A snap shot of what is happening on the ground in Melbourne

Because I want make my house a home
Because of school catchments
Because I can have the house I want
Because I do t want to have to move because vendors sell or move back in
Becuase I like security
Becuase my wife wants to feel secure
Because my kids feel secure
Becuase stability now important to a healthy family
Becuase I bought and sold in se market
Because no one has a cryso ball
Because I can redesign kitchen
…Bathrooms
,... toilets
Because it's my house and a home
Becuase when I live in my home I don't watch what it's worth I enjoy living in it

Same reason I buy a luxury car. Cheaper to UBER. But hey

 

That's fine but I've seen fhbs given that advice and they did not buy and sell in the same market

 

Does council allow you to change anything with a 4 in it?

 

Per square metre peaks between 650-700 in these single dwelling development sites and the following two which he has sold recently are smaller land but they are in better parts of "Balwyn" as opposed to Balwyn North

5 Norbert Street, Balwyn, Vic 3103 - Property Details

8 Metung Street, Balwyn, Vic 3103 - Property Details

This will sell soon I'd say but buyers don't have the urgency as something better located may come up and in these prime areas 100m makes a difference

Also that tree does not help at the front

 

agree that balywn is higher $$ to balwyn north - though this one is larger 872sqm.

I don't think there is any single dwelling sites anymore in the NRZ since april 2017 unless it has a single covenant attached to it or some heritage or overlay. there had a minimum 500sqm for a dwelling in balwyn and balywn north. Got have a relative doing an application since that changed last year now.

Dwelling cap in the Neighbourhood Residential Zone


Provisions capping the number of dwellings on a lot in the NRZ have been deleted. It has been said that the previous provisions were an ineffective way of protecting the identified character values of land in the NRZ[4] but why it was ineffective is not explained.


The change creates the potential for greater densities in the NRZ, while noting that development will be subject to the minimum garden area requirements in conjunction with maximum building heights and existing local controls. Presumably, if the aim is to increase the number of new dwellings within the NRZ areas, those developers who have pleaded for greater intensity of development in the other residential zones and in activity centres to ‘compensate’ for the constraints of the NRZ, will now temper those pleas.

 

More about the economics for the builders/developers and the type of purchaser of these blocks.

This market is more to build a single mansion with basement carpark. No-one is buying these blocks for sub-division as it makes no economic sense. Hard to move two 2 Mil+ townhouse/house in these areas and easier to move a 4 Mill+ mansion if done right.

Most of these people are looking to have the 4 Mil+ as a trophy home. Builder/developers more looking at RGZ or at least GRZ

 

Interesting thread on Somersoft back in 2011. The question is "who's buying now?". Is anyone buying now?!

There seems to be a healthy mix of people buying good deals and people holding out to see how the downturn transpires.

Anyone notice a difference in sentiment back then compared to today? I haven't seen many experienced investors talk about what they are buying right now, except the odd one or two. I wonder if they are buying but not talking about it.

An interesting comment from Peter 14.7:

Back on topic, the best advice I can give is BUY when you are ready and able to do so and JUST DO IT!

For example: A very good friend and I have been buying actively since 2003. We both have multiple properties now. Our policy is to buy when we can in the best area at the time. So I have properties in NSW and VIC and he has NSW, VIC and QLD.

Personally I bought in 2005, multiple in 2007 and again in 2010 and 2011 and about to get another in 2012.

In 2005 I sold out of Sydney and bought my PPOR in VIC and since then both have gone up. PPOR by 66%. Did some guru or study tell me that? No, I bought in great area undervalued that got discovered. Sydney went up as well but hey you cannot hold everything.

In 2007 I was told, don't buy, rates are going up, but they deals stacked up and the bank liked me I bought three and locked rates. Then GFC hit “doomed they said” but surprise, surprise rates went down so I unlocked and then due to demand my CG went up. Did the market tell me to do that? No, everyone said the world was going to end. Many sold out and made a loss assuming prices would crash 30%

I would buy again in Sydney now if the BOSS agreed but she has veto any more purchases until the new PPOR is built, a long story.

My point is, I l have learn't if any serious investor (i.e.multiple properties, not one or two but multiple) then the one piece of advice they all give if they regret not buying more.

Analysis Paralysis is the killer.

Provided your income is secure, your rents are secure, and if worried, lock your rates.

If the banks wants to lend you and the deal is good, NOW is a great time to buy. I only wish I knew this wisdom earlier.

Anyone who didn't take that advice would have regretted it. Does Peter still comment on this forum? I'd like to know if his opinion still holds true for today.

 

no one is doing it coz it wasn't available back then and with 800sqm you could easily do 3- strange - architect has handful of jobs in that area. my cousin is also doing one with basement carpark and all. Council and state gov are pushing away from McMansions hence the reason why the garden requirement in the first place.

Balwyn isn't toorak yet and china boys better put their money in toorak and brighton. there market is limited for 4 mil - and you need to have china tastes in your decor.

 

meanwhile - records still being made in preston on collins st - 1.474 mil was the highest price on the street and now it is 1.9mil.(250K above reserve)

 

What is your opinion on Melbourne declining at the fastest rate in Australia? Dropping at 2.1% per quarter which is twice as fast as Sydney. According to the corelogic index.

 

my question to you is product type are you looking at?

student accommodation, small sized apartments - which you have talked about a bit (yes), 1.5-2+ mil end Real estate (talking canterbury, brightons, balwyn, doncasters etc) - (yes - taking a hit - it only takes small drops to smack the percentage out).

Some suburbs are tanking - no doubt, some are not and it is patchy- I know what my eyes see and believe - Glen Waverley auctions - sold (above reserve) records price , Preston (ex-housing commission - record price sale 1+ million, this collins st, 1.9 mil record price for street, 5mil dev site record price). Even that carlton apartment 2 bed when for record sale price. a residential Clayton site - has 3 offers of (6+ million). not 1,2,3 mil - 6 million

you take a train say on the south morang line or hurstbridge or frankston line at 8-9AM - and you see how many people trying to stuff themselves in the train like sardines. Trams being so congested - ppl still need places to stay.

Point cook within the affordabilty range - i have not seen any declines at all in my pocket and size sqm in fact - i sold one last year (record price on the street so i thought) and now another on the same street has sold 70K more than mine.

i think if you going to your apartment strategy of small units etc - that is going no where. and if you going high end 1.5-3 mil - there has limited bargains and itself are dropping. Emerging markets, within the 400-800K mark is where there is potential. Zoning again as mentioned it makes a big diff in Vic as well as infrastructure (schools, universities, shopping centres, trains, highways etc). if you going to keep looking at quaterly figures every time - shares is a better option.

 

@DrunkSailor

i was reading this and was quite intrigued by what this architect and industrial designer is doing - thought about yourself who always talked about small apartments. this guy does refurbs of studio apartments in sydney 24-30sqm (e.g. potts points) and says there is a big market for these due to the price entry bracket. thinking out of the square is always good.

Japanese organisational technique informs layout of Sydney micro home

This studio packs plenty into 27 square metres

 

Why do you think Melbourne is tanking so fast according to corelogic. Why is it tanking faster than Sydney when Sydney is supposed to be the mega bubble? Do you think it’s just an initial drop or something more serious like what is happening in Sydney?

I worry about the amount of flack Melbourne gets. “More over valued than Sydney” “worse yields than Sydney” “most apartment oversupply in Australia”.

 

You’d be able to go crazy in Melbourne doing that. I’ve seen 40sqm studios on flinders street sell for 210k. You could renovate but I’m not sure how much you’d resell for. I’d have to try it and find out how the market responds.


At the moment it’s hard to jump on board whilst the boat is so rocky. I’m waiting to see what comes online in spring. If conditions persist and the influx of listings comes on it should be a great market to buy in.

 

Yeah it’s definitely something I’ve wanted to do. But I’ve become crippled with analysis, sometimes I don’t think I’ll get anything unless something drastic happens which forces me to jump in without thinking.

 

You sold last year, any particular reason? Did you sense a peak.

Are you buying right now?

 

Great but if the bank wont fund for it then better have a healthy cash balance. And good luck selling unless to someone else with lots of cash as well.

 

Dont become crippled by analysis paralysis. There was a guy on somersoft like that. Cant remember his name had an avator of someone smoking a cigar. That guy must have lost millions and i mean millions from analysis paralysis.

 

Yes homework required but at some point decisions need to be made!

 

I know a few in real life that are like that. the problem with over analyzing.
Market often behave in a irrational way that beyond any prediction no matter how much data or resources you have.

My advice is just pick a few important data sets and trends that have some significance and run with it.

Its often that the risk adverse ones that looses the most money because they are waiting for all the stars to align. when that happens, they are paying a large premium and make a big loss when stars no longer align.