VIC Melbourne price correction - post examples

Discussion in 'Property Analysis' started by mues, 10th Nov, 2018.

Join Australia's most dynamic and respected property investment community
  1. JamesP

    JamesP Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    166
    Location:
    Melbourne
  2. berten

    berten Well-Known Member

    Joined:
    12th Jul, 2018
    Posts:
    600
    Location:
    Melbourne
    Does anyone know how long “price withheld” properties take to filter through into the data?

    Almost everything I see go through is price withheld...
     
  3. willister

    willister Well-Known Member

    Joined:
    1st Sep, 2015
    Posts:
    760
    Location:
    Melbourne
    This downturn has been steeper and quicker than I initially envisaged.
     
    berten, AnDy62 and Toby like this.
  4. Ian87

    Ian87 Well-Known Member

    Joined:
    23rd Sep, 2016
    Posts:
    681
    Location:
    Melbourne

    420 is still double what you paid. It might be best to get out while you can, or hold for the very long term. Presumably if you paid 200 it is highly positively geared, unless you have taken equity out. You can try a different agent but if the buyers are not there then not much a new agent can do.
     
    adrian_christian likes this.
  5. Phineas

    Phineas Well-Known Member

    Joined:
    8th Sep, 2015
    Posts:
    80
    Location:
    QLD
    As a QLDer can I ask what other suburbs are of interest for a PPOR in your case? And is it because of city proximity, aesthetic, school catchment, safety, or something else... just curious and trying to get a better feel for Melbourne, thanks :)
     
  6. aushousingcrash

    aushousingcrash Well-Known Member

    Joined:
    17th Jan, 2016
    Posts:
    72
    Location:
    RenterOfMelbourne
    3-4 weeks after settlement.
     
    berten likes this.
  7. JamesP

    JamesP Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    166
    Location:
    Melbourne
    Who cares about this "crash". This whole free market thing is more of a controlled market.

    The whole thing slowed down due to lending restrictions. If that didn't happen people would've paid more. If it gets too bad they'll cut rates and people will pay more!
     
    MikeyBallarat likes this.
  8. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    Im glad you can summarise the entire housing market down to 1 or 2 factors
     
    Ben_j and Vine Street like this.
  9. willister

    willister Well-Known Member

    Joined:
    1st Sep, 2015
    Posts:
    760
    Location:
    Melbourne
    Pretty much, all boom and bust cycles.

    There was the Mainland Chinese money, all but evaporated now and things don't look good on the Mainland with Trump's trashing of Made in China 2025 and what not.

    Then there were those FOMO and low interest/IO loans that were lent out willy nilly. That's stopped so that market has also stopped.

    I'd dare say there are/were more who caved in and bought in FOMO and thinking "prices can never go down", I'd rather get on the bandwagon before it gets any worse.There are probably fewer who stood their ground and held onto their cash and have the ability to borrow and buy today. IMHO anyone who purchased pre 2016 wouldn't have made a lot but still in the black, those who purchased after depending on how close you were to the peak are in for a very seriously sad time.
     
  10. mues

    mues Well-Known Member

    Joined:
    17th Feb, 2017
    Posts:
    396
    Location:
    Melbourne
    Had an agent say to me today. The market went up 6-8% per year and since its only dropped 10-15%. First time in a while I reckon an agent has said “only dropped 10-15%”
     
  11. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,606
    Location:
    Sydney
    Yep...this pull back will give some people a whopping...should the grin off the people who bought in North Ryde for 700k and then saying when it doubled to 1.4m it would not go down.

    Given the current pull back it could end up at just over $1m. That is about a 25% pull back......dems how the market rolls.....wait till thr sob stories from the Druie flow through....
     
  12. mues

    mues Well-Known Member

    Joined:
    17th Feb, 2017
    Posts:
    396
    Location:
    Melbourne
    You love picking on druie. I’m gonna google where that is.
     
  13. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    Ive got friends looking at areas such as kew, hawthorn, doncaster, footscray and even point cook

    Me personally id look at east such as doncaster region or inner such as st kilda, or even sth yarra
    My kids are getting older and dont need or want backyard, nor do i.
    I dont want an apartmnet. But town house would be good.
     
    Phineas likes this.
  14. mues

    mues Well-Known Member

    Joined:
    17th Feb, 2017
    Posts:
    396
    Location:
    Melbourne
    I think Doncaster and St Kilda will have higher % drops than similar suburbs. Due to the heavier push and development in those spots.
     
  15. kaibo

    kaibo Well-Known Member

    Joined:
    30th Jul, 2017
    Posts:
    624
    Location:
    Melbourne
    astonma likes this.
  16. Triton

    Triton Well-Known Member

    Joined:
    8th Sep, 2017
    Posts:
    476
    Location:
    Vic
  17. berten

    berten Well-Known Member

    Joined:
    12th Jul, 2018
    Posts:
    600
    Location:
    Melbourne
  18. adrian_christian

    adrian_christian Well-Known Member

    Joined:
    27th Jul, 2015
    Posts:
    188
    Location:
    Mauritius
    Final chapter in this debacle over to much relief.

    Received offer of $400k, subject to finance on a 5% deposit of a self employed 28yo.. and subject to B&P and a asbestos check. Told the REA to tell them to **** off. By now we have $450k as our sold price (see historical prices above), a week later we get a $410k, they couldn’t possibly do another $1, 24 hours later it was $420k, we still said no, 72 hours later and with 72 hours to go with the exclusive authority with the REA they find another $12k from parents apparently, so the offer is now $432k.

    We still say no, we hear stories about how the first home buyer from Heidelberg’s fiancé is in tears because they can’t get it @ $432k..

    With 24 hours before the REA loses exclusive authority they come back with $445k, we all sign, the B&P report says due to the age of the unit “it may” include asbestos. They come back as say because of the findings of the report is there a “price adjustment” to be discussed? We very blankly say no, because the report didn’t actually find anything. Buyer blinks first, they accept $445k, went unconditional on the 27/12 and settlement mid January.

    Funds from the above sale give us a springboard to purchasing in Feb 2019 onwards in a different part of Melbourne, and while there’s no rush to find the bottom, or jump into the first property we like, boy, are we going to have some fun as a buyer in 2019 :)
     
    Ben_j and astonma like this.
  19. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,606
    Location:
    Sydney
    Noice work.... :0
     
    adrian_christian likes this.
  20. mues

    mues Well-Known Member

    Joined:
    17th Feb, 2017
    Posts:
    396
    Location:
    Melbourne
    God that’s poor work from the buyer.
     

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia