Market Check! Is where you live booming?

Yep, Aussies will soon be pumping all their income into a house rather than investing in anything productive. Spare cash for leisure activities will decrease lowering quality of life. My friends who used to love the thought of their house going up are only now starting to realise that their kids can't afford to buy anywhere near close to them, or they need to fork out significant help for deposits (starts to get expensive after 3 kids), thus reducing the parents disposable fun money. Just keep pouring everything into housing peeps!

 

I feel it's difficult for wages to rise when we are now competing in a global economy where 95% get paid peanuts. In addition, if your work can be done remotely unless you have a specialised skill you are always competing with someone who lives somewhere cheaper and can afford to lower their wage, tough if you live in Sydney and are competing with someone who lives in a regional area...

 

405/119 Kippax, Surry Hills NSW 2010 | Domain

They want $4million for a 3bedroom apartment in Surry Hills. Beautiful finishes, but it is a 3bedroom apartment.

I hope to see more stock of 3 bedrooms, in the eastern/inner west suburbs in early 2021.

 

How about his mate John Adams hahaha

Do you have a link to his price increase forecast?

 

I just sold a house of mine in the satellite suburbs of Mt Druitt and got record for the suburb which was last set December 2016 and that house is nicer internally as it had a full renovation. It is hot across Sydney due to low stock levels but see abit coming on in January 2021.

 

Of course the kids can’t buy near them. The parents also don’t need to fork out deposits. I don’t see property ownership as a right personally, especially not in a suburb the parents bought into in the 90s for example.

Go further out, start smaller, do a Reno, invest elsewhere like shares and then change over if that’s what you wish. No excuses anymore especially not at 1.99% interest rates

 

I got few investment properties in Brisbane. I hate to see lack of properties drive the price like nuts. It is obviously not sustainable growth. Felt sorry for the people who already bought this year during uptrend.

 

High growth has other disadvantages if you´re not planning to sell, my rates and land tax have gone up a lot for my house in Byron Bay, shudder what the next land tax bill will be with Byron having the highest growth in Australia this year apparently.

 

I live in Armidale NSW and yes its going very well right now and has been since March 2020.

Armidale having NBN FTTP, located halfway between Sydney & Brisbane with daily flights to both & a 2 hour drive to the Coffs Coast is well positioned to relocate to.

The NSW government department of regional NSW is relocating here in the next couple of months.

The council has been all over the place but is finally looking to attract private investment to the city.

Armidale Airside Business Park - YouTube

Our 3br investment property has been tenanted constantly since Feb 2016

 

Not sure about sales in terms of “booming” north west Brisbane inside 9-12kms is still low in quality stock so is selling quickly, and for good money. At this rate maybe 6-10% growth

For rentals - However we just had notice of a tenant moving out Friday last week around 10am, it was listed same day with an open Saturday and had 12 groups through and half of that in applications with a couple above market rate. So the rental market must be pretty tight

 

The rental mkt is super hot. No one knows how long that will last. My agent said all they are surprised...

 

Agree, have friends who sold in PPOR in Mosman NSW as land tax bill for other NSW IPs was getting bigger and bigger..... has to be a fine balance between income and expenses to continue to invest into IPs. If Expenses such as land tax keep rising and rise alone to 50% of outgoings one would need to evaluate whether the CG+ will be justified and keep an eye on IPs performance accordingly.

 

Well, from a cashflow perspective, land tax is a complete killer.

However, when determining whether to hold or sell (due to land tax), I guess you have to ask yourself whether you're willing to forego $50K growth pa for the sake of a $5K pa increase in land tax (for example).

 

This. I don't get the sense of entitlement, like there is some sort of birthright your kids have to buy close by.

 

I am optimistically positive about inner Brisbane to middle ring 2-7km radius from CBD.
Saying it would boom is a pipe dream - but I am cautiously optimistic about it.

 

I would seriously doubt decrease of government support will impact Brisbane inner ring. Anything up to 15 km is unlikely to be a welfare heaven (some exceptions apply). We are not talking Goodna or Inala. For people to buy into Brisbane’s middle ring, generally they need skilled, high earning jobs.

 

Actually in this case land tax was much higher than what you suggested, would you pay $50K in land tax if you just retired and decided to live off your investments?
Obviously the numbers are irrelevant if you make much more in CG but as I mentioned there's a fine balance and if your expenses including land tax say surpass say 50% of the profit would you sell some or continue holding and paying more and more each year in outgoings?
So the decision would be based on individual circumstances, whether also in pension or accumulation phase, etc..... and what % of net profit is justified in holding all?

 

Not specifically, but note his tone lately, he’s had a few episodes where he talks about 5-10 % national growth.

His base case is now irrelevant and I’ve noticed he’s gotten shirty in some of the comments, so something is up.