VIC Post a Bargain Melbourne

Discussion in 'Property Analysis' started by MTR, 15th Jul, 2018.

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  1. JamesP

    JamesP Well-Known Member

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    JamesP, 26th Jul, 2018
    #21
  2. albanga

    albanga Well-Known Member

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    Anyone that has equity in Melbourne or Sydney properties pull it now and then just play the wiring game for the next 18 months.

    Once things have corrected it will be a very fun time to buy!

    I just can’t show the wife all the excess cash sitting in the bank or she may think it relates to quarterly holidays.
     
    albanga, 27th Jul, 2018
    #22
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  3. Barny

    Barny Well-Known Member

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    G'day albanga, how much correction you thinking in 2 years time? You know what areas I'm talking about..
     
    Barny, 27th Jul, 2018
    #23
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  4. Whitecat

    Whitecat Well-Known Member

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    Seems catastrófico and unlikely
     
    Whitecat, 27th Jul, 2018
    #24
  5. Silverson

    Silverson Well-Known Member

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    Agree 100%

    Even a 30% drop is catastrophic and imo the worst we will see, some not as much.
    What I'm calling, at least in the markets I follow is a modest correction that will pan out over a while. For us to see upwards pressure again it will be 3-4 years of waiting. I guess if inflation is +\- 3% over 4 years of no house growth that's 12% plus a correction of 10% so in real terms that's a paper loss of over 20%, plus take into account entry costs... Adds up and starts hurting, plus rental yields arnt doing much heavy lifting

    In saying that there will be isolated properties that may be hit harder. Exciting times!!
     
    Silverson, 27th Jul, 2018
    #25
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  6. Orion

    Orion Well-Known Member

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    Orion, 27th Jul, 2018
    #26
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  7. TMNT

    TMNT Well-Known Member

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    Just get rid of your wife! Problem solved
     
    TMNT, 27th Jul, 2018
    #27
  8. strongy1986

    strongy1986 Well-Known Member

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    strongy1986, 27th Jul, 2018
    #28
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  9. JamesP

    JamesP Well-Known Member

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    Berwick is finished in all honesty. Seems to be de-gentrifying but prices are as strong as ever. Demand hasn't dropped off yet unlike most areas. That block is pretty well priced but not a bargain.You could put 3 units on that block and sell them for 700k+ it's in a good area of Berwick.
     
    JamesP, 27th Jul, 2018
    #29
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  10. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 28th Jul, 2018
    #30
  11. MTR

    MTR Well-Known Member

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    I was joking, I cant see Melb drop 50%, not with current population growth etc.
    Correction is happening now, but me thinks soft landing.
     
    MTR, 28th Jul, 2018
    #31
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  12. albanga

    albanga Well-Known Member

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    I think as long as interest rates remain as is which I think they will then I believe around 10-15%. I’m already seeing splitter blocks that were selling for 1.15-1.20 now selling for 1.1.
     
    albanga, 29th Jul, 2018
    #32
  13. MTR

    MTR Well-Known Member

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    Its the credit squeeze that is hurting markets
     
    MTR, 29th Jul, 2018
    #33
  14. sash

    sash Well-Known Member

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    Yes that is what I meant...thought he Big 4 will pass on higher funding costs of 10-20 basis points within 12 months....only reason they are not doing it because of the Royal Commission. But I can see the RBA doing anything at this point.


    IO is real....it is already affecting people...lot of people bought houses as PPOR on IO....they are paying something like 42k on $1m loan...when the IO period stops and most won'y be able to refiance...thjey are looking at repayment around 60k pa. SO monthy repayment jump from 3.5k a month to 5k per month. Not many have that......

     
    sash, 29th Jul, 2018
    #34
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  15. Barny

    Barny Well-Known Member

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    Yeah I hear ya, I've noticed similar as well. I'm thinking at least 20% pull back in prices, but that's also from crazy highs so it could even be more...who knows
     
    Barny, 29th Jul, 2018
    #35
  16. kaibo

    kaibo Well-Known Member

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    kaibo, 29th Jul, 2018
    #36
  17. kaibo

    kaibo Well-Known Member

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    Not much sympathy for these guys as if they stayed on IO and interest rates went up by 2% (5 to 7%) the repayments would get to 5K anyway. For them to borrow 1 million I would assume annual gross income for household would be at least 200K and they should know better.

    If people are so reckless with budgeting with PPOR and the banks were stupid enough to lend then they both should of seen it coming
     
    kaibo, 29th Jul, 2018
    #37
  18. Mike A

    Mike A Well-Known Member

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    i was looking at a one bedroom 60sqm in the new Australia 108 building. Original contract price back in 2014 was $565k. On site valuation just done put a valuation at $470k.

    Southbank, even in premium buildings, is in a world of pain.
     
    Mike A, 30th Jul, 2018
    #38
  19. rjw180

    rjw180 Well-Known Member

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    yeah agree, that looks like decent value. Might be to do with the weird floor plan with the self-contained unit extension on top - probably had a limited market.

    Re: power lines - My guess is power, Optus cable, Telstra cable + Telstra copper phone line
     
    rjw180, 30th Jul, 2018
    #39
  20. alicudi

    alicudi Well-Known Member

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    Hi

    Maybe the self contained apartment is separately metered?

    Regards,

    alicudi
     
    alicudi, 30th Jul, 2018
    #40
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