QLD Brisbane recorded 32 %clerance is that bad ?

Discussion in 'Where to Buy' started by Illusivedreams, 11th Nov, 2017.

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  1. Sackie

    Sackie Well-Known Member

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    Looking at broad stats and applying them to individual markets/strategies is a very skewed and dangerous perspective imo.

    Made some fantastic returns in Brisbane inner and middle rings...ill be holding those babies close to my chest no matter what clearance rates are.
     
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  2. Tenex

    Tenex Well-Known Member

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    Well with regards to construction companies going under here you go:

    Hundreds of Australian building companies are at 'high risk' of failure, as Chinese investors retreat

    More than 30 construction companies in Queensland have collapsed this year.

    With regard to Brisbane economy, here you go:

    Hundreds of Qld businesses tipped to hit the wall

    The report paints a dire picture for the Queensland economy, with the professional services and retail sectors also due to take a big economic hit.

    It predicts as many as 3223 businesses across the state will face financial difficulty.

    The predictions come as another report, released by the Property Council of Australia, shows office vacancy rates in Brisbane have soared to nearly 17 per cent, a level not seen since the economic recession of the early 1990s.



    But then again you get @sash and his new personality @Xavier who signed up last week but apparently knows things from back in 2013 promoting Brisbane.

    I dont know which is the stronger evidence as to why not buy there :)
     
    Last edited: 12th Nov, 2017
  3. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    ^ That unemployment paper is from August 2016. More than 15 months old mate.
     
  4. Tenex

    Tenex Well-Known Member

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    Unemployment paper? did you read the article? Its not just talking about unmployment but rather the office vacancy. The very existence of the businesses isn't there.

    You thought what I wrote about the construction companies going bust wasnt true, when you saw the link you decided to dismiss it as unemployment paper? lol

    You dont even read what I have written and yet you post.

    I have told you Pepper money doesnt lend at 20% deposit when you hit 1.5 mil in Brisbane and you post saying you bought a property for 500k and this wasnt the case.

    If you are not understanding what is being posted, why even bother arguing?
     
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  5. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    If your having problems with Pepper I can refer you to someone who will get you a better deal than 30% deposit. If you dont believe me meet up with me in Castle Hill mall and we can go to the broker together. I dont talk sh!7.

    I stopped reading your post as soon as I read the date of the publication you posted it was dated August 4th 2016.

    I'll post it again for you since you dont know what you posted.

    Hundreds of Qld businesses tipped to hit the wall
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Grouping smaller lenders, by using a pepper or say liberty example isnt "reasonable" as a guide to a city's credit risk.

    there is a reason why people need to use Non apra regulated lenders such as these , and of course they are more risk averse with certain types of securities and borrowers.

    When you said smaller, I expected you meant Suncorp, BOQ, STG, heritage etc, not the weeny % of total that pepper liberty latrobe et al represent

    ta
    rolf
     
  7. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Brisbane is definitely not an auction city, although inside the 5km they seem to work for houses. We have seen some decent price increases in that area. Currently we are seeing less in the investor market in Brisbane, OTP is very quiet but the OTP market on the Gold Coast is doing well, eg this development is selling well www.kokobroadbeach.com.au/, as have Morris' other properties.
     
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  8. MWI

    MWI Well-Known Member

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    This is like providing advice on how to raise kids yet you do not have any? So your comments are opinions only, is that what I should assume?
    I agree BRI market is different to SYD and MEL, for example I would never buy a unit there, I like land, so I stick to houses with land.
    Also, how long is your investment criteria, mine is never to sell, hence compounding land growth works for me with further redevelopment potential or short term renovations.
    Perhaps the prices are not as erratic, more constant in growth, well I prefer that, so why is OSR constantly increasing land values for my IPs and now I am paying huge amounts of land tax?
    Growth can be present in land too, and many novices forget that.
    To blatantly generalise ALL properties in BRI is wrong. Various states and markets grow at different stages, just look at historical data on states for the past say 50 years.
    I own many IPs in BRI for quite few years, so these are my facts not opinions.
     
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  9. MK101

    MK101 Well-Known Member

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    To the original poster, the auction clearance rate is one data point. To understand it within context, you need to chart it over time and compare it to price movements, and break that down into geographic regions and price brackets. Then it might start to reveal useful information.
     
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  10. Tenex

    Tenex Well-Known Member

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    I would imagine any lender that is not one of the big 4 could be considered as smaller, we are not really here to measure their size.

    My point is that if Brisbane isn't a risk city (and as many users here are suggesting Sydney is), then does it not make sense to be risk averse towards Sydney and much more open towards Brisbane regardless of the size of lender you are?

    I dont imagine they have something personal against Brisbane do they?
     
  11. Tenex

    Tenex Well-Known Member

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    Where in any of the posts up there did I say I am having problems with Pepper?
    Thats the problem you stopped reading.

    If you do go back to the article, it says office vacancy rates in Brisbane are at 17%. That means 17 in every 100 are vacant, that then means majority of these businesses have shut down altogether or gone elsewhere, that means people who they employed are also no longer there so they have had to either be unemployed or get employment elsewhere.

    This is not prediction data, this is what has ALREADY happened so the age of the article doesnt matter as long as it is not more than a quarter old. The real data (rather than predictions) usually lags by about 6 months any way.

    You also asked to post about how many construction businesses have folded, when I did post it you conveniently ignored it and instead invited me to meet you at Castle Hill mall to refer me to a broker? lol
     
  12. jaybean

    jaybean Well-Known Member

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    Brisbane is not an auction city. In fact some of the best deals I've seen have been at auction.

    Case in point:

    Sold 9 Wheatley Street, SUNNYBANK QLD 4109 on 26 May 2015 for $580,000

    I was expecting this to go for about 100k more at the time (and that still would have been a really good deal). I was kicking myself for not attending this auction. There's another one that was even better and has gone up probably about 80% in 24 months but I don't want to post the link for various reasons.
     
  13. Sackie

    Sackie Well-Known Member

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    Someone got a great deal there...!
     
  14. jaybean

    jaybean Well-Known Member

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    I know right. Corner block too, sub dividable as it's within 200m of the right zoning. I'd say it's worth somewhere in the 800-1m right now, but who knows (this one sold for just under 1.2m: 28 Valhalla Street, Sunnybank, Qld 4109 - Property Details)

    This is nothing compared to another deal I saw at auction. It sold for so cheap I couldn't believe my eyes.
     
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  15. Sackie

    Sackie Well-Known Member

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    Unbelievable......

    I've always believed there are great deals every day of the year.
     
  16. headsonbeds

    headsonbeds Well-Known Member

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    Just wanted to also point out that Domain isn’t big in QLD. Compare to RE.com so the figures are a little thin.
     
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  17. Luca

    Luca Well-Known Member

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    66% Melbourne and 59% Brisbane...getting closer ;-)
     
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  18. namrata

    namrata Well-Known Member

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    Those numbers can't be compared.
    59 percent of 119 auctions. That means only 72 properties sold under the hammer. Pretty small number if you ask me.