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

Absolutely, playing in many moving/rising markets significantly increases profits.

 

Yes. But whether tourists buy or not, if they are visiting and spending that will boost the economy. And that will push up property prices as a result due to residents earning higher incomes. Paris being a good example.

 

To some degree yes but not enough for a boom is what i am getting at. i got friends who do contract work in government in canberra. Wages i would say are maybe 2 times more than what they will earn in melbourne. Yet properties have not jumped significantly. I have property in europe and asia. if you go to santorini in greece, there are also stockloads of tourists yet property there is in no boom. Paris property predominantly in euros has been high and so is london

 

But when money gets taken 'off the table' does it sit in bank accounts,shares, gold or..?

 

I reinvest in other projects/developments, reduce debt, am also buying property in USA.

 

Mine went into an offset account until I was ready to purchase again. I know it's not a particularly effective investment but I'm not a very agressive investor. I only buy a property every 4 or 5 years so far, so money in an offset account suits my risk profile perfectly.

 

Boom = high demand and not enough stock to meet this demand.

When it gets really hot is when we see multiple offers on the table because everyone is competing for the same bit of cheese and this is when we see prices skyrocket as witnessed recently in Sydney and Melbourne

 

Mostly managed funds... and also a car upgrade we all end up in a box, gotta enjoy life a bit!

 

Same in Brisbane City Council.
It's also the same in some of the South Coast council areas.

 

I think it was @Terry_w (?) who did a post on how much effective rate you got on your offset - it's more than the simple interest rate due to CGT (and other stuff I've forgotten?).

 

This one:
Tax Tip 122: PreTax Equivalent Earnings on the PPOR offset Tax Tip 122: PreTax Equivalent Earnings on the PPOR offset

 

So many holy grail questions, no such thing. It's all about IRR and that depends on the time of the day. Doesn't matter the asset class. Last month was oil. Tripled my money before leverage in some bets.

 

Looks like MY predictions about Brisbane/QLD market may close to the mark.
Recent states posted by RPI
Lets see what happens in the next quarter.

Overall
Cairns, Townsville and Rockhampton had median price drops of 4.1, 8.3 and 3.6% respectively

Brisbane houses -2.45 for qtr but still 6.1% for the year, units -.9% and 1.2%
Logan houses 0.5% qtr and 4.3% year
Gold Coast houses 0.5% qtr and 5.8% year, units -0.3% and 1.9%

Volume for houses
Brisbane 0.9% qtr & 4.2% year
Logan 3.8% & 4.9%
Gold Coast 0.5% & 5.8%

 

my goodness, 10 more years for me then

 

hmmm.. i am pretty sure some pro-brisbane person will be back with a theory that there is a boom coming

 

Undoubtedly, but we are six months into 2016, going to be very difficult to come close to 20% CG within next 6 months

 

Its been raining all day in brisbane , and no reports of flooding...this can only mean one thing: boom inevitable

 

I bloody hope so.
We need a new thread - Brisbane is booming.

 

Monthly Indices | CoreLogic RP Data
Data till the end of May
Looking more like 7% for the year at this stage...Unless Labor get in and investor sentiment deteriorates then things might get ugly Australia wide.

 

it's already ugly in at least 3 States in Oz