What will stop the BOOM in Sydney and Melbourne

Discussion in 'Property Market Economics' started by MTR, 5th Nov, 2016.

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  1. is_don_is_good

    is_don_is_good Well-Known Member

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    It's a shame WA doesn't have cheaper flights and better infrastructure for tourists. If they did it right then surely they'd be able to cash in on it.
     
  2. larrylarry

    larrylarry Well-Known Member

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  3. Gockie

    Gockie Life is good ☺️ Premium Member

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  4. Lacrim

    Lacrim Well-Known Member

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  5. Ed Barton

    Ed Barton Well-Known Member

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    Qantas' non stop flights to London will have a big impact on tourism for Perth.
     
  6. MTR

    MTR Well-Known Member

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    You are quite right.

    WA is dead in terms of tourism, we are behind the 8 ball. The city is dead at night, nothing stays open, what do they say about WA..... WAIT AWHILE
     
  7. S1mon

    S1mon Well-Known Member

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    Nothings even open on a sunday is it, not even the supermarket?
     
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  8. is_don_is_good

    is_don_is_good Well-Known Member

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    There's pretty good nightlife and a great pub culture!

    I guess what i mean is that you've got incredible beaches up and down the whole coast, Ningaloo Reef, the Kimberleys, Broome, amazing fishing, all sorts of nature and stuff that Asian tourists like seeing on the East Coast and through the Red Centre. But if you don't have a car, lots of time and a lot of money then it's all too hard to visit.

    There's a huge Asian tourist market much closer to Perth and the Northern WA than Melb and Syd. It's a shame the traffic is mostly just Perth to Bali and back.

    As if tourists are going to fly all the way south to Perth, land, get on a flight the next day that goes all the way back to Northern WA/near Asia and pay $600+ for the domestic flight. The flights are ridiculously expensive and the connections are rubbish.
     
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  9. MTR

    MTR Well-Known Member

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    I love Perth beaches, wineries , I go to Margaret River frequently but it can be much cheaper to travel o/seas as the accommodation is also the killer. Its not just travel costs that kills tourism in WA. Hours of trade does not help, our culture needs to change to compete. As I said WA... wait a while
     
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  10. MTR

    MTR Well-Known Member

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    Anyone notice any cooling of the market??

    Some mentioned cooling in dome Sydney markets

    What about Melb? Anything to report
     
  11. LIDM

    LIDM Well-Known Member

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    A question that's been on my mind lately.. The two cities in Aus that are 'peaky' are Syd and Melb, however APRA's interference affects all markets. So, what are the chances that in the future the rules could split and become different between States? Does that cross the line into "meddling" too much? I understand investor % is larger in Melb+Syd so the changes will affect them to a greater extent, however this is also affecting investment into some of the other more 'stable' markets where intervention isn't required.

    Just how much is government intervention into property investment will be 'enough'?
     
  12. Stoffo

    Stoffo Well-Known Member

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    Even qld had defined trading hours up until recently :)
    Like the good old days before commercialism & chasing every cent :confused:
    There is no longer such a thing as a "day off" :oops:
     
  13. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    That is not the case. Holding a house in Brisbane/Adelaide/Perth there is ZERO financial strain on the investor when yields are 6% or over. In Sydney when yields are like 2% or 3% in some suburbs well lets just say on a 1 million investment with $800k loan a slight increase in rates hurts as your putting your own money into holding it. There is no way rental is covering the costs of holding.

    Also, Brisbane and other cities houses are substantially cheaper. Saving 20% of 500k is ALOT easier than saving 20% of 1 million.

    I actually see more investors moving away from Syd/Melb if tightening gets worse. At the end of the day holdings costs does impact on investment decisions. If your chucking in thousands of your own money each month its eating away at your capital gain.
     
  14. MTR

    MTR Well-Known Member

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    Except average yield in Perth today is around 4%. We got hammered badly, as there is an oversupply of rentals and properties on the market. How will APRA impact? cant get any worse I guess
     
  15. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    OK well thats bad for you Perth guys. Not looking good for enticing investors at that rate that's for sure. Go invest in Brissy - great yields, relatively cheap, great potential, billions of investments and if you buy now it will cost nothing to hold.
     
  16. MWI

    MWI Well-Known Member

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    Who controls the affordability? The banks (well financiers)! Hence interest rises already are impacting....my friend the treasure (let's call him that!) said the loans to investors are already 20% down..... from previous benchmark period.
    I just received 4 letters today with new increases by 0.35%....
     
  17. MTR

    MTR Well-Known Member

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    I am not chasing yields in Australia they are not attractive and unless I see prospective growth I don't see the point. I purchased in Melb and Syd and sold up recently.

    Perth boom cycle was in 2013-14, I developed during this period and sold up prior to the correction. Some investors see Perth as a great place to invest as you are buying on a low, its dependent on strategy, not for me.

    I am sure there will be some good markets in Australia but I prefer to play in US at the moment as it is booming and yields higher than Australia.

    MTR:)
     
  18. MTR

    MTR Well-Known Member

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    I have also received letters regarding increases in IR.

    It wont take too long before we start to see market sentiment change. I am just sitting my hands at the moment
     
  19. MWI

    MWI Well-Known Member

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    Me too, I actually liked buying when there was doom and gloom...rather than the herd mentality! Agents would come up with great offers too.
     
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  20. MWI

    MWI Well-Known Member

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    MTR,

    You seem very busy, buying, developing, selling, travelling, gee, my life seems so boring in comparison (ha, ha, ha!).
     
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