Auction Clearance Rate have hit 89% in Sydney to start the year - thoughts?

wow, that's really good, I have done Angular before, but in React now. you still in development? Is the market still hot?

 

No I'm not a developer, I'm a Product Owner.

Not sure about React sorry only Angular as that's what we're looking to hire.

Definitely check to see what you're worth. Until you've had your eyes opened either by a high salary or contracting rates, you won't truly appreciate what you're missing.

 

It's been a little while yes! I sold the Leyland Mini sadly. It quickly became a money pit and moreso than the money; I became increasingly concerned about the poor safety standards of driving a near 50 year old vehicle!

But I digress; yes these decisions and transitions from full time work "because I gotta"; to "work for the enjoyment or fulfilment the actual work offers me" is tricky. I'm in that luxurious quandry at present. Like... I've almost hit basic-FIRE salary level and I'm questioning what I actually want to DO with my adult weekday-hours in life. Do I want to stay working in the capitalistic corporate advertising world? Probably not. I have a few ideas but it is quite a luxury to truly start to seek passion-based work ideas versus "money-influenced work" where you compromise on your wants and perhaps do something you aren't passionate about.

 

Based on the customer pool we have - there are lots of professionals/high income earners that can work from home and thus they need the space. So I'm finding people are selling their terraces on 150 sqm land and moving a bit out and buying larger house/land.

Space is of great importance for these people - its beating the historical importance of living close to the city.

 

Just to be clear you’re talking about further out as in 30-45 mins from the city instead of 5-10 mins, not 2-3 hours up the central coast? I’m sure you’re getting both but what is it predominantly?

 

Its both - have several clients moving to Newy specifically but that post was more towards to say manly vs curl curl.

 

Not sure about others, but I own a property (small house) within 10km to the cbd in Melb now prefer a bigger house further out say 20-30km to cbd.. only I could afford though. The market’s is crazy

 

Congrats for FIRE movement! Great to hear you have come this far in such a short time. It's not an easy thing to do.
Does your industry have good portion contracting work? You can do semi retire by doing half year on and half off kinda of work, when international border opens you can travel or start a hobby.
FIRE is no go for me yet as I have two kids and living in a rather pricey area for a decent school. I do enjoy long purchased holidays from time to time just experience life and freedom. With property markets doing well across the board, it should provide me with a good level of financial comfort and opens up more options.

 

Pretty interesting to hear as i am a senior Angular dev and i'm not close to that sort of money as I am an employee and interestingly enough, I just received an email this morning about a possible 6 month contract job at 700/900 daily rate.

Contract work can bring a lot of money but at the same time it can bring a lot of tax and it can be hard justifying all the hard work when most of it will be taken away by the tax man.

 

Paying more tax should never be a reason to make more money...! (Unless you’re timing the sale of an asset)

 

I noticed that the 90% clearance rate from last weekend for Victoria (realestate.com) is only based on 1404 results from 1939 scheduled auctions - so missing 500+ results. Would it be right to assume most of these are passed in meaning the clearance rate is really closer to 75-80% - still high but not 90%. NSW is 94% based on 934 results from 1363 scheduled.. missing 400 results.

I cant seem to go back in time to see what the "final" results were - can only see most recent week which I assume resets Sat night.

 

that is right to assume - last I checked for vic, it was sitting at low 70s for the whole of past week (inc last sat) and nsw was low to mid 70s. The headline rates on sat evening are almost always 8%-15% above the actual rates when the data arrives mid week, especially the variance is significant if there is very large volumes of auctions.

 

How do you feel about APRA . Do you think they will come into prudential regulations to cool.

or do you think it’s very early and they will let it run for another year or more.
Thank you

 

This comes up every 3 months.
Long debate about a methodology that’s been the same for decades .

 

As long as it’s consistently wrong it’s probably ok. That way we can see the pattern.

 

ay caramba

 

Yes true - I think this is a very important point.

 

Yes except the 90%+ clearance rates will drive the FOMO factor.

 

Hi all - any further thoughts on projections from now till say 2014/2015 based on all the recent high auction clearances in Syd and Melb?

 

Hi PropDir, my broad thesis has been that property doubles (in most capitals) between 2019 and 2025, and I think we are well on track.

I suspect the velocity of the increases will slow down after this year and settle at about 8% per annum growth from next year onwards. But it won't be linear, and there will be nervous moments. I think low interest rates account for the growth to the end of next year, and population growth and rent growth from 2023-2024/5.

So I suppose from my perspective, while 2021 has run a bit harder than I thought, no changes to my overall view.

That said, all of the obvious caveats apply. Things can change, and regulators will step in at some stage. Black swans etc.

I just think that the US federal reserve wants the inflation and is essentially managing a United States default/bankruptsy, which will be achieved via currency debasement. And while the USD is the reserve currency, everyone else will follow their lead in monetary policy, whether that be good bad or ugly.