How much will brisbane cheapies go up this year ?

first of all , an average person doesn’t need to be the person to bid up prices . There are lots of people who are above average who bid prices up .

most houses won’t be changing hands . A small percentage of the overall market will be bought and sold but what they sell for determines the value of the rest , so it’s not as though everyone in goodna will be paying those prices ...but they will feel wealthier and more confident

but getting back to stats .

Average rent - 300 . Now that is the sort of price most renters are paying .

But if you’ve got a deposit ( big if for some ...) then a 400k mortgage is cheaper than what your paying in rent for a house that currently selling somewhere around 270-300 K

So my simplistic view is it’s quite affordable for cheapies in brisbane to get to 400 k + and 500 is also quite affordable ( if you have the deposit ...)

so yep , I do think that household budgets will stretch to accomodate significant price rises.

Whether that’s a good thing long term for the economy of the country is another debate as is whether is sensible ....

but people in Australia are always prepared to stretch their budgets so they can buy their own piece of Oz and I don’t think that’s about to change .

cliff

 

This is true for the whole market - everyone on the market (bottom feeders to high net wealth) can afford the cheapies but not everyone in the market can afford the average, median or top end properties.

 

they’re not cheapies . I’m talking about places with prices at or under 300 at the moment .

pleaaase , don’t pay any attention to the slope of the graph . That’s just dependant on the scale , zero points etc . Yes they are going up.

the inner ring goes up first , then the middle then the outer . The inner and middle tend to be more consistent over time , but then the outer ring tends to catch up percentage wise , but over a shorter time frame .
The outer ring drops back from its peaks by a greater degree so when it plays catch up , the percentage growth is greater and comes over a shorter time frame

If @Sackie wanted to maximise his gains , he’d take his profits from his inner rings sales and gear up in goodna and enjoy the ride .

cliff

 

hadn’t really thought of things in that way ..

Interesting .

But , the reality is most people just wouldn’t think of buying in the cheap areas . I probably would never have thought of it if I hadn’t worked in Mt Druitt and seen first hand what happened .

We have high net wealth friends , who invest in property , who are quite negative when we’ve told them where we’ve bought in brisbane

cliff

 

Qld ones have issues, other regionals were cheapies, and don't need all the paperwork with too many doors as I get older. Will put more into shares for simplification.

 

I believe this is the key point in any market. People often talk about affordability, but really it's irrelevant, as there's only a few homes that change hands at any given time, so you only need a few that can afford it.

There's a whole ship load of high net wealth people out there, who are quite negative about Mt Druitt and other cheaper areas around the country. It doesn't mean that those areas are a bad investment though.

 

Is the 0.7 the one on blocks in the front yard?

 

no , you thinking about Logan . It’s in the shed in the back yard , though some might be in the third bedroom

cliff

 

they might go up more in the next couple of years , if the nice areas have already gone up 50 % ...

cliff

 

The stats for Coolum Beach (for example) are pretty similar and the median house price there is $800k. The stats are useful but don’t tell the whole story.

 

Please don’t compare Goodna to Coolum Beach.

 

promise that will be the one and only time!

 

i was wondering about quoting Coolum on a thread about Logan , goodna and ipswich

 

I voted for 20-30%, which is probably on the optimistic side, but definitely possible. It would be great to see the number of investors in the market going up, because they tend to target a lot of these cheaper suburbs. I think there is a good chance for this to happen. A lot of home owners with incresed equity, savings and lower rates, watching the boom and wanting a piece of the action.

 

These are not cheapie suburbs.

 

You'll have to forgive me. I live in Sydney- they are very inexpensive from my perspective

 

Backing up my comment - everyone can afford cheap but it thins out when you pass the average & median to the top end of the market.

 

I mentioned the type of suburbs I was referencing in the initial post

Logan et al . Some people have their own agenda and like to bring it up even when it’s not really relevant .

cliff

 

When you stop to look at it buying $280 - $380k 30/40k to Brisbane is still pretty amazing...surely that window will slam shut very shortly

 

Exactly. Just what Mt Druitt did a few years ago!