I noted that the banks are not lending for housing (notice the small business loans promotions) and I will expect things to get nastier towards the 2nd half of the year.

If the bank is positive on lending, I would be a Chicken W.Buffet by now.

There are lobangs everywhere in Australia.. bcoz of poor lending.

 

[Hector]

If you are looking for the property investment hotspots then Australia could prove to be the best option for you. I invested in Australia after carrying out a research and I was happy because I got my investment just double within a span of two years.

 

[xenomorph]

"I invested in Australia after carrying out a research and I was happy because I got my investment just double within a span of two years."

yer yer i invested in 2 years ago when sing$ higher than aussie$. how, i am happy with double returns too. i should have invested using american$ so i can triple the return. melbourne property good good.

 

[neddy]

[h=1]Gold fever grips Australia as investors flee volatile markets[/h]

• By Neil Wilson
• From:<cite style="font-style: normal; ">Herald Sun </cite>
• August 04, 2011 10:29AM

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One hundred and sixty years after Australia first found itself in the throes of a gold rush, the metal is back in vogue / File



GOLD fever is again gripping the nation - at least according to retailers.

One hundred and sixty years after Australia first found itself in the throes of a gold rush, the yellow metal is firmly back in vogue as investors take cover from volatile global markets.
But the 21st century rush is to shopping centres, jewellers and gold trading parties, and - for the serious investor - into exchange-traded products.
Retailers say some retirees are using parts of their superannuation payouts to buy a "solid gold investment'' they can stow away.
With the price of gold continuing its relentless record-breaking march, the internet is emerging as a key trading engine.
Richmond-based Cash For Gold boasts that its trade has quadrupled since it started internet sales in 2009 and then took its business into suburban homes with "gold parties''.

"It's where a group of ladies get together, like with a tupperware or a lingerie party, and one of our consultants can go and value their older jewellery or whatever they wish to sell on the spot,'' said director Michael Salib.
The company also sells ingots and bullion at parties.
Another group, Gold Buyers Australia, has grown from one Sydney outlet in June 2009 to more than 150 nationally and makes on-the-spot valuations at booths in shopping centres.
The Perth Mint now buys second-hand jewellery, although its main business continues to be refining and selling gold, along with "depository products'' that enable consumers to invest in precious metals without keeping the physical product.
The mint states that every week it has dozens of self-managed superannuation investors pouring up to $10 million into both gold and silver, which has also enjoyed phenomenal price growth.
Rikki McAndrew, a director at Melbourne jewellers and valuers W.Davis and Son, says he has retirees walk in and invest up to $100,000 in gold as the metal hits astonishing values.


Read more: http://www.news.com.au/money/supera...ts/story-e6frfmdi-1226108090079#ixzz1UDO3ba2d

 

[larky28]

Get out of Oz property b4 it is too late.It is another subprime.

Eighty-Five Australian Building and Construction Firms Go Under in a Month; Crazy to Buy a House in Australia Now

The implosion in Australian housing is now in full swing as Eighty-five building and construction firms go under in a month.

The building and construction industry seems to be bearing the brunt of the brittle Australian economy, with more than 85 companies either entering administration, liquidation or being hit by a winding up notice over the past month in Victoria and New South Wales alone.

Over the past fortnight, Safi Brothers Constructions, Port Melbourne Building Supplies, Coastline Bricklaying and Blue Hills Bricklaying have entered administration. Others to have collapsed of late include plumbers, plasterers and landscape gardeners.

Registered company liquidator, Cliff Sanderson of Dissolve Pty Ltd, says while the building sector always features pretty heavily in the collapse lists, the numbers have increased over the past three to five months.

The reasons, according to Sanderson, are the relatively recent downturn and increased aggression from the Australian Taxation Office.

"An awful lot of tradies couldn't pay their bills during the GFC, and now the ATO is coming to get them," Sanderson says.

"Whereas other industries might continue to limp on, small tradies might not have the ability."

Master Builders Australia chief economist Peter Jones says uncertainty over where the economy is headed is not helping the sector, which has a higher number of SMEs than other sectors.

"Uncertainty over interest rates and lingering debt issues in the US and Europe are also playing a role," Jones says.

Uncertainty? What Uncertainty?

Peter Jones at Master Builders Australia is blaming "uncertainty". The irony is that it would make far more sense to blame "certainty".

It is quite certain that Australia's housing bubble is now in crash mode. It is equally certain there is not a darn thing the Reserve Bank of Australia or any of the home builders can do about it.

Crazy to Buy a House in Australia Now

If you live in Australia and are thinking about buying a home, here is everything you need to know in a single sentence: It's still a crazy idea to buy a house in Australia at the current prices.

By all measures of value, house prices in Australia are at or near the highest levels they have ever been.
Recent tiny house price falls are meaningless in the most overpriced housing market in the world - long term housing slumps can take years, or even decades.
Recent short term interest rate falls are also meaningless. Buying a house is for the long term, so it is the long term average real (inflation adjusted) interest rate that matters.
A typical Sydney house costs $400-500 per week to rent, or $ 1200-1500 to own. Buying at the current prices, you would have to have real capital gains of $800-1000 per week (or around 5% of the purchase price per year) just to not lose money. It may well be worth paying something for the pride of home ownership, but three times the price of renting? You can buy an awful lot of nice decorations for your rental property with a small proportion of the cost difference between renting and owning.
Think it through. Even if house prices do not fall, rents have to at least triple for renting a normal house in an Australian city to cost the same as owning one. Half of renters already pay more than a third of their income in rent. Rents tripling simply cannot happen without large increases in wages, which implies high inflation and thus high interest rates over a prolonged period of time. Without their fantasy rent rises, or their fantasy price rises, long term ongoing losses will crush real estate speculators.

There are many more excellent bullet points in the article. Those who step in here "buying the dip" will regret it.

 

[depeche]

Every investment comes with a risk...including property; buyers beware!

 

[williamwindsor]

Only morons would invest in what is currently the most overpriced property market in the world.

 

[chupacabra]

Singapore is the most overpriced property market in the world. Wages in Oz still higher than sinkee counterpart. The influx of FTs to sinkeeland is the only thing keeping the property market afloat. Lets see how long the bubble in peesai will continue to inflate.

 

[depeche]

If investor don't buy and rent out the investment, where would rental property be available? The OZ gov is not building enough properties for the poor...how???

 

[neddy]

[video=youtube;l4q_kvQBwmE]http://www.youtube.com/watch?v=l4q_kvQBwmE[/video]

[video=vimeo;26707546]http://vimeo.com/26707546[/video]

Real Estate 4 Ransom is a new documentary about global property speculation and its impact on the economy. Real Estate 4 Ransom considers changing motivations behind property investment and challenges the notion that the Global Financial Crisis was caused by bank lending alone.

Shot over 5 years, the film focuses an economics lens on many of the big picture issues world politics are grappling to deal with. The 40 min documentary looks at whether genuine freedom has been delivered by the democratic system.

We investigate the inefficiencies of the economic system and the impact this has on potential homeowners and small businesses. The documentary argues that with a simpler tax system, entrepreneurs have a better chance to succeed and the average Australian has a better chance of owning their own home.

What role did real estate play in the crashing of the global economy?

 

[neddy]

[video=youtube;scWaanVD2Ps]http://www.youtube.com/watch?v=scWaanVD2Ps[/video]

Okay, I am guilty too. But why blame me?


[video=youtube;TJ_cUqEmU0c]http://www.youtube.com/watch?v=TJ_cUqEmU0c[/video]

 

[tanwahtiu]

The Oz gov is building new townhouse type property for the poor in NSW. These properties are made from recycleable products.

If investor don't buy and rent out the investment, where would rental property be available? The OZ gov is not building enough properties for the poor...how???

 

[Ash007]

[video=youtube;TJ_cUqEmU0c]http://www.youtube.com/watch?v=TJ_cUqEmU0c[/video]

THanks for the video, this explains why every property agent I saw the other day was a Chinese. Also explains why it cost $630K for a 2 bedroom apartment that is 100sqm including balcony.

 

[neddy]

In the past, you get companies like Central Equity going to Singapore to sell Australian properties - using Singaporean migrants as proeprty agents.

The game has move on to where the money is. The smart people will not rush in to compete, it is better for the "wind" to blow in your favour rather than competing. Even if you manage to buy - , eg one local buyer already signed the Sales contract, a few days later, an overseas buyer comes along and offers a higher price and pays in cold hard cash. The developer executes the 48-hour clause, giving the original local buyer 48 hours to come out with a higher bid or the void the Sales agreement - but the bank says no! How to compete?

When KRudd came out with the big First Home Buyer carrot, a lot of excited rabbits were jumping over one other to win the carrot - many of them are 1 to 3 months behind their home loan repayments now and the lucky ones have parents to bail them out. But the vultures are waiting in the sidelines to feed on cheap properties. Some of these vultures already fed once during the GFC, others are rabbits who miss or do not want to compete for Rudd carrots!

THanks for the video, this explains why every property agent I saw the other day was a Chinese. Also explains why it cost $630K for a 2 bedroom apartment that is 100sqm including balcony.