NSW Newcastle NSW is absolutely booming

Townhouse in Warners Bay sold last week for 1.1 after approx 2 weeks on market. Locals were amazed at the 1.1 to 1.2 list price.

 

That is pretty impressive for what it is. Nice view though.

 

yes indeed, life in general is one big ponzi scheme if you look at it that way...

 

You had better stop reading Harry Dent mate! I made that mistake in 2006 when he was predicting a devasting drop in prices in Australia that never came and I sold all of my property - that cost me lots of dollars. I was greedy and operating on fear. Since then, I am extremely wary of spruikers of the 'truth' like yourself who are usually wrong.

There will be no massive property price crash in Australia. Even if there was, it will only be a sideways correction and the best protection is not to be overleveraged. In the long term, you would do well to stay put.

Have you got any actual hard evidence beside just opinion?

Hint: for this to happen, there would need to be mass unemployment, real wages would need to drop significantly and/or interest rates would need to ramp up.

 

An agent I have worked with in Mayfield / Waratah area has said similar thing. Is wondering where all of the investors have gone?

 

Perhaps Merewether...this was listed for auction beginning at 1.6
60 Curry Street, Merewether, NSW 2291 - Property Details

 

To sunny Qld

 

Where have all the investors gone???

How about this one mr realestate agent. I dont no about you but spending 600k on this weatherboard house in mayfield thats going to rent for 400 a week doesnt sound too good to me. Id prefer to buy a nice house that rent equals mortage repayments and im not enslaved to my job paying for it.

 

The federal govt has gone into massive debt to create and artificial boom in nsw, importing 400k people to build stuff in nsw. When the projects finish who will live in the houses where will they work, they will go back. Oversupply and underemployment and high interest rates and stupid prices , a quadruple whammy.

I will be munching popcorn counting my cash till 2021

 

For crying out loud people how about just considering the bloody obvious that is right in front of your eyes.

5 years ago salaries were x and no median Australian family was buying 1.3 million dollar houses . If you asked them they would say we would never be able to pay off that debt.

5 years later the salary is still x and the median family has bought a house they previously knew they could not afford because of some FOMO.

What will their next ten years look like? When interest rates go up they will be hanging around the public toilets at the local park like George Michael did, hoping they can sell enough $50 specials to pay their mortgage.

 

You can’t have property capital growth appreciating by much more than the CPI and it should be less than loan interest over the long term or else the wider economy is being devastated by the price of housing, ultimately resulting in unemployment and run down cheap cities. You must make money only from the rents and minor capital growth and low maintenance of quality heritage type properties.

Australia is in terrible economic shape don’t be blinded by the boom illusion in nsw and Melbourne caused by the influx of foreign capital be it by Chinese investors or banks looking for positive returns in Australia’s property market and paying the govt to make it happen. The boom is driven by record government debt which the taxpayers will pay for one way or another with taxes hidden or out in the open.
In ten years time people will want to stone Gillard Rudd Abbott and Turnbull for turning them into debt slaves not seen since pre world war 2.

Australia’s economy is on the verge of collapse , but not anymore because of Turnbull blowing billions on infrastructure keeping construction and services going, plus allowing foreigners to buy houses and upping immigration to eye watering levels, collapse because the business environment is complex and unfriendly. You can’t run an economy on selling coffee to each other, mowing ones lawns and selling houses to each other.
Where are the startups?