Don't Buy Property in 2019

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???

 

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.

 

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.

 

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

 

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.

 

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

 

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.

 

How about

2020

?​

 

Reduce risk so stay away from burbs and apartments

 

What do you mean?

 

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

 

Oops talking the Perth market atm
Perth is a tough gig

Not sure how others are going.... but interested in an update

 

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

 

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"?)

 

How wrong was this post?

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"?

 

Many loud and vocal shouters did.

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

Without simply saying sorry we got it wrong.

Its pathetic.

 

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.

 

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?

 

What is "FOMO"?

 

Agree, egg on face

Should start a thread...... what will stop the boom ....lol....