Australian property market to rise to record highs this year

Some $mashing above reserves.

1. The result was $650,000 above reserve.
2. The property sold for $200,000 above reserve
3. Dural acreage that sold for a whopping $870,000 above reserve.
4. The unit sold for $121,000 above reserve
5. The result was $180,000 above the reserve.


Sydney auctions: Family beats 14 registered bidders, nabs Rozelle house for $4.15m (domain.com.au)

 

I doubt this will happen. Compared to the business and professional migration schemes in the 1990s, this round of migrants, if coming, are less affluent so they will be your tenants, not bidders in the auctions.

 

Agreed and that's my observation too.

 

Even better..

Once this round of cycle has dumped 25%+ increase in prop values (fingers crossed), the last thing we would need is more competition to push the prices in the 'bubble territory', so we can def do with a whole heap of additional tenants to get the rental yields up! They can certainly act as a buffer against any potential correction and lower rents!

Happy either way...

 

Another headwind for this boom cycle bites the dust!

Almost 100% deferred loans now back to being current!

Only $10b remain deferred out of a total of $245b of deferred loans

Mortgage deferrals almost gone, but risky lending is up

"Nearly 100% of deferred loans from the start of the COVID-19 crisis have resumed repayments, but other data shows borrowers are taking on extra risk.

According to the Australian Banking Association (ABA), almost 97% of all deferred loans had resumed repayments by the end of February, almost one year from when this customer support was first announced.

Last month it was 91%.

Initially set to last only six months before being extended, deferred mortgages peaked at 11% of all home loans in June 2020 (worth $195 billion), before steadily falling ahead of the March 31 deadline. "

At this rate, there will hardly be any deferred loans by the end of mar!

 

I'm all for this boom turning into the mother of all booms.

IMHO this is what's it's all about.

 

So amongst all the talk of APRA coming in with a sledgehammer anytime soon...

"And since their trough in September, dwelling values across the five largest capital cities have climbed 6.2 per cent. That puts them about 3 per cent above their pre-COVID-19 levels."
Christopher Joye From AFR

Property prices: Why the house price doomsayers got it so wrong

The only commentator of any major press nationally who has consistently got it right about prop values.


"In the 3½ years since the peak of the last great housing boom, Sydney dwelling values have appreciated by a grand total of just 1.13 per cent. That’s not 1.13 per cent each year, but rather the sum of the capital gains since August 2017.

Put differently, the value of Sydney bricks and mortar has inflated by only 0.3 per cent annually over the past 3½ years. And that’s after accounting for the 6.6 per cent jump in Sydney dwelling values since their September COVID-19 nadir.

Superior income growth combined with much cheaper mortgage rates have dramatically expanded our net purchasing power.

In Melbourne the picture is even more subdued. Home values today have not appreciated at all since their November 2017 peak. That is, there has been no net house price growth at all in Melbourne in 3½ years."

This puts paid to the fear that APRA is in a rush to be regulating the markets when the growth is so nascent! Like I said earlier, we are just getting started...and the peak growth cycle is yet to hit!

 

Some perspective is always good. You're right with 3 years of 0.3% growth, all we've seen is catch up.

 

Housing lending may be cheap, but regulators argue it is not yet risky

 

Northern beaches lakefront house fetches $4.9m at auction, $900,000 over reserve

 

Your right . Harry Dent was just on Chris Smith, we are all doomed, Australia property prices are going to fall 40% and the share market will fall 80% in July Sell Sell Sell your property and shares. Put your loot on cash and bonds. Also said he is a bull and not a doomsayer. So I guess we are better off paying 40% CG tax and wait for his advice to reinvest while living on rice and beans.

 

NoCookies | The Australian

"CoreLogic calculated there were 3791 homes taken to auction across the capital cities last week, the busiest week since pre-Easter 2018.

Realestate.com.au noted Canberra had the highest weekend success rate at 98 per cent, followed by Sydney at 92 per cent, Melbourne on 88 per cent and Brisbane securing a stronger than usual 80 per cent success rate. Adelaide was at 75 per cent."

 

lol ....

 

National home values rise at fastest pace in over 30 years

 

‘Biggest boom ever’: Sydney suburbs where home prices could skyrocket even more - realestate.com.au

 

I don't see this one ending well:

Renovated Greenslopes home comes with park upgrade - realestate.com.au

Selling house in Brisbane, smug as a bug about how much they expect to make, buying a caravan and going traveling. I hope they have other assets to fall back on and they aren't counting on this house alone to fuel their dreams.

 

She says that she will miss the location. Ummm, so don't sell would be my advice.

 

As I was reading that article I couldn't stop screaming in my head WHAT ARE YOU GUYS DOING??????????????

Young child and dog, literally next door to a park. The dream? They don't have high end professions (nurse and sparky), yet they've managed to find themselves way ahead. Stay ahead, dammit. STAY AHEAD! ARGGGGH

People don't appreciate what they've got till they lost it.

 

Could of just rented it out for 12 months.
Oh well.. good luck with their 12 months adventure.

 

Yeah or just extracted equity, used that to travel and left the house empty (hard to find a tenant who only needs exactly 12 months). Even in the extreme case, 12 months of no rent is unlikely to send most people broke.