What will stop the BOOM in Sydney and Melbourne

I am probably showing some naivety, but how is this possible? with banks having access to payslips, credit score, and obviously transactional records. I cant see this being a widespread practice, at least to the point of having any real impact.

 

1. all lenders are different. My friends couldn't get an approval with some lenders, but could with others, it means each lender has own criteria.

2. re hiding expenses
- banks look only to limited transaction history. Applicant may postpone some huge expenses (school cost, insurance, new car, renovations, etc) to build the right history, so the history would tell the bank the expenses are low.
- contractors that get cash, use cash for the goods, so their history of expenses may be incomplete

3. you can borrow the money from your friend to show higher income or use that money to close your credit card (or pay off other debt) temporary.

4. it's easy to amend past tax returns (for a few years) to show higher income. Bank won't ask for transaction history, and ATO does not care as long as you pay the taxes.

5. For joint transnational accounts when only one spouse applies for a loan it's not easy to calculate expenses.

etc...

No, it's probably not widespread practice and won't affect the market in normal health condition... but with falling market and other factors... it may have impact.

 

All a conspiracy to build less schools. That there is gold.

 

Honestly I don't blame them. Unless you're on a six figure salary or a DINK with above average incomes Sydney is not the place for you.

 

Couple cashes in on Marrickville terrace renovation as property doubles in price

Still going strong. Personally for me, this wouldn't be my strategy if I was in the couple's situation but if it works for them, good on them.

 

Brisbane/GC next to boom - the stars are aligning nicely for exponential growth in a few years.

 

Might not be a bad thing for people to forceably embrace the idea of responsible spending. Probably the only benefit in what would otherwise be economic armageddon and slipping into the whole "consumers who don't spend" thingy of Japan.

 

Crap, how did I miss these two posts from @melbournian and @Perthguy hahaha.

No longer interested in buying but I do keep a tab on HW/HH. Is it just me or am I not bemused at all about these prices? probably because I never saw HH in 2014 at prices of $400K. Tbh, it looks cheap.

If there is ever a mainland Chinese invasion, which I'm assuming there is, I would not be surprised if it rockets up to 1mil+ averages for a 600m2 block. It is only 12/13kms from the CBD, it only needs now La Trobe to pull up its socks and a kick ass secondary college. I would have never guessed HW/HH to be the next "it" suburb for the mainland Chinese, but it seems so?

I was at an auction on Porter Road a while back, went for $810K for an ex commission houso. 2 bedder I rememeber, also purchased by a young Asian couple.

Hey @melbournian was the guy in the hat/black jeans the Asian bloke you said was from Balwyn? and not sure if I asked, but was the winner at 820 Waterdale Asian as well?

 

Bitter sweet for me. I sold in HH in October 2015, so it's been a bit shocking to see how much prices have boomed since then. No real regrets for me though. The money from the sale has been invested wisely so is likely to even out.

 

Yeh I think we were discussing this in another thread.

The one on Lawson Street isn't expensive, a good 30-40K reno on kitchen/bathroom will sort it out. My cousin had a similar place (but not in Heidelberg Heights). I've always believed in HH will boom sooner of later, distance from the CBD! Springvale a good 23-25kms from the CBD is more or less the same price as HH - but better quality houses from the 70s.

Shocking? My cousin purchased in Clayton in late 2014 for high 600s, I think 690k? It's now worth 1.1mil - place opposite her sold, virtually same block and style of house/number of rooms. I'll be first to be admit, I thought she over purchased on price back then....

 

100k discount on apartments LOL. Wish we found same discount on houses/ or land only blocks

 

it was the short guy at the side - but I think it is more for where it is in the scheme of things (a lot of infra redevelopment) is occurring on the side of Heidelberg West (being nominated as the Latrobe national employment cluster)

 

No chance...have a look at Melton..there was heaps of land for sale only 4 months ago...now there is none and prices have moved 30k...minimum

 

Perhaps the party is finally coming to an end

This is what Steve McKnight has to say.... Don't believe the hype

Property Market Update for Week Ending 21 May 2017
Key Property Market Highlights:

• Auction supply surged but demand appears to have kept pace.
• Melbourne just recorded its lowest auction clearance rate for the year.
• Capital city home prices are still falling week on week.
• The recent headlines are overly hyped. Demand is strong, but it’s not quite as competitive as agents would like you to think

What will stop the boom?
This one, ongoing interest rate rises
ANZ lifts interest-only home loan rates, but cuts principal and interest loans

 

Lots of talk about markets softening, I think we may actually be seeing this happening today.

Anyone on ground Melb and Syd agree with this? What suburbs/areas showing signs of slowdown.

MTR

 

Keen to see this weekend auction results. Suburbs I look in (Brunswicks, moonee ponds, ascot vale, Essendon) definitely slow down, although anything decent under $1.1m gets snapped up. All the $1.3m+ stuff has stopped dead, look at those suburbs on RE.com, all private sale and reductions every week. If RBA don’t cut rates for sentiment value at least, this slowdown will continue I think.

 

Curious, in Spring usually more stock comes to market? Good/Bad? don't know?? If too much stock comes to market prices may actually fall back if buyers are not around. Time will tell whether APRA is actually working, no finance, no buyers

 

The APRA changes are targeted at investment buyers, particularly interest only. It pretty much won't affect PPoR buyers. If there is an uptick in listings in Spring then maybe more PPoR buyers will jump in?

 

IO changes will have impact on PPOR buyers too. 6 months ago IO rate was same as P&I, now there’s a 1% gap. Monthly costs are being pushed up for all borrowers, except the PPOR P&I borrowers.

 

Yes, true. I should have specified PPOR P&I borrowers. With the sharp rates for PPOR P&I borrowers, I didn't consider that a PPOR buyer would be looking at I/O.