Don't Buy Property in 2019

Discussion in 'Property Market Economics' started by MTR, 23rd Dec, 2018.

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  1. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Perhaps purchasers in the $1.5m+ family home price range want more than 1 bathroom/toilet and to have an (approved) allocated off-street car parking???
     
  2. iwantahouse

    iwantahouse Well-Known Member

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    How come I didn't see this thread earlier? I just moved into my "new" home 2 weeks ago... well too late for regrets now.
     
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  3. Traveller99

    Traveller99 Well-Known Member

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    Thought about this but likely not a dealbreaker. I'm assuming the property is in poor condition and ready for demolition or big $ thrown at it, as the seller is focussed on the permit plans in the ad.
     
  4. MTR

    MTR Material Girl Premium Member

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    Yes, but it will only be a good deal if end values stack up. Not sure what end product sella for and build per sqm been out of melb for a while now
     
  5. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    When we sold our previous house 5 years ago, we got advised by a local agent not buy - wait a while. He thought the market would cool down.
    We nearly listened.
    Fortunately, we kept an eye on the premier streets in our area that we thought would be good long term, and also a good place to live anyway; irrespective of investment factor.
    6 months later, at the end of 2015, we saw a house in one of our target streets come on the market. Old house that was liveable, but needed demolishing, but good location, good aspect, good streetscape, close to transport - but still a quiet street.
    We bought it, and since then it has gone up by approx 40% based on recent similar sales.
    Having said all that, I thing the markets are slowing, some have stopped, but I think if you pick well located properties, you wont go too far wrong overall.
     
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  6. lynchy

    lynchy Well-Known Member

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    Bought in First Qtr of this year for $930k

    Would expect at least $1.1m if sold today

    lucky I didn’t buy in 2019
     
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  7. croseks

    croseks Well-Known Member

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    You'll be fine :)
    I personally think that the biggest inflationary event is still ahead of us, whole world is slowing down and that means the reserve banks will try all kinds of stimulus, leading to inflation of assets... Just my humble opinion.
     
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  8. Waterboy

    Waterboy Well-Known Member

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    How about

    2020

    ?
     
  9. MTR

    MTR Material Girl Premium Member

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    Reduce risk so stay away from burbs and apartments
     
  10. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    What do you mean?
     
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  11. sash

    sash Well-Known Member

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    Well....call me mad...dems where I might be heading.....the more coming my way the better I plan to go into the fire.... ;)
     
  12. MTR

    MTR Material Girl Premium Member

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    Oops talking the Perth market atm
    Perth is a tough gig

    Not sure how others are going.... but interested in an update
     
    Last edited: 3rd Dec, 2019
  13. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    What types of stimulus (other than further reducing interest rates - yay!) will Reserve Bank undertake?
     
  14. croseks

    croseks Well-Known Member

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    So the reserve can only do so much with the interest rates at the moment but there is plenty of other stimulus options left:
    - Negative rates (unlikely)
    - QE (more likely)
    - Helicopter money (tax cuts, tax refunds, first home buyers incentives, stamp duty concessions etc...) - already happening and being increased
    - Government spending (infrastructure projects etc..) - already happening and being increased
    - Banks can also do their part (40 year mortgages, lower LVR's, lower stress test assessments which increases borrowing capacity etc...) - already happening and being increased

    I'm sure there are more but these would be the main ways, when things become tight the government can and will step in, just have a look at how many of the above are already in action and how many are being extended (FHB's with 5% deposit from 2020, tax refunds 2019, tax cuts pushed forward 2020, Perth stamp duty concessions etc...)

    Also, this same pattern is happening all around the world at the moment. Stimulus is coming in hard and all this extra money (devaluing) ends up going from spenders to eventually investors who will employ more people, buy more stocks, buy more houses etc.. You can see that this cannot last however this is the current part of the cycle.

    It is not in the governments interest to let everything fall apart, now is not that time :) (remember the "Recession we had to have"?)
     
    Last edited: 3rd Dec, 2019
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  15. Mr Burns

    Mr Burns Well-Known Member

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    How wrong was this post? :eek:

    I think you forgot how much the government and rba are prepared to keep the bubble inflating no matter what.

    House prices up last month (Nov 2019)
    Sydney: 3.09%
    Melbourne: 2.44%

    Looks like the prices are accelerating. Who else on here predicted the "dead cat bounce"?
     
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  16. Illusivedreams

    Illusivedreams Well-Known Member

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    Many loud and vocal shouters did.

    Same one still posting **** on here now.

    Without simply saying sorry we got it wrong.

    Its pathetic.
     
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  17. Codie

    Codie Well-Known Member

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    Some people certainly need to be careful of how they word things on here directing people in one way or another, of course everyone is entitled to an opinion but starting a thread stating "Don't buy property in 2019" is very direct and may have cost some people dearly had they listened. Hence why I respect the ones that post opinions but back it with facts and data.
     
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  18. Shogun

    Shogun Well-Known Member

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    Mmm I think some need to go back and read the first post. If you only ever read book titles you don't learn much.

    Probably good advice for Perth. Only now are good signs appearing due to under supply.

    Apart from FOMO what is driving increases in Sydney and Melbourne. It's not wage growth is it?
     
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  19. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    What is "FOMO"?
     
  20. MTR

    MTR Material Girl Premium Member

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    Agree, egg on face:(

    Should start a thread...... what will stop the boom ....lol....
     
    Last edited: 3rd Dec, 2019