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Property Boom is Over, what's in store for 2016

Discussion in 'General Property Chat' started by MTR, 11th Jun, 2016.

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  1. MTR

    MTR Well-Known Member Premium Member

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    This is a good read by M Yarney, reports what actually happened in 2015 ....

    Predictions, well I think he has hit the nail on the head IMO.
    I like Melb, and already mentioned believe its the safest bet today and moving forward as per article.

    The property boom is over, but what's in store for 2016? - RealestateVIEW Blog

    The property boom is over, but what’s in store for 2016?
    Most predictions will be wrong. How do I know?

    Because they always are.

    Twelve months ago no one would have predicted the Reserve Bank dropping interest rates twice in the first half of the year fuelling our already hot Sydney and Melbourne property markets.

    Similarly, at the beginning of last year few predicted how APRA’s measures would constrain investor lending, even thought it had already started wielding its stick.

    ...
     
    Last edited by a moderator: 2nd Feb, 2017
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  2. Chabs

    Chabs Well-Known Member

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    By safest bet, do you mean Melb is the best city to continue looking to buy in?
     
  3. MTR

    MTR Well-Known Member Premium Member

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    Melbourne has been booming since 2013, my guess is we are closer to peak now.

    I think moving forward Melb has highest immigration and strong economy so I believe it will still be a good market for long term hold which is what most on PC do. If you are looking at other strategies, ie flipping, developing then you need to be very selective on areas as with any market that has boomed.

    There are still some affordable areas in Melb, which are in the middle ring 12-15 km from CBD that may be worth investigating further.
     
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  4. HUGH72

    HUGH72 Well-Known Member

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    Any thoughts on when Perth is likely to stabilise?
    Prices have dropped but so have rents, if yields were improving I would like to get in but not yet.
     
  5. MTR

    MTR Well-Known Member Premium Member

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    That is the $1M question and have been asked many times, as have others I am sure on this forum.

    Perth is dependent on mining and that has gone. Job losses continue to plague this State. I know so many engineers that can not get jobs, until we can create jobs its going to continue to fall or go sideways.

    Unfortunately, bust cycles last much longer than boom cycles.
    The answer is not anytime soon unless our economy improves.
     
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  6. Foxy Moron

    Foxy Moron Well-Known Member

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    Huh?
    Well I'll choose to apply that part to his above statement then.
     
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  7. Azazel

    Azazel Well-Known Member

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    If I was to guess, I would say that Yardney surmised that inner City property always performed better than properties further out.
    Even if it wasn't always the case.
    And blue chip. And investment grade. And maybe a link to his wealth retreat.
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    Yes he is a huge advocate for blue chip, I disagree with this and have said this many times.

    However his comments in this article have nothing to do with blue chip property.

    We should review his predictions at the end of 2016, we are 6 months along and I think what he is saying is spot on.

    We won't know know how Brissy performs this year until it actually booms? He has stated it is moving but it won't be the next hot spot, we will have to wait and see.
     
  9. Azazel

    Azazel Well-Known Member

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    I dare say he's not buying there for his clients.
     
  10. MTR

    MTR Well-Known Member Premium Member

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    I don't know, I assume he is
     
  11. Azazel

    Azazel Well-Known Member

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    I've only seen him talking up inner Sydney as blue chip or investment grade.
    But maybe.
     
  12. ZachAnsel

    ZachAnsel Well-Known Member

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    Dont you think its too late for Yardney to come and say prediction 2016.. We're in June 2016 now???
    Perhaps in 2017, he wants to refer back to this article and saying "I told you" with cheeky smile
     
  13. hammer

    hammer Well-Known Member

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    Darwin might bottom out at the end if this year...but it can only be temporary as the gas plant construction will start winding up soon after. Gas plant employs 8000 people at the moment......
     
  14. big max

    big max Well-Known Member

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    Pretty accurate I think. Although I would be more bullish than he is on Brisbane if only for the wealth transfer arbitrage effect from Sydney and Melbourne owners to "the next spot". Also he makes no mention of Gold Coast which should perform very strongly next few years.
     
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  15. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Sales prices and demand at opens doesnt bear that out very accurately. LOTS of investor activity, reminds me of western sydney circa 2010
     
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  16. Xenia

    Xenia Adelaide Property Manager Business Member

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  17. MTR

    MTR Well-Known Member Premium Member

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    interest Dave, is it the lower end? sounds like the beginning of a rising market, is it mainly investor activity
     
  18. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Mainly investors in the low end up to 350k, above that its owner occupiers or developers for a larger lot.
     
  19. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    I don't think I have seen any of your post where you are not pumping the gold coast. :rolleyes:
     
  20. big max

    big max Well-Known Member

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    Doing my best to help you guys make some money ...
     
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